Cherry Hill Mortgage Investment (CHMI) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 06, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Cherry Hill Mortgage Investment Corporation
Entity Central Index Key	1,571,776
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		16,189,618
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
RMBS, available-for-sale (including pledged assets of $1,750,467 and $1,728,564, respectively)	$ 1,838,973	$ 1,840,912
Investments in Servicing Related Assets at fair value (including pledged assets of $281,963 and $122,806, respectively)	281,963	122,806
Cash and cash equivalents	21,388	27,327
Restricted cash	39,710	29,168
Derivative assets	31,431	13,830
Receivables and other assets	20,035	16,642
Total Assets	2,233,500	2,050,685
Liabilities
Repurchase agreements	1,680,394	1,666,537
Derivative liabilities	396	344
Notes payable	129,346	39,025
Dividends payable	9,096	7,273
Due to affiliates	3,776	3,035
Accrued expenses and other liabilities	22,323	12,014
Total Liabilities	1,845,331	1,728,228
Stockholders' Equity
Common stock, $0.01 par value, 500,000,000 shares authorized and 16,189,618 shares issued and outstanding as of September 30, 2018 and 500,000,000 shares authorized and 12,721,464 shares issued and outstanding as of December 31, 2017	162	127
Additional paid-in capital	289,981	229,642
Retained earnings	85,012	35,238
Accumulated other comprehensive income (loss)	(55,194)	(2,942)
Total Cherry Hill Mortgage Investment Corporation Stockholders' Equity	384,471	319,982
Non-controlling interests in Operating Partnership	3,698	2,475
Total Stockholders' Equity	388,169	322,457
Total Liabilities and Stockholders' Equity	2,233,500	2,050,685
Series A Preferred Stock [Member]
Stockholders' Equity
Series A Preferred stock, $0.01 par value, 100,000,000 shares authorized and 2,671,782 shares issued and outstanding as of September 30, 2018 and 100,000,000 shares authorized and 2,400,000 shares issued and outstanding as of December 31, 2017, liquidation preference of $66,795 as of September 30, 2018 and liquidation preference of $60,000 as of December 31, 2017	$ 64,510	$ 57,917

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
RMBS, pledged assets available-for-sale	$ 1,750,467	$ 1,728,564
Investments in Servicing Related pledged assets at fair value	$ 281,963	$ 122,806
Stockholders' Equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	16,189,618	12,721,464
Common stock, shares outstanding (in shares)	16,189,618	12,721,464
Series A Preferred Stock [Member]
Stockholders' Equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	2,671,782	2,400,000
Preferred stock, shares outstanding (in shares)	2,671,782	2,400,000
Preferred stock, liquidation preference	$ 66,795	$ 60,000

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018		Sep. 30, 2017
Income
Interest income	$ 15,323	$ 11,932	$ 40,757		$ 28,012
Interest expense	9,257	6,096	24,124		12,819
Net interest income	6,066	5,836	16,633		15,193
Servicing fee income	14,017	6,307	34,202		16,374
Servicing costs	2,981	1,626	7,087		3,844
Net servicing income	11,036	4,681	27,115		12,530
Other income (loss)
Realized loss on RMBS, net	(428)	(169)	(5,430)		(502)
Realized gain on investments in Excess MSRs, net	0	0	0		6,678
Realized loss on derivatives, net	(707)	(1,480)	(2,727)		(4,294)
Unrealized gain (loss) on derivatives, net	8,807	1,684	34,442		(1,867)
Unrealized gain (loss) on investments in MSRs	6,218	(2,334)	18,351		5,471
Total Income	30,992	8,218	88,384		33,209
Expenses
General and administrative expense	1,165	948	2,979		2,968
Management fee to affiliate	1,599	948	4,297		3,002
Total Expenses	2,764	1,896	7,276		5,970
Income Before Income Taxes	28,228	6,322	81,108		27,239
Provision for (Benefit from) corporate business taxes	729	(537)	4,525	[1]	(542)	[1]
Net Income	27,499	6,859	76,583		27,781
Net income allocated to noncontrolling interests in Operating Partnership	(364)	(93)	(993)		(386)
Dividends on preferred stock	1,372	593	3,902		593
Net Income Applicable to Common Stockholders	$ 25,763	$ 6,173	$ 71,688		$ 26,802
Net Income Per Share of Common Stock
Basic (in dollars per share)	$ 1.62	$ 0.49	$ 5.10		$ 2.43
Diluted (in dollars per share)	$ 1.62	$ 0.49	$ 5.09		$ 2.43
Weighted Average Number of Shares of Common Stock Outstanding
Basic (in shares)	15,864,774	12,703,577	14,065,000		11,023,348
Diluted (in shares)	15,873,030	12,711,776	14,073,256		11,030,401
[1]	The provision for income taxes is recorded at the TRS level.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract]
Net income	$ 27,499	$ 6,859	$ 76,583	$ 27,781
Other comprehensive income (loss):
Net unrealized gain (loss) on RMBS	(13,656)	3,405	(57,682)	10,631
Reclassification of net realized gain on RMBS included in earnings	428	169	5,430	502
Other comprehensive income (loss)	(13,228)	3,574	(52,252)	11,133
Comprehensive income	14,271	10,433	24,331	38,914
Comprehensive income attributable to noncontrolling interests in Operating Partnership	187	142	316	541
Dividends on preferred stock	1,372	593	3,902	593
Comprehensive income attributable to common stockholders	$ 12,712	$ 9,698	$ 20,113	$ 37,780

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings (Deficit) [Member]	Non-Controlling Interest in Operating Partnership [Member]	Total
Beginning balance at Dec. 31, 2016	$ 75	$ 0	$ 148,457	$ (6,393)	$ 12,093	$ 1,777	$ 156,009
Beginning balance (in shares) at Dec. 31, 2016	7,525,348	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 52	$ 0	81,126	0	0	0	81,178
Issuance of common stock (in shares)	5,196,116	0
Issuance of preferred stock	$ 0	$ 57,917	0	0	0	0	57,917
Issuance of preferred stock (in shares)	0	2,400,000
Conversion of OP units	$ 0	$ 0	0	0	0	(238)	(238)
Net Income before dividends on preferred stock	0	0	0	0	27,395	386	27,781
Other Comprehensive Income	0	0	0	11,133	0	0	11,133
LTIP-OP Unit awards	0	0	0	0	0	464	464
Distribution paid on LTIP-OP Units	0	0	0	0	0	(245)	(245)
Common dividends declared	0	0	0	0	(16,142)	0	(16,142)
Preferred dividends declared	0	0	0	0	(593)	0	(593)
Ending balance at Sep. 30, 2017	$ 127	$ 57,917	229,583	4,740	22,753	2,144	317,264
Ending balance (in shares) at Sep. 30, 2017	12,721,464	2,400,000
Beginning balance at Dec. 31, 2017	$ 127	$ 57,917	229,642	(2,942)	35,238	2,475	$ 322,457
Beginning balance (in shares) at Dec. 31, 2017	12,721,464	2,400,000					12,721,464
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 35	$ 0	60,339	0	0	0	$ 60,374
Issuance of common stock (in shares)	3,468,154	0
Issuance of preferred stock	$ 0	$ 6,593	0	0	0	0	6,593
Issuance of preferred stock (in shares)	0	271,782
Net Income before dividends on preferred stock	$ 0	$ 0	0	0	75,590	993	76,583
Other Comprehensive Income	0	0	0	(52,252)	0	0	(52,252)
LTIP-OP Unit awards	0	0	0	0	0	494	494
Distribution paid on LTIP-OP Units	0	0	0	0	0	(264)	(264)
Common dividends declared	0	0	0	0	(21,914)	0	(21,914)
Preferred dividends declared	0	0	0	0	(3,902)	0	(3,902)
Ending balance at Sep. 30, 2018	$ 162	$ 64,510	$ 289,981	$ (55,194)	$ 85,012	$ 3,698	$ 388,169
Ending balance (in shares) at Sep. 30, 2018	16,189,618	2,671,782					16,189,618

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) [Abstract]
Common dividends declared (in dollars per share)	$ 1.47	$ 1.47
Preferred dividends declared (in dollars per share)	$ 1.5375	$ 0.33

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities
Net income	$ 76,583	$ 27,781
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Realized loss on RMBS, net	5,430	502
Change in fair value of investments in Servicing Related Assets	(18,351)	(5,471)
Realized gain on investments in Excess MSRs, net	0	(6,678)
Realized loss on derivatives, net	2,727	4,294
Unrealized (gain) loss on derivatives, net	(34,442)	1,867
Realized gain on dollar rolls, net	(865)	0
Amortization of premiums on investment securities	10,906	5,928
Amortization of deferred financing costs	80	51
LTIP-OP Unit awards	494	464
Changes in:
Receivables and other assets	(3,393)	(1,564)
Due to affiliates	741	1,344
Payables for unsettled trades	0	(6,202)
Accrued expenses and other liabilities	12,132	5,753
Net cash provided by (used in) operating activities	52,042	28,069
Cash Flows From Investing Activities
Purchase of RMBS	(396,216)	(1,198,101)
Principal paydown of RMBS	134,196	74,127
Proceeds from sale of RMBS	195,373	46,207
Proceeds from sale of Excess MSRs	0	35,905
Acquisition of MSRs	(140,806)	(59,605)
Purchase of derivatives	(2,873)	(3,059)
Sale of derivatives	(35)	87
Net cash used in investing activities	(210,361)	(1,104,439)
Cash Flows From Financing Activities
Changes in restricted cash	(10,542)	(5,487)
Borrowings under repurchase agreements	5,174,557	3,130,017
Repayments of repurchase agreements	(5,160,697)	(2,163,558)
Proceeds from derivative financing	17,935	0
Proceeds from bank loans	91,744	21,949
Principal paydown of bank loans	(1,504)	(10,353)
Dividends paid	(25,816)	(16,735)
LTIP-OP Units distributions paid	(264)	(245)
Conversion of OP units	0	(238)
Issuance of common stock, net of offering costs	60,374	81,178
Issuance of preferred stock, net of offering costs	6,593	57,917
Net cash provided by financing activities	152,380	1,094,445
Net Increase (Decrease) in Cash and Cash Equivalents	(5,939)	18,075
Cash and Cash Equivalents, Beginning of Period	27,327	15,824
Cash and Cash Equivalents, End of Period	21,388	33,899
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest expense	23,747	8,081
Dividends declared but not paid	$ 9,096	$ 6,827

Organization and Operations

Organization and Operations	9 Months Ended
	Sep. 30, 2018
Organization and Operations [Abstract]
Organization and Operations	Note 1 — Organization and Operations Cherry Hill Mortgage Investment Corporation (together with its consolidated subsidiaries, the “Company”) was organized in the state of Maryland on October 31, 2012 to invest in residential mortgage assets in the United States. Under the Company’s charter, the Company is authorized to issue up to 500,000,000 shares of common stock and 100,000,000 shares of preferred stock, each with a par value of $0.01 per share. The accompanying interim consolidated financial statements include the accounts of the Company’s subsidiaries, Cherry Hill Operating Partnership, LP (the “Operating Partnership”), Cherry Hill QRS I, LLC, Cherry Hill QRS II, LLC, Cherry Hill QRS III, LLC (“QRS III”), Cherry Hill QRS IV, LLC (“QRS IV”), Cherry Hill QRS V, LLC ("QRS V"), CHMI Solutions, Inc. (“CHMI Solutions”) and Aurora Financial Group, Inc. (“Aurora”). On October 9, 2013, the Company completed an initial public offering (the “IPO”) and a concurrent private placement of its common stock. The Company did not conduct any activity prior to the IPO and the concurrent private placement. Substantially all of the net proceeds from the IPO and the concurrent private placement were used to invest in excess mortgage servicing rights on residential mortgage loans (“Excess MSRs”) and residential mortgage-backed securities (“RMBS” or “securities”). RMBS on which the payment of principal and interest is guaranteed by a U.S. government agency or a U.S. government sponsored enterprise are referred to as “Agency RMBS.” On March 29, 2017, the Company issued and sold 5,175,000 shares of its common stock, par value $0.01 per share, raising approximately $81.1 million after underwriting discounts and commissions but before expenses of approximately $229,000. All of the net proceeds were invested in RMBS. On August 17, 2017, the Company issued and sold 2,400,000 shares of its 8.20% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”), raising approximately $58.1 million after underwriting discounts and commissions but before expenses of approximately $193,000. All of the net proceeds from the Series A Preferred Stock offering were also invested in RMBS. The Company anticipates that a significant portion of the net proceeds received from paydowns of these RMBS will be deployed into the acquisition of mortgage servicing rights (“MSRs”). The Company may also sell certain of these RMBS and deploy the net proceeds from such sales to the extent necessary to fund the purchase price of MSRs. On June 4, 2018, the Company issued and sold 2,750,000 shares of its common stock, par value $0.01 per share. The underwriters subsequently exercised their option to purchase an additional 338,857 shares for total proceeds of approximately $53.8 million after underwriting discounts and commissions but before expenses of approximately $265,000. All of the net proceeds were invested in RMBS. The Company is party to a management agreement (the “Management Agreement”) with Cherry Hill Mortgage Management, LLC (the “Manager”), a Delaware limited liability company established by Mr. Stanley Middleman. The Manager is a party to a Services Agreement with Freedom Mortgage Corporation (“Freedom Mortgage”), which is owned and controlled by Mr. Middleman. The Manager is owned by a “blind trust” for the benefit of Mr. Middleman. For a further discussion of the Management Agreement, see Note 7. The Company has elected to be taxed as a real estate investment trust (“REIT”), as defined under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its short taxable year ended December 31, 2013. As long as the Company continues to comply with a number of requirements under federal tax law and maintains its qualification as a REIT, the Company generally will not be subject to U.S. federal income taxes to the extent that the Company distributes its taxable income to its stockholders on an annual basis and does not engage in prohibited transactions. However, certain activities that the Company may perform may cause it to earn income that will not be qualifying income for REIT purposes.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Significant Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Note 2 — Basis of Presentation and Significant Accounting Policies Basis of Accounting The accompanying interim consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. The interim consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. The Company consolidates those entities in which it has an investment of 50% or more and has control over significant operating, financial and investing decisions of the entity. The interim consolidated financial statements reflect all necessary and recurring adjustments for fair presentation of the results for the interim periods presented herein. Emerging Growth Company Status On April 5, 2012, the Jumpstart Our Business Startups Act (the “JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. Because the Company qualifies as an “emerging growth company,” it may, under Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the “Securities Act”), delay adoption of new or revised accounting standards applicable to public companies until such standards would otherwise apply to private companies. The Company has elected to take advantage of this extended transition period until the first to occur of the date that it (i) is no longer an “emerging growth company” or (ii) affirmatively and irrevocably opts out of this extended transition period. As a result, the consolidated interim financial statements may not be comparable to those of other public companies that comply with such new or revised accounting standards. Until the date that the Company is no longer an “emerging growth company” (expected to occur as of December 31, 2018) or affirmatively and irrevocably opts out of the extended transition period, upon issuance of a new or revised accounting standard that applies to the consolidated interim financial statements and that has a different effective date for public and private companies, the Company will disclose the date on which adoption is required for non-emerging growth public companies and the date on which it will adopt the new or revised accounting standard. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make a number of significant estimates and assumptions. These include estimates of: the fair value of Excess MSRs and MSRs (collectively, “Servicing Related Assets”); RMBS and derivatives; credit losses, including the period of time during which the Company anticipates an increase in the fair values of RMBS sufficient to recover unrealized losses on those RMBS; and other estimates that affect the reported amounts of certain assets, revenues, liabilities and expenses as of the date of, and for the periods covered by, the consolidated interim financial statements. It is likely that changes in these estimates will occur in the near term. The Company’s estimates are inherently subjective in nature. Actual results could differ from the Company’s estimates, and the differences may be material. Risks and Uncertainties In the normal course of business, the Company encounters primarily two significant types of economic risk: credit and market. Credit risk is the risk of default on the Company’s investments in RMBS, Servicing Related Assets and derivatives that results from a borrower’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments in RMBS, Servicing Related Assets and derivatives due to changes in interest rates, spreads or other market factors, including prepayment speeds on the Company’s RMBS and Servicing Related Assets. The Company is subject to the risks involved with real estate and real estate-related debt instruments. These include, among others, the risks normally associated with changes in the general economic climate, changes in the mortgage market, changes in tax laws, interest rate levels, and the availability of financing. The Company also is subject to certain risks relating to its status as a REIT for U.S. federal income tax purposes. If the Company were to fail to qualify as a REIT in any taxable year, the Company would be subject to U.S. federal income tax on its REIT income, which could be material. Unless entitled to relief under certain statutory provisions, the Company would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. Investments in RMBS Classification Fair value is determined under the guidance of Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures Investment securities transactions are recorded on the trade date. At disposition, the net realized gain or loss is determined on the basis of the cost of the specific investment and is included in earnings. All RMBS purchased and sold in the three month and nine month periods ended September 30, 2018 were settled prior to period-end. All RMBS purchased and sold in the year ended December 31, 2017 were settled prior to year-end. Revenue Recognition – 5.9 Impairment – Investments in Excess MSRs As a result of the Company’s sale of its remaining Excess MSRs in February 2017, there were no Excess MSRs at September 30, 2018 or December 31, 2017. Classification Revenue Recognition In connection with the sale of its Excess MSRs, the Company elected a settlement date accounting policy to account for the gain on sale from that transaction. For a further discussion of the Company’s sale of its Excess MSRs, see Note 7. Investments in MSRs Classification Revenue Recognition 5.6 Servicing fee income received and servicing expenses incurred are reported on the consolidated statements of income. The difference between the fair value of MSRs and their amortized cost basis is recorded on the consolidated statements of income as “Unrealized gain (loss) on investments in MSRs.” Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the MSRs and, therefore, may differ from their effective yields. As a result of the Company’s investments in MSRs, it is obligated from time to time to repurchase an underlying loan from the applicable agency for which it is being serviced due to an alleged breach of a representation or warranty. Loans acquired in this manner are recorded at the purchase price less any principal recoveries and are then offered for sale in the scratch and dent market. Derivatives and Hedging Activities Derivative transactions include swaps, swaptions, Treasury futures and “to-be-announced” securities (“TBAs”). Swaps and swaptions are entered into by the Company solely for interest rate risk management purposes. TBAs and Treasury futures are used for duration risk and basis risk management purposes. The decision as to whether or not a given transaction/position (or portion thereof) is economically hedged is made on a case-by-case basis, based on the risks involved and other factors as determined by senior management, including restrictions imposed by the Code on REITs. In determining whether to economically hedge a risk, the Company may consider whether other assets, liabilities, firm commitments and anticipated transactions already offset or reduce the risk. All transactions undertaken as economic hedges are entered into with a view towards minimizing the potential for economic losses that could be incurred by the Company. Generally, derivatives entered into are not intended to qualify as hedges under GAAP, unless specifically stated otherwise. The Company’s bi-lateral derivative financial instruments contain credit risk to the extent that its bank counterparties may be unable to meet the terms of the agreements. The Company reduces such risk by limiting its exposure to any one counterparty. In addition, the potential risk of loss with any one party resulting from this type of credit risk is monitored. The Company’s interest rate swaps are required to be cleared on an exchange, which further mitigates, but does not eliminate, credit risk. Management does not expect any material losses as a result of default by other parties to its derivative financial instruments. Classification Revenue Recognition Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. Restricted cash represents the Company’s cash held by counterparties (i) as collateral against the Company’s derivatives ($ 2.1 37.6 The Company’s centrally cleared interest rate swaps require that the Company posts an “initial margin” amount determined by the clearing exchange, which is generally intended to be set at a level sufficient to protect the exchange from the interest rate swap’s maximum estimated single-day price movement. The Company also exchanges “variation margin” based upon daily changes in fair value, as measured by the exchange. As a result of amendments to rules governing certain central clearing activities, the exchange of variation margin is a settlement of the interest rate swap, as opposed to pledged collateral. Accordingly, beginning in the first quarter of 2018 and in subsequent periods, the Company will account for the receipt or payment of variation margin as a direct reduction to the carrying value of the interest rate swap asset or liability. At September 30, 2018, $ 17.9 Due to Affiliates The sum under “Due to affiliates” on the consolidated balance sheets represents amounts due to the Manager pursuant to the Management Agreement. For further information on the Management Agreement, see Note 7. Income Taxes The Company elected to be taxed as a REIT under Code Sections 856 through 860 beginning with its short taxable year ended December 31, 2013. As a REIT, the Company generally will not be subject to U.S. federal income tax to the extent that it distributes its taxable income to its stockholders and does not engage in prohibited transactions. The Company’s taxable REIT subsidiary (“TRS”), CHMI Solutions, and its wholly-owned subsidiary, Aurora, are subject to U.S. federal income taxes on its taxable income. To maintain qualification as a REIT, the Company must distribute at least 90% of its annual REIT taxable income to its stockholders and meet certain other requirements such as assets it may hold, income it may generate and its stockholder composition. The Company accounts for income taxes in accordance with ASC 740, Income Taxes Realized Gain (Loss) on Investments, Net The following table presents gains and losses on sales of the specified categories of investments for the periods indicated (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Realized gain (loss) on RMBS, net Gain on RMBS $ - $ 213 $ 104 $ 213 Loss on RMBS (428 ) (382 ) (5,534 ) (715 ) Net realized loss on RMBS (428 ) (169 ) (5,430 ) (502 ) Realized loss on derivatives, net (707 ) (1,480 ) (2,727 ) (4,294 ) Unrealized gain (loss) on derivatives, net 8,807 1,684 34,442 (1,867 ) Realized gain on Excess MSRs, net - - - 6,678 Unrealized gain (loss) on MSRs, net 6,218 (2,334 ) 18,351 5,471 Total $ 13,890 $ (2,299 ) $ 44,636 $ 5,486 Repurchase Agreements and Interest Expense The Company finances its investments in RMBS with short-term borrowings under master repurchase agreements. Borrowings under the repurchase agreements are generally short-term debt due within one year. These borrowings generally bear interest rates of a specified margin over one-month LIBOR. The repurchase agreements represent uncommitted financing. Borrowings under these agreements are treated as collateralized financing transactions and are carried at their contractual amounts, as specified in the respective agreements. Interest is recorded at the contractual amount on an accrual basis. Dividends Payable Because the Company is organized as a REIT under the Code, it is required by law to distribute annually at least 90% of its REIT taxable income, which it does in the form of quarterly dividend payments. The Company accrues the dividend payable on the accounting date, which causes an offsetting reduction in retained earnings. Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period resulting from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For the Company’s purposes, comprehensive income represents net income, as presented in the consolidated statements of income, adjusted for unrealized gains or losses on RMBS, which are designated as available for sale. Recent Accounting Pronouncements Leases Revenue Recognition Revenue from Contracts with Customers Revenue Recognition Transfers and Servicing Credit Losses Financial Instruments—Credit Losses Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments Income Taxes Income Taxes Restricted Cash Restricted Cash Fair Value Measurement

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Reporting	Note 3 — Segment Reporting The Company conducts its business through the following segments: (i) investments in RMBS; (ii) investments in Servicing Related Assets; and (iii) “All Other,” which consists primarily of general and administrative expenses, including fees paid to the Company’s directors and management fees and reimbursements paid to the Manager pursuant to the Management Agreement (See Note 7). For segment reporting purposes, the Company does not allocate interest income on short-term investments or general and administrative expenses. Summary financial data with respect to the Company’s segments is given below, together with a reconciliation to the same data for the Company as a whole (dollars in thousands): Servicing RMBS All Other Total Income Statement Three Months Ended September 30, 2018 Interest income $ - $ 15,323 $ - $ 15,323 Interest expense 629 8,626 2 9,257 Net interest income (629 ) 6,697 (2 ) 6,066 Servicing fee income 14,017 - - 14,017 Servicing costs 2,981 - - 2,981 Net servicing income 11,036 - - 11,036 Other income 6,218 7,672 - 13,890 Other operating expenses - - 2,764 2,764 (Benefit from) provision for corporate business taxes 729 - - 729 Net income (loss) $ 15,896 $ 14,369 $ (2,766 ) $ 27,499 Three Months Ended September 30, 2017 Interest income $ - $ 11,932 $ - $ 11,932 Interest expense 185 5,911 - 6,096 Net interest income (185 ) 6,021 - 5,836 Servicing fee income 6,307 - - 6,307 Servicing costs 1,626 - - 1,626 Net servicing income 4,681 - - 4,681 Other income (2,334 ) 35 - (2,299 ) Other operating expenses - - 1,896 1,896 (Benefit from) provision for corporate business taxes (537 ) - - (537 ) Net income (loss) $ 2,699 $ 6,056 $ (1,896 ) $ 6,859 Nine Months Ended September 30, 2018 Interest income $ - 40,757 $ - $ 40,757 Interest expense 1,266 22,856 2 24,124 Net interest income (1,266 ) 17,901 (2 ) 16,633 Servicing fee income 34,202 - - 34,202 Servicing costs 7,087 - - 7,087 Net servicing income 27,115 - - 27,115 Other income 18,351 26,285 - 44,636 Other operating expenses - - 7,276 7,276 (Benefit from) provision for corporate business taxes 4,525 - - 4,525 Net income (loss) $ 39,675 $ 44,186 $ (7,278 ) $ 76,583 Nine Months Ended September 30, 2017 Interest income $ 523 $ 27,489 $ - $ 28,012 Interest expense 422 12,397 - 12,819 Net interest income 101 15,092 - 15,193 Servicing fee income 16,374 - - 16,374 Servicing costs 3,844 - - 3,844 Net servicing income 12,530 - - 12,530 Other income 12,149 (6,663 ) - 5,486 Other operating expenses - - 5,970 5,970 (Benefit from) provision for corporate business taxes (542 ) - - (542 ) Net income (loss) $ 25,322 $ 8,429 $ (5,970 ) $ 27,781 Balance Sheet September 30, 2018 Investments $ 281,963 $ 1,838,973 $ - $ 2,120,936 Other assets 14,055 77,078 21,431 112,564 Total assets 296,018 1,916,051 21,431 2,233,500 Debt 129,346 1,680,394 - 1,809,740 Other liabilities 14,951 5,978 14,662 35,591 Total liabilities 144,297 1,686,372 14,662 1,845,331 Book value $ 151,721 $ 229,679 $ 6,769 $ 388,169 December 31, 2017 Investments $ 122,806 $ 1,840,912 $ - $ 1,963,718 Other assets 8,281 48,631 30,055 86,967 Total assets 131,087 1,889,543 30,055 2,050,685 Debt 39,025 1,666,537 - 1,705,562 Other liabilities 6,575 4,385 11,706 22,666 Total liabilities 45,600 1,670,922 11,706 1,728,228 Book value $ 85,487 $ 218,621 $ 18,349 $ 322,457

Investments in RMBS

Investments in RMBS	9 Months Ended
	Sep. 30, 2018
Investments in RMBS [Abstract]
Investments in RMBS	Note 4 — Investments in RMBS All of the Company’s RMBS are classified as available for sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income (loss) except for securities that are OTTI (dollars in thousands): Summary of RMBS Assets As of September 30, 2018 Asset Type Original Face Value Book Value Gross Unrealized Carrying Value (A) Number of Securities Weighted Average Gains Losses Rating Coupon Yield (C) Maturity (Years) (D) RMBS Fannie Mae $ 1,430,611 $ 1,285,060 $ 30 $ (44,600 ) $ 1,240,490 162 (B) 3.85 % 3.69 % 25 Freddie Mac 566,251 493,798 - (18,380 ) 475,418 65 (B) 3.74 % 3.59 % 27 CMOs 115,879 114,618 8,471 (24 ) 123,065 26 (B) 5.74 % 5.40 % 13 Total/Weighted Average $ 2,112,741 $ 1,893,476 $ 8,501 $ (63,004 ) $ 1,838,973 253 3.94 % 3.77 % 25 As of December 31, 2017 Asset Type Original Book Gross Unrealized Carrying Value(A) Number of Securities Weighted Average Gains Losses Rating Coupon Yield (C) Maturity (Years) (D) RMBS Fannie Mae $ 1,306,823 $ 1,241,027 $ 1,427 $ (8,755 ) $ 1,233,699 154 (B) 3.80 % 3.61 % 26 Freddie Mac 556,204 515,475 864 (2,795 ) 513,544 64 (B) 3.74 % 3.57 % 27 CMOs 98,325 87,353 6,343 (27 ) 93,669 20 (B) 5.26 % 4.88 % 12 Total/Weighted Average $ 1,961,352 $ 1,843,855 $ 8,634 $ (11,577 ) $ 1,840,912 238 3.86 % 3.66 % 25 (A) See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities. (B) The Company used an implied AAA rating for the Agency RMBS. Collateralized mortgage obligations (“CMOs”) issued by Fannie Mae or Freddie Mac consist of loss share securities, the majority of which, by unpaid principal balance (“UPB”), are unrated or rated below investment grade at September 30, 2018 by at least one nationally recognized statistical rating organization (“NRSRO”). Private label securities are rated investment grade or better by at least one NRSRO as of September 30, 2018. (C) The weighted average yield is based on the most recent annualized monthly interest income, divided by the book value of settled securities. (D) The weighted average maturity is based on the timing of expected principal reduction on the assets. Summary of RMBS Assets by Maturity As of September 30, 2018 Years to Maturity Original Book Gross Unrealized Carrying Value (A) Number of Securities Weighted Average Gains Losses Rating Coupon Yield (C) Maturity (Years) (D) 5-10 Years $ 20,620 $ 12,679 $ 287 $ (136 ) $ 12,830 6 (B) 4.17 % 4.10 % 8 Over 10 Years 2,092,121 1,880,797 8,214 (62,868 ) 1,826,143 247 (B) 3.94 % 3.76 % 25 Total/Weighted Average $ 2,112,741 $ 1,893,476 $ 8,501 $ (63,004 ) $ 1,838,973 253 3.94 % 3.77 % 25 As of December 31, 2017 Years to Maturity Original Face Value Book Value Gross Unrealized Carrying Value (A) Number of Securities Weighted Average Gains Losses Rating Coupon Yield (C) Maturity (Years) (D) 5-10 Years $ 16,069 $ 15,483 $ 324 $ (312 ) $ 15,495 3 (B) 4.33 % 4.06 % 7 Over 10 Years 1,945,283 1,828,372 8,310 (11,265 ) 1,825,417 235 (B) 3.85 % 3.65 % 26 Total/Weighted Average $ 1,961,352 $ 1,843,855 $ 8,634 $ (11,577 ) $ 1,840,912 238 3.86 % 3.66 % 25 (A) See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities. (B) The Company used an implied AAA rating for the Agency RMBS. CMOs issued by Fannie Mae or Freddie Mac consist of loss share securities, the majority of which, by UPB, are unrated or rated below investment grade at September 30, 2018 by at least one NRSRO. Private label securities are rated investment grade or better by at least one NRSRO as of September 30, 2018. (C) The weighted average yield is based on the most recent annualized monthly interest income, divided by the book value of settled securities. (D) The weighted average maturity is based on the timing of expected principal reduction on the assets. At September 30, 2018 and December 31, 2017, the Company pledged Agency RMBS with a carrying value of approximately $ 1,750.5 Based on management’s analysis of the Company’s securities, the performance of the underlying loans and changes in market factors, management determined that unrealized losses as of the balance sheet date on the Company’s securities were primarily the result of changes in market factors, rather than issuer-specific credit impairment, and such losses were considered temporary. The Company performed analyses in relation to such securities, using management’s best estimate of their cash flows, which support its belief that the carrying values of such securities were fully recoverable over their expected holding periods. Such market factors include changes in market interest rates and credit spreads and certain macroeconomic events, none of which will directly impact the Company’s ability to collect amounts contractually due. Management continually evaluates the credit status of each of the Company’s securities and the collateral supporting those securities. This evaluation includes a review of the credit of the issuer of the security (if applicable), the credit rating of the security (if applicable), the key terms of the security (including credit support), debt service coverage and loan to value ratios, the performance of the pool of underlying loans and the estimated value of the collateral supporting such loans, including the effect of local, industry and broader economic trends and factors. Significant judgment is required in this analysis. In connection with the above, the Company weighs the fact that substantially all of its investments in RMBS are guaranteed by U.S. government agencies or U.S. government sponsored enterprises. Unrealized losses that are considered OTTI are recognized in earnings. The Company did not record any OTTI charges during the three month period ended September 30, 2018. The Company recorded approximately $45,000 of OTTI charges during the nine month period ended September 30, 2018. The Company did not record any OTTI charges during the three month period ended September 30, 2017. The Company recorded approximately $77,000 of OTTI charges during the nine month period ended September 30, 2017. The following tables summarize the Company’s securities in an unrealized loss position as of the dates indicated (dollars in thousands): RMBS Unrealized Loss Positions As of September 30, 2018 Duration in Loss Position Original Face Value Book Value Gross Unrealized Losses Carrying Value (A) Number of Securities Weighted Average Rating Coupon Yield (C) Maturity (Years) (D) Less than Twelve Months $ 1,129,948 $ 1,001,654 $ (26,745 ) $ 974,909 125 (B) 3.90 % 3.76 % 26 Twelve or More Months 856,814 773,492 (36,259 ) 737,233 102 (B) 3.72 % 3.54 % 25 Total/Weighted Average $ 1,986,762 $ 1,775,146 $ (63,004 ) $ 1,712,142 227 3.82 % 3.66 % 26 As of December 31, 2017 Duration in Loss Position Original Face Value Book Value Gross Unrealized Losses Carrying Value (A) Number of Securities Weighted Average Rating Coupon Yield (C) Maturity (Years) (D) Less than Twelve Months $ 1,026,911 $ 1,005,352 $ (5,378 ) $ 999,974 111 (B) 3.81 % 3.63 % 26 Twelve or More Months 323,858 289,599 (6,199 ) 283,400 45 (B) 3.61 % 3.40 % 25 Total/Weighted Average $ 1,350,769 $ 1,294,951 $ (11,577 ) $ 1,283,374 156 3.76 % 3.58 % 26 (A) See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities. (B) The Company used an implied AAA rating for the Agency RMBS. CMOs issued by Fannie Mae or Freddie Mac consist of loss share securities, the majority of which, by UPB, are unrated or rated below investment grade at September 30, 2018 by at least one NRSRO. Private label securities are rated investment grade or better by at least one NRSRO as of September 30, 2018. (C) The weighted average yield is based on the most recent annualized monthly interest income, divided by the book value of settled securities. (D) The weighted average maturity is based on the timing of expected principal reduction on the assets. Except for the security for which the Company has recognized OTTI, the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases which may be maturity.

Investments in Servicing Relate

Investments in Servicing Related Assets	9 Months Ended
	Sep. 30, 2018
Investments in Servicing Related Assets [Abstract]
Investments in Servicing Related Assets	Note 5 — Investments in Servicing Related Assets Excess MSRs In 2013 and 2014, the Company acquired Excess MSRs from Freedom Mortgage and entered into recapture agreements with Freedom Mortgage. For reporting purposes, these Excess MSRs were aggregated into three pools: Excess MSR Pool 1, Excess MSR Pool 2 and Excess MSR Pool 2014. Excess MSR Pool 1 and Excess MSR Pool 2014 were sold to Freedom Mortgage on November 15, 2016, and Excess MSR Pool 2 was sold to Freedom Mortgage on February 1, 2017. Each recapture agreement between the Company and Freedom Mortgage was terminated at the time the related pool was sold. See Note 7. MSRs On May 29, 2015, in conjunction with the acquisition of Aurora, the Company acquired MSRs on conventional mortgage loans with an aggregate UPB of approximately $718.4 million at the time of acquisition. Subsequently, Aurora acquired portfolios of Fannie Mae, Freddie Mac and Ginnie Mae MSRs with an aggregate UPB of approximately $ 24.6 In June 2016, Aurora entered into a joint marketing recapture agreement with Freedom Mortgage. Pursuant to this agreement, Freedom Mortgage attempts to refinance certain mortgage loans underlying Aurora’s MSR portfolio as directed by Aurora. See Note 7. The following is a summary of the Company’s Servicing Related Assets as of the dates indicated (dollars in thousands): Servicing Related Assets Summary As of September 30, 2018 Unpaid Principal Balance Cost Basis Carrying Value (A) Weighted Average Coupon Weighted Average Maturity (Years) (B) Changes in Fair Value Recorded in Other Income (Loss) MSRs Conventional $ 18,849,384 $ 223,154 (C) $ 238,277 4.29 % 27.3 $ 15,123 Government 3,596,317 40,458 (C) 43,686 3.36 % 27.1 3,228 Total / Weighted Average $ 22,445,701 $ 263,612 $ 281,963 4.14 % 27.2 $ 18,351 As of December 31, 2017 Unpaid Principal Balance Cost Basis Carrying Value (A) Weighted Average Coupon Weighted Average Maturity (Years) (B) Changes in Fair Value Recorded in Other Income (Loss) MSRs Conventional $ 7,724,397 $ 81,499 (C) $ 82,150 3.89 % 25.2 $ 651 Government 3,986,254 32,148 (C) 40,656 3.36 % 27.8 8,508 Total / Weighted Average $ 11,710,651 $ 113,647 $ 122,806 3.71 % 26.1 $ 9,159 (A) Carrying value represents the fair value of the pools (see Note 9). (B) The weighted average maturity represents the weighted average expected timing of the receipt of cash flows of each investment. (C) MSR cost basis consists of the carrying value of the prior period, adjusted for any purchases, sales and principal paydowns of the underlying mortgage loans. The tables below summarize the geographic distribution for the states representing 5% or greater of the aggregate UPB of the residential mortgage loans underlying the Servicing Related Assets as of the dates indicated: Geographic Concentration of Servicing Related Assets As of September 30, 2018 Percentage of Total Outstanding California 13.6 % Texas 6.3 % Florida 5.3 % All other 74.9 % Total 100.0 % As of December 31, 2017 Percentage of Total Outstanding California 13.7 % New Jersey 7.2 % Florida 5.3 % All other 73.8 % Total 100.0 % Geographic concentrations of investments expose the Company to the risk of economic downturns within the relevant states. Any such downturn in a state where the Company holds significant investments could affect the underlying borrower’s ability to make the mortgage payment and, therefore, could have a meaningful, negative impact on the Company’s Servicing Related Assets.

Equity and Earnings per Common

Equity and Earnings per Common Share	9 Months Ended
	Sep. 30, 2018
Equity and Earnings per Common Share [Abstract]
Equity and Earnings per Common Share	Note 6 — Equity and Earnings per Common Share Equity Incentive Plan During 2013, the board of directors approved and the Company adopted the Cherry Hill Mortgage Investment Corporation 2013 Equity Incentive Plan (the “2013 Plan”). The 2013 Plan provides for the grant of options to purchase shares of the Company’s common stock, stock awards, stock appreciation rights, performance units, incentive awards and other equity-based awards, including long term incentive plan units (“LTIP-OP Units”) of the Operating Partnership. LTIP-OP Units are a special class of partnership interest in the Operating Partnership. LTIP-OP Units may be issued to eligible participants for the performance of services to or for the benefit of the Operating Partnership. Initially, LTIP-OP Units do not have full parity with the Operating Partnership’s common units of limited partnership interest (“OP Units”) with respect to liquidating distributions; however, LTIP-OP Units receive, whether vested or not, the same per-unit distributions as OP Units and are allocated their pro-rata share of the Operating Partnership’s net income or loss. Under the terms of the LTIP-OP Units, the Operating Partnership will revalue its assets upon the occurrence of certain specified events, and any increase in the Operating Partnership’s valuation from the time of grant of the LTIP-OP Units until such event will be allocated first to the holders of LTIP-OP Units to equalize the capital accounts of such holders with the capital accounts of the holders of OP Units. Upon equalization of the capital accounts of the holders of LTIP-OP Units with the other holders of OP Units, the LTIP-OP Units will achieve full parity with OP Units for all purposes, including with respect to liquidating distributions. If such parity is reached, vested LTIP-OP Units may be converted into an equal number of OP Units at any time and, thereafter, enjoy all the rights of OP Units, including redemption rights. Each LTIP-OP Unit awarded is deemed equivalent to an award of one share of the Company’s common stock under the 2013 Plan and reduces the 2013 Plan’s share authorization for other awards on a one-for-one basis. An LTIP-OP Unit and a share of common stock of the Company have substantially the same economic characteristics in as much as they effectively share equally in the net income or loss of the Operating Partnership. Holders of LTIP-OP Units that have reached parity with OP Units have the right to redeem their LTIP-OP Units, subject to certain restrictions. The redemption is required to be satisfied in cash, or at the Company’s option, the Company may purchase the OP Units for common stock, calculated as follows: one share of the Company’s common stock, or cash equal to the fair value of a share of the Company’s common stock at the time of redemption, for each LTIP-OP Unit. When an LTIP-OP Unit holder redeems an OP Unit (as described above), non-controlling interest in the Operating Partnership is reduced and the Company’s equity is increased. LTIP-OP Units vest ratably over the first three annual anniversaries of the grant date. The fair value of each LTIP-OP Unit was determined based on the closing price of the Company’s common stock on the applicable grant date in all other cases. The following table sets forth the number of shares of the Company’s common stock and the values thereof (based on the closing prices on the respective dates of grant) granted to the Company’s independent directors under the 2013 Plan. Except as otherwise indicated, all shares are fully vested. The following tables present certain information about the 2013 Plan as of the dates indicated: Equity Incentive Plan Information LTIP-OP Units Shares of Common Stock Number of Securities Remaining Available For Future Issuance Under Equity Issuance Price Issued Forfeited Converted Issued Forfeited Compensation Plans December 31, 2016 (140,350 ) 916 - (28,503 ) 3,155 1,335,218 Number of securities issued or to be issued upon exercise - - - - - - March 31, 2017 (140,350 ) 916 - (28,503 ) 3,155 1,335,218 Number of securities issued or to be issued upon exercise (38,150 ) - - (8,199 ) - (46,349 ) $ 18.30 June 30, 2017 (178,500 ) 916 - (36,702 ) 3,155 1,288,869 Number of securities issued or to be issued upon exercise - - 12,917 (12,917 ) - - $ 18.44 September 30, 2017 (178,500 ) 916 12,917 (49,619 ) 3,155 1,288,869 Number of securities issued or to be issued upon exercise - - - - - - December 31, 2017 (178,500 ) 916 12,917 (49,619 ) 3,155 1,288,869 Number of securities issued or to be issued upon exercise - - - - - - March 31, 2018 (178,500 ) 916 12,917 (49,619 ) 3,155 1,288,869 Number of securities issued or to be issued upon exercise (45,400 ) - - (8,256 ) - (53,656 ) $ 18.17 June 30, 2018 (223,900 ) 916 12,917 (57,875 ) 3,155 1,235,213 Number of securities issued or to be issued upon exercise - - - - - - September 30, 2018 (223,900 ) 916 12,917 (57,875 ) 3,155 1,235,213 The Company recognized approximately $ 194,000 494,000 1.2 Non-Controlling Interests in Operating Partnership Non-controlling interests in the Operating Partnership in the accompanying consolidated financial statements relate to LTIP-OP Units and OP Units issued upon conversion of LTIP-OP Units, in either case, held by parties other than the Company. As of September 30, 2018, the non-controlling interest holders in the Operating Partnership owned 210,067 Consolidation Common Stock ATM Program In August 2018, the Company instituted an at-the-market offering (the “Common Stock ATM Program”) of up to $50,000,000 of its common stock. Under the Common Stock ATM Program, the Company may, but is not obligated to, sell shares of common stock from time to time through one or more selling agents. The Common Stock ATM Program has no set expiration date and may be renewed or terminated by the Company at any time. During the three month period ended September 30, 2018, the Company issued and sold 371,041 18.66 6.9 138,000 200,000 Preferred Stock The Company is authorized to issue up to 100,000,000 shares of preferred stock, $0.01 par value per share, of which 96,200,000 shares were undesignated and 3,800,000 shares were designated as Series A Preferred Stock as of September 30, 2018. On August 17, 2017, the Company completed an offering of 2,400,000 shares of Series A Preferred Stock for net proceeds of $58.1 million after underwriting discounts and commissions but before expenses of approximately $193,000. In April 2018, the Company instituted an at-the-market offering (the “Preferred Series A ATM Program”) of up to $35,000,000 of its Series A Preferred Stock. Under the Preferred Series A ATM Program, the Company may, but is not obligated to, sell shares of Series A Preferred Stock from time to time through one or more selling agents. The Preferred Series A ATM Program has no set expiration date and may be renewed or terminated by the Company at any time. During the three month period ended September 30, 2018, the Company issued and sold 103,570 25.63 2.7 42,000 The Series A Preferred Stock ranks senior to the Company’s common stock with respect to rights to the payment of dividends and the distribution of assets upon the Company’s liquidation, dissolution or winding up. The Series A Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless repurchased or redeemed by the Company or converted by the holders of the Series A Preferred Stock into the Company’s common stock in connection with certain changes of control. The Series A Preferred Stock is not redeemable by the Company prior to August 17, 2022, except under circumstances intended to preserve the Company’s qualification as a REIT for U.S. federal income tax purposes and except upon the occurrence of certain changes of control. On and after August 17, 2022, the Company may, at its option, redeem the Series A Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price equal to $25.00 per share, plus any accumulated and unpaid dividends to, but not including, the date fixed for redemption. If the Company does not exercise its rights to redeem the Series A Preferred Stock upon certain changes in control, the holders of the Series A Preferred Stock have the right to convert some or all of their shares of Series A Preferred Stock into a number of shares of the Company’s common stock based on a defined formula, subject to a share cap, or alternative consideration. The share cap on each share of Series A Preferred Stock is 2.62881 shares of common stock, subject to certain adjustments. The Company pays cumulative cash dividends at the rate of 8.20% per annum of the $25.00 per share liquidation preference (equivalent to $2.05 per annum per share) on the Series A Preferred Stock, in arrears, on or about the 15 th Earnings per Common Share The Company is required to present both basic and diluted earnings per common share (“EPS”). Basic EPS is calculated by dividing net income applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated by dividing net income applicable to common stockholders by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period. In accordance with ASC 260, Earnings Per Share The following table presents basic earnings per share of common stock for the periods indicated (dollars in thousands, except per share data): Earnings per Common Share Information Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Net income allocable to common stockholders $ 27,499 $ 6,859 $ 76,583 $ 27,781 Net income allocated to noncontrolling interests in Operating Partnership (364 ) (93 ) (993 ) (386 ) Dividends on preferred stock 1,372 593 3,902 593 Net income attributable to common stockholders $ 25,763 $ 6,173 $ 71,688 $ 26,802 Denominator: Weighted average common shares outstanding 15,864,774 12,703,577 14,065,000 11,023,348 Weighted average diluted shares outstanding 15,873,030 12,711,776 14,073,256 11,030,401 Basic and Diluted: Basic $ 1.62 $ 0.49 $ 5.10 $ 2.43 Diluted $ 1.62 $ 0.49 $ 5.09 $ 2.43 There were no participating securities or equity instruments outstanding that were anti-dilutive for purposes of calculating EPS for the periods presented.

Transactions with Affiliates an

Transactions with Affiliates and Affiliated Entities	9 Months Ended
	Sep. 30, 2018
Transactions with Affiliates and Affiliated Entities [Abstract]
Transactions with Affiliates and Affiliated Entities	Note 7 — Transactions with Affiliates and Affiliated Entities Manager The Company has entered into the Management Agreement with the Manager, pursuant to which the Manager provides for the day-to-day management of the Company’s operations. The Management Agreement requires the Manager to manage the Company’s business affairs in conformity with the policies that are approved and monitored by the Company’s board of directors. The term of the Management Agreement will expire on October 22, 2020 and will be automatically renewed for a one-year term on such date and on each anniversary of such date thereafter unless terminated or not renewed as described below. Either we or our Manager may elect not to renew the Management Agreement upon expiration of its initial term or any renewal term by providing written notice of non-renewal at least 180 days, but not more than 270 days, before expiration. In the event we elect not to renew the term, we will be required to pay our Manager a termination fee equal to three times the average annual management fee amount earned by the Manager during the two four-quarter periods ending as of the end of the most recently completed fiscal quarter prior to the non-renewal. We may terminate the Management Agreement at any time for cause effective upon 30 days prior written notice of termination from us to our Manager, in which case no termination fee would be due. Our board of directors will review our Manager’s performance prior to the automatic renewal thereof and, as a result of such review, upon the affirmative vote of at least two-thirds of the members of our board of directors or of the holders of a majority of our outstanding common stock, we may terminate the Management Agreement based upon unsatisfactory performance by our Manager that is materially detrimental to us or a determination by our independent directors that the management fees payable to our Manager are not fair, subject to the right of our Manager to prevent such a termination by agreeing to a reduction of the management fees payable to our Manager. Upon any termination of the Management Agreement based on unsatisfactory performance or unfair management fees, we are required to pay our Manager the termination fee described above. Our Manager may terminate the Management Agreement, without payment of the termination fee, in the event we become regulated as an investment company under the Investment Company Act of 1940, as amended. Our Manager may also terminate the Management Agreement upon 60 days’ written notice if we default in the performance of any material term of the Management Agreement and the default continues for a period of 30 days after written notice to us, whereupon we would be required to pay our Manager the termination fee described above. Pursuant to the Management Agreement, the Manager, under the supervision of the Company’s board of directors, formulates investment strategies, arranges for the acquisition of assets, arranges for financing, monitors the performance of the Company’s assets and provides certain advisory, administrative and managerial services in connection with the operations of the Company. For performing these services, the Company pays the Manager the management fee which is payable in cash quarterly in arrears, in an amount equal to 1.5% per annum of the Company’s stockholders’ equity (as defined in the Management Agreement). The Manager is a party to a services agreement (the “Services Agreement”) with Freedom Mortgage, pursuant to which Freedom Mortgage provides to the Manager the personnel, services and resources needed by the Manager to carry out its obligations and responsibilities under the Management Agreement. The Company is a named third-party beneficiary to the Services Agreement and, as a result, has, as a non-exclusive remedy, a direct right of action against Freedom Mortgage in the event of any breach by the Manager of any of its duties, obligations or agreements under the Management Agreement that arise out of or result from any breach by Freedom Mortgage of its obligations under the Services Agreement. The Services Agreement will terminate upon the termination of the Management Agreement. Pursuant to the Services Agreement, the Manager will make certain payments to Freedom Mortgage in connection with the services provided. The Management Agreement between the Company and the Manager was negotiated between related parties, and the terms, including fees payable, may not be as favorable to the Company as if it had been negotiated with an unaffiliated third party. At the time the Management Agreement was negotiated, both the Manager and Freedom Mortgage were controlled by Mr. Stanley Middleman, who is also a shareholder of the Company. Ownership of the Manager has been transferred to CHMM Blind Trust, a grantor trust for the benefit of Mr. Middleman. The Management Agreement provides that the Company will reimburse the Manager for (i) various expenses incurred by the Manager or its officers, and agents on the Company’s behalf, including costs of software, legal, accounting, tax, administrative and other similar services rendered for the Company by providers retained by the Manager and (ii) the allocable portion of the compensation paid to specified officers dedicated to the Company. The amounts under “Due to affiliates” on the consolidated balance sheets consisted of the following for the periods indicated (dollars in thousands): Management Fees and Compensation Reimbursement to Affiliate Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Management fees $ 1,361 $ 757 $ 3,677 $ 2,429 Compensation reimbursement 238 191 620 573 Total $ 1,599 $ 948 $ 4,297 $ 3,002 Subservicing Agreement Freedom Mortgage is directly servicing a portion of the Company’s portfolio of Fannie Mae and Freddie Mac MSRs and all of its Ginnie Mae MSRs pursuant to a subservicing agreement entered into on June 10, 2015. Freedom Mortgage has given notice of termination of the subservicing agreement without cause, effective April 5, 2019. The agreement may be terminated without cause by either party by giving notice as specified in the agreement. Under that agreement until the servicing is transferred during the first half of 2019, Freedom Mortgage agrees to service the applicable mortgage loans in accordance with applicable law and the requirements of the applicable agency and the Company pays customary fees to Freedom Mortgage for specified services. Joint Marketing Recapture Agreement In June 2016, Aurora entered into a joint marketing recapture agreement with Freedom Mortgage. Pursuant to this agreement, Freedom Mortgage attempts to refinance certain mortgage loans underlying Aurora’s MSR portfolio subserviced by Freedom Mortgage as directed by Aurora. This agreement will terminate upon termination of the subservicing agreement with Freedom Mortgage. If a loan is refinanced, Aurora will pay Freedom Mortgage a fee for its origination services. Freedom Mortgage will be entitled to sell the loan for its own benefit and will transfer the related MSR to Aurora. The agreement had an initial term of one year, subject to automatic renewals of one year each and subject to termination by either party upon 60 days prior notice. All new loans must qualify for sale to Fannie Mae or Freddie Mac or be eligible for pooling with Ginnie Mae, as applicable, and meet other conditions set forth in the agreement. During the three- month period ended September 30, 2018, MSRs on 9 2.3 3,000 77 16.5 24,000 Sale of Excess MSRs On November 15, 2016, the Company sold the Excess MSRs in Excess MSR Pool 1 and the Excess MSRs in Excess MSR Pool 2014 to Freedom Mortgage. At the closing, the Company received cash proceeds of approximately $38.0 million, repaid $12.0 million of outstanding borrowings drawn on the Company’s $25 million term loan facility with NexBank SSB (the “NexBank term loan”) with a portion of the cash proceeds and released the Company’s security interests in the underlying MSRs. The Company invested the remaining cash proceeds in Agency RMBS. The Company sold the Excess MSRs in Excess MSR Pool 2 to Freedom Mortgage on February 1, 2017. In connection with the sale of the Excess MSRs in Excess MSR Pool 2 to Freedom Mortgage, Freedom Mortgage transferred to Aurora Ginnie Mae MSRs with a weighted average servicing fee of approximately 30 basis points at the time of acquisition. The Ginnie Mae MSRs relate to a pool consisting primarily of newly originated Ginnie Mae conforming mortgage loans that had an aggregate UPB of approximately $4.5 billion as of January 31, 2017. At the closing of the sale of the Excess MSRs in Excess MSR Pool 2, the Company repaid the remaining outstanding borrowings drawn on the NexBank term loan with cash on hand. In addition, the acknowledgment agreement that the Company and Freedom Mortgage entered into with Ginnie Mae at the time of the IPO was terminated. In connection with the sale transactions, Freedom Mortgage made 12 monthly yield maintenance payments to the Company from December 2016 to November 2017 aggregating $3.0 million. See Note 10 for a discussion of the now terminated acknowledgment agreement among the Company, Freedom Mortgage and Ginnie Mae. Other Transactions with Affiliated Persons In March 2017, the Company waived the forfeiture provisions of LTIP-OP Units previously granted to Mr. Middleman that otherwise would have been triggered once he no longer was a member of the Company’s board of directors.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2018
Derivative Instruments [Abstract]
Derivative Instruments	Note 8 — Derivative Instruments Interest Rate Swap Agreements, Swaptions, TBAs and Treasury Futures In order to help mitigate exposure to higher short-term interest rates in connection with borrowings under its repurchase agreements, the Company enters into interest rate swap agreements and swaption agreements. Interest rate swap agreements establish an economic fixed rate on related borrowings because the variable-rate payments received on the interest rate swap agreements largely offset interest accruing on the related borrowings, leaving the fixed-rate payments to be paid on the interest rate swap agreements as the Company’s effective borrowing rate, subject to certain adjustments including changes in spreads between variable rates on the interest rate swap agreements and actual borrowing rates. A swaption is an option granting its owner the right but not the obligation to enter into an underlying swap. The Company’s interest rate swap agreements and swaptions have not been designated as qualifying hedging instruments for GAAP purposes. In order to help mitigate duration risk and manage basis risk, the Company utilizes Treasury futures and forward-settling purchases and sales of RMBS where the underlying pools of mortgage loans are TBAs. Pursuant to these TBA transactions, the Company agrees to purchase or sell, for future delivery, Agency RMBS with certain principal and interest terms and certain types of underlying collateral, but the particular Agency RMBS to be delivered is not identified until shortly before the TBA settlement date. Unless otherwise indicated, references to Treasury futures include options on Treasury futures. The following table summarizes the outstanding notional amounts of derivative instruments as of the dates indicated (dollars in thousands): Derivatives September 30, 2018 December 31, 2017 Notional amount of interest rate swaps $ 1,397,000 $ 1,067,950 Notional amount of swaptions 160,000 155,000 Notional amount of TBAs, net (40,000 ) 26,900 Total notional amount $ 1,517,000 $ 1,249,850 The following table presents information about the Company’s interest rate swap agreements as of the dates indicated (dollars in thousands): Notional Amount Weighted Average Pay Rate Weighted Average Receive Rate Weighted Average Years to Maturity September 30, 2018 $ 1,397,000 2.12 % 2.33 % 5.0 December 31, 2017 $ 1,067,950 1.83 % 1.44 % 4.9 The following table presents information about the Company’s interest rate swaption agreements as of the dates indicated (dollars in thousands): Notional Amount Weighted Average Pay Rate Weighted Average Receive Rate (A) Weighted Average Years to Maturity September 30, 2018 $ 160,000 3.07 % LIBOR-BBA % 10.2 December 31, 2017 $ 155,000 2.88 % LIBOR-BBA % 10.8 (A) Floats in accordance with LIBOR. The following table presents information about realized gain (loss) on derivatives, which is included on the consolidated statements of income for the periods indicated (dollars in thousands): Realized Gains (Losses) on Derivatives Derivatives Consolidated Statements of Income (Loss) Location Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Interest rate swaps Realized gain (loss) on derivatives, net $ (377 ) $ (720 ) $ (961 ) $ (1,315 ) Swaptions Realized gain (loss) on derivatives, net (459 ) (105 ) (834 ) (174 ) TBAs Realized gain (loss) on derivatives, net (435 ) (329 ) (1,013 ) (843 ) Treasury futures Realized gain (loss) on derivatives, net 564 (326 ) 81 (1,962 ) Total $ (707 ) $ (1,480 ) $ (2,727 ) $ (4,294 ) Offsetting Assets and Liabilities The Company has netting arrangements in place with all of its derivative counterparties pursuant to standard documentation developed by the International Swap and Derivatives Association. Under GAAP, if the Company has a valid right of offset, it may offset the related asset and liability and report the net amount. The Company presents interest rate swaps, swaptions and Treasury futures assets and liabilities on a gross basis in its consolidated balance sheets, but in the case of interest rate swaps beginning in 2018, net of variation margin. The Company presents TBA assets and liabilities on a net basis in its consolidated balance sheets. The Company presents repurchase agreements in this section even though they are not derivatives because they are subject to master netting arrangements. However, repurchase agreements are presented on a gross basis. Additionally, the Company does not offset financial assets and liabilities with the associated cash collateral on the consolidated balance sheets. The following tables present information about the Company’s assets and liabilities that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s consolidated balance sheets as of the dates indicated (dollars in thousands): Offsetting Assets and Liabilities As of September 30, 2018 Gross Amounts of Recognized Assets or Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received (Pledged) Net Amount Assets Interest rate swaps $ 28,628 $ - $ 28,628 $ (28,628 ) $ - $ - Swaptions 2,725 - 2,725 (2,725 ) - - TBAs 78 - 78 (78 ) - - Treasury futures - - - 2,103 (2,103 ) - Total Assets $ 31,431 $ - $ 31,431 $ (29,328 ) $ (2,103 ) $ - Liabilities Repurchase agreements $ 1,680,394 $ - $ 1,680,394 $ (1,643,183 ) $ (37,211 ) $ - Interest rate swaps 396 - 396 - (396 ) - Total Liabilities $ 1,680,790 $ - $ 1,680,790 $ (1,643,183 ) $ (37,607 ) $ - As of December 31, 2017 Gross Amounts of Recognized Assets or Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received (Pledged) Net Amount Assets Interest rate swaps $ 12,994 $ - $ 12,994 $ (12,994 ) $ - $ - Swaptions 802 - 802 (802 ) - - TBAs 34 - 34 (34 ) - - Total Assets $ 13,830 $ - $ 13,830 $ (13,830 ) $ - $ - Liabilities Repurchase agreements $ 1,666,537 $ - $ 1,666,537 $ (1,637,922 ) $ (28,615 ) $ - Interest rate swaps 342 - 342 32 (374 ) - Treasury futures 2 - 2 177 (179 ) - Total Liabilities $ 1,666,881 $ - $ 1,666,881 $ (1,637,713 ) $ (29,168 ) $ -

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2018
Fair Value [Abstract]
Fair Value	Note 9 – Fair Value Fair Value Measurements ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices available in active markets (i.e., observable inputs) and the lowest priority to data lacking transparency (i.e., unobservable inputs). Additionally, ASC 820 requires an entity to consider all aspects of nonperformance risk, including the entity’s own credit standing, when measuring the fair value of a liability. ASC 820 establishes a three level hierarchy to be used when measuring and disclosing fair value. An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Following is a description of the three levels: Level 1 inputs are quoted prices in active markets for identical assets or liabilities as of the measurement date under current market conditions. Additionally, the entity must have the ability to access the active market and the quoted prices cannot be adjusted by the entity. Level 2 inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs that are observable or can be corroborated by observable market data by correlation or other means for substantially the full-term of the assets or liabilities. Level 3 unobservable inputs are supported by little or no market activity. The unobservable inputs represent the assumptions that management believes market participants would use to price the assets and liabilities, including risk. Generally, Level 3 assets and liabilities are valued using pricing models, discounted cash flow methodologies, or similar techniques that require significant judgment or estimation. Recurring Fair Value Measurements The following is a description of the methods used to estimate the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis, as well as the basis for classifying these assets and liabilities as Level 2 or 3 within the fair value hierarchy. The Company’s valuations consider assumptions that it believes a market participant would consider in valuing the assets and liabilities, the most significant of which are disclosed below. The Company reassesses and periodically adjusts the underlying inputs and assumptions used in the valuations for recent historical experience, as well as for current and expected relevant market conditions. RMBS The Company holds a portfolio of RMBS that are classified as available for sale and are carried at fair value in the consolidated balance sheets. The Company determines the fair value of its RMBS based upon prices obtained from third-party pricing providers. The third-party pricing providers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset period, issuer, prepayment speeds, credit enhancements and expected life of the security. As a result, the Company classified 100% of its RMBS as Level 2 fair value assets at September 30, 2018 and December 31, 2017. Excess MSRs The Company held a portfolio of Excess MSRs that were reported at fair value in the consolidated balance sheet at December 31, 2016. The Company used a discounted cash flow model to estimate the fair value of these assets. Although Excess MSR transactions are observable in the marketplace, the valuation includes unobservable market data inputs (prepayment speeds, delinquency levels and discount rates). As a result, the Company classified 100% of its Excess MSRs as Level 3 fair value assets at December 31, 2016. The Company did not hold any Excess MSRs at September 30, 2018 or December 31, 2017. MSRs The Company holds a portfolio of MSRs that are reported at fair value in the consolidated balance sheets. The Company uses a discounted cash flow model to estimate the fair value of these assets. Although MSR transactions are observable in the marketplace, the valuation includes unobservable market data inputs (prepayment speeds, delinquency levels, costs to service and discount rates). As a result, the Company classified 100% of its MSRs as Level 3 fair value assets at September 30, 2018 and December 31, 2017. Derivative Instruments The Company enters into a variety of derivative instruments as part of its economic hedging strategies. The Company executes interest rate swaps, swaptions, TBAs and treasury futures. The Company utilizes third-party pricing providers to value its derivative instruments. As a result, the Company classified 100% of its derivative instruments as Level 2 fair value assets and liabilities at September 30, 2018 and December 31, 2017. Both the Company and the derivative counterparties under their netting arrangements are required to post cash collateral based upon the net underlying market value of the Company’s open positions with the counterparties. Posting of cash collateral typically occurs daily, subject to certain dollar thresholds. Due to the existence of netting arrangements, as well as frequent cash collateral posting at low posting thresholds, credit exposure to the Company and/or counterparties is considered materially mitigated. The Company’s interest rate swaps are required to be cleared on an exchange, which further mitigates, but does not eliminate, credit risk. Based on the Company’s assessment, there is no requirement for any additional adjustment to derivative valuations specifically for credit. The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated (dollars in thousands). Recurring Fair Value Measurements As of September 30, 2018 Level 1 Level 2 Level 3 Carrying Value Assets RMBS Fannie Mae $ - $ 1,240,490 $ - $ 1,240,490 Freddie Mac - 475,418 - 475,418 CMOs - 123,065 - 123,065 RMBS total - 1,838,973 - 1,838,973 Derivative assets Interest rate swaps - 28,628 - 28,628 Interest rate swaptions - 2,725 - 2,725 TBAs - 78 - 78 Treasury futures - - - - Derivative assets total - 31,431 - 31,431 Servicing related assets - - 281,963 281,963 Total Assets $ - $ 1,870,404 $ 281,963 $ 2,152,367 Liabilities Derivative liabilities Interest rate swaps - 396 - 396 TBAs - - - - Treasury futures - - - - Derivative liabilities total - 396 - 396 Total Liabilities $ - $ 396 $ - $ 396 As of December 31, 2017 Level 1 Level 2 Level 3 Carrying Value Assets RMBS Fannie Mae $ - $ 1,233,699 $ - $ 1,233,699 Freddie Mac - 513,544 - 513,544 CMOs - 93,669 - 93,669 RMBS total - 1,840,912 - 1,840,912 Derivative assets Interest rate swaps - 12,994 - 12,994 Interest rate swaptions - 802 - 802 TBAs - 34 - 34 Derivative assets total - 13,830 - 13,830 Servicing related assets - - 122,806 122,806 Total Assets $ - $ 1,854,742 $ 122,806 $ 1,977,548 Liabilities Derivative liabilities Interest rate swaps - 342 - 342 Treasury futures - 2 - 2 Derivative liabilities total - 344 - 344 Total Liabilities $ - $ 344 $ - $ 344 The Company may be required to measure certain assets or liabilities at fair value from time to time. These periodic fair value measures typically result from application of certain impairment measures under GAAP. These items would constitute nonrecurring fair value measures under ASC 820. As of September 30, 2018 and December 31, 2017, the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis in the periods presented. Level 3 Assets and Liabilities The valuation of Level 3 assets and liabilities requires significant judgment by the third-party pricing providers and management. The third-party pricing providers and management rely on inputs such as market price quotations from market makers (either market or indicative levels), original transaction price, recent transactions in the same or similar instruments, and changes in financial ratios or cash flows to determine fair value. Level 3 instruments may also be discounted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by third-party pricing providers and management in the absence of market information. Assumptions used by third-party pricing providers and management due to lack of observable inputs may significantly impact the resulting fair value and, therefore, the Company’s consolidated financial statements. The Company’s management reviews all valuations that are based on pricing information received from third-party pricing providers. As part of this review, prices are compared against other pricing or input data points in the marketplace, along with internal valuation expertise, to ensure the pricing is reasonable. In connection with the above, the Company estimates the fair value of its Servicing Related Assets based on internal pricing models rather than quotations, and compares the results of these internal models against the results from models generated by third-party valuation specialists. The determination of estimated cash flows used in pricing models is inherently subjective and imprecise. Changes in market conditions, as well as changes in the assumptions or methodology used to determine fair value, could result in a significant change to estimated fair values. It should be noted that minor changes in assumptions or estimation methodologies can have a material effect on these derived or estimated fair values, and that the fair values reflected below are indicative of the interest rate and credit spread environments as of September 30, 2018 and December 31, 2017 and do not take into consideration the effects of subsequent changes in market or other factors. The tables below present the reconciliation for the Company’s Level 3 assets (Servicing Related Assets) measured at fair value on a recurring basis as of the dates indicated (dollars in thousands): Level 3 Fair Value Measurements As of September 30, 2018 Level 3 (A) MSRs Balance at December 31, 2017 $ 122,806 Purchases, sales and principal paydowns: Purchases 143,054 Other changes (B) (2,248 ) Purchases, sales and principal paydowns: $ 140,806 Changes in Fair Value due to: Changes in valuation inputs or assumptions used in valuation model 28,149 Other changes in fair value (C) (9,798 ) Unrealized gain (loss) included in Net Income $ 18,351 Balance at September 30, 2018 $ 281,963 As of December 31, 2017 Level 3 (A) Excess MSRs Pool 2 MSRs Total Balance at December 31, 2016 $ 29,392 $ 31,871 $ 61,263 Purchases, sales and principal paydowns: Purchases - 83,586 83,586 Sales (35,905 ) - (35,905 ) Other changes (B) 6,513 (1,810 ) 4,703 Purchases, sales and principal paydowns: $ (29,392 ) $ 81,776 $ 52,384 Changes in Fair Value due to: Changes in valuation inputs or assumptions used in valuation model - 16,375 16,375 Other changes in fair value (C) - (7,216 ) (7,216 ) Unrealized gain (loss) included in Net Income $ - $ 9,159 $ 9,159 Balance at December 31, 2017 $ - $ 122,806 $ 122,806 (A) Includes the recapture agreement for each respective pool. (B) Represents purchase price adjustments, principally contractual prepayment protection, and changes due to the Company’s repurchase of the underlying collateral. (C) Represents changes due to realization of expected cash flows. The tables below present information about the significant unobservable inputs used in the fair value measurement of the Company’s Servicing Related Assets classified as Level 3 fair value assets as of the dates indicated (dollars in thousands): Fair Value Measurements As of September 30, 2018 Fair Value Valuation Technique Unobservable Input (A) Range Weighted Average MSRs Conventional $ 238,277 Discounted cash flow Constant prepayment speed 5.0% - 23.7% 8.5 % Uncollected payments 0.2% - 1.0% 0.8 % Discount rate 9.3 % Annual cost to service, per loan $ 71 Government $ 43,686 Discounted cash flow Constant prepayment speed 6.0% - 18.7% 8.5 % Uncollected payments 0.4% - 4.5% 3.3 % Discount rate 12.0 % Annual cost to service, per loan $ 106 TOTAL $ 281,963 Discounted cash flow As of December 31, 2017 Fair Value Valuation Technique Unobservable Input (A) Range Weighted Average MSRs Conventional $ 82,150 Discounted cash flow Constant prepayment speed 6.5% - 23.5% 10.5 % Uncollected payments 0.2% - 1.8% 0.8 % Discount rate 9.3 % Annual cost to service, per loan $ 70 Government $ 40,656 Discounted cash flow Constant prepayment speed 6.0% - 14.2% 8.1 % Uncollected payments 0.4% - 5.2% 3.3 % Discount rate 12.0 % Annual cost to service, per loan $ 96 TOTAL $ 122,806 Discounted cash flow (A) Significant increases (decreases) in any of the inputs in isolation may result in significantly lower (higher) fair value measurements. A change in the assumption used for discount rates may be accompanied by a directionally similar change in the assumption used for the probability of uncollected payments and a directionally opposite change in the assumption used for prepayment rates. Fair Value of Financial Instruments In accordance with ASC 820, the Company is required to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the consolidated balance sheets, for which fair value can be estimated. The following describes the Company’s methods for estimating the fair value for financial instruments. • RMBS available for sale securities, Servicing Related Assets, derivative assets and derivative liabilities are recurring fair value measurements; carrying value equals fair value. See discussion of valuation methods and assumptions within the “Fair Value Measurements” section of this footnote. • Cash and cash equivalents and restricted cash have a carrying value which approximates fair value because of the short maturities of these instruments. • The carrying value of repurchase agreements and corporate debt that mature in less than one year generally approximates fair value due to the short maturities. The Company does not hold any repurchase agreements that are considered long-term. Corporate debt that matures in more than one year generally approximates fair value.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 10 — Commitments and Contingencies The commitments and contingencies of the Company as of September 30, 2018 and December 31, 2017 are described below. Management Agreement The Company pays the Manager a quarterly management fee, calculated and payable quarterly in arrears, equal to the product of one quarter of the 1.5% management fee annual rate and the stockholders’ equity, adjusted as set forth in the Management Agreement as of the end of such fiscal quarter. The Manager relies on resources of Freedom Mortgage to provide the Manager with the necessary resources to conduct the Company’s operations. For further discussion regarding the management fee, see Note 7. Legal and Regulatory From time to time, the Company may be subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements, and, therefore, no accrual is required as of September 30, 2018 and December 31, 2017. Commitments to Purchase/Sell RMBS As of September 30, 2018 and December 31, 2017, the Company held forward TBA purchase and sale commitments, respectively, with counterparties, which are forward Agency RMBS trades, whereby the Company committed to purchasing or selling a pool of securities at a particular interest rate. As of the date of the trade, the mortgage-backed securities underlying the pool that will be delivered to fulfill a TBA trade are not yet designated. The securities are typically “to be announced” 48 hours prior to the established trade settlement date. As of September 30, 2018, the Company (i) was not obligated to purchase any Agency RMBS securities and (ii) was not obligated to sell any Agency RMBS securities. As of December 31, 2017, the Company (i) was not obligated to purchase any Agency RMBS securities and (ii) was not obligated to sell any Agency RMBS securities. Acknowledgment Agreements In order to have Ginnie Mae acknowledge the Company’s interest in Excess MSRs related to FHA and VA mortgage loans that were pooled into securities guaranteed by Ginnie Mae, the Company entered into an acknowledgment agreement with Ginnie Mae and Freedom Mortgage. Under that agreement, if Freedom Mortgage failed to make a required payment to the holders of the Ginnie Mae-guaranteed RMBS, the Company would have been obligated to make that payment even though the payment may have related to loans for which the Company did not own any Excess MSRs. The Company’s failure to make that payment would have resulted in liability to Ginnie Mae for any losses or claims that Ginnie Mae suffered as a result. This agreement was terminated in February 2017 in connection with the sale of the Company’s remaining Excess MSRs back to Freedom Mortgage. In connection with the MSR Financing Facility (as defined below) entered into by Aurora and QRS III, those parties also entered into an acknowledgment agreement with Fannie Mae. Pursuant to that agreement, Fannie Mae consented to the pledge by Aurora and QRS III of their respective interests in MSRs for loans owned or securitized by Fannie Mae, and acknowledged the security interest of the lender in those MSRs. See Note 12—Notes Payable for a description of the MSR Financing Facility. In connection with the MSR Revolver (as defined below), Aurora, QRS V, and the lender, with a limited joinder by the Company, entered into an Acknowledgement Agreement with Freddie Mac pursuant to which Freddie Mac consented to the pledge of the Freddie Mac MSRs securing the MSR Revolver. Aurora and the lender also entered into a Consent Agreement with Freddie Mac pursuant to which Freddie Mac consented to the pledge of Aurora’s rights to reimbursement for advances on the underlying loans. See Note 12—Notes Payable for a description of the MSR Revolver.

Repurchase Agreements

Repurchase Agreements	9 Months Ended
	Sep. 30, 2018
Repurchase Agreements [Abstract]
Repurchase Agreements	Note 11 – Repurchase Agreements The Company had outstanding approximately $ 1,680.4 47 The repurchase agreements had the following remaining maturities and weighted average rates as of the dates indicated (dollars in thousands): Repurchase Agreement Characteristics As of September 30, 2018 Repurchase Agreements Weighted Average Rate Less than one month $ 732,212 2.24 % One to three months 723,385 2.26 % Greater than three months 224,797 2.37 % Total/Weighted Average $ 1,680,394 2.26 % As of December 31, 2017 Repurchase Agreements Weighted Average Rate Less than one month $ 429,573 1.44 % One to three months 1,231,687 1.48 % Greater than three months 5,277 1.52 % Total/Weighted Average $ 1,666,537 1.47 % There were no overnight or demand securities as of September 30, 2018 or December 31, 2017.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2018
Notes Payable [Abstract]
Notes Payable	Note 12 – Notes Payable In September 2016, Aurora and QRS III entered into a loan and security agreement (the “MSR Financing Facility”), pursuant to which Aurora and QRS III pledged their respective rights in all existing and future MSRs for loans owned or securitized by Fannie Mae to secure borrowings up to a maximum of $25.0 million outstanding at any one time. On March 20, 2018, Aurora and QRS III entered into an amendment that increased the maximum amount of the MSR Financing Facility from $25 million to $75 million and extended the revolving period, during which only interest payments are due, to March 2020. The revolving period may be further extended by agreement. During the revolving period, borrowings bear interest at a rate equal to a spread over one-month LIBOR subject to a floor. At the end of the revolving period, the outstanding amount will be converted to a three-year term loan that will bear interest at a rate calculated at a spread over the rate for one-year interest rate swaps. The Company has previously guaranteed repayment of all indebtedness under the MSR Financing Facility. Approximately $ 67.8 In May 2017, the Company, Aurora and QRS IV obtained a $20.0 million loan (the “MSR Term Facility”) secured by the pledge of Aurora’s Ginnie Mae MSRs and the Company’s ownership interest in QRS IV. The loan bears interest at a fixed rate of 6.18% per annum, amortizes on a ten-year amortization schedule and is due on May 18, 2022. In July 2018, the Company, Aurora and QRS V (collectively with Aurora and the Company, the “Borrowers”) entered into a $25 million revolving credit facility (the “MSR Revolver”) pursuant to which Aurora pledged all of its existing and future MSRs on loans owned or securitized by Freddie Mac. The term of the MSR Revolver is 364 days with the Borrowers’ option for two renewals for similar terms followed by a one-year term out feature with a 24-month amortization schedule. The MSR Revolver was upsized to $45 million in September 2018. The Company also has the ability to request up to an additional $5 million of borrowings. Amounts borrowed bear interest at an adjustable rate equal to a spread above one-month LIBOR. Approximately $ 45.0 The outstanding long-term borrowings had the following remaining maturities as of the dates indicated (dollars in thousands): Long-Term Borrowings Repayment Characteristics As of September 30, 2018 2018 2019 2020 2021 2022 2023 Total MSR Term Facility Borrowings under MSR Term Facility $ 500 $ 2,000 $ 2,000 $ 2,000 $ 10,996 $ - $ 17,496 MSR Financing Facility Borrowings under MSR Financing Facility $ - $ - $ 4,355 $ 63,491 $ - $ - $ 67,846 MSR Revolver Borrowings under MSR Financing Facility $ - $ - $ - $ 45,000 $ - $ - $ 45,000 Total $ 500 $ 2,000 $ 6,355 $ 110,491 $ 10,996 $ - $ 130,342 As of December 31, 2017 2018 2019 2020 2021 2022 2023 Total MSR Term Facility Borrowings under MSR Term Facility $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 11,000 $ - $ 19,000 MSR Financing Facility Borrowings under MSR Financing Facility $ - $ 389 $ 1,608 $ 1,697 $ 16,806 $ - $ 20,500 Total $ 2,000 $ 2,389 $ 3,608 $ 3,697 $ 27,806 $ - $ 39,500

Receivables and Other Assets

Receivables and Other Assets	9 Months Ended
	Sep. 30, 2018
Receivables and Other Assets [Abstract]
Receivables and Other Assets	Note 13 – Receivables and Other Assets The assets comprising “Receivables and other assets” as of September 30, 2018 and December 31, 2017 are summarized in the following table (dollars in thousands): Receivables and Other Assets September 30, 2018 December 31, 2017 Servicing advances $ 5,554 $ 5,901 Interest receivable 6,702 5,804 Repurchased loans held for sale 4,123 2,160 Other receivables 3,656 2,777 Total other assets $ 20,035 $ 16,642 The Company only records as an asset those servicing advances that the Company deems recoverable.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	9 Months Ended
	Sep. 30, 2018
Accrued Expenses and Other Liabilities [Abstract]
Accrued Expenses and Other Liabilities	Note 14 – Accrued Expenses and Other Liabilities The liabilities comprising “Accrued expenses and other liabilities” as of September 30, 2018 and December 31, 2017 are summarized in the following table (dollars in thousands): Accrued Expenses and Other Liabilities September 30, 2018 December 31, 2017 Accrued interest payable $ 6,254 $ 4,252 Escrow funds held 37 37 Net current tax payable 203 - Net deferred tax payable 5,165 843 Accrued expenses 10,664 6,882 Total accrued expenses and other liabilities $ 22,323 $ 12,014

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Taxes [Abstract]
Income Taxes	Note 15 – Income Taxes The Company elected to be taxed as a REIT under Code Sections 856 through 860 beginning with its short taxable year ended December 31, 2013. As a REIT, the Company generally will not be subject to U.S. federal income tax to the extent that it distributes its taxable income to its stockholders. To maintain qualification as a REIT, the Company must distribute at least 90% of its annual REIT taxable income to its stockholders and meet certain other requirements such as assets it may hold, income it may generate and its stockholder composition. It is the Company’s policy to distribute all or substantially all of its REIT taxable income. To the extent there is any undistributed REIT taxable income at the end of a year, the Company can elect to distribute such shortfall within the next year as permitted by the Code. Effective January 1, 2014, CHMI Solutions elected to be taxed as a corporation for U.S. federal income tax purposes; prior to this date, CHMI Solutions was a disregarded entity for U.S. federal income tax purposes. CHMI Solutions has jointly elected with the Company, the ultimate beneficial owner of CHMI Solutions, to be treated as a TRS of the Company, and all activities conducted through CHMI Solutions and its wholly-owned subsidiary Aurora, are subject to federal and state income taxes. CHMI Solutions files a consolidated tax return with Aurora and is fully taxed as a U.S. C-Corporation. The state and local tax jurisdictions for which the Company is subject to tax filing obligations recognize the Company’s status as a REIT, and therefore, the Company generally does not pay income tax in such jurisdictions. CHMI Solutions and Aurora are subject to U.S. federal, state and local income taxes. The components of the Company’s income tax expense (benefit) are as follows for the periods indicated below (dollars in thousands): Nine Months Ended September 30, 2018 2017 Current federal income tax expense $ 156 $ (365 ) Current state income tax expense 47 (45 ) Deferred federal income tax expense (benefit) 3,526 (119 ) Deferred state income tax expense (benefit) 796 (13 ) Provision for (Benefit from) Corporate Business Taxes $ 4,525 $ (542 ) The following is a reconciliation of the statutory federal rate to the effective rate, for the periods indicated below (dollars in thousands): Nine Months Ended September 30, 2018 2017 Computed income tax (benefit) expense at federal rate $ 17,035 21.0 % $ 9,534 35.0 % State taxes (benefit), net of federal tax, if applicable 832 1.0 % (54 ) (0.2 ) % Provision to return adjustment 4 - % - - % REIT income not subject to tax (benefit) (13,346 ) (16.4 ) % (10,022 ) (36.8 ) % Provision for (Benefit from) Corporate Business Taxes/Effective Tax Rate (A) $ 4,525 5.6 % $ (542 ) (2.0 ) % (A) The provision for income taxes is recorded at the TRS level. The Company’s consolidated balance sheets, at September 30, 2018 and December 31, 2017, contain the following current and deferred tax liabilities and assets, which are recorded at the TRS level (dollars in thousands): Nine Months Ended September 30, 2018 2017 Income taxes payable Federal income taxes payable $ 156 $ 92 State and local income taxes payable 47 17 Income taxes payable $ 203 $ 109 September 30, 2018 December 31, 2017 Deferred tax (assets) liabilities Deferred tax - organizational expenses $ (5 ) $ (10 ) Deferred tax - mortgage servicing rights 5,170 909 Deferred tax - net operating loss - (56 ) Total net deferred tax (assets) liabilities $ 5,165 $ 843 The deferred tax liability as of September 30, 2018 was primarily related to MSRs. The deferred tax liability as of December 31, 2017 was primarily related to MSRs. No valuation allowance has been established at September 30, 2018 and December 31, 2017. As of September 30, 2018 and December 31, 2017, the deferred tax liability is included in “Accrued expenses and other liabilities” in the consolidated balance sheets. On December 22, 2017, the Tax Cuts and Jobs Act (the “TCJA”) was signed into law. The TCJA includes a number of significant changes to existing U.S. corporate income tax laws, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent, effective January 1, 2018. The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liabilities were remeasured to reflect the reduction in the U.S. corporate income tax rate, resulting in a $459,000 decrease in income tax expense for the year ended December 31, 2017 and a corresponding decrease of the same amount in the Company’s deferred tax liabilities as of December 31, 2017. The Company is still analyzing certain aspects of the TCJA, which could potentially give rise to new deferred tax amounts in the future. Based on the Company’s evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. Additionally, there were no amounts accrued for penalties or interest as of or during the periods presented in these consolidated financial statements. The

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 16 – Subsequent Events Events subsequent to September 30, 2018 were evaluated and no additional events were identified requiring further disclosure in the interim consolidated financial statements.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Significant Accounting Policies [Abstract]
Basis of Accounting	Basis of Accounting The accompanying interim consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. The interim consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. The Company consolidates those entities in which it has an investment of 50% or more and has control over significant operating, financial and investing decisions of the entity. The interim consolidated financial statements reflect all necessary and recurring adjustments for fair presentation of the results for the interim periods presented herein.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make a number of significant estimates and assumptions. These include estimates of: the fair value of Excess MSRs and MSRs (collectively, “Servicing Related Assets”); RMBS and derivatives; credit losses, including the period of time during which the Company anticipates an increase in the fair values of RMBS sufficient to recover unrealized losses on those RMBS; and other estimates that affect the reported amounts of certain assets, revenues, liabilities and expenses as of the date of, and for the periods covered by, the consolidated interim financial statements. It is likely that changes in these estimates will occur in the near term. The Company’s estimates are inherently subjective in nature. Actual results could differ from the Company’s estimates, and the differences may be material.
Risks and Uncertainties	Risks and Uncertainties In the normal course of business, the Company encounters primarily two significant types of economic risk: credit and market. Credit risk is the risk of default on the Company’s investments in RMBS, Servicing Related Assets and derivatives that results from a borrower’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments in RMBS, Servicing Related Assets and derivatives due to changes in interest rates, spreads or other market factors, including prepayment speeds on the Company’s RMBS and Servicing Related Assets. The Company is subject to the risks involved with real estate and real estate-related debt instruments. These include, among others, the risks normally associated with changes in the general economic climate, changes in the mortgage market, changes in tax laws, interest rate levels, and the availability of financing. The Company also is subject to certain risks relating to its status as a REIT for U.S. federal income tax purposes. If the Company were to fail to qualify as a REIT in any taxable year, the Company would be subject to U.S. federal income tax on its REIT income, which could be material. Unless entitled to relief under certain statutory provisions, the Company would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost.
Investments in RMBS	Investments in RMBS Classification Fair value is determined under the guidance of Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures Investment securities transactions are recorded on the trade date. At disposition, the net realized gain or loss is determined on the basis of the cost of the specific investment and is included in earnings. All RMBS purchased and sold in the three month and nine month periods ended September 30, 2018 were settled prior to period-end. All RMBS purchased and sold in the year ended December 31, 2017 were settled prior to year-end. Revenue Recognition – 5.9 Impairment –
Investments in Excess MSRs	Investments in Excess MSRs As a result of the Company’s sale of its remaining Excess MSRs in February 2017, there were no Excess MSRs at September 30, 2018 or December 31, 2017. Classification Revenue Recognition In connection with the sale of its Excess MSRs, the Company elected a settlement date accounting policy to account for the gain on sale from that transaction. For a further discussion of the Company’s sale of its Excess MSRs, see Note 7.
Investments in MSRs	Investments in MSRs Classification Revenue Recognition 5.6 Servicing fee income received and servicing expenses incurred are reported on the consolidated statements of income. The difference between the fair value of MSRs and their amortized cost basis is recorded on the consolidated statements of income as “Unrealized gain (loss) on investments in MSRs.” Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the MSRs and, therefore, may differ from their effective yields. As a result of the Company’s investments in MSRs, it is obligated from time to time to repurchase an underlying loan from the applicable agency for which it is being serviced due to an alleged breach of a representation or warranty. Loans acquired in this manner are recorded at the purchase price less any principal recoveries and are then offered for sale in the scratch and dent market.
Derivatives and Hedging Activities	Derivatives and Hedging Activities Derivative transactions include swaps, swaptions, Treasury futures and “to-be-announced” securities (“TBAs”). Swaps and swaptions are entered into by the Company solely for interest rate risk management purposes. TBAs and Treasury futures are used for duration risk and basis risk management purposes. The decision as to whether or not a given transaction/position (or portion thereof) is economically hedged is made on a case-by-case basis, based on the risks involved and other factors as determined by senior management, including restrictions imposed by the Code on REITs. In determining whether to economically hedge a risk, the Company may consider whether other assets, liabilities, firm commitments and anticipated transactions already offset or reduce the risk. All transactions undertaken as economic hedges are entered into with a view towards minimizing the potential for economic losses that could be incurred by the Company. Generally, derivatives entered into are not intended to qualify as hedges under GAAP, unless specifically stated otherwise. The Company’s bi-lateral derivative financial instruments contain credit risk to the extent that its bank counterparties may be unable to meet the terms of the agreements. The Company reduces such risk by limiting its exposure to any one counterparty. In addition, the potential risk of loss with any one party resulting from this type of credit risk is monitored. The Company’s interest rate swaps are required to be cleared on an exchange, which further mitigates, but does not eliminate, credit risk. Management does not expect any material losses as a result of default by other parties to its derivative financial instruments. Classification Revenue Recognition
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. Restricted cash represents the Company’s cash held by counterparties (i) as collateral against the Company’s derivatives ($ 2.1 37.6 The Company’s centrally cleared interest rate swaps require that the Company posts an “initial margin” amount determined by the clearing exchange, which is generally intended to be set at a level sufficient to protect the exchange from the interest rate swap’s maximum estimated single-day price movement. The Company also exchanges “variation margin” based upon daily changes in fair value, as measured by the exchange. As a result of amendments to rules governing certain central clearing activities, the exchange of variation margin is a settlement of the interest rate swap, as opposed to pledged collateral. Accordingly, beginning in the first quarter of 2018 and in subsequent periods, the Company will account for the receipt or payment of variation margin as a direct reduction to the carrying value of the interest rate swap asset or liability. At September 30, 2018, $ 17.9
Due to Affiliates	Due to Affiliates The sum under “Due to affiliates” on the consolidated balance sheets represents amounts due to the Manager pursuant to the Management Agreement. For further information on the Management Agreement, see Note 7.
Income Taxes	Income Taxes The Company elected to be taxed as a REIT under Code Sections 856 through 860 beginning with its short taxable year ended December 31, 2013. As a REIT, the Company generally will not be subject to U.S. federal income tax to the extent that it distributes its taxable income to its stockholders and does not engage in prohibited transactions. The Company’s taxable REIT subsidiary (“TRS”), CHMI Solutions, and its wholly-owned subsidiary, Aurora, are subject to U.S. federal income taxes on its taxable income. To maintain qualification as a REIT, the Company must distribute at least 90% of its annual REIT taxable income to its stockholders and meet certain other requirements such as assets it may hold, income it may generate and its stockholder composition. The Company accounts for income taxes in accordance with ASC 740, Income Taxes
Realized Gain (Loss) on Investments, Net	Realized Gain (Loss) on Investments, Net The following table presents gains and losses on sales of the specified categories of investments for the periods indicated (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Realized gain (loss) on RMBS, net Gain on RMBS $ - $ 213 $ 104 $ 213 Loss on RMBS (428 ) (382 ) (5,534 ) (715 ) Net realized loss on RMBS (428 ) (169 ) (5,430 ) (502 ) Realized loss on derivatives, net (707 ) (1,480 ) (2,727 ) (4,294 ) Unrealized gain (loss) on derivatives, net 8,807 1,684 34,442 (1,867 ) Realized gain on Excess MSRs, net - - - 6,678 Unrealized gain (loss) on MSRs, net 6,218 (2,334 ) 18,351 5,471 Total $ 13,890 $ (2,299 ) $ 44,636 $ 5,486
Repurchase Agreements and Interest Expense	Repurchase Agreements and Interest Expense The Company finances its investments in RMBS with short-term borrowings under master repurchase agreements. Borrowings under the repurchase agreements are generally short-term debt due within one year. These borrowings generally bear interest rates of a specified margin over one-month LIBOR. The repurchase agreements represent uncommitted financing. Borrowings under these agreements are treated as collateralized financing transactions and are carried at their contractual amounts, as specified in the respective agreements. Interest is recorded at the contractual amount on an accrual basis.
Dividends Payable	Dividends Payable Because the Company is organized as a REIT under the Code, it is required by law to distribute annually at least 90% of its REIT taxable income, which it does in the form of quarterly dividend payments. The Company accrues the dividend payable on the accounting date, which causes an offsetting reduction in retained earnings.
Comprehensive Income	Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period resulting from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For the Company’s purposes, comprehensive income represents net income, as presented in the consolidated statements of income, adjusted for unrealized gains or losses on RMBS, which are designated as available for sale.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Leases Revenue Recognition Revenue from Contracts with Customers Revenue Recognition Transfers and Servicing Credit Losses Financial Instruments—Credit Losses Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments Income Taxes Income Taxes Restricted Cash Restricted Cash Fair Value Measurement

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Significant Accounting Policies [Abstract]
Gains and Losses on Sale of Specified Categories of Investments	The following table presents gains and losses on sales of the specified categories of investments for the periods indicated (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Realized gain (loss) on RMBS, net Gain on RMBS $ - $ 213 $ 104 $ 213 Loss on RMBS (428 ) (382 ) (5,534 ) (715 ) Net realized loss on RMBS (428 ) (169 ) (5,430 ) (502 ) Realized loss on derivatives, net (707 ) (1,480 ) (2,727 ) (4,294 ) Unrealized gain (loss) on derivatives, net 8,807 1,684 34,442 (1,867 ) Realized gain on Excess MSRs, net - - - 6,678 Unrealized gain (loss) on MSRs, net 6,218 (2,334 ) 18,351 5,471 Total $ 13,890 $ (2,299 ) $ 44,636 $ 5,486

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Financial Data on CHMI's Segments with Reconciliation	Summary financial data with respect to the Company’s segments is given below, together with a reconciliation to the same data for the Company as a whole (dollars in thousands): Servicing RMBS All Other Total Income Statement Three Months Ended September 30, 2018 Interest income $ - $ 15,323 $ - $ 15,323 Interest expense 629 8,626 2 9,257 Net interest income (629 ) 6,697 (2 ) 6,066 Servicing fee income 14,017 - - 14,017 Servicing costs 2,981 - - 2,981 Net servicing income 11,036 - - 11,036 Other income 6,218 7,672 - 13,890 Other operating expenses - - 2,764 2,764 (Benefit from) provision for corporate business taxes 729 - - 729 Net income (loss) $ 15,896 $ 14,369 $ (2,766 ) $ 27,499 Three Months Ended September 30, 2017 Interest income $ - $ 11,932 $ - $ 11,932 Interest expense 185 5,911 - 6,096 Net interest income (185 ) 6,021 - 5,836 Servicing fee income 6,307 - - 6,307 Servicing costs 1,626 - - 1,626 Net servicing income 4,681 - - 4,681 Other income (2,334 ) 35 - (2,299 ) Other operating expenses - - 1,896 1,896 (Benefit from) provision for corporate business taxes (537 ) - - (537 ) Net income (loss) $ 2,699 $ 6,056 $ (1,896 ) $ 6,859 Nine Months Ended September 30, 2018 Interest income $ - 40,757 $ - $ 40,757 Interest expense 1,266 22,856 2 24,124 Net interest income (1,266 ) 17,901 (2 ) 16,633 Servicing fee income 34,202 - - 34,202 Servicing costs 7,087 - - 7,087 Net servicing income 27,115 - - 27,115 Other income 18,351 26,285 - 44,636 Other operating expenses - - 7,276 7,276 (Benefit from) provision for corporate business taxes 4,525 - - 4,525 Net income (loss) $ 39,675 $ 44,186 $ (7,278 ) $ 76,583 Nine Months Ended September 30, 2017 Interest income $ 523 $ 27,489 $ - $ 28,012 Interest expense 422 12,397 - 12,819 Net interest income 101 15,092 - 15,193 Servicing fee income 16,374 - - 16,374 Servicing costs 3,844 - - 3,844 Net servicing income 12,530 - - 12,530 Other income 12,149 (6,663 ) - 5,486 Other operating expenses - - 5,970 5,970 (Benefit from) provision for corporate business taxes (542 ) - - (542 ) Net income (loss) $ 25,322 $ 8,429 $ (5,970 ) $ 27,781 Balance Sheet September 30, 2018 Investments $ 281,963 $ 1,838,973 $ - $ 2,120,936 Other assets 14,055 77,078 21,431 112,564 Total assets 296,018 1,916,051 21,431 2,233,500 Debt 129,346 1,680,394 - 1,809,740 Other liabilities 14,951 5,978 14,662 35,591 Total liabilities 144,297 1,686,372 14,662 1,845,331 Book value $ 151,721 $ 229,679 $ 6,769 $ 388,169 December 31, 2017 Investments $ 122,806 $ 1,840,912 $ - $ 1,963,718 Other assets 8,281 48,631 30,055 86,967 Total assets 131,087 1,889,543 30,055 2,050,685 Debt 39,025 1,666,537 - 1,705,562 Other liabilities 6,575 4,385 11,706 22,666 Total liabilities 45,600 1,670,922 11,706 1,728,228 Book value $ 85,487 $ 218,621 $ 18,349 $ 322,457

Investments in RMBS (Tables)

Investments in RMBS (Tables)	9 Months Ended
	Sep. 30, 2018
Investments in RMBS [Abstract]
Summary of RMBS Investments	All of the Company’s RMBS are classified as available for sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income (loss) except for securities that are OTTI (dollars in thousands): Summary of RMBS Assets As of September 30, 2018 Asset Type Original Face Value Book Value Gross Unrealized Carrying Value (A) Number of Securities Weighted Average Gains Losses Rating Coupon Yield (C) Maturity (Years) (D) RMBS Fannie Mae $ 1,430,611 $ 1,285,060 $ 30 $ (44,600 ) $ 1,240,490 162 (B) 3.85 % 3.69 % 25 Freddie Mac 566,251 493,798 - (18,380 ) 475,418 65 (B) 3.74 % 3.59 % 27 CMOs 115,879 114,618 8,471 (24 ) 123,065 26 (B) 5.74 % 5.40 % 13 Total/Weighted Average $ 2,112,741 $ 1,893,476 $ 8,501 $ (63,004 ) $ 1,838,973 253 3.94 % 3.77 % 25 As of December 31, 2017 Asset Type Original Book Gross Unrealized Carrying Value(A) Number of Securities Weighted Average Gains Losses Rating Coupon Yield (C) Maturity (Years) (D) RMBS Fannie Mae $ 1,306,823 $ 1,241,027 $ 1,427 $ (8,755 ) $ 1,233,699 154 (B) 3.80 % 3.61 % 26 Freddie Mac 556,204 515,475 864 (2,795 ) 513,544 64 (B) 3.74 % 3.57 % 27 CMOs 98,325 87,353 6,343 (27 ) 93,669 20 (B) 5.26 % 4.88 % 12 Total/Weighted Average $ 1,961,352 $ 1,843,855 $ 8,634 $ (11,577 ) $ 1,840,912 238 3.86 % 3.66 % 25 (A) See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities. (B) The Company used an implied AAA rating for the Agency RMBS. Collateralized mortgage obligations (“CMOs”) issued by Fannie Mae or Freddie Mac consist of loss share securities, the majority of which, by unpaid principal balance (“UPB”), are unrated or rated below investment grade at September 30, 2018 by at least one nationally recognized statistical rating organization (“NRSRO”). Private label securities are rated investment grade or better by at least one NRSRO as of September 30, 2018. (C) The weighted average yield is based on the most recent annualized monthly interest income, divided by the book value of settled securities. (D) The weighted average maturity is based on the timing of expected principal reduction on the assets.
Summary of RMBS Investments by Maturity	Summary of RMBS Assets by Maturity As of September 30, 2018 Years to Maturity Original Book Gross Unrealized Carrying Value (A) Number of Securities Weighted Average Gains Losses Rating Coupon Yield (C) Maturity (Years) (D) 5-10 Years $ 20,620 $ 12,679 $ 287 $ (136 ) $ 12,830 6 (B) 4.17 % 4.10 % 8 Over 10 Years 2,092,121 1,880,797 8,214 (62,868 ) 1,826,143 247 (B) 3.94 % 3.76 % 25 Total/Weighted Average $ 2,112,741 $ 1,893,476 $ 8,501 $ (63,004 ) $ 1,838,973 253 3.94 % 3.77 % 25 As of December 31, 2017 Years to Maturity Original Face Value Book Value Gross Unrealized Carrying Value (A) Number of Securities Weighted Average Gains Losses Rating Coupon Yield (C) Maturity (Years) (D) 5-10 Years $ 16,069 $ 15,483 $ 324 $ (312 ) $ 15,495 3 (B) 4.33 % 4.06 % 7 Over 10 Years 1,945,283 1,828,372 8,310 (11,265 ) 1,825,417 235 (B) 3.85 % 3.65 % 26 Total/Weighted Average $ 1,961,352 $ 1,843,855 $ 8,634 $ (11,577 ) $ 1,840,912 238 3.86 % 3.66 % 25 (A) See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities. (B) The Company used an implied AAA rating for the Agency RMBS. CMOs issued by Fannie Mae or Freddie Mac consist of loss share securities, the majority of which, by UPB, are unrated or rated below investment grade at September 30, 2018 by at least one NRSRO. Private label securities are rated investment grade or better by at least one NRSRO as of September 30, 2018. (C) The weighted average yield is based on the most recent annualized monthly interest income, divided by the book value of settled securities. (D) The weighted average maturity is based on the timing of expected principal reduction on the assets.
Summary of RMBS Securities in an Unrealized Loss Position	The following tables summarize the Company’s securities in an unrealized loss position as of the dates indicated (dollars in thousands): RMBS Unrealized Loss Positions As of September 30, 2018 Duration in Loss Position Original Face Value Book Value Gross Unrealized Losses Carrying Value (A) Number of Securities Weighted Average Rating Coupon Yield (C) Maturity (Years) (D) Less than Twelve Months $ 1,129,948 $ 1,001,654 $ (26,745 ) $ 974,909 125 (B) 3.90 % 3.76 % 26 Twelve or More Months 856,814 773,492 (36,259 ) 737,233 102 (B) 3.72 % 3.54 % 25 Total/Weighted Average $ 1,986,762 $ 1,775,146 $ (63,004 ) $ 1,712,142 227 3.82 % 3.66 % 26 As of December 31, 2017 Duration in Loss Position Original Face Value Book Value Gross Unrealized Losses Carrying Value (A) Number of Securities Weighted Average Rating Coupon Yield (C) Maturity (Years) (D) Less than Twelve Months $ 1,026,911 $ 1,005,352 $ (5,378 ) $ 999,974 111 (B) 3.81 % 3.63 % 26 Twelve or More Months 323,858 289,599 (6,199 ) 283,400 45 (B) 3.61 % 3.40 % 25 Total/Weighted Average $ 1,350,769 $ 1,294,951 $ (11,577 ) $ 1,283,374 156 3.76 % 3.58 % 26 (A) See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities. (B) The Company used an implied AAA rating for the Agency RMBS. CMOs issued by Fannie Mae or Freddie Mac consist of loss share securities, the majority of which, by UPB, are unrated or rated below investment grade at September 30, 2018 by at least one NRSRO. Private label securities are rated investment grade or better by at least one NRSRO as of September 30, 2018. (C) The weighted average yield is based on the most recent annualized monthly interest income, divided by the book value of settled securities. (D) The weighted average maturity is based on the timing of expected principal reduction on the assets. Except for the security for which the Company has recognized OTTI, the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases which may be maturity.

Investments in Servicing Rela_2

Investments in Servicing Related Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Investments in Servicing Related Assets [Abstract]
Servicing Related Assets	The following is a summary of the Company’s Servicing Related Assets as of the dates indicated (dollars in thousands): Servicing Related Assets Summary As of September 30, 2018 Unpaid Principal Balance Cost Basis Carrying Value (A) Weighted Average Coupon Weighted Average Maturity (Years) (B) Changes in Fair Value Recorded in Other Income (Loss) MSRs Conventional $ 18,849,384 $ 223,154 (C) $ 238,277 4.29 % 27.3 $ 15,123 Government 3,596,317 40,458 (C) 43,686 3.36 % 27.1 3,228 Total / Weighted Average $ 22,445,701 $ 263,612 $ 281,963 4.14 % 27.2 $ 18,351 As of December 31, 2017 Unpaid Principal Balance Cost Basis Carrying Value (A) Weighted Average Coupon Weighted Average Maturity (Years) (B) Changes in Fair Value Recorded in Other Income (Loss) MSRs Conventional $ 7,724,397 $ 81,499 (C) $ 82,150 3.89 % 25.2 $ 651 Government 3,986,254 32,148 (C) 40,656 3.36 % 27.8 8,508 Total / Weighted Average $ 11,710,651 $ 113,647 $ 122,806 3.71 % 26.1 $ 9,159 (A) Carrying value represents the fair value of the pools (see Note 9). (B) The weighted average maturity represents the weighted average expected timing of the receipt of cash flows of each investment. (C) MSR cost basis consists of the carrying value of the prior period, adjusted for any purchases, sales and principal paydowns of the underlying mortgage loans.
Geographic Concentration of Servicing Related Assets	The tables below summarize the geographic distribution for the states representing 5% or greater of the aggregate UPB of the residential mortgage loans underlying the Servicing Related Assets as of the dates indicated: Geographic Concentration of Servicing Related Assets As of September 30, 2018 Percentage of Total Outstanding California 13.6 % Texas 6.3 % Florida 5.3 % All other 74.9 % Total 100.0 % As of December 31, 2017 Percentage of Total Outstanding California 13.7 % New Jersey 7.2 % Florida 5.3 % All other 73.8 % Total 100.0 %

Equity and Earnings per Commo_2

Equity and Earnings per Common Share (Tables)	9 Months Ended
	Sep. 30, 2018
Equity and Earnings per Common Share [Abstract]
Information about Company's 2013 Plan	The following tables present certain information about the 2013 Plan as of the dates indicated: Equity Incentive Plan Information LTIP-OP Units Shares of Common Stock Number of Securities Remaining Available For Future Issuance Under Equity Issuance Price Issued Forfeited Converted Issued Forfeited Compensation Plans December 31, 2016 (140,350 ) 916 - (28,503 ) 3,155 1,335,218 Number of securities issued or to be issued upon exercise - - - - - - March 31, 2017 (140,350 ) 916 - (28,503 ) 3,155 1,335,218 Number of securities issued or to be issued upon exercise (38,150 ) - - (8,199 ) - (46,349 ) $ 18.30 June 30, 2017 (178,500 ) 916 - (36,702 ) 3,155 1,288,869 Number of securities issued or to be issued upon exercise - - 12,917 (12,917 ) - - $ 18.44 September 30, 2017 (178,500 ) 916 12,917 (49,619 ) 3,155 1,288,869 Number of securities issued or to be issued upon exercise - - - - - - December 31, 2017 (178,500 ) 916 12,917 (49,619 ) 3,155 1,288,869 Number of securities issued or to be issued upon exercise - - - - - - March 31, 2018 (178,500 ) 916 12,917 (49,619 ) 3,155 1,288,869 Number of securities issued or to be issued upon exercise (45,400 ) - - (8,256 ) - (53,656 ) $ 18.17 June 30, 2018 (223,900 ) 916 12,917 (57,875 ) 3,155 1,235,213 Number of securities issued or to be issued upon exercise - - - - - - September 30, 2018 (223,900 ) 916 12,917 (57,875 ) 3,155 1,235,213
Basic Earnings per Share of Common Stock	The following table presents basic earnings per share of common stock for the periods indicated (dollars in thousands, except per share data): Earnings per Common Share Information Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Net income allocable to common stockholders $ 27,499 $ 6,859 $ 76,583 $ 27,781 Net income allocated to noncontrolling interests in Operating Partnership (364 ) (93 ) (993 ) (386 ) Dividends on preferred stock 1,372 593 3,902 593 Net income attributable to common stockholders $ 25,763 $ 6,173 $ 71,688 $ 26,802 Denominator: Weighted average common shares outstanding 15,864,774 12,703,577 14,065,000 11,023,348 Weighted average diluted shares outstanding 15,873,030 12,711,776 14,073,256 11,030,401 Basic and Diluted: Basic $ 1.62 $ 0.49 $ 5.10 $ 2.43 Diluted $ 1.62 $ 0.49 $ 5.09 $ 2.43

Transactions with Affiliates _2

Transactions with Affiliates and Affiliated Entities (Tables)	9 Months Ended
	Sep. 30, 2018
Transactions with Affiliates and Affiliated Entities [Abstract]
Management Fees and Compensation Reimbursement to Affiliate	The Management Agreement provides that the Company will reimburse the Manager for (i) various expenses incurred by the Manager or its officers, and agents on the Company’s behalf, including costs of software, legal, accounting, tax, administrative and other similar services rendered for the Company by providers retained by the Manager and (ii) the allocable portion of the compensation paid to specified officers dedicated to the Company. The amounts under “Due to affiliates” on the consolidated balance sheets consisted of the following for the periods indicated (dollars in thousands): Management Fees and Compensation Reimbursement to Affiliate Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Management fees $ 1,361 $ 757 $ 3,677 $ 2,429 Compensation reimbursement 238 191 620 573 Total $ 1,599 $ 948 $ 4,297 $ 3,002

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
Derivative Instruments [Abstract]
Outstanding Notional Amounts of Derivative Instruments	The following table summarizes the outstanding notional amounts of derivative instruments as of the dates indicated (dollars in thousands): Derivatives September 30, 2018 December 31, 2017 Notional amount of interest rate swaps $ 1,397,000 $ 1,067,950 Notional amount of swaptions 160,000 155,000 Notional amount of TBAs, net (40,000 ) 26,900 Total notional amount $ 1,517,000 $ 1,249,850
Information about Company's Interest Rate Swap Agreements	The following table presents information about the Company’s interest rate swap agreements as of the dates indicated (dollars in thousands): Notional Amount Weighted Average Pay Rate Weighted Average Receive Rate Weighted Average Years to Maturity September 30, 2018 $ 1,397,000 2.12 % 2.33 % 5.0 December 31, 2017 $ 1,067,950 1.83 % 1.44 % 4.9
Information about Company's Interest Rate Swaption Agreements	The following table presents information about the Company’s interest rate swaption agreements as of the dates indicated (dollars in thousands): Notional Amount Weighted Average Pay Rate Weighted Average Receive Rate (A) Weighted Average Years to Maturity September 30, 2018 $ 160,000 3.07 % LIBOR-BBA % 10.2 December 31, 2017 $ 155,000 2.88 % LIBOR-BBA % 10.8 (A) Floats in accordance with LIBOR.
Realized Gain (Loss) Related to Derivatives	The following table presents information about realized gain (loss) on derivatives, which is included on the consolidated statements of income for the periods indicated (dollars in thousands): Realized Gains (Losses) on Derivatives Derivatives Consolidated Statements of Income (Loss) Location Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Interest rate swaps Realized gain (loss) on derivatives, net $ (377 ) $ (720 ) $ (961 ) $ (1,315 ) Swaptions Realized gain (loss) on derivatives, net (459 ) (105 ) (834 ) (174 ) TBAs Realized gain (loss) on derivatives, net (435 ) (329 ) (1,013 ) (843 ) Treasury futures Realized gain (loss) on derivatives, net 564 (326 ) 81 (1,962 ) Total $ (707 ) $ (1,480 ) $ (2,727 ) $ (4,294 )
Offsetting Assets	The following tables present information about the Company’s assets and liabilities that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s consolidated balance sheets as of the dates indicated (dollars in thousands): Offsetting Assets and Liabilities As of September 30, 2018 Gross Amounts of Recognized Assets or Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received (Pledged) Net Amount Assets Interest rate swaps $ 28,628 $ - $ 28,628 $ (28,628 ) $ - $ - Swaptions 2,725 - 2,725 (2,725 ) - - TBAs 78 - 78 (78 ) - - Treasury futures - - - 2,103 (2,103 ) - Total Assets $ 31,431 $ - $ 31,431 $ (29,328 ) $ (2,103 ) $ - As of December 31, 2017 Gross Amounts of Recognized Assets or Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received (Pledged) Net Amount Assets Interest rate swaps $ 12,994 $ - $ 12,994 $ (12,994 ) $ - $ - Swaptions 802 - 802 (802 ) - - TBAs 34 - 34 (34 ) - - Total Assets $ 13,830 $ - $ 13,830 $ (13,830 ) $ - $ -
Offsetting Liabilities	The following tables present information about the Company’s assets and liabilities that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s consolidated balance sheets as of the dates indicated (dollars in thousands): Offsetting Assets and Liabilities As of September 30, 2018 Liabilities Repurchase agreements $ 1,680,394 $ - $ 1,680,394 $ (1,643,183 ) $ (37,211 ) $ - Interest rate swaps 396 - 396 - (396 ) - Total Liabilities $ 1,680,790 $ - $ 1,680,790 $ (1,643,183 ) $ (37,607 ) $ - As of December 31, 2017 Liabilities Repurchase agreements $ 1,666,537 $ - $ 1,666,537 $ (1,637,922 ) $ (28,615 ) $ - Interest rate swaps 342 - 342 32 (374 ) - Treasury futures 2 - 2 177 (179 ) - Total Liabilities $ 1,666,881 $ - $ 1,666,881 $ (1,637,713 ) $ (29,168 ) $ -

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value [Abstract]
Company's Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated (dollars in thousands). Recurring Fair Value Measurements As of September 30, 2018 Level 1 Level 2 Level 3 Carrying Value Assets RMBS Fannie Mae $ - $ 1,240,490 $ - $ 1,240,490 Freddie Mac - 475,418 - 475,418 CMOs - 123,065 - 123,065 RMBS total - 1,838,973 - 1,838,973 Derivative assets Interest rate swaps - 28,628 - 28,628 Interest rate swaptions - 2,725 - 2,725 TBAs - 78 - 78 Treasury futures - - - - Derivative assets total - 31,431 - 31,431 Servicing related assets - - 281,963 281,963 Total Assets $ - $ 1,870,404 $ 281,963 $ 2,152,367 Liabilities Derivative liabilities Interest rate swaps - 396 - 396 TBAs - - - - Treasury futures - - - - Derivative liabilities total - 396 - 396 Total Liabilities $ - $ 396 $ - $ 396 As of December 31, 2017 Level 1 Level 2 Level 3 Carrying Value Assets RMBS Fannie Mae $ - $ 1,233,699 $ - $ 1,233,699 Freddie Mac - 513,544 - 513,544 CMOs - 93,669 - 93,669 RMBS total - 1,840,912 - 1,840,912 Derivative assets Interest rate swaps - 12,994 - 12,994 Interest rate swaptions - 802 - 802 TBAs - 34 - 34 Derivative assets total - 13,830 - 13,830 Servicing related assets - - 122,806 122,806 Total Assets $ - $ 1,854,742 $ 122,806 $ 1,977,548 Liabilities Derivative liabilities Interest rate swaps - 342 - 342 Treasury futures - 2 - 2 Derivative liabilities total - 344 - 344 Total Liabilities $ - $ 344 $ - $ 344
Company's Level 3 Assets (Servicing Related Assets) Measured at Fair Value on Recurring Basis	The tables below present the reconciliation for the Company’s Level 3 assets (Servicing Related Assets) measured at fair value on a recurring basis as of the dates indicated (dollars in thousands): Level 3 Fair Value Measurements As of September 30, 2018 Level 3 (A) MSRs Balance at December 31, 2017 $ 122,806 Purchases, sales and principal paydowns: Purchases 143,054 Other changes (B) (2,248 ) Purchases, sales and principal paydowns: $ 140,806 Changes in Fair Value due to: Changes in valuation inputs or assumptions used in valuation model 28,149 Other changes in fair value (C) (9,798 ) Unrealized gain (loss) included in Net Income $ 18,351 Balance at September 30, 2018 $ 281,963 As of December 31, 2017 Level 3 (A) Excess MSRs Pool 2 MSRs Total Balance at December 31, 2016 $ 29,392 $ 31,871 $ 61,263 Purchases, sales and principal paydowns: Purchases - 83,586 83,586 Sales (35,905 ) - (35,905 ) Other changes (B) 6,513 (1,810 ) 4,703 Purchases, sales and principal paydowns: $ (29,392 ) $ 81,776 $ 52,384 Changes in Fair Value due to: Changes in valuation inputs or assumptions used in valuation model - 16,375 16,375 Other changes in fair value (C) - (7,216 ) (7,216 ) Unrealized gain (loss) included in Net Income $ - $ 9,159 $ 9,159 Balance at December 31, 2017 $ - $ 122,806 $ 122,806 (A) Includes the recapture agreement for each respective pool. (B) Represents purchase price adjustments, principally contractual prepayment protection, and changes due to the Company’s repurchase of the underlying collateral. (C) Represents changes due to realization of expected cash flows.
Significant Unobservable Inputs Used in Fair Value Measurement	The tables below present information about the significant unobservable inputs used in the fair value measurement of the Company’s Servicing Related Assets classified as Level 3 fair value assets as of the dates indicated (dollars in thousands): Fair Value Measurements As of September 30, 2018 Fair Value Valuation Technique Unobservable Input (A) Range Weighted Average MSRs Conventional $ 238,277 Discounted cash flow Constant prepayment speed 5.0% - 23.7% 8.5 % Uncollected payments 0.2% - 1.0% 0.8 % Discount rate 9.3 % Annual cost to service, per loan $ 71 Government $ 43,686 Discounted cash flow Constant prepayment speed 6.0% - 18.7% 8.5 % Uncollected payments 0.4% - 4.5% 3.3 % Discount rate 12.0 % Annual cost to service, per loan $ 106 TOTAL $ 281,963 Discounted cash flow As of December 31, 2017 Fair Value Valuation Technique Unobservable Input (A) Range Weighted Average MSRs Conventional $ 82,150 Discounted cash flow Constant prepayment speed 6.5% - 23.5% 10.5 % Uncollected payments 0.2% - 1.8% 0.8 % Discount rate 9.3 % Annual cost to service, per loan $ 70 Government $ 40,656 Discounted cash flow Constant prepayment speed 6.0% - 14.2% 8.1 % Uncollected payments 0.4% - 5.2% 3.3 % Discount rate 12.0 % Annual cost to service, per loan $ 96 TOTAL $ 122,806 Discounted cash flow (A) Significant increases (decreases) in any of the inputs in isolation may result in significantly lower (higher) fair value measurements. A change in the assumption used for discount rates may be accompanied by a directionally similar change in the assumption used for the probability of uncollected payments and a directionally opposite change in the assumption used for prepayment rates.

Repurchase Agreements (Tables)

Repurchase Agreements (Tables)	9 Months Ended
	Sep. 30, 2018
Repurchase Agreements [Abstract]
Repurchase Agreements Remaining Maturities and Weighted Average Rates	The repurchase agreements had the following remaining maturities and weighted average rates as of the dates indicated (dollars in thousands): Repurchase Agreement Characteristics As of September 30, 2018 Repurchase Agreements Weighted Average Rate Less than one month $ 732,212 2.24 % One to three months 723,385 2.26 % Greater than three months 224,797 2.37 % Total/Weighted Average $ 1,680,394 2.26 % As of December 31, 2017 Repurchase Agreements Weighted Average Rate Less than one month $ 429,573 1.44 % One to three months 1,231,687 1.48 % Greater than three months 5,277 1.52 % Total/Weighted Average $ 1,666,537 1.47 %

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Payable [Abstract]
Outstanding Long-Term Borrowings Remaining Maturities	The outstanding long-term borrowings had the following remaining maturities as of the dates indicated (dollars in thousands): Long-Term Borrowings Repayment Characteristics As of September 30, 2018 2018 2019 2020 2021 2022 2023 Total MSR Term Facility Borrowings under MSR Term Facility $ 500 $ 2,000 $ 2,000 $ 2,000 $ 10,996 $ - $ 17,496 MSR Financing Facility Borrowings under MSR Financing Facility $ - $ - $ 4,355 $ 63,491 $ - $ - $ 67,846 MSR Revolver Borrowings under MSR Financing Facility $ - $ - $ - $ 45,000 $ - $ - $ 45,000 Total $ 500 $ 2,000 $ 6,355 $ 110,491 $ 10,996 $ - $ 130,342 As of December 31, 2017 2018 2019 2020 2021 2022 2023 Total MSR Term Facility Borrowings under MSR Term Facility $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 11,000 $ - $ 19,000 MSR Financing Facility Borrowings under MSR Financing Facility $ - $ 389 $ 1,608 $ 1,697 $ 16,806 $ - $ 20,500 Total $ 2,000 $ 2,389 $ 3,608 $ 3,697 $ 27,806 $ - $ 39,500

Receivables and Other Assets (T

Receivables and Other Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Receivables and Other Assets [Abstract]
Receivables and Other Assets	The assets comprising “Receivables and other assets” as of September 30, 2018 and December 31, 2017 are summarized in the following table (dollars in thousands): Receivables and Other Assets September 30, 2018 December 31, 2017 Servicing advances $ 5,554 $ 5,901 Interest receivable 6,702 5,804 Repurchased loans held for sale 4,123 2,160 Other receivables 3,656 2,777 Total other assets $ 20,035 $ 16,642

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2018
Accrued Expenses and Other Liabilities [Abstract]
Accrued Expenses and Other Liabilities	The liabilities comprising “Accrued expenses and other liabilities” as of September 30, 2018 and December 31, 2017 are summarized in the following table (dollars in thousands): Accrued Expenses and Other Liabilities September 30, 2018 December 31, 2017 Accrued interest payable $ 6,254 $ 4,252 Escrow funds held 37 37 Net current tax payable 203 - Net deferred tax payable 5,165 843 Accrued expenses 10,664 6,882 Total accrued expenses and other liabilities $ 22,323 $ 12,014

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Taxes [Abstract]
Income Tax Expense (Benefit)	The components of the Company’s income tax expense (benefit) are as follows for the periods indicated below (dollars in thousands): Nine Months Ended September 30, 2018 2017 Current federal income tax expense $ 156 $ (365 ) Current state income tax expense 47 (45 ) Deferred federal income tax expense (benefit) 3,526 (119 ) Deferred state income tax expense (benefit) 796 (13 ) Provision for (Benefit from) Corporate Business Taxes $ 4,525 $ (542 )
Reconciliation of Statutory Federal Rate to Effective Rate	The following is a reconciliation of the statutory federal rate to the effective rate, for the periods indicated below (dollars in thousands): Nine Months Ended September 30, 2018 2017 Computed income tax (benefit) expense at federal rate $ 17,035 21.0 % $ 9,534 35.0 % State taxes (benefit), net of federal tax, if applicable 832 1.0 % (54 ) (0.2 ) % Provision to return adjustment 4 - % - - % REIT income not subject to tax (benefit) (13,346 ) (16.4 ) % (10,022 ) (36.8 ) % Provision for (Benefit from) Corporate Business Taxes/Effective Tax Rate (A) $ 4,525 5.6 % $ (542 ) (2.0 ) % (A) The provision for income taxes is recorded at the TRS level.
Current and Deferred Tax Liabilities and Assets	The Company’s consolidated balance sheets, at September 30, 2018 and December 31, 2017, contain the following current and deferred tax liabilities and assets, which are recorded at the TRS level (dollars in thousands): Nine Months Ended September 30, 2018 2017 Income taxes payable Federal income taxes payable $ 156 $ 92 State and local income taxes payable 47 17 Income taxes payable $ 203 $ 109 September 30, 2018 December 31, 2017 Deferred tax (assets) liabilities Deferred tax - organizational expenses $ (5 ) $ (10 ) Deferred tax - mortgage servicing rights 5,170 909 Deferred tax - net operating loss - (56 ) Total net deferred tax (assets) liabilities $ 5,165 $ 843

Organization and Operations (De

Organization and Operations (Details) - USD ($)	Jun. 04, 2018	Aug. 17, 2017	Mar. 29, 2017	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Class of Stock Disclosures [Abstract]
Common stock, shares authorized (in shares)				500,000,000	500,000,000			500,000,000
Common stock, par value (in dollars per share)				$ 0.01	$ 0.01			$ 0.01
Common stock issued and sold (in shares)	2,750,000		5,175,000
Common stock issued, price per share (in dollars per share)	$ 0.01		$ 0.01			$ 18.44	$ 18.17		$ 18.30
Common stock issued and sold, value			$ 81,100,000		$ 60,374,000	$ 81,178,000
Stock issuance expense	$ 265,000		$ 229,000
Date of conducting IPO and concurrent private placement of common stock					Oct. 9, 2013
Proceeds from issuance of preferred stock					$ 6,593,000	57,917,000
Stock exercised to purchase additional shares (in shares)	338,857
Proceeds from issuance of common stock	$ 53,800,000				$ 60,374,000	$ 81,178,000
Series A Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Preferred stock, shares authorized (in shares)				100,000,000	100,000,000			100,000,000
Preferred stock, par value (in dollars per share)		$ 0.01		$ 0.01	$ 0.01			$ 0.01
Common stock issued and sold (in shares)				103,570
Stock issuance expense		$ 193,000
Preferred stock issued (in shares)		2,400,000		2,671,782	2,671,782			2,400,000
Preferred stock dividend rate		8.20%			8.20%
Proceeds from issuance of preferred stock		$ 58,100,000		$ 2,700,000

Basis of Presentation and Sig_4

Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Cash and Cash Equivalents and Restricted Cash [Abstract]
Restricted cash	$ 39,710		$ 39,710		$ 29,168
Variation margin	17,900		17,900
Realized gain (loss) on RMBS, net [Abstract]
Gain on RMBS	0	$ 213	104	$ 213
Loss on RMBS	(428)	(382)	(5,534)	(715)
Net realized loss on RMBS	(428)	(169)	(5,430)	(502)
Realized loss on derivatives, net	(707)	(1,480)	(2,727)	(4,294)
Unrealized gain (loss) on derivatives, net	8,807	1,684	34,442	(1,867)
Realized gain on Excess MSRs, net	0	0	0	6,678
Unrealized gain (loss) on MSRs, net	6,218	(2,334)	18,351	5,471
Total	13,890	(2,299)	44,636	5,486
RMBS [Member]
Investments in RMBS [Abstract]
OTTI securities	0	$ 0	45	$ 77
Derivatives [Member]
Cash and Cash Equivalents and Restricted Cash [Abstract]
Restricted cash	2,100		2,100		549
Repurchase Agreements [Member]
Cash and Cash Equivalents and Restricted Cash [Abstract]
Restricted cash	37,600		37,600		28,600
Receivables and Other Assets [Member] | RMBS [Member]
Investments in RMBS [Abstract]
Income receivable	5,900		5,900		5,700
Receivables and Other Assets [Member] | Excess Mortgage Service Right [Member]
Investments in RMBS [Abstract]
Income receivable	0		0		0
Receivables and Other Assets [Member] | Reimbursable Servicing Advances [Member]
Investments in RMBS [Abstract]
Income receivable	$ 5,600		$ 5,600		$ 5,900

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018		Sep. 30, 2017		Dec. 31, 2017
Segment Reporting Profit (Loss) and Other Information [Abstract]
Interest income	$ 15,323	$ 11,932	$ 40,757		$ 28,012
Interest expense	9,257	6,096	24,124		12,819
Net interest income	6,066	5,836	16,633		15,193
Servicing fee income	14,017	6,307	34,202		16,374
Servicing costs	2,981	1,626	7,087		3,844
Net servicing income	11,036	4,681	27,115		12,530
Other income	13,890	(2,299)	44,636		5,486
Other operating expenses	2,764	1,896	7,276		5,970
(Benefit from) provision for corporate business taxes	729	(537)	4,525	[1]	(542)	[1]
Net Income	27,499	6,859	76,583		27,781
Investments	2,120,936		2,120,936				$ 1,963,718
Other assets	112,564		112,564				86,967
Total Assets	2,233,500		2,233,500				2,050,685
Debt	1,809,740		1,809,740				1,705,562
Other liabilities	35,591		35,591				22,666
Total Liabilities	1,845,331		1,845,331				1,728,228
Book value	388,169		388,169				322,457
Servicing Related Assets [Member] | Operating Segments [Member]
Segment Reporting Profit (Loss) and Other Information [Abstract]
Interest income	0	0	0		523
Interest expense	629	185	1,266		422
Net interest income	(629)	(185)	(1,266)		101
Servicing fee income	14,017	6,307	34,202		16,374
Servicing costs	2,981	1,626	7,087		3,844
Net servicing income	11,036	4,681	27,115		12,530
Other income	6,218	(2,334)	18,351		12,149
Other operating expenses	0	0	0		0
(Benefit from) provision for corporate business taxes	729	(537)	4,525		(542)
Net Income	15,896	2,699	39,675		25,322
Investments	281,963		281,963				122,806
Other assets	14,055		14,055				8,281
Total Assets	296,018		296,018				131,087
Debt	129,346		129,346				39,025
Other liabilities	14,951		14,951				6,575
Total Liabilities	144,297		144,297				45,600
Book value	151,721		151,721				85,487
RMBS [Member] | Operating Segments [Member]
Segment Reporting Profit (Loss) and Other Information [Abstract]
Interest income	15,323	11,932	40,757		27,489
Interest expense	8,626	5,911	22,856		12,397
Net interest income	6,697	6,021	17,901		15,092
Servicing fee income	0	0	0		0
Servicing costs	0	0	0		0
Net servicing income	0	0	0		0
Other income	7,672	35	26,285		(6,663)
Other operating expenses	0	0	0		0
(Benefit from) provision for corporate business taxes	0	0	0		0
Net Income	14,369	6,056	44,186		8,429
Investments	1,838,973		1,838,973				1,840,912
Other assets	77,078		77,078				48,631
Total Assets	1,916,051		1,916,051				1,889,543
Debt	1,680,394		1,680,394				1,666,537
Other liabilities	5,978		5,978				4,385
Total Liabilities	1,686,372		1,686,372				1,670,922
Book value	229,679		229,679				218,621
All Other [Member]
Segment Reporting Profit (Loss) and Other Information [Abstract]
Interest income	0	0	0		0
Interest expense	2	0	2		0
Net interest income	(2)	0	(2)		0
Servicing fee income	0	0	0		0
Servicing costs	0	0	0		0
Net servicing income	0	0	0		0
Other income	0	0	0		0
Other operating expenses	2,764	1,896	7,276		5,970
(Benefit from) provision for corporate business taxes	0	0	0		0
Net Income	(2,766)	$ (1,896)	(7,278)		$ (5,970)
Investments	0		0				0
Other assets	21,431		21,431				30,055
Total Assets	21,431		21,431				30,055
Debt	0		0				0
Other liabilities	14,662		14,662				11,706
Total Liabilities	14,662		14,662				11,706
Book value	$ 6,769		$ 6,769				$ 18,349
[1]	The provision for income taxes is recorded at the TRS level.

Investments in RMBS (Details)

Investments in RMBS (Details) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
		Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Security	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)Security
Residential Mortgage-Backed Securities [Abstract]
Carrying value		$ 1,838,973		$ 1,838,973		$ 1,840,912
Carrying value of collateral for repurchase agreements		1,750,467		1,750,467		1,728,564
OTTI charges recognized in earnings		0	$ 0	45	$ 77
RMBS [Member]
Residential Mortgage-Backed Securities [Abstract]
Original face value		2,112,741		2,112,741		1,961,352
Book value		1,893,476		1,893,476		1,843,855
Gross unrealized gains		8,501		8,501		8,634
Gross unrealized losses		(63,004)		(63,004)		(11,577)
Carrying value	[1]	$ 1,838,973		$ 1,838,973		$ 1,840,912
Number of securities | Security				253		238
Weighted average coupon				3.94%		3.86%
Weighted average yield	[2]	3.77%		3.77%		3.66%
Weighted average maturity	[3]			25 years		25 years
Carrying value of collateral for repurchase agreements		$ 1,750,500		$ 1,750,500		$ 1,728,600
RMBS [Member] | Fannie Mae [Member]
Residential Mortgage-Backed Securities [Abstract]
Original face value		1,430,611		1,430,611		1,306,823
Book value		1,285,060		1,285,060		1,241,027
Gross unrealized gains		30		30		1,427
Gross unrealized losses		(44,600)		(44,600)		(8,755)
Carrying value	[1]	$ 1,240,490		$ 1,240,490		$ 1,233,699
Number of securities | Security				162		154
Weighted average rating	[4]
Weighted average coupon				3.85%		3.80%
Weighted average yield	[2]	3.69%		3.69%		3.61%
Weighted average maturity	[3]			25 years		26 years
RMBS [Member] | Freddie Mac [Member]
Residential Mortgage-Backed Securities [Abstract]
Original face value		$ 566,251		$ 566,251		$ 556,204
Book value		493,798		493,798		515,475
Gross unrealized gains		0		0		864
Gross unrealized losses		(18,380)		(18,380)		(2,795)
Carrying value	[1]	$ 475,418		$ 475,418		$ 513,544
Number of securities | Security				65		64
Weighted average rating	[4]
Weighted average coupon				3.74%		3.74%
Weighted average yield	[2]	3.59%		3.59%		3.57%
Weighted average maturity	[3]			27 years		27 years
RMBS [Member] | CMOs [Member]
Residential Mortgage-Backed Securities [Abstract]
Original face value		$ 115,879		$ 115,879		$ 98,325
Book value		114,618		114,618		87,353
Gross unrealized gains		8,471		8,471		6,343
Gross unrealized losses		(24)		(24)		(27)
Carrying value	[1]	$ 123,065		$ 123,065		$ 93,669
Number of securities | Security				26		20
Weighted average rating	[4]
Weighted average coupon				5.74%		5.26%
Weighted average yield	[2]	5.40%		5.40%		4.88%
Weighted average maturity	[3]			13 years		12 years
[1]	See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.
[2]	The weighted average yield is based on the most recent annualized monthly interest income, divided by the book value of settled securities.
[3]	The weighted average maturity is based on the timing of expected principal reduction on the assets.
[4]	The Company used an implied AAA rating for the Agency RMBS. Collateralized mortgage obligations ("CMOs") issued by Fannie Mae or Freddie Mac consist of loss share securities, the majority of which, by unpaid principal balance ("UPB"), are unrated or rated below investment grade at September 30, 2018 by at least one nationally recognized statistical rating organization ("NRSRO"). Private label securities are rated investment grade or better by at least one NRSRO as of September 30, 2018.

Investments in RMBS, Assets by

Investments in RMBS, Assets by Maturity (Details) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2018USD ($)Security	Dec. 31, 2017USD ($)Security
RMBS, Assets by Maturity [Abstract]
Carrying value		$ 1,838,973	$ 1,840,912
RMBS [Member]
RMBS, Assets by Maturity [Abstract]
Original face value		2,112,741	1,961,352
Book value		1,893,476	1,843,855
Gross unrealized gains		8,501	8,634
Gross unrealized losses		(63,004)	(11,577)
Carrying value	[1]	$ 1,838,973	$ 1,840,912
Number of securities | Security		253	238
Weighted average coupon		3.94%	3.86%
Weighted average yield	[2]	3.77%	3.66%
Weighted average maturity	[3]	25 years	25 years
RMBS [Member] | 5-10 Years [Member]
RMBS, Assets by Maturity [Abstract]
Original face value		$ 20,620	$ 16,069
Book value		12,679	15,483
Gross unrealized gains		287	324
Gross unrealized losses		(136)	(312)
Carrying value	[1]	$ 12,830	$ 15,495
Number of securities | Security		6	3
Weighted average rating	[4]
Weighted average coupon		4.17%	4.33%
Weighted average yield	[2]	4.10%	4.06%
Weighted average maturity	[3]	8 years	7 years
RMBS [Member] | Over 10 Years [Member]
RMBS, Assets by Maturity [Abstract]
Original face value		$ 2,092,121	$ 1,945,283
Book value		1,880,797	1,828,372
Gross unrealized gains		8,214	8,310
Gross unrealized losses		(62,868)	(11,265)
Carrying value	[1]	$ 1,826,143	$ 1,825,417
Number of securities | Security		247	235
Weighted average rating	[4]
Weighted average coupon		3.94%	3.85%
Weighted average yield	[2]	3.76%	3.65%
Weighted average maturity	[3]	25 years	26 years
[1]	See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.
[2]	The weighted average yield is based on the most recent annualized monthly interest income, divided by the book value of settled securities.
[3]	The weighted average maturity is based on the timing of expected principal reduction on the assets.
[4]	The Company used an implied AAA rating for the Agency RMBS. CMOs issued by Fannie Mae or Freddie Mac consist of loss share securities, the majority of which, by UPB, are unrated or rated below investment grade at September 30, 2018 by at least one NRSRO. Private label securities are rated investment grade or better by at least one NRSRO as of September 30, 2018.

Investments in RMBS, Unrealized

Investments in RMBS, Unrealized Loss Positions (Details) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2018USD ($)Security	Dec. 31, 2017USD ($)Security
RMBS, Unrealized Loss Positions [Abstract]
Carrying value		$ 1,838,973	$ 1,840,912
RMBS [Member]
RMBS, Unrealized Loss Positions [Abstract]
Original face value		2,112,741	1,961,352
Book value		1,893,476	1,843,855
Gross unrealized losses		(63,004)	(11,577)
Carrying value	[1]	$ 1,838,973	$ 1,840,912
Number of securities | Security		253	238
Weighted average coupon		3.94%	3.86%
Weighted average yield	[2]	3.77%	3.66%
Weighted average maturity	[3]	25 years	25 years
RMBS [Member] | Unrealized Loss Positions [Member]
RMBS, Unrealized Loss Positions [Abstract]
Original face value		$ 1,986,762	$ 1,350,769
Book value		1,775,146	1,294,951
Gross unrealized losses		(63,004)	(11,577)
Carrying value	[1]	$ 1,712,142	$ 1,283,374
Number of securities | Security		227	156
Weighted average coupon		3.82%	3.76%
Weighted average yield	[2]	3.66%	3.58%
Weighted average maturity	[4]	26 years	26 years
RMBS [Member] | Less than Twelve Months [Member] | Unrealized Loss Positions [Member]
RMBS, Unrealized Loss Positions [Abstract]
Original face value		$ 1,129,948	$ 1,026,911
Book value		1,001,654	1,005,352
Gross unrealized losses		(26,745)	(5,378)
Carrying value	[1]	$ 974,909	$ 999,974
Number of securities | Security		125	111
Weighted average rating	[5]
Weighted average coupon		3.90%	3.81%
Weighted average yield	[2]	3.76%	3.63%
Weighted average maturity	[4]	26 years	26 years
RMBS [Member] | Twelve or More Months [Member] | Unrealized Loss Positions [Member]
RMBS, Unrealized Loss Positions [Abstract]
Original face value		$ 856,814	$ 323,858
Book value		773,492	289,599
Gross unrealized losses		(36,259)	(6,199)
Carrying value	[1]	$ 737,233	$ 283,400
Number of securities | Security		102	45
Weighted average rating	[5]
Weighted average coupon		3.72%	3.61%
Weighted average yield	[2]	3.54%	3.40%
Weighted average maturity	[4]	25 years	25 years
[1]	See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.
[2]	The weighted average yield is based on the most recent annualized monthly interest income, divided by the book value of settled securities.
[3]	The weighted average maturity is based on the timing of expected principal reduction on the assets.
[4]	The weighted average maturity is based on the timing of expected principal reduction on the assets. Except for the security for which the Company has recognized OTTI, the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases which may be maturity.
[5]	The Company used an implied AAA rating for the Agency RMBS. CMOs issued by Fannie Mae or Freddie Mac consist of loss share securities, the majority of which, by UPB, are unrated or rated below investment grade at September 30, 2018 by at least one NRSRO. Private label securities are rated investment grade or better by at least one NRSRO as of September 30, 2018.

Investments in Servicing Rela_3

Investments in Servicing Related Assets (Details) - Aurora Financial Group, Inc [Member] - USD ($) $ in Millions	Sep. 30, 2018	May 29, 2015
Mortgage Loans on Real Estate [Abstract]
Aggregate unpaid principal balance		$ 718.4
Mortgage Servicing Rights (MSRs) [Member]
Mortgage Loans on Real Estate [Abstract]
Aggregate unpaid principal balance	$ 24,600

Investments in Servicing Rela_4

Investments in Servicing Related Assets, Summary (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2018	Dec. 31, 2017
Servicing Asset [Abstract]
Unpaid principal balance		$ 22,445,701	$ 11,710,651
Cost basis		263,612	113,647
Carrying value	[1]	$ 281,963	$ 122,806
Weighted average coupon		4.14%	3.71%
Weighted average maturity	[2]	27 years 2 months 12 days	26 years 1 month 6 days
Changes in fair value recorded in other income (loss)		$ 18,351	$ 9,159
Mortgage Service Right Conventional [Member]
Servicing Asset [Abstract]
Unpaid principal balance		18,849,384	7,724,397
Cost basis	[3]	223,154	81,499
Carrying value	[1]	$ 238,277	$ 82,150
Weighted average coupon		4.29%	3.98%
Weighted average maturity	[2]	27 years 3 months 18 days	25 years 2 months 12 days
Changes in fair value recorded in other income (loss)		$ 15,123	$ 651
Mortgage Service Right Government [Member]
Servicing Asset [Abstract]
Unpaid principal balance		3,596,317	3,986,254
Cost basis	[3]	40,458	32,148
Carrying value	[1]	$ 43,686	$ 40,656
Weighted average coupon		3.36%	3.36%
Weighted average maturity	[2]	27 years 1 month 6 days	27 years 9 months 18 days
Changes in fair value recorded in other income (loss)		$ 3,228	$ 8,508
[1]	Carrying value represents the fair value of the pools (see Note 9).
[2]	The weighted average maturity represents the weighted average expected timing of the receipt of cash flows of each investment.
[3]	MSR cost basis consists of the carrying value of the prior period, adjusted for any purchases, sales and principal paydowns of the underlying mortgage loans.

Investments in Servicing Rela_5

Investments in Servicing Related Assets, Geographic Concentration (Details)	Sep. 30, 2018	Dec. 31, 2017
Servicing Related Assets, Geographic Concentration [Abstract]
Outstanding unpaid principal balance	100.00%	100.00%
California [Member]
Servicing Related Assets, Geographic Concentration [Abstract]
Outstanding unpaid principal balance	13.60%	13.70%
Texas [Member]
Servicing Related Assets, Geographic Concentration [Abstract]
Outstanding unpaid principal balance	6.30%
Florida [Member]
Servicing Related Assets, Geographic Concentration [Abstract]
Outstanding unpaid principal balance	5.30%	5.30%
New Jersey [Member]
Servicing Related Assets, Geographic Concentration [Abstract]
Outstanding unpaid principal balance		7.20%
All Other [Member]
Servicing Related Assets, Geographic Concentration [Abstract]
Outstanding unpaid principal balance	74.90%	73.80%

Equity and Earnings per Commo_3

Equity and Earnings per Common Share, Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 04, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 29, 2017
Equity Incentive Plan Information [Abstract]
Shares of Common Stock Issued, number of securities issued or to be issued upon exercise (in shares)	(338,857)
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans, Beginning Balance (in shares)		1,235,213	1,288,869	1,288,869	1,288,869	1,288,869	1,335,218	1,335,218	1,288,869	1,335,218
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans During the Period (in shares)		0	(53,656)	0	0	0	(46,349)	0
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans, Ending Balance (in shares)		1,235,213	1,235,213	1,288,869	1,288,869	1,288,869	1,288,869	1,335,218	1,235,213	1,288,869
Issuance Price (in dollars per share)	$ 0.01		$ 18.17			$ 18.44	$ 18.30			$ 18.44	$ 0.01
LTIP-OP Units [Member]
Equity Incentive Plan Information [Abstract]
LTIP-OP Units, Beginning Balance (in shares)		(223,900)	(178,500)	(178,500)	(178,500)	(178,500)	(140,350)	(140,350)	(178,500)	(140,350)
LTIP-OP Units, number of securities issued or to be issued upon exercise (in shares)		0	(45,400)	0	0	0	(38,150)	0
LTIP-OP Units, Ending Balance (in shares)		(223,900)	(223,900)	(178,500)	(178,500)	(178,500)	(178,500)	(140,350)	(223,900)	(178,500)
LTIP-OP Units Forfeited, Beginning Balance (in shares)		916	916	916	916	916	916	916	916	916
LTIP-OP Units Forfeited, number of securities issued or to be issued upon exercise (in shares)		0	0	0	0	0	0	0
LTIP-OP Units Forfeited, Ending Balance (in shares)		916	916	916	916	916	916	916	916	916
LTIP-OP Units Converted, Beginning Balance (in shares)		12,917	12,917	12,917	12,917	0	0	0	12,917	0
LTIP-OP Units Converted, number of securities issued or to be issued upon exercise (in shares)		0	0	0	0	12,917	0	0
LTIP-OP Units Converted, Ending Balance (in shares)		12,917	12,917	12,917	12,917	12,917	0	0	12,917	12,917
LTIP-OP unit vesting period									3 years
Share-based compensation expense recognized		$ 194				$ 183			$ 494	$ 464
Unrecognized share-based compensation expense		$ 1,200			$ 900				$ 1,200
LTIP-OP Units [Member] | Maximum [Member]
Equity Incentive Plan Information [Abstract]
Period of recognition of unrecognized share-based compensation expense									3 years
Common Stock [Member]
Equity Incentive Plan Information [Abstract]
Shares of Common Stock Issued, Beginning Balance (in shares)		(57,875)	(49,619)	(49,619)	(49,619)	(36,702)	(28,503)	(28,503)	(49,619)	(28,503)
Shares of Common Stock Issued, number of securities issued or to be issued upon exercise (in shares)		0	(8,256)	0	0	(12,917)	(8,199)	0
Shares of Common Stock Issued, Ending Balance (in shares)		(57,875)	(57,875)	(49,619)	(49,619)	(49,619)	(36,702)	(28,503)	(57,875)	(49,619)
Shares of Common Stock Forfeited, Beginning Balance (in shares)		3,155	3,155	3,155	3,155	3,155	3,155	3,155	3,155	3,155
Shares of Common Stock Forfeited, number of securities issued or to be issued upon exercise (in shares)		0	0	0	0	0	0	0
Shares of Common Stock Forfeited, Ending Balance (in shares)		3,155	3,155	3,155	3,155	3,155	3,155	3,155	3,155	3,155
2013 Plan [Member]
Equity Incentive Plan Information [Abstract]
Number of share equivalent to unit awarded (in shares)									1

Equity and Earnings per Commo_4

Equity and Earnings per Common Share, Non-Controlling Interests, Preferred Stock (Details) - USD ($)	Jun. 04, 2018	Aug. 17, 2017	Mar. 29, 2017	Aug. 31, 2018	Apr. 30, 2018	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Class of Stock Disclosures [Abstract]
Stock issued and sold (in shares)	2,750,000		5,175,000
Issuance of common stock, net of offering costs	$ 53,800,000						$ 60,374,000	$ 81,178,000
Stock issuance expense	$ 265,000		$ 229,000
Issuance of preferred stock, net of offering costs							$ 6,593,000	$ 57,917,000
Series A Preferred Stock [Member]
Class of Stock Disclosures [Abstract]
Stock issued and sold (in shares)						103,570
Weighted average price (in dollars per share)						$ 25.63
Stock issuance fee						$ 42,000
Stock issuance expense		$ 193,000
Number of shares authorized (in shares)						100,000,000	100,000,000		100,000,000
Preferred stock, par value (in dollars per share)		$ 0.01				$ 0.01	$ 0.01		$ 0.01
Number of shares undesignated (in shares)						96,200,000	96,200,000
Number of shares designated (in shares)						3,800,000	3,800,000
Number of shares issued (in shares)		2,400,000				2,671,782	2,671,782		2,400,000
Issuance of preferred stock, net of offering costs		$ 58,100,000				$ 2,700,000
Value of shares authorized					$ 35,000,000
Cash redemption price (in dollars per share)						$ 25	$ 25
Shares issued upon conversion, preferred stock (in shares)						2.62881	2.62881
Percentage of cash dividends rate		8.20%					8.20%
Liquidation preference per share (in dollars per share)						$ 25	$ 25
Cumulative cash dividends (in dollars per share)							$ 2.05
Common Stock [Member]
Class of Stock Disclosures [Abstract]
Common stock value authorized				$ 50,000,000
Stock issued and sold (in shares)						371,041	3,468,154	5,196,116
Weighted average price (in dollars per share)						$ 18.66
Issuance of common stock, net of offering costs						$ 6,900,000
Stock issuance fee						138,000
Stock issuance expense						$ 200,000
LTIP-OP Units [Member] | Operating Partnership [Member]
Non-Controlling Interests in Operating Partnership [Abstract]
Number of LTIP units owned by non-controlling interest holders in Operating Partnership (in shares)						210,067	210,067
Percentage of operating partnership						1.30%	1.30%

Equity and Earnings per Commo_5

Equity and Earnings per Common Share, Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator [Abstract]
Net income allocable to common stockholders	$ 27,499	$ 6,859	$ 76,583	$ 27,781
Net income allocated to noncontrolling interests in Operating Partnership	(364)	(93)	(993)	(386)
Dividends on preferred stock	1,372	593	3,902	593
Net income attributable to common stockholders	$ 25,763	$ 6,173	$ 71,688	$ 26,802
Denominator [Abstract]
Weighted average common shares outstanding (in shares)	15,864,774	12,703,577	14,065,000	11,023,348
Weighted average diluted shares outstanding (in shares)	15,873,030	12,711,776	14,073,256	11,030,401
Basic and Diluted [Abstract]
Basic (in dollars per share)	$ 1.62	$ 0.49	$ 5.10	$ 2.43
Diluted (in dollars per share)	$ 1.62	$ 0.49	$ 5.09	$ 2.43
Anti-dilutive securities (in shares)	0	0	0	0

Transactions with Affiliates _3

Transactions with Affiliates and Affiliated Entities (Details)	Nov. 15, 2016USD ($)	Sep. 30, 2018USD ($)Loan	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Loan	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)Loan	Jan. 31, 2017USD ($)
Information about Related Party [Abstract]
Renew of management agreement subject to termination				1 year
Management agreement subject to termination, notice period for termination to manager				30 days
Management agreement subject to termination, period of notice by manager in the event of default				60 days
Management agreement subject to termination, period of termination fee payment in the event of default				30 days
Percentage of annual management fee paid equal to gross equity				1.50%
Management fees		$ 1,361,000	$ 757,000	$ 3,677,000	$ 2,429,000
Compensation reimbursement		238,000	191,000	620,000	573,000
Total		$ 1,599,000	$ 948,000	$ 4,297,000	$ 3,002,000
Minimum [Member]
Information about Related Party [Abstract]
Management agreement subject to non-renewal, notice period				180 days
Maximum [Member]
Information about Related Party [Abstract]
Management agreement subject to non-renewal, notice period				270 days
Freedom Mortgage Excess Service Right [Member]
Information about Related Party [Abstract]
Joint marketing recapture agreement initial term				1 year
Joint marketing recapture agreement automatic renewals term				1 year
Joint marketing recapture agreement termination notice period				60 days
Number of MSRs loans | Loan		9		77		116
Aggregate unpaid principal balance		$ 2,300,000		$ 16,500,000		$ 27,600,000
Amount due to affiliated entity		3,000		$ 24,000		$ 43,000
Cash proceeds from sale of mortgage loans	$ 38,000,000
Period of monthly yield maintenance payment				12 months
Yield maintenance payment		$ 3,000,000		$ 3,000,000
Freedom Mortgage Excess Service Right [Member] | NexBank Term Loan [Member]
Information about Related Party [Abstract]
Repayment of outstanding borrowings	12,000,000
Outstanding borrowings	$ 25,000,000
Ginnie Mae MSRs [Member] | Aurora Financial Group Inc [Member]
Information about Related Party [Abstract]
Weighted average servicing fee							0.30%
Aggregate unpaid principal balance							$ 4,500,000,000

Derivative Instruments, Summary

Derivative Instruments, Summary of Outstanding Notional Amounts and Interest Rate Swap Agreements of Derivative Instruments (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2018	Dec. 31, 2017
Notional Amount of Interest Rate Swaps [Member]
Outstanding Notional Amounts and Interest Rate Swap Agreements [Abstract]
Total notional amount		$ 1,397,000	$ 1,067,950
Weighted average pay rate		2.12%	1.83%
Weighted average receive rate		2.33%	1.44%
Weighted average years to maturity		5 years	4 years 10 months 24 days
Notional Amount of Swaptions [Member]
Outstanding Notional Amounts and Interest Rate Swap Agreements [Abstract]
Total notional amount		$ 160,000	$ 155,000
Weighted average pay rate		3.07%	2.88%
Weighted average receive rate type	[1]	LIBOR-BBA%	LIBOR-BBA%
Weighted average years to maturity		10 years 2 months 12 days	10 years 9 months 18 days
Not Designated as Hedging Instrument [Member]
Outstanding Notional Amounts and Interest Rate Swap Agreements [Abstract]
Total notional amount		$ 1,517,000	$ 1,249,850
Not Designated as Hedging Instrument [Member] | Notional Amount of Interest Rate Swaps [Member]
Outstanding Notional Amounts and Interest Rate Swap Agreements [Abstract]
Total notional amount		1,397,000	1,067,950
Not Designated as Hedging Instrument [Member] | Notional Amount of Swaptions [Member]
Outstanding Notional Amounts and Interest Rate Swap Agreements [Abstract]
Total notional amount		160,000	155,000
Not Designated as Hedging Instrument [Member] | Notional Amount of TBAs, Net [Member]
Outstanding Notional Amounts and Interest Rate Swap Agreements [Abstract]
Total notional amount			$ 26,900
Not Designated as Hedging Instrument [Member] | Notional Amount of TBAs, Net [Member] | Short [Member]
Outstanding Notional Amounts and Interest Rate Swap Agreements [Abstract]
Total notional amount		$ 40,000
[1]	Floats in accordance with LIBOR.

Derivative Instruments, Summa_2

Derivative Instruments, Summary of Realized Gain (Loss) Related to Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Gain/(loss) on derivatives	$ (707)	$ (1,480)	$ (2,727)	$ (4,294)
Not Designated as Hedging Instrument [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Gain/(loss) on derivatives	(707)	(1,480)	(2,727)	(4,294)
Not Designated as Hedging Instrument [Member] | Realized Gain (Loss) on Derivatives, Net [Member] | Interest Rate Swaps [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Gain/(loss) on derivatives	(377)	(720)	(961)	(1,315)
Not Designated as Hedging Instrument [Member] | Realized Gain (Loss) on Derivatives, Net [Member] | Swaptions [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Gain/(loss) on derivatives	(459)	(105)	(834)	(174)
Not Designated as Hedging Instrument [Member] | Realized Gain (Loss) on Derivatives, Net [Member] | TBAs [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Gain/(loss) on derivatives	(435)	(329)	(1,013)	(843)
Not Designated as Hedging Instrument [Member] | Realized Gain (Loss) on Derivatives, Net [Member] | Treasury Futures [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Gain/(loss) on derivatives	$ 564	$ (326)	$ 81	$ (1,962)

Derivative Instruments, Offsett

Derivative Instruments, Offsetting Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Offsetting Derivative Assets [Abstract]
Gross amounts of recognized assets or liabilities	$ 31,431	$ 13,830
Gross amounts offset in the consolidated balance sheet	0	0
Net amounts of assets presented in the consolidated balance sheet	31,431	13,830
Gross amounts not offset in the consolidated balance sheet in financial instruments	(29,328)	(13,830)
Gross amounts not offset in the consolidated balance sheet in cash collateral received (pledged)	(2,103)	0
Net amount	0	0
Interest Rate Swaps [Member]
Offsetting Derivative Assets [Abstract]
Gross amounts of recognized assets or liabilities	28,628	12,994
Gross amounts offset in the consolidated balance sheet	0	0
Net amounts of assets presented in the consolidated balance sheet	28,628	12,994
Gross amounts not offset in the consolidated balance sheet in financial instruments	(28,628)	(12,994)
Gross amounts not offset in the consolidated balance sheet in cash collateral received (pledged)	0	0
Net amount	0	0
Swaptions [Member]
Offsetting Derivative Assets [Abstract]
Gross amounts of recognized assets or liabilities	2,725	802
Gross amounts offset in the consolidated balance sheet	0	0
Net amounts of assets presented in the consolidated balance sheet	2,725	802
Gross amounts not offset in the consolidated balance sheet in financial instruments	(2,725)	(802)
Gross amounts not offset in the consolidated balance sheet in cash collateral received (pledged)	0	0
Net amount	0	0
TBAs [Member]
Offsetting Derivative Assets [Abstract]
Gross amounts of recognized assets or liabilities	78	34
Gross amounts offset in the consolidated balance sheet	0	0
Net amounts of assets presented in the consolidated balance sheet	78	34
Gross amounts not offset in the consolidated balance sheet in financial instruments	(78)	(34)
Gross amounts not offset in the consolidated balance sheet in cash collateral received (pledged)	0	0
Net amount	0	$ 0
Treasury Futures [Member]
Offsetting Derivative Assets [Abstract]
Gross amounts of recognized assets or liabilities	0
Gross amounts offset in the consolidated balance sheet	0
Net amounts of assets presented in the consolidated balance sheet	0
Gross amounts not offset in the consolidated balance sheet in financial instruments	2,103
Gross amounts not offset in the consolidated balance sheet in cash collateral received (pledged)	(2,103)
Net amount	$ 0

Derivative Instruments, Offse_2

Derivative Instruments, Offsetting Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Offsetting Derivative Liabilities [Abstract]
Gross amounts of recognized assets or liabilities	$ 1,680,790	$ 1,666,881
Gross amounts offset in the consolidated balance sheet	0	0
Net amounts of assets presented in the consolidated balance sheet	1,680,790	1,666,881
Gross amounts not offset in the consolidated balance sheet in financial instruments	(1,643,183)	(1,637,713)
Gross amounts not offset in the consolidated balance sheet in cash collateral received (pledged)	(37,607)	(29,168)
Net amount	0	0
Repurchase Agreements [Member]
Offsetting Derivative Liabilities [Abstract]
Gross amounts of recognized assets or liabilities	1,680,394	1,666,537
Gross amounts offset in the consolidated balance sheet	0	0
Net amounts of assets presented in the consolidated balance sheet	1,680,394	1,666,537
Gross amounts not offset in the consolidated balance sheet in financial instruments	(1,643,183)	(1,637,922)
Gross amounts not offset in the consolidated balance sheet in cash collateral received (pledged)	(37,211)	(28,615)
Net amount	0	0
Interest Rate Swaps [Member]
Offsetting Derivative Liabilities [Abstract]
Gross amounts of recognized assets or liabilities	396	342
Gross amounts offset in the consolidated balance sheet	0	0
Net amounts of assets presented in the consolidated balance sheet	396	342
Gross amounts not offset in the consolidated balance sheet in financial instruments	0	32
Gross amounts not offset in the consolidated balance sheet in cash collateral received (pledged)	(396)	(374)
Net amount	$ 0	0
Treasury Futures [Member]
Offsetting Derivative Liabilities [Abstract]
Gross amounts of recognized assets or liabilities		2
Gross amounts offset in the consolidated balance sheet		0
Net amounts of assets presented in the consolidated balance sheet		2
Gross amounts not offset in the consolidated balance sheet in financial instruments		177
Gross amounts not offset in the consolidated balance sheet in cash collateral received (pledged)		(179)
Net amount		$ 0

Fair Value, Company's Assets an

Fair Value, Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017		Dec. 31, 2016
Assets [Abstract]
Derivative assets total	$ 31,431	$ 13,830
Servicing related assets	281,963	122,806
Liabilities [Abstract]
Derivative liabilities total	396	344
Interest Rate Swaps [Member]
Assets [Abstract]
Derivative assets total	28,628	12,994
Interest Rate Swaptions [Member]
Assets [Abstract]
Derivative assets total	2,725	802
TBAs [Member]
Assets [Abstract]
Derivative assets total	78	34
Treasury Futures [Member]
Assets [Abstract]
Derivative assets total	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Assets [Abstract]
Derivative assets total	0	0
Servicing related assets	0	0
Total Assets	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Total Liabilities	0	0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Assets [Abstract]
Derivative assets total	31,431	13,830
Servicing related assets	0	0
Total Assets	1,870,404	1,854,742
Liabilities [Abstract]
Derivative liabilities total	396	344
Total Liabilities	396	344
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Assets [Abstract]
Derivative assets total	0	0
Servicing related assets	281,963	122,806	[1]	$ 61,263	[1]
Total Assets	281,963	122,806
Liabilities [Abstract]
Derivative liabilities total	0	0
Total Liabilities	0	0
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | Level 1 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | Level 2 [Member]
Assets [Abstract]
Derivative assets total	28,628	12,994
Liabilities [Abstract]
Derivative liabilities total	396	342
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | Level 3 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaptions [Member] | Level 1 [Member]
Assets [Abstract]
Derivative assets total	0	0
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaptions [Member] | Level 2 [Member]
Assets [Abstract]
Derivative assets total	2,725	802
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaptions [Member] | Level 3 [Member]
Assets [Abstract]
Derivative assets total	0	0
Fair Value, Measurements, Recurring [Member] | TBAs [Member] | Level 1 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0
Fair Value, Measurements, Recurring [Member] | TBAs [Member] | Level 2 [Member]
Assets [Abstract]
Derivative assets total	78	34
Liabilities [Abstract]
Derivative liabilities total	0
Fair Value, Measurements, Recurring [Member] | TBAs [Member] | Level 3 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0
Fair Value, Measurements, Recurring [Member] | Treasury Futures [Member] | Level 1 [Member]
Assets [Abstract]
Derivative assets total	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] | Treasury Futures [Member] | Level 2 [Member]
Assets [Abstract]
Derivative assets total	0
Liabilities [Abstract]
Derivative liabilities total	0	2
Fair Value, Measurements, Recurring [Member] | Treasury Futures [Member] | Level 3 [Member]
Assets [Abstract]
Derivative assets total	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member]
Assets [Abstract]
Derivative assets total	31,431	13,830
Servicing related assets	281,963	122,806
Total Assets	2,152,367	1,977,548
Liabilities [Abstract]
Derivative liabilities total	396	344
Total Liabilities	396	344
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Interest Rate Swaps [Member]
Assets [Abstract]
Derivative assets total	28,628	12,994
Liabilities [Abstract]
Derivative liabilities total	396	342
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Interest Rate Swaptions [Member]
Assets [Abstract]
Derivative assets total	2,725	802
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | TBAs [Member]
Assets [Abstract]
Derivative assets total	78	34
Liabilities [Abstract]
Derivative liabilities total	0
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Treasury Futures [Member]
Assets [Abstract]
Derivative assets total	0
Liabilities [Abstract]
Derivative liabilities total	$ 0	$ 2
RMBS [Member] | Level 2 [Member]
Derivative Instruments Classified as Fair Value Assets and Liabilities [Abstract]
Percentage of derivative instruments classified as fair value assets and liabilities	100.00%	100.00%
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Assets [Abstract]
RMBS total	$ 0	$ 0
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Assets [Abstract]
RMBS total	1,838,973	1,840,912
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Assets [Abstract]
RMBS total	0	0
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | CMOs [Member] | Level 1 [Member]
Assets [Abstract]
RMBS total	0	0
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | CMOs [Member] | Level 2 [Member]
Assets [Abstract]
RMBS total	123,065	93,669
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | CMOs [Member] | Level 3 [Member]
Assets [Abstract]
RMBS total	0	0
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Carrying Value [Member]
Assets [Abstract]
RMBS total	1,838,973	1,840,912
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | CMOs [Member]
Assets [Abstract]
RMBS total	123,065	93,669
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Fannie Mae [Member] | Level 1 [Member]
Assets [Abstract]
RMBS total	0	0
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Fannie Mae [Member] | Level 2 [Member]
Assets [Abstract]
RMBS total	1,240,490	1,233,699
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Fannie Mae [Member] | Level 3 [Member]
Assets [Abstract]
RMBS total	0	0
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Fannie Mae [Member] | Carrying Value [Member]
Assets [Abstract]
RMBS total	1,240,490	1,233,699
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Freddie Mac [Member] | Level 1 [Member]
Assets [Abstract]
RMBS total	0	0
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Freddie Mac [Member] | Level 2 [Member]
Assets [Abstract]
RMBS total	475,418	513,544
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Freddie Mac [Member] | Level 3 [Member]
Assets [Abstract]
RMBS total	0	0
RMBS [Member] | Fair Value, Measurements, Recurring [Member] | Freddie Mac [Member] | Carrying Value [Member]
Assets [Abstract]
RMBS total	$ 475,418	$ 513,544
Excess MSRs [Member] | Level 3 [Member]
Derivative Instruments Classified as Fair Value Assets and Liabilities [Abstract]
Percentage of derivative instruments classified as fair value assets and liabilities	0.00%	0.00%		100.00%
MSRs [Member] | Level 3 [Member]
Derivative Instruments Classified as Fair Value Assets and Liabilities [Abstract]
Percentage of derivative instruments classified as fair value assets and liabilities	100.00%	100.00%
Derivative Instruments [Member] | Level 2 [Member]
Derivative Instruments Classified as Fair Value Assets and Liabilities [Abstract]
Percentage of derivative instruments classified as fair value assets and liabilities	100.00%	100.00%
[1]	Includes the recapture agreement for each respective pool.

Fair Value, Company's Level 3 A

Fair Value, Company's Level 3 Assets (Servicing Related Assets) Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands		9 Months Ended		12 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Servicing Related Assets [Abstract]
Beginning balance		$ 122,806
Changes in Fair Value due to [Abstract]
Unrealized gain (loss) included in Net Income		18,351	$ 5,471
Ending balance		281,963		$ 122,806
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Servicing Related Assets [Abstract]
Beginning balance	[1]	122,806	61,263	61,263
Purchases, sales and principal paydowns [Abstract]
Purchases	[1]			83,586
Sales	[1]			(35,905)
Other changes	[1],[2]			4,703
Purchases, sales and principal paydowns	[1]			52,384
Changes in Fair Value due to [Abstract]
Changes in valuation inputs or assumptions used in valuation model	[1]			16,375
Other changes in fair value	[1],[3]			(7,216)
Unrealized gain (loss) included in Net Income	[1]			9,159
Ending balance		281,963		122,806	[1]
Excess MSR Pool 2 [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Servicing Related Assets [Abstract]
Beginning balance	[1]	0	29,392	29,392
Purchases, sales and principal paydowns [Abstract]
Purchases	[1]			0
Sales	[1]			(35,905)
Other changes	[1],[2]			6,513
Purchases, sales and principal paydowns	[1]			(29,392)
Changes in Fair Value due to [Abstract]
Changes in valuation inputs or assumptions used in valuation model	[1]			0
Other changes in fair value	[1],[3]			0
Unrealized gain (loss) included in Net Income	[1]			0
Ending balance	[1]			0
MSRs [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Servicing Related Assets [Abstract]
Beginning balance	[1]	122,806	$ 31,871	31,871
Purchases, sales and principal paydowns [Abstract]
Purchases	[1]	143,054		83,586
Sales	[1]			0
Other changes	[1],[2]	(2,248)		(1,810)
Purchases, sales and principal paydowns	[1]	140,806		81,776
Changes in Fair Value due to [Abstract]
Changes in valuation inputs or assumptions used in valuation model	[1]	28,149		16,375
Other changes in fair value	[1],[3]	(9,798)		(7,216)
Unrealized gain (loss) included in Net Income	[1]	18,351		9,159
Ending balance	[1]	$ 281,963		$ 122,806
[1]	Includes the recapture agreement for each respective pool.
[2]	Represents purchase price adjustments, principally contractual prepayment protection, and changes due to the Company's repurchase of the underlying collateral.
[3]	Represents changes due to realization of expected cash flows.

Fair Value, Significant Unobser

Fair Value, Significant Unobservable Inputs Used in Fair Value Measurement (Details) - Level 3 [Member] - Discounted Cash Flow [Member] - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2018	Dec. 31, 2017
Valuation Technique and Input, Description [Abstract]
Fair Value		$ 281,963	$ 122,806
MSRs Conventional [Member]
Valuation Technique and Input, Description [Abstract]
Fair Value		238,277	82,150
Annual cost to service, per loan	[1]	$ 71	$ 70
MSRs Conventional [Member] | Minimum [Member]
Valuation Technique and Input, Description [Abstract]
Constant prepayment speed	[1]	5.00%	6.50%
Uncollected Payments	[1]	0.20%	0.20%
MSRs Conventional [Member] | Maximum [Member]
Valuation Technique and Input, Description [Abstract]
Constant prepayment speed	[1]	23.70%	23.50%
Uncollected Payments	[1]	1.00%	1.80%
MSRs Conventional [Member] | Weighted Average [Member]
Valuation Technique and Input, Description [Abstract]
Constant prepayment speed	[1]	8.50%	10.50%
Uncollected Payments	[1]	0.80%	0.80%
Discount rate	[1]	9.30%	9.30%
MSRs Government [Member]
Valuation Technique and Input, Description [Abstract]
Fair Value		$ 43,686	$ 40,656
Annual cost to service, per loan	[1]	$ 106	$ 96
MSRs Government [Member] | Minimum [Member]
Valuation Technique and Input, Description [Abstract]
Constant prepayment speed	[1]	6.00%	6.00%
Uncollected Payments	[1]	0.40%	0.40%
MSRs Government [Member] | Maximum [Member]
Valuation Technique and Input, Description [Abstract]
Constant prepayment speed	[1]	18.70%	14.20%
Uncollected Payments	[1]	4.50%	5.20%
MSRs Government [Member] | Weighted Average [Member]
Valuation Technique and Input, Description [Abstract]
Constant prepayment speed	[1]	8.50%	8.10%
Uncollected Payments	[1]	3.30%	3.30%
Discount rate	[1]	12.00%	12.00%
[1]	Significant increases (decreases) in any of the inputs in isolation may result in significantly lower (higher) fair value measurements. A change in the assumption used for discount rates may be accompanied by a directionally similar change in the assumption used for the probability of uncollected payments and a directionally opposite change in the assumption used for prepayment rates.

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies [Abstract]
Percentage of annual management fee paid equal to gross equity	1.50%
Accruals of legal and regulatory claims	$ 0	$ 0
Securities obligated to purchase	0	0
Securities obligated to sell	$ 0	$ 0

Repurchase Agreements (Details)

Repurchase Agreements (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)Security	Dec. 31, 2017USD ($)Security
Repurchase Agreements [Abstract]
Weighted average of remaining maturities days	47 days	46 days
Repurchase Agreement Characteristics Remaining Maturities [Abstract]
Less than one month, repurchase agreements	$ 732,212	$ 429,573
One to three months, repurchase agreements	723,385	1,231,687
Greater than three months, repurchase agreements	224,797	5,277
Total repurchase agreements	$ 1,680,394	$ 1,666,537
Repurchase Agreement Characteristics, Weighted Average Rates [Abstract]
Less than one month, weighted average rate	2.24%	1.44%
One to three months, weighted average rate	2.26%	1.48%
Greater than three months, weighted average rate	2.37%	1.52%
Weighted average rate	2.26%	1.47%
Number of overnight or demand securities | Security	0	0

Notes Payable (Details)

Notes Payable (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)RenewalOption	Jul. 31, 2018USD ($)	Mar. 20, 2018USD ($)	Dec. 31, 2017USD ($)	May 31, 2017USD ($)	Sep. 30, 2016USD ($)
Maturities of Long-Term Borrowings [Abstract]
2,018	$ 500			$ 2,000
2,019	2,000			2,389
2,020	6,355			3,608
2,021	110,491			3,697
2,022	10,996			27,806
2,023	0			0
Long-term borrowings	$ 130,342			39,500
MSR Financing Facility [Member]
Debt Instruments [Abstract]
Maximum borrowing amount			$ 75,000			$ 25,000
Debt instrument term of variable rate	1 month
Debt instrument conversion term	3 years
Period of variable spread rate basis on interest rate swap	1 year
Debt instrument maturity date	Mar. 31, 2020
Maturities of Long-Term Borrowings [Abstract]
2,018	$ 0			0
2,019	0			389
2,020	4,355			1,608
2,021	63,491			1,697
2,022	0			16,806
2,023	0			0
Long-term borrowings	$ 67,846			20,500
MSR Term Facility [Member]
Debt Instruments [Abstract]
Maximum borrowing amount					$ 20,000
Interest rate on loans payable					6.18%
Debt instrument, amortization period	10 years
Debt instrument maturity date	May 18, 2022
Maturities of Long-Term Borrowings [Abstract]
2,018	$ 500			2,000
2,019	2,000			2,000
2,020	2,000			2,000
2,021	2,000			2,000
2,022	10,996			11,000
2,023	0			0
Long-term borrowings	$ 17,496			$ 19,000
MSR Revolver [Member]
Debt Instruments [Abstract]
Maximum borrowing amount		$ 25,000
Debt instrument term period	364 days
Number of Borrowers' option renewals | RenewalOption	2
Term out feature of credit facility	1 year
Debt instrument term of variable rate	1 month
Additional borrowing capacity		$ 5,000
Debt instrument, amortization period	24 months
Maturities of Long-Term Borrowings [Abstract]
2,018	$ 0
2,019	0
2,020	0
2,021	45,000
2,022	0
2,023	0
Long-term borrowings	$ 45,000

Receivables and Other Assets (D

Receivables and Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Receivables and Other Assets [Abstract]
Servicing advances	$ 5,554	$ 5,901
Interest receivable	6,702	5,804
Repurchased loans held for sale	4,123	2,160
Other receivables	3,656	2,777
Total other assets	$ 20,035	$ 16,642

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accrued Expenses and Other Liabilities [Abstract]
Accrued interest payable	$ 6,254	$ 4,252
Escrow funds held	37	37
Net current tax payable	203	0
Net deferred tax payable	5,165	843
Accrued expenses	10,664	6,882
Total accrued expenses and other liabilities	$ 22,323	$ 12,014

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended				12 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018		Sep. 30, 2017		Dec. 31, 2017
Components of Income Tax Expense (Benefit) [Abstract]
Current federal income tax expense				$ 156		$ (365)
Current state income tax expense				47		(45)
Deferred federal income tax expense (benefit)				3,526		(119)
Deferred state income tax expense (benefit)				796		(13)
Provision for (Benefit from) Corporate Business Taxes		$ 729	$ (537)	4,525	[1]	(542)	[1]
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Computed income tax (benefit) expense at federal rate				17,035		9,534
State taxes (benefit), net of federal tax, if applicable				832		(54)
Provision to return adjustment				4		0
REIT income not subject to tax (benefit)				(13,346)		(10,022)
Provision for (Benefit from) Corporate Business Taxes		729	$ (537)	$ 4,525	[1]	$ (542)	[1]
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Computed income tax (benefit) expense at federal rate				21.00%		35.00%
State taxes (benefit), net of federal tax, if applicable				1.00%		(0.20%)
Provision to return adjustment				0.00%		0.00%
REIT income not subject to tax (benefit)				(16.40%)		(36.80%)
Provision for (Benefit from) Corporate Business Taxes/Effective Tax Rate	[1]			5.60%		(2.00%)
Income taxes payable [Abstract]
Federal income taxes payable				$ 156		$ 92
State and local income taxes payable				47		17
Income taxes payable				203		$ 109
Deferred tax (assets) liabilities [Abstract]
Deferred tax - organizational expenses		(5)		(5)				$ (10)
Deferred tax - mortgage servicing rights		5,170		5,170				909
Deferred tax - net operating loss		0		0				(56)
Total net deferred tax (assets) liabilities		5,165		5,165				843
Valuation allowance		$ 0		$ 0				0
Decrease in income tax expense								$ (459)
[1]	The provision for income taxes is recorded at the TRS level.