Rithm Property Trust (RPT) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 13, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Great Ajax Corp.
Entity Central Index Key	1,614,806
Trading Symbol	ajx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		15,942,638
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents		$ 23,893	$ 30,795
Cash held in trust		1,067	39
Mortgage loans	[1]	584,298	554,877
Property held-for-sale		13,380	10,333
Rental property		1,155	58
Receivable from servicer		8,108	5,444
Investment in affiliates		3,810	2,625
Prepaid expenses and other assets		6,973	5,634
Total Assets		642,684	609,805
Liabilities:
Secured borrowings	[1]	260,032	265,006
Borrowings under repurchase agreement		136,496	104,533
Management fee payable		679	667
Accrued expenses and other liabilities		3,273	1,786
Total liabilities		$ 400,480	$ 371,992
Commitments and contingencies - see Note 7
Equity:
Preferred stock $.01 par value; 25,000,000 shares authorized, none issued or outstanding
Common stock $.01 par value; 125,000,000 shares authorized, 15,318,532 shares at March 31, 2016 and 15,301,946 shares at December 31, 2015 issued and outstanding		$ 152	$ 152
Additional paid-in capital		211,983	211,729
Retained earnings		19,896	15,921
Equity attributable to common stockholders		232,031	227,802
Noncontrolling interests		10,173	10,011
Total equity		242,204	237,813
Total Liabilities and Equity		$ 642,684	$ 609,805
[1]	Mortgage loans include $391,799 and $398,696 of loans at March 31, 2016 and December 31, 2015, respectively, transferred to securitization trusts that are variable interest entities ("VIEs"); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 8 Debt.

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	15,318,532	15,301,946
Common stock, shares outstanding	15,318,532	15,301,946
Mortgage loans (in dollars)	$ 391,799	$ 398,696

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
INCOME
Loan interest income	$ 15,814	$ 6,884
Interest expense	(4,987)	(1,075)
Net interest income	10,827	5,809
Income from investment in Manager	44	40
Other income	540	184
Total income	11,411	6,033
EXPENSE
Related party expense - loan servicing fees	1,403	656
Related party expense - management fee	906	747
Loan transaction expense	213	260
Professional fees	414	385
Real estate operating expenses	162	10
Other expense	353	160
Total expense	3,451	2,218
Income before provision for income taxes	7,960	3,815
Provision (benefit) for income taxes	(3)
Consolidated net income	7,963	3,815
Less: consolidated net income attributable to the non-controlling interest	312	175
Consolidated net income attributable to common stockholders	$ 7,651	$ 3,640
Basic earnings per common share (in dollars per share)	$ 0.50	$ 0.28
Diluted earnings per common share (in dollars per share)	$ 0.50	$ 0.28
Weighted average shares - basic (in shares)	15,306,519	13,008,268
Weighted average shares - diluted (in shares)	15,959,202	13,680,687

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net income	$ 7,963	$ 3,815
Adjustments to reconcile net income to net cash from operating activities
Stock-based management fee and compensation expense	254	423
Non-cash interest income accretion	(9,004)	(4,228)
(Gain) loss on sale of property	(545)	2
Depreciation of property	5	1
Impairment of real estate owned	45
Amortization of prepaid financing costs	1,159	66
Net change in operating assets and liabilities
Cash held in trust	(1,028)	(20)
Prepaid expenses and other assets	(1,695)	(410)
Receivable from servicer	(2,664)	(397)
Undistributed income from investment in affiliate	(122)	(123)
Accrued expenses and other liabilities	1,499	1,624
Net cash from operating activities	(4,133)	753
CASH FLOWS FROM INVESTING ACTIVITES
Purchase of mortgage loans and related balances	(37,205)	(74,108)
Principal paydowns on mortgage loans	11,020	2,269
Purchase of property held-for-sale and related balances		(2,662)
Proceeds from sale of property held-for-sale	2,359	36
Investment in equity method investee	(1,111)
Distribution from affiliate	48	20
Renovations of rental property and property held for sale	(240)	(42)
Net cash from investing activities	(25,129)	(74,487)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from repurchase transactions	33,459
Repayments on repurchase transactions	(1,496)	(197)
Repayments on secured notes	(5,777)	(1,717)
Sale of common stock, net of offering costs		51,529
Distribution to non-controlling interest	(150)	(101)
Dividends paid on common stock	(3,676)	(1,795)
Net cash from financing activities	22,360	47,719
NET CHANGE IN CASH AND CASH EQUIVALENTS	(6,902)	(26,015)
CASH AND CASH EQUIVALENTS, beginning of period	30,795	53,099
CASH AND CASH EQUIVALENTS, end of period	23,893	27,084
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	$ 3,241	$ 897
Cash paid for income taxes
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Transfer of loans to rental property or property held-for-sale	$ 5,911	$ 1,392
Issuance of common stock for management and director fees	254	$ 373
Transfer of property held-for-sale to loans	$ 143

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Total Stockholders' Equity	Noncontrolling Interest	Total
Balance at Dec. 31, 2014	$ 112	$ 158,951	$ 2,744	$ 161,807	$ 9,473	$ 171,280
Balance (in shares) at Dec. 31, 2014	11,223,984
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares	$ 40	51,368		51,408		51,408
Issuance of shares (in shares)	3,981,714
Net income			24,754	24,754	1,038	25,792
Stock-based management fee expense		1,239		1,239		1,239
Stock-based management fee expense (in shares)	87,801
Stock-based compensation expense		171		171		171
Stock-based compensation expense (in shares)	8,447
Dividends and distributions			(11,577)	(11,577)	(500)	(12,077)
Balance at Dec. 31, 2015	$ 152	211,729	15,921	227,802	10,011	$ 237,813
Balance (in shares) at Dec. 31, 2015	15,301,946					15,301,946
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			7,651	7,651	312	$ 7,963
Stock-based management fee expense		227		227		227
Stock-based management fee expense (in shares)	14,910
Stock-based compensation expense		27		27		27
Stock-based compensation expense (in shares)	1,676
Dividends and distributions			(3,676)	(3,676)	(150)	(3,826)
Balance at Mar. 31, 2016	$ 152	$ 211,983	$ 19,896	$ 232,031	$ 10,173	$ 242,204
Balance (in shares) at Mar. 31, 2016	15,318,532					15,318,532

Organization and basis of prese

Organization and basis of presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and basis of presentation	Note 1 — Organization and basis of presentation Great Ajax Corp., a Maryland corporation (the “Company”), is an externally managed real estate company formed on January 30, 2014 and capitalized on March 28, 2014 by its then sole stockholder, Aspen Yo LLC (“Aspen Yo”), a company affiliated with the Aspen Capital companies (“Aspen Capital”). The Company was formed to facilitate capital raising activities and to operate as a mortgage real estate investment trust. The Company focuses primarily on acquiring, investing in and managing a portfolio of re-performing (“RPL”) and non-performing (“NPL”) mortgage loans secured by single-family residences and, to a lesser extent, single-family properties. Re-performing loans are loans on which at least five of the seven most recent payments have been made, or the most recent payment has been made and accepted pursuant to an agreement, or the full dollar amount to cover at least five payments has been paid in the last seven months. Non-performing loans are those loans on which the most recent three payments have not been made. The Company also invests in loans secured by smaller multi-family residential and commercial mixed use retail/residential properties, as well as in the properties directly. The Company’s manager is Thetis Asset Management LLC (the “Manager” or “Thetis”), an affiliated company. The Company owns 19.8% of the Manager. The Company’s mortgage loans and real properties are serviced by Gregory Funding LLC (“Gregory” or “Servicer”), also an affiliated company. The Company has elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended (the “Code”). The Company conducts substantially all of its business through its operating partnership, Great Ajax Operating Partnership L.P., a Delaware limited partnership (the “Operating Partnership”), and its subsidiaries. The Company, through a wholly owned subsidiary, is the sole general partner of the Operating Partnership. GA-TRS LLC, or Thetis TRS, is a wholly owned subsidiary of the Operating Partnership that owns the equity interest in the Manager. The Company elected to treat Thetis TRS as a “taxable REIT subsidiary” (“TRS”) under the Code. Great Ajax Funding LLC is a wholly owned subsidiary of the operating partnership formed to act as the depositor of mortgage loans into securitization trusts and to hold the subordinated securities issued by such trusts and any additional trusts the Company may form for additional securitizations. The Company generally securitizes its mortgage loans and retains subordinated securities from the securitizations. AJX Mortgage Trust I is a wholly owned subsidiary of the operating partnership formed to hold mortgage loans used as collateral for financings under the Company’s repurchase agreement. In addition, the Company, through its operating partnership, holds real estate owned properties (“REO”) acquired upon the foreclosure or other settlement of its owned non-performing loans, as well as through outright purchases. GAJX Real Estate LLC is a wholly owned subsidiary of the operating partnership formed to own, maintain, improve and sell REO properties purchased by the Company. The Company has elected to treat GAJX Real Estate LLC as a TRS under the Code. The Company commenced its operations in July 2014, and completed its initial public offering, or IPO, on February 19, 2015. Basis of presentation and use of estimates These interim consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and the notes thereto for the period ended December 31, 2015 included in the Annual Report on Form 10-K filed with the on March 29, 2016. Interim financial statements are prepared in accordance with accounting principles generally accepted in the United States (“ U.S. GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of consolidated financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2016. The consolidated financial statements have been prepared in accordance with U.S. GAAP, as contained within the Accounting Standards Codification (“ASC”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the SEC, as applied to interim financial statements. All controlled subsidiaries are included in the consolidated financial statements and all intercompany accounts and transactions have been eliminated in consolidation. The Operating Partnership is a majority owned partnership that has a non-controlling ownership interest that is included in non-controlling interests on the consolidated balance sheet. As of March 31, 2016, the Company owned 96.1% of the outstanding operating partnership units (“OP Units”) and the remaining 3.9% of the OP Units were owned by an unaffiliated holder. The Company’s 19.8% investment in the Manager is accounted for using the equity method because the Company exercises significant influence on the operations of the Manager through common officers and directors. There is no traded or quoted price for the interests in the Manager since it is privately held. The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company considers significant estimates to include expected cash flows from mortgage loans and fair value measurements.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of significant accounting policies	Note 2 — Summary of significant accounting policies Mortgage loans Purchased mortgage loans are initially recorded at the purchase price, net of any acquisition fees or costs at the time of acquisition and are considered asset acquisitions. As part of the determination of the bid price for mortgage loans, the Company uses a proprietary discounted cash flow valuation model to project expected cash flows, and consider alternate loan resolution probabilities, including liquidation or conversion to real estate owned. Observable inputs to the model include current interest rates, loan amounts, status of payments and property types. Unobservable inputs to the model include discount rates, forecast of future home prices, alternate loan resolution probabilities, resolution timelines, the value of underlying properties and other economic and demographic data. Loans acquired with deterioration in credit quality The loans acquired by the Company have generally suffered some credit deterioration subsequent to origination. As a result, the Company is required to account for the mortgage loans pursuant to ASC 310-30, (Accounting for Loans with Deterioration in Credit Quality). The Company’s recognition of interest income for loans within the scope of ASC 310-30 is based upon its having a reasonable expectation of the amount and timing of the cash flows expected to be collected. When the timing and amount of cash flows expected to be collected are reasonably estimable, the Company uses expected cash flows to apply the interest method of income recognition. Under ASC 310-30, acquired loans may be aggregated and accounted for as a pool of loans if the loans have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Re-performing mortgage loans have been determined to have common risk characteristics and are accounted for as a single loan pool for loans acquired within each three-month calendar quarter. Similarly, non-performing mortgage loans have been determined to have common risk characteristics and are accounted for as a single non-performing pool for loans acquired within each three-month calendar quarter. Excluded from the aggregate pools are loans that pay in full subsequent to the closing date but prior to boarding. Any gain or loss incurred on these loans is recognized in other income in the period the loan pays in full. The Company’s accounting for loans under ASC 310-30 gives rise to an accretable yield and a non-accretable difference. The excess of all undiscounted cash flows expected to be collected at acquisition over the initial investment in the loans is recognized as accretable yield. Cash flows expected at acquisition include all cash flows directly related to the acquired loan, including those expected from the underlying collateral. The Company recognizes the accretable yield as interest income on a prospective level yield basis over the life of the pool. The excess of a loan’s contractually required payments receivable over the amount of cash flows expected at the acquisition is the non-accretable yield. The Company’s expectation of the amount of cash flows expected to be collected is evaluated at the end of each calendar quarter. In the event the Company expects to collect greater cash flows over the life of the pool, the accretable yield amount increases and the expected yield to maturity is adjusted on a prospective basis. In the event the Company expects to collect lower cash flows over the life of the pool, the Company records an impairment through the allowance for loan losses. Loans acquired that have not experienced a deterioration in credit quality While the Company generally acquires loans that have experienced deterioration in credit quality, it may, from time to time, acquire loans that have not missed a scheduled payment and have not experienced a deterioration in credit quality. Accrual of interest on individual loans is discontinued when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. The Company’s policy is to stop accruing interest when a loan’s delinquency exceeds 90 days. All interest accrued but not collected for loans that are placed on non-accrual status or subsequently charged-off are reversed against interest income. Income is subsequently recognized on the cash basis until, in management’s judgment, the borrower’s ability to make periodic principal and interest payments returns and future payments are reasonably assured, in which case the loan is returned to accrual status. An individual loan is considered to be impaired when, based on current events and conditions, it is probable the Company will be unable to collect all amounts due (both principal and interest) according to the contractual terms of the loan agreement. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price, or the fair value of the collateral if the loan is collateral dependent. For individual loans, a troubled debt restructuring is a formal restructuring of a loan where, for economic or legal reasons related to the borrower’s financial difficulties, a concession that would not otherwise be considered is granted to the borrower. The concession may be granted in various forms, including providing a below-market interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date, or a combination of these. An individual loan that has had a troubled debt restructuring is considered to be impaired and is subject to the relevant accounting for impaired loans. Loans are tested quarterly for impairment and impairment reserves are recorded to the extent the net realizable value of the underlying collateral falls below net book value. If necessary, an allowance for loan losses is established through a provision for loan losses charged to expenses. The allowance is an amount that management believes will be adequate to absorb probable losses on existing loans that may become uncollectible, based on evaluations of the collectability of loans. While the Company generally intends to hold its assets as long-term investments, it may sell certain of its loans in order to manage its interest rate risk and liquidity needs, meet other operating objectives and adapt to market conditions. The timing and impact of future sales of loans, if any, cannot be predicted with any certainty. Since the Company expects that its assets will generally be financed, it expects that a significant portion of the proceeds from sales of its assets (if any), prepayments and scheduled amortization will be used to repay balances under its financing sources. Real estate Property is recorded at cost if purchased, or at the present value of future cash flows if obtained through foreclosure by the Company. Property that is currently unoccupied and actively marketed for sale is classified as held-for-sale. Property held-for-sale is carried at the lower of its acquisition basis, net realized value (fair market value less expected selling costs), appraisals or BPOs. Net unrealized losses due to changes in market value are recognized through a valuation allowance by charges to income. No depreciation or amortization expense is recognized on properties held-for-sale, while holding costs are expensed as incurred. Rental property is property not held-for-sale. Rental properties are intended to be held as long-term investments but may eventually be held-for-sale. Property is held for investment as rental property if the modeled present value of the future expected cash flows from use as a rental exceed the present value of expected cash flows from a sale. Depreciation is provided for using the straight-line method over the estimated useful lives of the assets of three to 27.5 years. The Company performs an impairment analysis for all rental property using estimated cash flows if events or changes in circumstances indicate that the carrying value may be impaired, such as prolonged vacancy, identification of materially adverse legal or environmental factors, changes in expected ownership period or a decline in market value to an amount less than cost. This analysis is performed at the property level. The cash flows are estimated based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for rental properties, competition for customers, changes in market rental rates, costs to operate each property and expected ownership periods. If the carrying amount of a held-for-investment asset exceeds the sum of its undiscounted future operating and residual cash flows, an impairment loss is recorded for the difference between estimated fair value of the asset and the carrying amount. The Company generally estimates the fair value of assets held for use by using BPOs. In some instances, appraisal information may be available and is used in addition to BPOs. The Company performs property renovations to maximize the value of the property for its rental strategy. Such expenditures are part of its initial investment in a property and, therefore, are capitalized as part of the basis of the property. Subsequently, the residential property, including any renovations that improve or extend the life of the asset, are accounted for at cost. The cost basis is depreciated using the straight-line method over an estimated useful life of three to 27.5 years. Interest and other carrying costs incurred during the renovation period are capitalized until the property is ready for its intended use. Expenditures for ordinary maintenance and repairs are charged to expense as incurred. Secured debt The Company issues callable debt secured by its mortgage loans in the ordinary course of business. Coupon interest on the debt is recognized using the accrual method of accounting. Original issue discount and debt issuance costs are amortized on an effective yield basis based on the underlying cash flow of the mortgage loans. The Company assumes the debt will be called at the specified call date for purposes of amortizing discount and issuance costs because the Company believes it will have the intent and ability to call the debt on the call date. Changes in the actual or projected underlying cash flows are reflected in the timing and amount of discount and issuance cost amortization. Management fee and expense reimbursement Under the Management Agreement with the Manager, the Company pays a quarterly base management fee based on its stockholders’ equity and a quarterly incentive management fee based on its cash distributions to its stockholders. Manager fees are expensed in the quarter incurred and the portion payable in common stock is included in stockholders’ equity at quarter end. See Note 9 — Related party transactions. Servicing fees Under the Servicing Agreement, Gregory receives servicing fees of 0.65% annually of UPB for loans that are re-performing at acquisition, and 1.25% annually of UPB for loans that are non-performing at acquisition. Servicing fees are paid monthly. The total fees incurred by the Company for these services depend upon the UPB and type of mortgage loans that Gregory services pursuant to the terms of the servicing agreement. The fees do not change if a performing loan becomes non-performing or vice versa. Servicing fees for the Company’s real property assets are the greater of (i) the servicing fee applicable to the underlying mortgage loan prior to foreclosure, or (ii) 1.00% annually of the fair market value of the REO as reasonably determined by the Manager or 1.00% annually of the purchase price of any REO otherwise purchased by the Company. Gregory is reimbursed for all customary, reasonable and necessary out-of-pocket costs and expenses incurred in the performance of its obligations, including the actual cost of any repairs and renovations undertaken on the Company’s behalf. The total fees incurred by the Company for these services will be dependent upon the UPB and type of mortgage loans that Gregory services, property values, previous UPB of the relevant loan, and the number of REO properties. The agreement will automatically renew for successive one-year terms, subject to prior written notice of non-renewal. In certain cases, the Company may be obligated to pay a termination fee. The Management Agreement will automatically terminate at the same time as the servicing agreement if the servicing agreement is terminated for any reason. See Note 9 — Related party transactions. Stock-based payments The Management Agreement (as defined above) provides for the payment to the Manager of a management fee. The Company pays a portion of the management fee in cash, and a portion of the management fee in shares of the Company’s common stock, which are issued to the Manager in a private placement and are restricted securities under the Securities Act. On October 27, 2015, the Company entered into an amended and restated management agreement with the Manager (the “Amended and Restated Agreement”), which amended the portion of the Base Management Fee and Manager’s Incentive Fee to be payable in cash and shares of the Company’s common stock retroactive to July 1, 2015. Shares issued to the Manager are determined based on the higher of the most recently reported book value or the average of the closing prices of our common stock on the NYSE on the five business days after the date on which the most recent regular quarterly dividend to holders of our common stock is paid. Management fees paid in common stock are expensed in the quarter incurred and recorded in equity at quarter end. Pursuant to the Company’s 2014 Director Equity Plan (the “Director Plan”), the Company may make stock-based awards. The Company has issued to each of the independent directors restricted stock awards of 2,000 shares of its common stock, which are subject to a one-year vesting period. In addition, each of the Company’s independent directors receives an annual retainer of $50,000, payable quarterly, half of which is paid in shares of the Company’s common stock on the same basis as the stock portion of the management fee payable to the Manager, and half in cash. Stock-based expense for the directors’ annual retainer is expensed as earned, in equal quarterly amounts during the year, and recorded in equity at quarter end. Directors’ fees The expense related to directors’ fees is accrued and, the portion payable in common stock is reflected in stockholders’ equity in the period in which it is incurred. Cash and cash equivalents Highly liquid investments with an original maturity of three months or less when purchased are considered cash equivalents. The Company maintains cash and cash equivalents at insured banking institutions. Certain account balances exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. Cash held in trust Cash held in trust consists of cash balances legally due to lenders, and segregated from the Company’s other cash deposits. Cash held in trust is not available to the Company for any purposes other than the settlement of existing obligations to the lender. Earnings per share Basic earnings per share is computed by dividing consolidated net income attributable to common stockholders by the weighted average common stock outstanding during the period. The Company treats unvested restricted stock issued under its stock-based compensation plan, which are entitled to non-forfeitable dividends, as participating securities and applies the two-class method in calculating basic earnings per share. Diluted earnings per share is computed by dividing consolidated net income attributable to common stockholders and dilutive securities by the weighted average common stock outstanding for the period plus other potentially dilutive securities, such as stock grants, shares that would be issued in the event that OP Units are redeemed for shares of common stock of the Company and shares issued in respect of the stock-based portion of the base fee payable to the Manager and directors’ fees. Fair value of financial instruments Fair value is defined 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. A fair value hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: · Level 1 · Level 2 · Level 3 The degree of judgment utilized in measuring fair value generally correlates to the level of pricing observability. Assets and liabilities with readily available actively quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets and liabilities rarely traded or not quoted will generally have little or no pricing observability and a higher degree of judgment utilized in measuring fair value. Pricing observability is impacted by a number of factors, including the type of asset or liability, whether it is new to the market and not yet established, and the characteristics specific to the transaction. Property held-for-sale is carried at the lower of its acquisition basis, net realizeable value (fair market value less expected selling costs), appraisals or an independent broker price opinion (“BPO”). Net unrealized losses due to changes in market value are recognized through a valuation allowance by charges to income. The fair value of property held-for-sale is generally based on estimated market prices from an independently prepared appraisal, BPO, or an internal valuation based upon recent comparable selling prices. The fair value of mortgage loans is estimated using the Manager’s proprietary pricing model which estimates expected cash flows with the discount rate used in the present value calculation representing the estimated effective yield of the loan. The value of transfers of mortgage loans to real estate owned is based upon the present value of future expected cash flows of the loans being transferred. Income taxes The Company elected REIT status upon the filing of its 2014 income tax return, and has conducted its operations in order to satisfy and maintain eligibility for REIT status. Accordingly, the Company does not believe it will be subject to U.S. federal income tax from the year ended December 31, 2014 forward on the portion of the Company’s REIT taxable income that is distributed to the Company’s stockholders as long as certain asset, income and stock ownership tests are met. If the Company fails to qualify as a REIT in any taxable year, it generally will not be permitted to qualify for treatment as a REIT for U.S. federal income tax purposes for the four taxable years following the year during which qualification is lost. The Company may also be subject to state or local income or franchise taxes. Thetis TRS, GAJX Real Estate LLC and any other TRS that the Company forms, will be subject to U.S. federal and state income taxes. On February 22, 2016, the Company received a private letter ruling from the Internal Revenue Service regarding the consequences of owning the interest in our Manager through its operating partnership. The Company is currently exploring options for transferring its interest in the Manager to the operating partnership. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which management expects those temporary differences to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period in which the change occurs. Subject to the Company’s judgment, it reduces a deferred tax asset by a valuation allowance if it is “more–likely-than-not” that some or all of the deferred tax asset will not be realized. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in evaluating tax positions, and the Company recognizes tax benefits only if it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authority. The Company evaluates tax positions taken in its consolidated financial statements under the interpretation for accounting for uncertainty in income taxes. As a result of this evaluation, the Company may recognize a tax benefit from an uncertain tax position only if it is “more-likely-than-not” that the tax position will be sustained on examination by taxing authorities. The Company’s tax returns remain subject to examination and consequently, the taxability of the distributions and other tax positions taken by the Company may be subject to change. Distributions to stockholders generally will be taxable as ordinary income, although a portion of such distributions may be designated as long-term capital gain or qualified dividend income, or may constitute a return of capital. The Company will furnish annually to each stockholder a statement setting forth distributions paid during the preceding year and their U.S. federal income tax treatment. Organizational expenses Organizational expenses are expensed as incurred or when they become reimbursable. Organizational expenses consisted mainly of legal fees. Offering costs Costs associated with the Company’s completed offering of shares of common stock have been netted against, and are reflected as a reduction in additional paid-in capital. Segment information The Company’s primary business is acquiring, investing in and managing a portfolio of mortgage loans. The Company operates in a single segment focused on non-performing mortgages and re-performing mortgages. Emerging growth company Section 107 of the Jumpstart Our Business Startups Act (the “JOBS Act”) provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the benefits of this extended transition period. Its consolidated financial statements may, therefore, not be comparable to those of companies that comply with such new or revised accounting standards. Reclassifications Certain amounts in the Company’s 2015 Consolidated Financial Statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported net income or equity. Additionally, the December 31, 2015 amounts included in the delinquency table in Note 3 – Mortgage loans have been reclassified from delinquent to current to reflect a correction of an error in the presentation of the disclosure that is immaterial to the consolidated financial statements taken as a whole. Such reclassifications did not affect cash flows, net income, total assets, total liabilities or total equity. Recently adopted accounting standards In February 2015, the FASB issued ASU 2015-02 Amendments to the Consolidation Analysis. These amendments: (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company implemented this amendment for the three-months ended March 31, 2016. As a result of this implementation, there was no effect on the Company’s consolidation policy. In April 2015, the FASB issued ASU 2015-03 Interest – Imputation of Interest. The amendments in this update require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of a debt liability, consistent with debt discounts. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. In June 2015, the FASB issued ASU 2015-15 which acknowledges that the scope of ASU 2015-03 does not include line-of-credit arrangements but indicates that the SEC staff would not object to an entity deferring and presenting debt issuance costs for a line-of-credit borrowing arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. The Company implemented this amendment for the three-months ended March 31, 2016. The result of this implementation was a reduction of approximately $4.9 million on the balance sheet in Prepaid expenses and other assets, and an offsetting reduction of approximately $4.9 million in Secured borrowings. There was no effect on net income, or equity. Recently issued accounting standards In May 2014, Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09 Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services . While ASU 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In January 2016, the FASB issued ASU 2016-01Financial Instruments – Overall. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Specifically the guidance (1) requires equity investments to be measured at fair value with changes in fair value recognized in earnings, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost, (4) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option, (6) requires separate presentation of financial assets and liabilities by measurement category and form on the balance sheet or the notes to the financial statements, and (7) clarifies that the need for a valuation allowance on a deferred tax asset related to an available for sale security should be evaluated with other deferred tax assets. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-07 Investments – Equity Method and Joint Ventures which is intended to simplify the transition to the equity method of accounting. The guidance eliminates the retrospective application of the equity method of accounting when obtaining significant influence over a previously held investment. The guidance requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09 Compensation – Stock Compensation. The guidance primarily simplifies the accounting for employee share-based payment transactions, including a new requirement to record all of the income tax effects at settlement or expiration through the income statement, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statements.

Mortgage loans

Mortgage loans	3 Months Ended
	Mar. 31, 2016
Mortgage Loans [Abstract]
Mortgage loans	Note 3 — Mortgage loans The following table presents information regarding the accretable and non-accretable yield for loans acquired during the following periods ($ in thousands): Three months ended March 31, 2016 Twelve months ended Re-performing Non-performing Re-performing Non-performing Contractually required principal and interest $ 82,179 $ - $ 752,457 $ 67,393 Non-accretable yield (29,148 ) - (306,722 ) (39,352 ) Expected cash flows to be collected 53,031 - 445,735 28,041 Accretable yield (15,853 ) - (118,673 ) (8,281 ) Fair value at acquisition $ 37,178 $ - $ 327,062 $ 19,760 The following table presents the change in the accretable yield for the total loan portfolio for the following periods ($ in thousands): Accretable yield Three months ended Twelve months ended March 31, 2016 December 31, 2015 Re-performing Non-performing Re-performing Non-performing Balance at beginning of period $ 136,455 $ 18,425 $ 54,940 $ 20,686 Accretable yield additions 15,853 - 118,673 8,281 Accretion (13,540 ) (2,274 ) (37,158 ) (10,542 ) Balance at end of period $ 138,768 $ 16,151 $ 136,455 $ 18,425 For the three-month periods ended March 31, 2016, and March 31, 2015, the Company recognized no provision for loan loss. For the three-month periods ended March 31, 2016, and March 31, 2015, the Company accreted $15.8 million and $6.9 million, respectively, into interest income with respect to its loan portfolio. During the three-month periods ended March 31, 2016, and March 31, 2015, the Company recognized $0.2 million and $0.3 million, respectively, for due diligence costs for the acquisitions of mortgage loans. The following table sets forth the carrying value of its mortgage loans, and related UPB by delinquency status as of March 31, 2016 and December 31, 2015 ($ in thousands): March 31, 2016 December 31, 2015 Number of Carrying Unpaid Number of Carrying Unpaid Current 1,418 $ 250,080 $ 321,072 1,161 $ 212,469 $ 272,577 30 471 84,367 106,121 479 83,936 107,873 60 280 49,147 61,772 338 55,573 70,781 90 782 120,370 155,524 867 127,435 167,177 Foreclosure 430 80,334 111,672 404 75,464 107,301 Mortgage loans 3,381 $ 584,298 $ 756,161 3,249 $ 554,877 $ 725,709 These balances do not include one loan in which we hold a 40.5% beneficial interest through an equity method investee. As of March 31, 2016, the Company held 83 residential properties with a carrying value of $11.5 million that had been foreclosed. As of December 31, 2015, the Company held 55 residential properties with a carrying value of $6.8 million that had been foreclosed. The Company’s mortgage loans are secured by real estate. As such, the Company believes that the credit quality indicators for each of its mortgage loans are the timeliness of payments and the value of the underlying real estate. The Company categorizes mortgage loans as “re-performing” and as “non-performing.” The Company monitors the credit quality of the mortgage loans in its portfolio on an ongoing basis, principally by considering loan payment activity or delinquency status. In addition, the Company assesses the expected cash flows from the mortgage loans, the fair value of the underlying collateral and other factors, and evaluates whether and when it becomes probable that all amounts contractually due will not be collected.

Real estate assets, net

Real estate assets, net	3 Months Ended
	Mar. 31, 2016
Real Estate [Abstract]
Real estate assets, net	Note 4 — Real estate assets, net Rental property, net As of March 31, 2016, the Company owned seven REO properties with an aggregate carrying value of $1.2 million held for investment as rentals, at which time one of these properties was rented. Five of these properties were acquired during the three-months ended March 31, 2016, through foreclosures, and two were transferred in from Property held-for sale. As of December 31, 2015, the Company had one REO property having an aggregate carrying value of $0.1 million held for use as a rental, which was rented at that time. Property held-for-sale As of March 31, 2016, the Company classified 87 REO properties having an aggregate carrying value of $13.4 million as real estate held for sale as they do not meet its residential rental property investment criteria. As of December 31, 2015, the Company classified 73 REO properties having an aggregate carrying value of $10.3 million as real estate held for sale as they do not meet its residential rental property investment criteria. Dispositions During the three-months ended March 31, 2016, the Company disposed of 18 held-for-sale residential properties and recognized a gain of $0.5 million. During the three-months ended March 31, 2015, the Company disposed of one residential property and recognized a loss of $2,000.

Fair value

Fair value	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair value	Note 5 — Fair value The following tables set forth the fair value of financial assets and liabilities by level within the fair value hierarchy as of March 31, 2016 and December 31, 2015 ($ in thousands): Level 1 Level 2 Level 3 March 31, 2016 Carrying Quoted prices Observable Unobservable Not recognized on consolidated balance sheet at fair value (assets) Mortgage loans, net $ 584,298 - - $ 775,820 Property held for sale $ 13,380 $ 18,217 Not recognized on consolidated balance sheet at fair value (liabilities) Secured borrowings $ 260,032 - $ 264,269 - Borrowings under repurchase agreement $ 136,496 - $ 136,496 - Level 1 Level 2 Level 3 December 31, 2015 Carrying Quoted prices Observable Unobservable Not recognized on consolidated balance sheet at fair value (assets) Mortgage loans, net $ 554,877 - - $ 627,112 Property held for sale $ 10,333 - $ 12,581 Not recognized on consolidated balance sheet at fair value (liabilities) Secured borrowings $ 265,006 - $ 259,649 - Borrowings under repurchase agreement $ 104,533 - $ 104,533 - The Company has not transferred any assets from one level to another level during either the three-months ended March 31, 2016 or the three-months ended March 31, 2015. The carrying values of its cash and cash equivalents, cash held in trust, receivable from servicer, investment in affiliates, prepaid expenses and other assets, management fee payable and accrued expenses and other liabilities are equal to or approximate fair value. Property held-for-sale is measured at cost at acquisition and subsequently measured at the lower of cost or fair value less cost to sell on a nonrecurring basis. The fair value of property held-for-sale is generally based on estimated market prices from an independently prepared appraisal, an independent BPO, or an internal valuation based upon recent comparable selling prices. The Company’s borrowings under repurchase transactions are short-term in nature, and the Company’s management believes it can renew the current borrowing arrangements on similar terms in the future. Accordingly, the fair value of these borrowings approximates carrying value. The fair value of mortgage loans is estimated using the Manager’s proprietary pricing model which estimates expected cash flows with the discount rate used in the present value calculation representing the estimated effective yield of the loan. The value of transfers of mortgage loans to real estate owned is based upon the present value of future expected cash flows of the loans being transferred. Significant changes to any of the unobservable inputs used in the fair value measurement of the Company’s mortgage loans including discount rates and loan resolution timelines among others, in isolation, could result in a significant change to the fair value measurement. A decline in the discount rate in isolation would increase the fair value. An increase in the loan resolution timeline in isolation would decrease the fair value. The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of the Company’s mortgage loans as of March 31, 2016 and December 31, 2015: Range of Values Input March 31, 2016 December 31, 2015 Equity discount rate – Re-performing loans 7% - 14% 7% - 14% Equity discount rate – Non-performing loans 10% - 18% 10% - 18% Cost of debt 4.25% 4.25% Loan resolution timelines – Re-performing loans (in years) 4 - 7 4 - 7 Loan resolution timelines – Non-performing loans (in years) 1.4 - 4 1.4 - 4

Unconsolidated affiliates

Unconsolidated affiliates	3 Months Ended
	Mar. 31, 2016
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Unconsolidated affiliates	Note 6 — Unconsolidated affiliates The Company holds a 40.5% interest in a Delaware trust, GA-E 2014-12, which holds an economic interest in a single small-balance commercial loan secured by a commercial property in Portland, Oregon. At March 31, 2016, GA-E 2014-12 had a basis in the loan of $5.9 million and net income of $0.2 million for the three-months ended March 31, 2016, of which 40.5% is the Company’s share. At December 31, 2015, GA-E 2014-12 had a basis in the loan of $5.8 million. The trust’s net income was $0.2 million for the three-months ended March 31, 2015, of which 40.5% is the Company’s share. The Company accounts for this investment using the equity method. Upon the closing of the Company’s original private placement in July, 2014, the Company received a 19.8% equity interest in Thetis, a privately held company for which there is no public market for its securities. At March 31, 2016, Thetis had total assets of $3.7 million, liabilities of $1.2 million, and net income of $0.2 million for the three-months ended March 31, 2016, of which 19.8% is the Company’s share. At December 31, 2015, Thetis had total assets of $3.0 million and liabilities of $0.5 million. Thetis had net income of $0.2 million for the three-months ended March 31, 2015, of which 19.8% is the Company’s share. The Company accounts for its investment in Thetis using the equity method. On March 14, 2016, the Company formed AS Ajax E LLC, to hold an equity interest in a Delaware trust formed to own residential mortgage loans and residential real estate assets. DoubleLine Capital LP has ownership of 95% of the Trust. Through AS Ajax E LLC, the Company has ownership of 1.2% of the Trust, and other investors have ownership of 3.8% of the Trust. At March 31, 2016, the Trust had assets of $91.9 million and liabilities of $91.9 million, of which 1.2% is the Company’s share. The Trust had no net income for the three-months ended March 31, 2016. The Company accounts for its investment in AS Ajax E LLC using the equity method.

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Note 7 — Commitments and contingencies The Company regularly enters into agreements to acquire additional mortgage loans and mortgage-related assets, subject to continuing diligence on such assets and other customary closing conditions. There can be no assurance that the Company will acquire any or all of the mortgage loans identified in any acquisition agreement as of the date of these consolidated financial statements, and it is possible that the terms of such acquisitions may change. At March 31, 2016, the Company had commitments to purchase 157 RPLs secured by single and one-to-four family residences with aggregate UPB of $38.5 million. The loans were acquired, subsequent to quarter end, at 72.6% of UPB and the estimated market value of the underlying collateral is $45.5 million. The purchase price equaled 61.5% of the estimated market value of the underlying collateral. Litigation, claims and assessments From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. As of March 31, 2016, the Company was not a party to, and its properties were not subject to, any pending or threatened legal proceedings that individually or in the aggregate, are expected to have a material impact on its financial condition, results of operations or cash flows.

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt	Note 8 — Debt Repurchase agreement On November 25, 2014, the Company entered into a repurchase facility pursuant to which a newly formed Delaware statutory trust, AJX Mortgage Trust I, (the “Seller”), that is wholly owned by the Operating Partnership will acquire, from time to time, pools of mortgage loans that are primarily secured by first liens on one-to-four family residential properties from its affiliates and/or third party sellers. These mortgage loans will generally be sold from time to time by the operating partnership as the “Guarantor” to the Seller pursuant to the terms of a mortgage loan purchase agreement by and between the Guarantor, as seller, and the Seller, as purchaser, in accordance with the terms thereof. Pursuant to a master repurchase agreement (the “2014 MRA”), these mortgage loans, together with the Seller’s 100% ownership interests in its wholly owned subsidiary, a newly formed Delaware limited liability company (“REO I”), and any future REO subsidiaries wholly owned by the Seller and certain other property of the Seller, will be sold by the Seller to Nomura Corporate Funding Americas, LLC, as buyer, from time to time, pursuant to one or more transactions, not exceeding $200 million at any point in time, with a simultaneous agreement by the Seller to repurchase such mortgage loans and other property, as provided in the 2014 MRA. The obligations of the Seller are guaranteed by the operating partnership. Repurchases under this facility carry interest calculated based on a spread to one-month LIBOR and are fixed for the term of the borrowing. The purchase price for each mortgage loan or REO is generally equal to 65% of the acquisition price for such asset or the then current BPO for the asset. The difference between the market value of the asset and the amount of the repurchase agreement is the amount of equity the Company has in the position and is intended to provide the lender some protection against fluctuations of value in the collateral and/or the failure by the Company to repay the borrowing at maturity. The Company has effective control over the assets associated with this agreement and therefore it is accounted for as a financing arrangement. The facility was amended on May 13, 2015 to increase the transaction limit, and on November 24, 2015 to extend the termination date. The facility termination date is November 22, 2016. On December 23, 2015, the Company entered into a separate repurchase transaction, as seller, with Nomura Securities International, LLC, as buyer, in which it sold subordinated debt securities withheld from its 2014-B securitization (See Secured borrowings, below), with a simultaneous agreement by the seller to repurchase such subordinated debt securities on June 23, 2016 including accrued interest of 2.91%. On March 9, 2016, the Company entered into a separate repurchase transaction, as seller, with Nomura Securities International, LLC, as buyer, in which it sold subordinated debt securities withheld from its 2014-A and 2015-A and 2015-C securitizations (See Secured borrowings, below), with a simultaneous agreement by the seller to repurchase such subordinated debt securities on September 9, 2016 including accrued interest of 3.00%. On March 30, 2016, the Company renewed and extended an existing repurchase transaction, as seller, with Nomura Securities International, LLC, as buyer, in which it sold subordinated debt securities withheld from its 2015-B securitization (See Secured borrowings, below), with a simultaneous agreement by the seller to repurchase such subordinated debt securities on September 30, 2016 including accrued interest of 3.01%. Gregory services these mortgage loans and the REO properties pursuant to the terms of a servicing agreement by and among the Servicer, the Seller, REO I, and any other REO Subsidiary, which servicing agreement has the same fees and expenses terms as the Company’s servicing agreement described under Note 9 — Related party transactions. The operating partnership as Guarantor will provide to the Buyer a limited guaranty of certain losses incurred by the Buyer in connection with certain events and/or the Seller’s obligations under the MLPA, following the breach of certain covenants by the Seller or an REO Subsidiary related to their status as a special purpose entity, the occurrence of certain bad acts by the Seller Parties, the occurrence of certain insolvency events of the Seller or an REO Subsidiary or other events specified in the Guaranty. As security for its obligations under the Guaranty, the Guarantor will pledge the Trust Certificate representing the Guarantor’s 100% beneficial interest in the Seller. The following table sets forth the details of the repurchase agreements ($ in thousands): March 31, 2016 Maturity Date Maximum Amount Amount Interest June 23, 2016 $ 9,374 $ 9,374 $ 13,391 2.91 % September 9, 2016 15,730 15,730 22,470 3.00 % September 30, 2016 10,658 10,658 15,226 3.01 % November 22, 2016 200,000 100,734 163,144 4.19 % Totals $ 235,762 $ 136,496 $ 214,231 3.87 % December 31, 2015 Maturity Date Maximum Amount Amount Interest March 30, 2016 $ 10,838 $ 10,838 $ 15,483 2.53 % June 23, 2016 9,374 9,374 13,391 2.91 % November 22, 2016 200,000 84,321 135,736 4.17 % Totals $ 220,212 $ 104,533 $ 164,610 3.91 % While the Guaranty establishes a master netting arrangement, the arrangement does not meet the criteria for offsetting. The amount outstanding on the Company’s repurchase facility and the carrying value of the Company’s loans pledged as collateral are presented as gross amounts in the Company’s balance sheets at March 31, 2016 and December 31, 2015. Gross amounts not offset in balance sheet Balance sheet date Gross amount of Gross amount Net amount March 31, 2016 $ 136,496 $ 214,231 $ 77,735 December 31, 2015 $ 104,533 $ 164,610 $ 60,077 Secured borrowings From the commencement of operations to March 31, 2016, the Company has completed five securitizations pursuant to Rule 144A under the Securities Act. The securitizations are structured as debt financings and not REMIC sales, and the loans included in the securitizations remain on the Company’s balance sheet as the Company is the primary beneficiary of the securitization trusts, which are VIEs. The securitization VIEs are structured as pass through entities that receive principal and interest on the underlying mortgages and distribute those payments to the holders of the notes. The Company’s exposure to the obligations of the VIEs is generally limited to its investments in the entities. The notes that are issued by the securitization trusts are secured solely by the mortgages held by the applicable trusts and not by any of the Company’s other assets. The mortgage loans of the applicable trusts are the only source of repayment and interest on the notes issued by such trusts. The Company does not guarantee any of the obligations of the trusts under the terms of the agreement governing the notes or otherwise. The Company’s securitizations are structured with Class A notes, Class B notes, and trusts which have rights to the residual interests in the mortgages once the notes are repaid. For each of the Company’s five securitizations through March 31, 2016, the Company has retained the Class B notes and the trust certificate. The Class A notes are senior, sequential pay, fixed rate notes. The Class B notes are subordinate, sequential pay, fixed rate notes with Class B-2 notes subordinate to the Class B-1 notes. If the Class A notes have not been redeemed by the payment date 36 months after issue, or otherwise paid in full by that date, an amount equal to the aggregate interest payment amount that accrued and would otherwise be paid to the Class B-1 and the Class B-2 notes will be paid as principal to the Class A notes on that date and each subsequent payment date until the Class A notes are paid in full. After the Class A notes are paid in full, the Class B-1 and Class B-2 notes will resume receiving their respective interest payment amounts and any interest that accrued but was not paid to the Class B notes while the Class A notes were outstanding. As the holder of the trust certificates, the Company is entitled to receive any remaining amounts in the trust after the Class A notes and Class B notes have been paid in full. The following table sets forth the original terms of all securitization notes at their respective cutoff dates: Issuing Trust/Issue Date Security Original Interest Rate Ajax Mortgage Loan Trust 2014-A/ October 2014 Class A notes due 2057 (1) $45 million 4.00 % Class B-1 notes due 2057 (2)(4) $8 million 5.19 % Class B-2 notes due 2057 (2)(4) $8 million 5.19 % Trust certificates (3) $20.4 million – Ajax Mortgage Loan Trust 2014-B / November 2014 Class A notes due 2054 (1) $41.2 million 3.85 % Class B-1 notes due 2054 (2)(4) $13.7 million 5.25 % Class B-2 notes due 2054 (2)(4) $13.7 million 5.25 % Trust certificates (3) $22.9 million – Ajax Mortgage Loan Trust 2015-A / May 2015 Class A notes due 2054 (1) $35.6 million 3.88 % Class B-1 notes due 2054 (2)(4) $8.7 million 5.25 % Class B-2 notes due 2054 (2)(4) $8.7 million 5.25 % Trust certificates (3) $22.8 million – Ajax Mortgage Loan Trust 2015-B / July 2015 Class A notes due 2060 (1) $87.2 million 3.88 % Class B-1 notes due 2060 (2) (4) $15.9 million 5.25 % Class B-2 notes due 2060 (2) (4) $7.9 million 5.25 % Trust certificates (3) $47.5 million – Ajax Mortgage Loan Trust 2015-C / November 2015 Class A notes due 2057 (1) $82.0 million 3.88 % Class B-1 notes due 2057 (2) (4) $6.5 million 5.25 % Class B-2 notes due 2057 (2) (4) $6.5 million 5.25 % Trust certificates (3) $35.1 million – (1) The Class A notes are senior, sequential pay, fixed rate notes. (2) The Class B notes are subordinate, sequential pay, fixed rate notes with Class B-2 notes subordinate to the Class B-1 notes. The Company has retained the Class B notes. (3) The trust certificate issued by the trust and the beneficial ownership of the trust are retained by Great Ajax Funding LLC as the depositor. As the holder of the trust certificate, the Company is entitled to receive any remaining amounts in the trust after the Class A notes and Class B notes have been paid in full. (4) These securities are encumbered under the Company’s repurchase agreement. Servicing for the mortgage loans in the Company’s securitizations is provided by the Servicer at a servicing fee rate of 0.65% annually of UPB for loans that are re-performing at acquisition and 1.25% annually of UPB for loans that are non-performing at acquisition, and is paid monthly. The following table sets forth the status of the notes held by others at March 31, 2016, December 31, 2015, and the securitization cutoff date ($ in thousands): Balances at March 31, 2016 Balances at December 31, 2015 Original balances at securitization Class of Carrying Bond Carrying Bond Mortgage Bond 2014-A $ 54,269 $ 35,906 $ 55,098 $ 36,463 $ 81,405 $ 45,000 2014-B 65,775 34,422 66,292 35,646 91,535 41,191 2015-A 53,118 32,903 53,673 33,674 75,835 35,643 2015-B 112,392 83,711 115,395 84,973 158,498 87,174 2015-C 106,245 78,011 108,238 79,824 130,130 81,982 Deferred expenses - (4,921 ) - (5,574 ) - (6,968 ) $ 391,799 $ 260,032 $ 398,696 $ 265,006 $ 537,403 $ 284,022 The Company’s obligations under its secured borrowings are not fixed, and the payments on these borrowings are predicated upon cash flows received on the underlying mortgage loans. Accordingly, a projection of contractual maturities over the next five years is inapplicable.

Related party transactions

Related party transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related party transactions	Note 9 — Related party transactions The Company’s consolidated statement of income included the following significant related party transactions ($ in thousands): Three months ended March 31, 2016 Three months ended March 31, 2015 Amount Counterparty Consolidated Statement Amount Counterparty Consolidated Loan servicing fees $ 1,403 Gregory Related party expense – loan servicing fees $ 656 Gregory Related party expense – loan servicing fees Management fee $ 906 Thetis Related party expense – management fee $ 747 Thetis Related party expense – management fee Due diligence and related $ 26 Gregory Loan transaction expense $ 18 Gregory Loan transaction expense The Company’s consolidated balance sheets included the following significant related party balances ($ in thousands): March 31, 2016 December 31, 2015 Amount Consolidated Balance Sheet location Amount Counterparty Consolidated Balance Sheet location Receivables from Servicer $ 8,108 Gregory Receivable from Servicer $ 5,444 Gregory Receivable from Servicer Management fee payable $ 679 Thetis Management fee payable $ 667 Thetis Management fee payable Servicing fees payable $ 200 Gregory Accrued expenses and other liabilities $ 152 Gregory Accrued expenses and other liabilities Expense reimbursement receivable - - Prepaid expenses and other assets $ 37 Thetis Prepaid expenses and other assets Management Agreement On July 8, 2014, the Company entered into a 15-year management agreement (the “Management Agreement”) with the Manager. Under the Management Agreement, the Manager implements the Company’s business strategy and manages the Company’s business and investment activities and day-to-day operations, subject to oversight by the Company’s board of directors. Among other services, the Manager, directly or through Aspen affiliates, provides the Company with a management team and necessary administrative and support personnel. The Company does not currently have any employees (other than its Chief Financial Officer) and does not expect to have any other employees in the foreseeable future. Each of the Company’s executive officers is an employee or officer, or both, of the Manager or the Company’s Servicer. Under the Management Agreement, the Company pays both a base management fee and an incentive fee to the Manager. The Base Management Fee equals 1.5% of our stockholders’ equity per annum and calculated and payable quarterly in arrears. For purposes of calculating the management fee, the Company’s stockholders’ equity means: (a) the sum of (i) the net proceeds from any issuances of common stock or other equity securities issued by the Company or the operating partnership (without double counting) since inception (allocated on a pro rata daily basis for such issuances during the fiscal quarter of any such issuance), and (ii) the Company’s and the operating partnership’s (without double counting) retained earnings calculated in accordance with U.S. GAAP at the end of the most recently completed fiscal quarter (without taking into account any non-cash equity compensation expense incurred in current or prior periods), less (A) any amount that the Company or the operating partnership pays to repurchase shares of common stock or OP Units since inception, (B) any unrealized gains and losses and other non-cash items that have affected consolidated stockholders’ equity as reported in the Company’s financial statements prepared in accordance with U.S. GAAP, and (C) one-time events pursuant to changes in U.S. GAAP, and certain non-cash items not otherwise described above, in each case after discussions between the Manager and the Company’s independent directors and approval by a majority of the Company’s independent directors. As a result, the Company’s stockholders’ equity, for purposes of calculating the management fee, could be greater or less than the amount of stockholders’ equity shown on the Company’s consolidated financial statements. The initial $1 million of the quarterly Base Management Fee will be payable 75% in cash and 25% in shares of the Company’s common stock. Any amount of the Base Management Fee in excess of $1 million will be payable in shares of the Company’s common stock until payment is 50% in cash and 50% in shares (the “50/50 split”). Any remaining amount of the quarterly Base Management Fee after the 50/50 split threshold is reached will be payable in equal amounts of cash and shares. As for the Manager’s Incentive Fee, in the event that the payment of the quarterly Base Management Fee has not reached the 50/50 split, all of the Incentive Fee will be payable in shares of the Company’s common stock until the 50/50 split occurs. In the event that the total payment of the quarterly Base Management Fee and the Incentive Fee has reached the 50/50 split, 20% of the remaining Incentive Fee is payable in shares of the Company’s common stock and 80% of the remaining Incentive Fee is payable in cash. The common stock will be determined using the higher of the most recently reported book value or the average of the closing prices of our common stock on the NYSE on the five business days after the date on which the most recent regular quarterly dividend to holders of our common stock is paid. The Manager has agreed to hold any shares of common stock received by it as payment of the base management fee for at least three years from the date such shares of common stock are received by it. The Manager is also entitled to an incentive management fee that is payable quarterly in arrears in cash in an amount equal to one-fourth of 20% of the dollar amount by which (i) the sum of (A) the aggregate cash dividends, if any, declared out of the REIT taxable income of the Company by the Company’s Board of Directors payable to the holders of the Company’s common stock and (B) the aggregate cash distributions, if any, declared out of the REIT taxable income of the operating partnership (without duplication) by the operating partnership payable to holders of OP Units (other than any OP Units held by the Company as a limited partner) annualized, or the Annualized Dividends and Distributions, in respect of such calendar quarter exceeds (ii) the product of (1) the book value per share of the Company’s common stock as of the end of each such quarter multiplied by the number of shares of the Company’s common stock and OP Units (other than any OP Units held by the Company as a limited partner) outstanding as of the end of such calendar quarter and (2) 8%. Notwithstanding the foregoing, no incentive fee will be payable to the Manager with respect to any calendar quarter unless its cumulative core earnings, as defined in the agreement, is greater than zero for the most recently completed eight calendar quarters, or the number of completed calendar quarters since the closing date of the Original Private Placement, whichever is less. The Company also reimburses the Manager for all third-party, out-of-pocket costs incurred by the Manager for managing its business, including third-party diligence and valuation consultants, legal expenses, auditors and other financial services. The Company will not reimburse the Manager for lease costs or salaries and expenses of employees of the Manager. The reimbursement obligation is not subject to any dollar limitation. Expenses will be reimbursed in cash on a monthly basis. The Company will be required to pay the Manager a termination fee in the event that the Management Agreement is terminated as a result of (i) a termination by the Company without cause, (ii) its decision not to renew the Management Agreement upon the determination of at least two thirds of the Company’s independent directors for reasons including the failure to agree on revised compensation, (iii) a termination by the Manager as a result of the Company becoming regulated as an “investment company” under the Investment Company Act of 1940 (other than as a result of the acts or omissions of the Manager in violation of investment guidelines approved by the Company’s board of directors), or (iv) a termination by the Manager if the Company defaults in the performance of any material term of the Management Agreement (subject to a notice and cure period). The termination fee will be equal to twice the combined base fee and incentive fees payable to the Manager during the 12-month period ended as of the end of the most recently completed fiscal quarter prior to the date of termination. Servicing Agreement On July 8, 2014, the Company entered into a 15-year servicing agreement (the “Servicing Agreement”) with the Servicer. The Company’s overall servicing costs under the servicing agreement will vary based on the types of assets serviced. Servicing fees are 0.65% annually of UPB for loans that are re-performing at acquisition and 1.25% annually of UPB for loans that are non-performing at acquisition, and are paid monthly. The total fees incurred by us for these services depend upon the UPB and type of mortgage loans that Gregory services pursuant to the terms of the servicing agreement. The fees do not change if a performing loan becomes non-performing or vice versa. Servicing fees for our real property assets are the greater of (i) the servicing fee applicable to the underlying mortgage loan prior to foreclosure, or (ii) 1.00% annually of the fair market value of the REO as reasonably determined by our Manager or 1.00% annually of the purchase price of any REO otherwise purchased by us. The Company will also reimburse Gregory for all customary, reasonable and necessary out-of-pocket costs and expenses incurred in the performance of its obligations, including the actual cost of any repairs and renovations to REO properties. The total fees incurred by the Company for these services will be dependent upon the property value, previous UPB of the relevant loan, and the number of REO properties. If the Management Agreement has been terminated other than for cause and/or the Servicer terminates the servicing agreement, the Company will be required to pay a termination fee equal to the aggregate servicing fees payable under the servicing agreement for the immediate preceding 12-month period. Trademark Licenses Aspen Yo has granted the Company a non-exclusive, non-transferable, non-sublicensable, royalty-free license to use the name “Great Ajax” and the related logo. The Company also has a similar license to use the name “Thetis.” The agreement has no specified term. If the Management Agreement expires or is terminated, the trademark license agreement will terminate within 30 days. In the event that this agreement is terminated, all rights and licenses granted thereunder, including, but not limited to, the right to use “Great Ajax” in its name will terminate. Aspen Yo also granted to the Manager a substantially identical non-exclusive, non-transferable, non-sublicensable, royalty-free license to use of the name “Thetis.”

Stock based payments and direct

Stock based payments and director fees	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock based payments and director fees	Note 10 — Stock-based payments and director fees Pursuant to the terms of the Management Agreement, the Company pays a portion of the base fee to the Manager in shares of its common stock with the number of shares determined based on the higher of the most recently reported book value or the average of the closing prices of our common stock on the NYSE on the five business days after the date on which the most recent regular quarterly dividend to holders of our common stock is paid. The Company paid the Manager a base fee for the quarter ended March 31, 2016 of $0.9 million of which the Company paid $0.2 million, in 14,916 shares of its common stock. The shares issued to the Manager are restricted securities subject to transfer restrictions, and were issued in a private placement transaction on April 27, 2016. In addition, each of the Company’s independent directors receives an annual retainer of $50,000, payable quarterly, half of which is paid in shares of the Company’s common stock on the same basis as the stock portion of the management fee payable to the Manager and half in cash. The following table sets forth the Company’s stock-based management fees and independent director fees ($ in thousands except share amounts). Management fees and director fees For the three months ended For the three months ended Number of Amount of expense recognized (1) Number of Amount of expense recognized (1) Management fees 14,916 $ 227 26,087 $ 373 Independent director fees 1,648 25 1,748 25 16,564 $ 252 27,835 $ 398 (1) All management fees and independent director fees are fully expensed in the period in which they are incurred. The Director Plan is designed to promote the Company’s interests by attracting and retaining qualified and experienced individuals for service as non-employee directors. The Director Plan is administered by the Company’s board of directors. The total number of shares of common stock or other stock-based award, including grants of long term incentive plan (“LTIP”) units from the operating partnership, available for issuance under the Director Plan is 100,000 shares. At the closing of the Original Private Placement, the Company issued to each of its three independent directors restricted stock awards of 2,000 shares of its common stock, which are subject to a one-year vesting period. At the time of the IPO in February 2015, the Company added an additional independent director who was also granted a restricted stock award of 2,000 shares of common stock, subject to a one-year vesting period. The following table sets forth the activity in its restricted stock plan ($ in thousands, except share and per share amounts): Restricted stock Number of Per share Total cost Grant expense Grant expense July 8, 2014, Directors’ Grants (1) 6,000 $ 15.00 $ 90 $ - $ 22 February 19, 2015 Director Grant (1) 2,000 14.25 29 2 5 8,000 $ 119 $ 2 $ 27 (1) Vesting period is one year from grant date.

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income taxes	Note 11 — Income taxes As a REIT, the Company must meet certain organizational and operational requirements including the requirement to distribute at least 90% of its annual REIT taxable income to its stockholders. As a REIT, the Company generally will not be subject to U.S. federal income tax to the extent the Company distributes its REIT taxable income to its stockholders and provided the Company satisfies the REIT requirements including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it lost its REIT qualification. The Company’s consolidated financial statements include the operations of Thetis TRS and GAJX Real Estate LLC, which are subject to U.S. federal, state and local income taxes on the Company’s taxable income. Provisions (benefit) for income taxes of $(3,000) and $0 were recorded for the three-month periods ended March 31, 2016 and March 31, 2015, respectively.

Earnings per share

Earnings per share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings per share	Note 12 — Earnings per share The following table sets forth the components of basic and diluted earnings per share ($ in thousands, except share and per share amounts): Three months ended March 31, 2016 Three months ended March 31, 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS Consolidated income attributable to common stockholders $ 7,651 15,306,519 3,640 13,008,268 Allocation of earnings to participating restricted shares (14 ) - (13 ) - Consolidated income attributable to unrestricted common stockholders $ 7,637 15,306,519 $ 0.50 $ 3,627 13,008,268 $ 0.28 Effect of dilutive securities Operating partnership units 312 624,106 175 624,106 Restricted stock grants and Manager and director fee shares 14 28,577 13 48,313 Diluted EPS Consolidated income attributable to common stockholders and dilutive securities $ 7,963 15,959,202 $ 0.50 $ 3,815 13,680,687 $ 0.28

Subsequent events

Subsequent events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent events	Note 13 — Subsequent events Dividend Declaration On April 26, 2016, the Company’s board of directors declared a dividend of $0.25 per share, to be paid on May 20, 2016, to stockholders of record as of May 13, 2016. Management Fees On April 27, 2016, the Company issued 14,916 shares of its common stock to the Manager in payment of the stock-based portion of the management fee due for the first quarter of 2016 in a private transaction. The management fee expense associated with these shares was recorded as an expense in the first quarter of 2016. Directors’ Retainer On April 27, 2016, the Company issued each of its independent directors 412 shares of its common stock in payment of half of their quarterly director fees for the first quarter of 2016. Securitization On April 11, 2016, the Company completed its sixth securitization. An aggregate of $101.4 million of senior securities and $15.8 million of subordinated securities were issued in a private offering with respect to $158.5 million UPB of mortgage loans. Approximately 83.1% of these mortgage loans were re-performing loans and approximately 16.9% were non-performing loans based on UPB.

Summary of significant accoun20

Summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Mortgage loans	Mortgage loans Purchased mortgage loans are initially recorded at the purchase price, net of any acquisition fees or costs at the time of acquisition and are considered asset acquisitions. As part of the determination of the bid price for mortgage loans, the Company uses a proprietary discounted cash flow valuation model to project expected cash flows, and consider alternate loan resolution probabilities, including liquidation or conversion to real estate owned. Observable inputs to the model include current interest rates, loan amounts, status of payments and property types. Unobservable inputs to the model include discount rates, forecast of future home prices, alternate loan resolution probabilities, resolution timelines, the value of underlying properties and other economic and demographic data.
Loans acquired with deterioration in credit quality	Loans acquired with deterioration in credit quality The loans acquired by the Company have generally suffered some credit deterioration subsequent to origination. As a result, the Company is required to account for the mortgage loans pursuant to ASC 310-30, (Accounting for Loans with Deterioration in Credit Quality). The Company’s recognition of interest income for loans within the scope of ASC 310-30 is based upon its having a reasonable expectation of the amount and timing of the cash flows expected to be collected. When the timing and amount of cash flows expected to be collected are reasonably estimable, the Company uses expected cash flows to apply the interest method of income recognition. Under ASC 310-30, acquired loans may be aggregated and accounted for as a pool of loans if the loans have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Re-performing mortgage loans have been determined to have common risk characteristics and are accounted for as a single loan pool for loans acquired within each three-month calendar quarter. Similarly, non-performing mortgage loans have been determined to have common risk characteristics and are accounted for as a single non-performing pool for loans acquired within each three-month calendar quarter. Excluded from the aggregate pools are loans that pay in full subsequent to the closing date but prior to boarding. Any gain or loss incurred on these loans is recognized in other income in the period the loan pays in full. The Company’s accounting for loans under ASC 310-30 gives rise to an accretable yield and a non-accretable difference. The excess of all undiscounted cash flows expected to be collected at acquisition over the initial investment in the loans is recognized as accretable yield. Cash flows expected at acquisition include all cash flows directly related to the acquired loan, including those expected from the underlying collateral. The Company recognizes the accretable yield as interest income on a prospective level yield basis over the life of the pool. The excess of a loan’s contractually required payments receivable over the amount of cash flows expected at the acquisition is the non-accretable yield. The Company’s expectation of the amount of cash flows expected to be collected is evaluated at the end of each calendar quarter. In the event the Company expects to collect greater cash flows over the life of the pool, the accretable yield amount increases and the expected yield to maturity is adjusted on a prospective basis. In the event the Company expects to collect lower cash flows over the life of the pool, the Company records an impairment through the allowance for loan losses.
Loans acquired that have not experienced a deterioration in credit quality	Loans acquired that have not experienced a deterioration in credit quality While the Company generally acquires loans that have experienced deterioration in credit quality, it may, from time to time, acquire loans that have not missed a scheduled payment and have not experienced a deterioration in credit quality. Accrual of interest on individual loans is discontinued when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. The Company’s policy is to stop accruing interest when a loan’s delinquency exceeds 90 days. All interest accrued but not collected for loans that are placed on non-accrual status or subsequently charged-off are reversed against interest income. Income is subsequently recognized on the cash basis until, in management’s judgment, the borrower’s ability to make periodic principal and interest payments returns and future payments are reasonably assured, in which case the loan is returned to accrual status. An individual loan is considered to be impaired when, based on current events and conditions, it is probable the Company will be unable to collect all amounts due (both principal and interest) according to the contractual terms of the loan agreement. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price, or the fair value of the collateral if the loan is collateral dependent. For individual loans, a troubled debt restructuring is a formal restructuring of a loan where, for economic or legal reasons related to the borrower’s financial difficulties, a concession that would not otherwise be considered is granted to the borrower. The concession may be granted in various forms, including providing a below-market interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date, or a combination of these. An individual loan that has had a troubled debt restructuring is considered to be impaired and is subject to the relevant accounting for impaired loans. Loans are tested quarterly for impairment and impairment reserves are recorded to the extent the net realizable value of the underlying collateral falls below net book value. If necessary, an allowance for loan losses is established through a provision for loan losses charged to expenses. The allowance is an amount that management believes will be adequate to absorb probable losses on existing loans that may become uncollectible, based on evaluations of the collectability of loans. While the Company generally intends to hold its assets as long-term investments, it may sell certain of its loans in order to manage its interest rate risk and liquidity needs, meet other operating objectives and adapt to market conditions. The timing and impact of future sales of loans, if any, cannot be predicted with any certainty. Since the Company expects that its assets will generally be financed, it expects that a significant portion of the proceeds from sales of its assets (if any), prepayments and scheduled amortization will be used to repay balances under its financing sources.
Real estate	Real estate Property is recorded at cost if purchased, or at the present value of future cash flows if obtained through foreclosure by the Company. Property that is currently unoccupied and actively marketed for sale is classified as held-for-sale. Property held-for-sale is carried at the lower of its acquisition basis, net realized value (fair market value less expected selling costs), appraisals or BPOs. Net unrealized losses due to changes in market value are recognized through a valuation allowance by charges to income. No depreciation or amortization expense is recognized on properties held-for-sale, while holding costs are expensed as incurred. Rental property is property not held-for-sale. Rental properties are intended to be held as long-term investments but may eventually be held-for-sale. Property is held for investment as rental property if the modeled present value of the future expected cash flows from use as a rental exceed the present value of expected cash flows from a sale. Depreciation is provided for using the straight-line method over the estimated useful lives of the assets of three to 27.5 years. The Company performs an impairment analysis for all rental property using estimated cash flows if events or changes in circumstances indicate that the carrying value may be impaired, such as prolonged vacancy, identification of materially adverse legal or environmental factors, changes in expected ownership period or a decline in market value to an amount less than cost. This analysis is performed at the property level. The cash flows are estimated based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for rental properties, competition for customers, changes in market rental rates, costs to operate each property and expected ownership periods. If the carrying amount of a held-for-investment asset exceeds the sum of its undiscounted future operating and residual cash flows, an impairment loss is recorded for the difference between estimated fair value of the asset and the carrying amount. The Company generally estimates the fair value of assets held for use by using BPOs. In some instances, appraisal information may be available and is used in addition to BPOs. The Company performs property renovations to maximize the value of the property for its rental strategy. Such expenditures are part of its initial investment in a property and, therefore, are capitalized as part of the basis of the property. Subsequently, the residential property, including any renovations that improve or extend the life of the asset, are accounted for at cost. The cost basis is depreciated using the straight-line method over an estimated useful life of three to 27.5 years. Interest and other carrying costs incurred during the renovation period are capitalized until the property is ready for its intended use. Expenditures for ordinary maintenance and repairs are charged to expense as incurred.
Secured debt	Secured debt The Company issues callable debt secured by its mortgage loans in the ordinary course of business. Coupon interest on the debt is recognized using the accrual method of accounting. Original issue discount and debt issuance costs are amortized on an effective yield basis based on the underlying cash flow of the mortgage loans. The Company assumes the debt will be called at the specified call date for purposes of amortizing discount and issuance costs because the Company believes it will have the intent and ability to call the debt on the call date. Changes in the actual or projected underlying cash flows are reflected in the timing and amount of discount and issuance cost amortization.
Management fee and expense reimbursement	Management fee and expense reimbursement Under the Management Agreement with the Manager, the Company pays a quarterly base management fee based on its stockholders’ equity and a quarterly incentive management fee based on its cash distributions to its stockholders. Manager fees are expensed in the quarter incurred and the portion payable in common stock is included in stockholders’ equity at quarter end. See Note 9 — Related party transactions.
Servicing fees	Servicing fees Under the Servicing Agreement, Gregory receives servicing fees of 0.65% annually of UPB for loans that are re-performing at acquisition, and 1.25% annually of UPB for loans that are non-performing at acquisition. Servicing fees are paid monthly. The total fees incurred by the Company for these services depend upon the UPB and type of mortgage loans that Gregory services pursuant to the terms of the servicing agreement. The fees do not change if a performing loan becomes non-performing or vice versa. Servicing fees for the Company’s real property assets are the greater of (i) the servicing fee applicable to the underlying mortgage loan prior to foreclosure, or (ii) 1.00% annually of the fair market value of the REO as reasonably determined by the Manager or 1.00% annually of the purchase price of any REO otherwise purchased by the Company. Gregory is reimbursed for all customary, reasonable and necessary out-of-pocket costs and expenses incurred in the performance of its obligations, including the actual cost of any repairs and renovations undertaken on the Company’s behalf. The total fees incurred by the Company for these services will be dependent upon the UPB and type of mortgage loans that Gregory services, property values, previous UPB of the relevant loan, and the number of REO properties. The agreement will automatically renew for successive one-year terms, subject to prior written notice of non-renewal. In certain cases, the Company may be obligated to pay a termination fee. The Management Agreement will automatically terminate at the same time as the servicing agreement if the servicing agreement is terminated for any reason. See Note 9 — Related party transactions.
Stock-based payments	Stock-based payments The Management Agreement (as defined above) provides for the payment to the Manager of a management fee. The Company pays a portion of the management fee in cash, and a portion of the management fee in shares of the Company’s common stock, which are issued to the Manager in a private placement and are restricted securities under the Securities Act. On October 27, 2015, the Company entered into an amended and restated management agreement with the Manager (the “Amended and Restated Agreement”), which amended the portion of the Base Management Fee and Manager’s Incentive Fee to be payable in cash and shares of the Company’s common stock retroactive to July 1, 2015. Shares issued to the Manager are determined based on the higher of the most recently reported book value or the average of the closing prices of our common stock on the NYSE on the five business days after the date on which the most recent regular quarterly dividend to holders of our common stock is paid. Management fees paid in common stock are expensed in the quarter incurred and recorded in equity at quarter end. Pursuant to the Company’s 2014 Director Equity Plan (the “Director Plan”), the Company may make stock-based awards. The Company has issued to each of the independent directors restricted stock awards of 2,000 shares of its common stock, which are subject to a one-year vesting period. In addition, each of the Company’s independent directors receives an annual retainer of $50,000, payable quarterly, half of which is paid in shares of the Company’s common stock on the same basis as the stock portion of the management fee payable to the Manager, and half in cash. Stock-based expense for the directors’ annual retainer is expensed as earned, in equal quarterly amounts during the year, and recorded in equity at quarter end.
Directors' fees	Directors’ fees The expense related to directors’ fees is accrued and, the portion payable in common stock is reflected in stockholders’ equity in the period in which it is incurred.
Cash and cash equivalents	Cash and cash equivalents Highly liquid investments with an original maturity of three months or less when purchased are considered cash equivalents. The Company maintains cash and cash equivalents at insured banking institutions. Certain account balances exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage.
Cash held in trust	Cash held in trust Cash held in trust consists of cash balances legally due to lenders, and segregated from the Company’s other cash deposits. Cash held in trust is not available to the Company for any purposes other than the settlement of existing obligations to the lender.
Earnings per share	Earnings per share Basic earnings per share is computed by dividing consolidated net income attributable to common stockholders by the weighted average common stock outstanding during the period. The Company treats unvested restricted stock issued under its stock-based compensation plan, which are entitled to non-forfeitable dividends, as participating securities and applies the two-class method in calculating basic earnings per share. Diluted earnings per share is computed by dividing consolidated net income attributable to common stockholders and dilutive securities by the weighted average common stock outstanding for the period plus other potentially dilutive securities, such as stock grants, shares that would be issued in the event that OP Units are redeemed for shares of common stock of the Company and shares issued in respect of the stock-based portion of the base fee payable to the Manager and directors’ fees.
Fair value of financial instruments	Fair value of financial instruments Fair value is defined 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. A fair value hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: · Level 1 · Level 2 · Level 3 The degree of judgment utilized in measuring fair value generally correlates to the level of pricing observability. Assets and liabilities with readily available actively quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets and liabilities rarely traded or not quoted will generally have little or no pricing observability and a higher degree of judgment utilized in measuring fair value. Pricing observability is impacted by a number of factors, including the type of asset or liability, whether it is new to the market and not yet established, and the characteristics specific to the transaction. Property held-for-sale is carried at the lower of its acquisition basis, net realizeable value (fair market value less expected selling costs), appraisals or an independent broker price opinion (“BPO”). Net unrealized losses due to changes in market value are recognized through a valuation allowance by charges to income. The fair value of property held-for-sale is generally based on estimated market prices from an independently prepared appraisal, BPO, or an internal valuation based upon recent comparable selling prices. The fair value of mortgage loans is estimated using the Manager’s proprietary pricing model which estimates expected cash flows with the discount rate used in the present value calculation representing the estimated effective yield of the loan. The value of transfers of mortgage loans to real estate owned is based upon the present value of future expected cash flows of the loans being transferred.
Income taxes	Income taxes The Company elected REIT status upon the filing of its 2014 income tax return, and has conducted its operations in order to satisfy and maintain eligibility for REIT status. Accordingly, the Company does not believe it will be subject to U.S. federal income tax from the year ended December 31, 2014 forward on the portion of the Company’s REIT taxable income that is distributed to the Company’s stockholders as long as certain asset, income and stock ownership tests are met. If the Company fails to qualify as a REIT in any taxable year, it generally will not be permitted to qualify for treatment as a REIT for U.S. federal income tax purposes for the four taxable years following the year during which qualification is lost. The Company may also be subject to state or local income or franchise taxes. Thetis TRS, GAJX Real Estate LLC and any other TRS that the Company forms, will be subject to U.S. federal and state income taxes. On February 22, 2016, the Company received a private letter ruling from the Internal Revenue Service regarding the consequences of owning the interest in our Manager through its operating partnership. The Company is currently exploring options for transferring its interest in the Manager to the operating partnership. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which management expects those temporary differences to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period in which the change occurs. Subject to the Company’s judgment, it reduces a deferred tax asset by a valuation allowance if it is “more–likely-than-not” that some or all of the deferred tax asset will not be realized. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in evaluating tax positions, and the Company recognizes tax benefits only if it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authority. The Company evaluates tax positions taken in its consolidated financial statements under the interpretation for accounting for uncertainty in income taxes. As a result of this evaluation, the Company may recognize a tax benefit from an uncertain tax position only if it is “more-likely-than-not” that the tax position will be sustained on examination by taxing authorities. The Company’s tax returns remain subject to examination and consequently, the taxability of the distributions and other tax positions taken by the Company may be subject to change. Distributions to stockholders generally will be taxable as ordinary income, although a portion of such distributions may be designated as long-term capital gain or qualified dividend income, or may constitute a return of capital. The Company will furnish annually to each stockholder a statement setting forth distributions paid during the preceding year and their U.S. federal income tax treatment.
Organizational expenses	Organizational expenses Organizational expenses are expensed as incurred or when they become reimbursable. Organizational expenses consisted mainly of legal fees.
Offering costs	Offering costs Costs associated with the Company’s completed offering of shares of common stock have been netted against, and are reflected as a reduction in additional paid-in capital.
Segment information	Segment information The Company’s primary business is acquiring, investing in and managing a portfolio of mortgage loans. The Company operates in a single segment focused on non-performing mortgages and re-performing mortgages.
Emerging growth company	Emerging growth company Section 107 of the Jumpstart Our Business Startups Act (the “JOBS Act”) provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the benefits of this extended transition period. Its consolidated financial statements may, therefore, not be comparable to those of companies that comply with such new or revised accounting standards.
Reclassifications	Reclassifications Certain amounts in the Company’s 2015 Consolidated Financial Statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported net income or equity. Additionally, the December 31, 2015 amounts included in the delinquency table in Note 3 – Mortgage loans have been reclassified from delinquent to current to reflect a correction of an error in the presentation of the disclosure that is immaterial to the consolidated financial statements taken as a whole. Such reclassifications did not affect cash flows, net income, total assets, total liabilities or total equity.
Recently adopted accounting standards	Recently adopted accounting standards In February 2015, the FASB issued ASU 2015-02 Amendments to the Consolidation Analysis. These amendments: (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company implemented this amendment for the three-months ended March 31, 2016. As a result of this implementation, there was no effect on the Company’s consolidation policy. In April 2015, the FASB issued ASU 2015-03 Interest – Imputation of Interest. The amendments in this update require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of a debt liability, consistent with debt discounts. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. In June 2015, the FASB issued ASU 2015-15 which acknowledges that the scope of ASU 2015-03 does not include line-of-credit arrangements but indicates that the SEC staff would not object to an entity deferring and presenting debt issuance costs for a line-of-credit borrowing arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. The Company implemented this amendment for the three-months ended March 31, 2016. The result of this implementation was a reduction of approximately $4.9 million on the balance sheet in Prepaid expenses and other assets, and an offsetting reduction of approximately $4.9 million in Secured borrowings. There was no effect on net income, or equity.
Recently issued accounting standards	Recently issued accounting standards In May 2014, Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09 Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services . While ASU 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In January 2016, the FASB issued ASU 2016-01Financial Instruments – Overall. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Specifically the guidance (1) requires equity investments to be measured at fair value with changes in fair value recognized in earnings, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost, (4) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option, (6) requires separate presentation of financial assets and liabilities by measurement category and form on the balance sheet or the notes to the financial statements, and (7) clarifies that the need for a valuation allowance on a deferred tax asset related to an available for sale security should be evaluated with other deferred tax assets. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-07 Investments – Equity Method and Joint Ventures which is intended to simplify the transition to the equity method of accounting. The guidance eliminates the retrospective application of the equity method of accounting when obtaining significant influence over a previously held investment. The guidance requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09 Compensation – Stock Compensation. The guidance primarily simplifies the accounting for employee share-based payment transactions, including a new requirement to record all of the income tax effects at settlement or expiration through the income statement, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact on its consolidated financial statements.

Mortgage loans (Tables)

Mortgage loans (Tables)	3 Months Ended
	Mar. 31, 2016
Mortgage Loans [Abstract]
Schedule of contractually required payments and estimated cash flows expected to be collected	Three months ended March 31, 2016 Twelve months ended Re-performing Non-performing Re-performing Non-performing Contractually required principal and interest $ 82,179 $ - $ 752,457 $ 67,393 Non-accretable yield (29,148 ) - (306,722 ) (39,352 ) Expected cash flows to be collected 53,031 - 445,735 28,041 Accretable yield (15,853 ) - (118,673 ) (8,281 ) Fair value at acquisition $ 37,178 $ - $ 327,062 $ 19,760
Schedule of accretable yield	Accretable yield Three months ended Twelve months ended March 31, 2016 December 31, 2015 Re-performing Non-performing Re-performing Non-performing Balance at beginning of period $ 136,455 $ 18,425 $ 54,940 $ 20,686 Accretable yield additions 15,853 - 118,673 8,281 Accretion (13,540 ) (2,274 ) (37,158 ) (10,542 ) Balance at end of period $ 138,768 $ 16,151 $ 136,455 $ 18,425
Schedule of carrying value of mortgage loans and related UPB by delinquency status	March 31, 2016 December 31, 2015 Number of Carrying Unpaid Number of Carrying Unpaid Current 1,418 $ 250,080 $ 321,072 1,161 $ 212,469 $ 272,577 30 471 84,367 106,121 479 83,936 107,873 60 280 49,147 61,772 338 55,573 70,781 90 782 120,370 155,524 867 127,435 167,177 Foreclosure 430 80,334 111,672 404 75,464 107,301 Mortgage loans 3,381 $ 584,298 $ 756,161 3,249 $ 554,877 $ 725,709

Fair value (Tables)

Fair value (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value of financial assets and liabilities	Level 1 Level 2 Level 3 March 31, 2016 Carrying Quoted prices Observable Unobservable Not recognized on consolidated balance sheet at fair value (assets) Mortgage loans, net $ 584,298 - - $ 775,820 Property held for sale $ 13,380 $ 18,217 Not recognized on consolidated balance sheet at fair value (liabilities) Secured borrowings $ 260,032 - $ 264,269 - Borrowings under repurchase agreement $ 136,496 - $ 136,496 - Level 1 Level 2 Level 3 December 31, 2015 Carrying Quoted prices Observable Unobservable Not recognized on consolidated balance sheet at fair value (assets) Mortgage loans, net $ 554,877 - - $ 627,112 Property held for sale $ 10,333 - $ 12,581 Not recognized on consolidated balance sheet at fair value (liabilities) Secured borrowings $ 265,006 - $ 259,649 - Borrowings under repurchase agreement $ 104,533 - $ 104,533 -
Schedule of quantitative information about significant unobservable inputs	Range of Values Input March 31, 2016 December 31, 2015 Equity discount rate – Re-performing loans 7% - 14% 7% - 14% Equity discount rate – Non-performing loans 10% - 18% 10% - 18% Cost of debt 4.25% 4.25% Loan resolution timelines – Re-performing loans (in years) 4 - 7 4 - 7 Loan resolution timelines – Non-performing loans (in years) 1.4 - 4 1.4 - 4

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of details of repurchase agreement	March 31, 2016 Maturity Date Maximum Amount Amount Interest June 23, 2016 $ 9,374 $ 9,374 $ 13,391 2.91 % September 9, 2016 15,730 15,730 22,470 3.00 % September 30, 2016 10,658 10,658 15,226 3.01 % November 22, 2016 200,000 100,734 163,144 4.19 % Totals $ 235,762 $ 136,496 $ 214,231 3.87 % December 31, 2015 Maturity Date Maximum Amount Amount Interest March 30, 2016 $ 10,838 $ 10,838 $ 15,483 2.53 % June 23, 2016 9,374 9,374 13,391 2.91 % November 22, 2016 200,000 84,321 135,736 4.17 % Totals $ 220,212 $ 104,533 $ 164,610 3.91 %
Schedule of amount outstanding on repurchase transactions and carrying value collateral	Gross amounts not offset in balance sheet Balance sheet date Gross amount of Gross amount Net amount March 31, 2016 $ 136,496 $ 214,231 $ 77,735 December 31, 2015 $ 104,533 $ 164,610 $ 60,077
Schedule of securitization of notes	Issuing Trust/Issue Date Security Original Interest Rate Ajax Mortgage Loan Trust 2014-A/ October 2014 Class A notes due 2057 (1) $45 million 4.00 % Class B-1 notes due 2057 (2)(4) $8 million 5.19 % Class B-2 notes due 2057 (2)(4) $8 million 5.19 % Trust certificates (3) $20.4 million – Ajax Mortgage Loan Trust 2014-B / November 2014 Class A notes due 2054 (1) $41.2 million 3.85 % Class B-1 notes due 2054 (2)(4) $13.7 million 5.25 % Class B-2 notes due 2054 (2)(4) $13.7 million 5.25 % Trust certificates (3) $22.9 million – Ajax Mortgage Loan Trust 2015-A / May 2015 Class A notes due 2054 (1) $35.6 million 3.88 % Class B-1 notes due 2054 (2)(4) $8.7 million 5.25 % Class B-2 notes due 2054 (2)(4) $8.7 million 5.25 % Trust certificates (3) $22.8 million – Ajax Mortgage Loan Trust 2015-B / July 2015 Class A notes due 2060 (1) $87.2 million 3.88 % Class B-1 notes due 2060 (2) (4) $15.9 million 5.25 % Class B-2 notes due 2060 (2) (4) $7.9 million 5.25 % Trust certificates (3) $47.5 million – Ajax Mortgage Loan Trust 2015-C / November 2015 Class A notes due 2057 (1) $82.0 million 3.88 % Class B-1 notes due 2057 (2) (4) $6.5 million 5.25 % Class B-2 notes due 2057 (2) (4) $6.5 million 5.25 % Trust certificates (3) $35.1 million – (1) The Class A notes are senior, sequential pay, fixed rate notes. (2) The Class B notes are subordinate, sequential pay, fixed rate notes with Class B-2 notes subordinate to the Class B-1 notes. The Company has retained the Class B notes. (3) The trust certificate issued by the trust and the beneficial ownership of the trust are retained by Great Ajax Funding LLC as the depositor. As the holder of the trust certificate, the Company is entitled to receive any remaining amounts in the trust after the Class A notes and Class B notes have been paid in full. (4) These securities are encumbered under the Company’s repurchase agreement.
Schedule of status of mortgage loans	Balances at March 31, 2016 Balances at December 31, 2015 Original balances at securitization Class of Carrying Bond Carrying Bond Mortgage Bond 2014-A $ 54,269 $ 35,906 $ 55,098 $ 36,463 $ 81,405 $ 45,000 2014-B 65,775 34,422 66,292 35,646 91,535 41,191 2015-A 53,118 32,903 53,673 33,674 75,835 35,643 2015-B 112,392 83,711 115,395 84,973 158,498 87,174 2015-C 106,245 78,011 108,238 79,824 130,130 81,982 Deferred expenses - (4,921 ) - (5,574 ) - (6,968 ) $ 391,799 $ 260,032 $ 398,696 $ 265,006 $ 537,403 $ 284,022

Related party transactions (Tab

Related party transactions (Tables)	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Schedule of consolidated statement of income	Three months ended March 31, 2016 Three months ended March 31, 2015 Amount Counterparty Consolidated Statement Amount Counterparty Consolidated Loan servicing fees $ 1,403 Gregory Related party expense – loan servicing fees $ 656 Gregory Related party expense – loan servicing fees Management fee $ 906 Thetis Related party expense – management fee $ 747 Thetis Related party expense – management fee Due diligence and related $ 26 Gregory Loan transaction expense $ 18 Gregory Loan transaction expense
Schedule of related party transactions for consolidated balance sheet	March 31, 2016 December 31, 2015 Amount Consolidated Balance Sheet location Amount Counterparty Consolidated Balance Sheet location Receivables from Servicer $ 8,108 Gregory Receivable from Servicer $ 5,444 Gregory Receivable from Servicer Management fee payable $ 679 Thetis Management fee payable $ 667 Thetis Management fee payable Servicing fees payable $ 200 Gregory Accrued expenses and other liabilities $ 152 Gregory Accrued expenses and other liabilities Expense reimbursement receivable - - Prepaid expenses and other assets $ 37 Thetis Prepaid expenses and other assets

Stock based payments and dire25

Stock based payments and director fees (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of management fees and director fees	For the three months ended For the three months ended Number of Amount of expense recognized (1) Number of Amount of expense recognized (1) Management fees 14,916 $ 227 26,087 $ 373 Independent director fees 1,648 25 1,748 25 16,564 $ 252 27,835 $ 398 (1) All management fees and independent director fees are fully expensed in the period in which they are incurred.
Schedule of activity in restricted stock	Number of Per share Total cost Grant expense Grant expense July 8, 2014, Directors’ Grants (1) 6,000 $ 15.00 $ 90 $ - $ 22 February 19, 2015 Director Grant (1) 2,000 14.25 29 2 5 8,000 $ 119 $ 2 $ 27 (1) Vesting period is one year from grant date.

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Components of basic and diluted earnings per share	Three months ended March 31, 2016 Three months ended March 31, 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS Consolidated income attributable to common stockholders $ 7,651 15,306,519 3,640 13,008,268 Allocation of earnings to participating restricted shares (14 ) - (13 ) - Consolidated income attributable to unrestricted common stockholders $ 7,637 15,306,519 $ 0.50 $ 3,627 13,008,268 $ 0.28 Effect of dilutive securities Operating partnership units 312 624,106 175 624,106 Restricted stock grants and Manager and director fee shares 14 28,577 13 48,313 Diluted EPS Consolidated income attributable to common stockholders and dilutive securities $ 7,963 15,959,202 $ 0.50 $ 3,815 13,680,687 $ 0.28

Organization and basis of pre27

Organization and basis of presentation (Details Textuals)	Mar. 31, 2016
Organization And Basis Of Presentation [Line Items]
Ownership percentage	40.50%
Percentage of outstanding OP units owned	96.10%
Percentage of outstanding OP owned by an unaffiliated holder	3.90%
Thetis Asset Management LLC
Organization And Basis Of Presentation [Line Items]
Ownership percentage	19.80%

Summary of significant accoun28

Summary of significant accounting policies (Details Textuals)	Jul. 08, 2014	Mar. 31, 2016USD ($)Segmentshares
Summary Of Significant Accounting Policies [Line Items]
Annual retainer amount		$ 50,000
Depreciation method		straight-line method
Estimated useful lives of an assets		three to 27.5 years
Number of operating segment | Segment		1
Accounting Standards 2015 - 03
Summary Of Significant Accounting Policies [Line Items]
Reduction in prepaid expenses and other assets		$ 4,900,000
Reduction in secured borrowings		$ 4,900,000
Servicing agreement | Gregory
Summary Of Significant Accounting Policies [Line Items]
Percentage of fair market value of REO		1.00%
Percentage of purchase price of REO		1.00%
Servicing agreement | Gregory | Minimum
Summary Of Significant Accounting Policies [Line Items]
Servicing fees percentage	0.65%	0.65%
Servicing agreement | Gregory | Maximum
Summary Of Significant Accounting Policies [Line Items]
Servicing fees percentage	1.25%	1.25%
2014 Director Equity Plan | Restricted stock
Summary Of Significant Accounting Policies [Line Items]
Number of shares issued to independent directors | shares		2,000
Vesting period		1 year
Annual retainer amount		$ 50,000

Mortgage loans (Details)

Mortgage loans (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Re-performing loans
Mortgage Loans on Real Estate [Line Items]
Contractually required principal and interest	$ 82,179	$ 752,457
Non-accretable yield	(29,148)	(306,722)
Expected cash flows to be collected	53,031	445,735
Accretable yield	(15,853)	(118,673)
Fair value at acquisition	$ 37,178	327,062
Non-performing loans
Mortgage Loans on Real Estate [Line Items]
Contractually required principal and interest		67,393
Non-accretable yield		(39,352)
Expected cash flows to be collected		28,041
Accretable yield		(8,281)
Fair value at acquisition		$ 19,760

Mortgage loans (Details 1)

Mortgage loans (Details 1) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Re-performing loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 136,455	$ 54,940
Accretable yield additions	15,853	118,673
Accretion	(13,540)	(37,158)
Balance at end of period	138,768	136,455
Non-performing loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 18,425	20,686
Accretable yield additions		8,281
Accretion	$ (2,274)	(10,542)
Balance at end of period	$ 16,151	$ 18,425

Mortgage loans (Details 2)

Mortgage loans (Details 2) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2016USD ($)Loan	Dec. 31, 2015USD ($)Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans | Loan		3,381	3,249
Carrying value	[1]	$ 584,298	$ 554,877
Unpaid principal balance		$ 756,161	$ 725,709
Current
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans | Loan		1,418	1,161
Carrying value		$ 250,080	$ 212,469
Unpaid principal balance		$ 321,072	$ 272,577
30
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans | Loan		471	479
Carrying value		$ 84,367	$ 83,936
Unpaid principal balance		$ 106,121	$ 107,873
60
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans | Loan		280	338
Carrying value		$ 49,147	$ 55,573
Unpaid principal balance		$ 61,772	$ 70,781
90
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans | Loan		782	867
Carrying value		$ 120,370	$ 127,435
Unpaid principal balance		$ 155,524	$ 167,177
Foreclosure
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans | Loan		430	404
Carrying value		$ 80,334	$ 75,464
Unpaid principal balance		$ 111,672	$ 107,301
[1]	Mortgage loans include $391,799 and $398,696 of loans at March 31, 2016 and December 31, 2015, respectively, transferred to securitization trusts that are variable interest entities ("VIEs"); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 8 Debt.

Mortgage loans (Details Textual

Mortgage loans (Details Textuals) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)Property	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)Property
Mortgage Loans on Real Estate [Line Items]
Interest income on loans	$ 15.8	$ 6.9
Due diligence cost on mortgage loan	$ 0.2	$ 0.3
Ownership percentage beneficial interest through equity method investee	40.50%
Residential properties
Mortgage Loans on Real Estate [Line Items]
Number of REO properties foreclosed | Property	83		55
Foreclosed residential properties	$ 11.5		$ 6.8

Real estate assets, net (Detail

Real estate assets, net (Details Textuals) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016USD ($)Property	Mar. 31, 2015USD ($)Property	Dec. 31, 2015USD ($)Property
Real Estate [Abstract]
Number of REO properties held for rental	7		1
Aggregate carrying value REO properties | $	$ 1,200		$ 100
Number of real estate properties acquired	5
Number of real estate properties transferred from held-for sale	2
Number of REO properties rented	1
Number of REO properties held-for-sale	87		73
Aggregate carrying value of held for sale | $	$ 13,380		$ 10,333
Number of held-for-sale residential properties disposed	18	1
Gain (loss) on sale of property | $	$ 545	$ (2)

Fair value (Details)

Fair value (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Not recognized on consolidated balance sheet at fair value (assets)
Mortgage loans, net	[1]	$ 584,298	$ 554,877
Property held-for-sale		13,380	10,333
Not recognized on consolidated balance sheet at fair value (liabilities)
Secured borrowings	[1]	260,032	265,006
Borrowings under repurchase agreement		$ 136,496	$ 104,533
Level 1 Quoted prices in active markets
Not recognized on consolidated balance sheet at fair value (assets)
Mortgage loans, net
Property held for sale
Not recognized on consolidated balance sheet at fair value (liabilities)
Secured borrowings
Borrowings under repurchase agreement
Level 2 Observable inputs other than Level 1 prices
Not recognized on consolidated balance sheet at fair value (assets)
Mortgage loans, net
Property held for sale
Not recognized on consolidated balance sheet at fair value (liabilities)
Secured borrowings		$ 264,269	$ 259,646
Borrowings under repurchase agreement		136,496	104,533
Level 3 Unobservable inputs
Not recognized on consolidated balance sheet at fair value (assets)
Mortgage loans, net		775,820	627,112
Property held for sale		$ 18,217	$ 12,581
Not recognized on consolidated balance sheet at fair value (liabilities)
Secured borrowings
Borrowings under repurchase agreement
Carrying Value
Not recognized on consolidated balance sheet at fair value (assets)
Mortgage loans, net		$ 584,298	$ 554,877
Property held-for-sale		13,380	10,333
Not recognized on consolidated balance sheet at fair value (liabilities)
Secured borrowings		260,032	265,006
Borrowings under repurchase agreement		$ 136,496	$ 104,533
[1]	Mortgage loans include $391,799 and $398,696 of loans at March 31, 2016 and December 31, 2015, respectively, transferred to securitization trusts that are variable interest entities ("VIEs"); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 8 Debt.

Fair value (Details 1)

Fair value (Details 1)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cost of debt	4.25%	4.25%
Re-performing loans | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Equity discount rate	7.00%	7.00%
Loan resolution timelines	4 years	4 years
Re-performing loans | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Equity discount rate	14.00%	14.00%
Loan resolution timelines	7 years	7 years
Non-performing loans | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Equity discount rate	10.00%	10.00%
Loan resolution timelines	1 year 4 months 24 days	1 year 4 months 24 days
Non-performing loans | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Equity discount rate	18.00%	18.00%
Loan resolution timelines	4 years	4 years

Unconsolidated affiliates (Deta

Unconsolidated affiliates (Details Textuals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 14, 2016	Dec. 31, 2015
Investments in and Advances to Affiliates [Line Items]
Ownership percentage	40.50%
Total assets	$ 642,684			$ 609,805
Total liabilities	400,480			371,992
Net income	$ 7,651	$ 3,640
Thetis Asset Management LLC
Investments in and Advances to Affiliates [Line Items]
Ownership percentage	19.80%
Total assets	$ 3,700			3,000
Total liabilities	1,200			500
Net income	$ 200	200
Other investors
Investments in and Advances to Affiliates [Line Items]
Ownership percentage			3.80%
Delaware Trust GA-E 2014-12
Investments in and Advances to Affiliates [Line Items]
Ownership percentage	40.50%
Loan amount	$ 5,900			$ 5,800
Net income	$ 200	$ 200
DoubleLine Capital LP
Investments in and Advances to Affiliates [Line Items]
Ownership percentage	1.20%		95.00%
Total assets	$ 91,900
Total liabilities	$ 91,900
AS Ajax E LLC
Investments in and Advances to Affiliates [Line Items]
Ownership percentage			1.20%

Commitments and contingencies (

Commitments and contingencies (Details Textuals) - One-to-four family residences - Re-performing loans - Purchase commitment $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)Loan
Mortgage Loans on Real Estate [Line Items]
Number of mortgage loans on real estate | Loan	157
Aggregate unpaid principal balance of mortgage loans on real estate	$ 38.5
Percentage of unpaid principal balance of loan acquired	72.60%
Estimated market value of the underlying collateral	$ 45.5
Percentage of estimated market value of the underlying collateral	61.50%

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 235,762	$ 220,212
Amount outstanding	136,496	104,533
Amount of collateral	$ 214,231	$ 164,610
Interest rate	3.87%	3.91%
Master Repurchase Agreement | March 30, 2016
Debt Instrument [Line Items]
Maturity Date		Mar. 30, 2016
Maximum borrowing capacity		$ 10,838
Amount outstanding		10,838
Amount of collateral		$ 15,483
Interest rate		2.53%
Master Repurchase Agreement | June 23, 2016
Debt Instrument [Line Items]
Maturity Date	Jun. 23, 2016	Jun. 23, 2016
Maximum borrowing capacity	$ 9,374	$ 9,374
Amount outstanding	9,374	9,374
Amount of collateral	$ 13,391	$ 13,391
Interest rate	2.91%	2.91%
Master Repurchase Agreement | September 09, 2016
Debt Instrument [Line Items]
Maturity Date	Sep. 9, 2016
Maximum borrowing capacity	$ 15,730
Amount outstanding	15,730
Amount of collateral	$ 22,470
Interest rate	3.00%
Master Repurchase Agreement | September 30, 2016
Debt Instrument [Line Items]
Maturity Date	Sep. 30, 2016
Maximum borrowing capacity	$ 10,658
Amount outstanding	10,658
Amount of collateral	$ 15,226
Interest rate	3.01%
Master Repurchase Agreement | November 22, 2016
Debt Instrument [Line Items]
Maturity Date	Nov. 22, 2016	Nov. 22, 2016
Maximum borrowing capacity	$ 200,000	$ 200,000
Amount outstanding	100,734	84,321
Amount of collateral	$ 163,144	$ 135,736
Interest rate	4.19%	4.17%

Debt (Details 1)

Debt (Details 1) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Gross amount of recognized liabilities	$ 136,496	$ 104,533
Gross amount pledged as collateral	214,231	164,610
Net amount	$ 77,735	$ 60,077

Debt (Details 2)

Debt (Details 2) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Interest Rate		3.87%	3.91%
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2014-A/ October 2014
Debt Instrument [Line Items]
Notes due	[1]	2,057
Original Principal	[1]	$ 45
Interest Rate	[1]	4.00%
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2014-B / November 2014
Debt Instrument [Line Items]
Notes due	[1]	2,054
Original Principal	[1]	$ 41.2
Interest Rate	[1]	3.85%
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2015-A / May 2015
Debt Instrument [Line Items]
Notes due	[1]	2,054
Original Principal	[1]	$ 35.6
Interest Rate	[1]	3.88%
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2015-B / July 2015
Debt Instrument [Line Items]
Notes due	[1]	2,060
Original Principal	[1]	$ 87.2
Interest Rate	[1]	3.88%
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2015-C / November 2015
Debt Instrument [Line Items]
Notes due	[1]	2,057
Original Principal	[1]	$ 82
Interest Rate	[1]	3.88%
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2014-A/ October 2014
Debt Instrument [Line Items]
Notes due	[2]	2,057
Original Principal	[2],[3]	$ 8
Interest Rate	[2],[3]	5.19%
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2014-B / November 2014
Debt Instrument [Line Items]
Notes due	[2],[3]	2,054
Original Principal	[2],[3]	$ 13.7
Interest Rate	[2],[3]	5.25%
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2015-A / May 2015
Debt Instrument [Line Items]
Notes due	[2],[3]	2,054
Original Principal	[2],[3]	$ 8.7
Interest Rate	[2],[3]	5.25%
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2015-B / July 2015
Debt Instrument [Line Items]
Notes due	[2],[3]	2,060
Original Principal	[2],[3]	$ 15.9
Interest Rate	[2],[3]	5.25%
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2015-C / November 2015
Debt Instrument [Line Items]
Notes due	[2],[3]	2,057
Original Principal	[2],[3]	$ 6.5
Interest Rate	[2],[3]	5.25%
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2014-A/ October 2014
Debt Instrument [Line Items]
Notes due	[2]	2,057
Original Principal	[2],[3]	$ 8
Interest Rate	[2],[3]	5.19%
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2014-B / November 2014
Debt Instrument [Line Items]
Notes due	[2],[3]	2,054
Original Principal	[2],[3]	$ 13.7
Interest Rate	[2],[3]	5.25%
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2015-A / May 2015
Debt Instrument [Line Items]
Notes due	[2],[3]	2,054
Original Principal	[2],[3]	$ 8.7
Interest Rate	[2],[3]	5.25%
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2015-B / July 2015
Debt Instrument [Line Items]
Notes due	[2],[3]	2,060
Original Principal	[2],[3]	$ 7.9
Interest Rate	[2],[3]	5.25%
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2015-C / November 2015
Debt Instrument [Line Items]
Notes due	[2],[3]	2,057
Original Principal	[2],[3]	$ 6.5
Interest Rate	[2],[3]	5.25%
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2014-A/ October 2014
Debt Instrument [Line Items]
Original Principal	[4]	$ 20.4
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2014-B / November 2014
Debt Instrument [Line Items]
Original Principal	[4]	22.9
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2015-A / May 2015
Debt Instrument [Line Items]
Original Principal	[4]	22.8
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2015-B / July 2015
Debt Instrument [Line Items]
Original Principal	[4]	47.5
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2015-C / November 2015
Debt Instrument [Line Items]
Original Principal	[4]	$ 35.1
[1]	The Class A notes are senior, sequential pay, fixed rate notes.
[2]	The Class B notes are subordinate, sequential pay, fixed rate notes with Class B-2 notes subordinate to the Class B-1 notes. The Company has retained the Class B notes.
[3]	These securities are encumbered under the Company's repurchase agreement.
[4]	The trust certificate issued by the trust and the beneficial ownership of the trust are retained by Great Ajax Funding LLC as the depositor. As the holder of the trust certificate, the Company is entitled to receive any remaining amounts in the trust after the Class A notes and Class B notes have been paid in full.

Debt (Details 3)

Debt (Details 3) - Mortgage loans - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Debt Instrument [Line Items]
Carrying value of mortgages	$ 391,799	$ 398,696
Bond principal balance	260,032	265,006
Original balances at securitization cutoff date Mortgage UPB	537,403
Original balances at securitization cutoff date Bond principal balance	284,022
2014-A
Debt Instrument [Line Items]
Carrying value of mortgages	54,269	55,098
Bond principal balance	35,906	36,463
Original balances at securitization cutoff date Mortgage UPB	81,405
Original balances at securitization cutoff date Bond principal balance	45,000
2014-B
Debt Instrument [Line Items]
Carrying value of mortgages	65,775	66,292
Bond principal balance	34,422	35,646
Original balances at securitization cutoff date Mortgage UPB	91,535
Original balances at securitization cutoff date Bond principal balance	41,191
2015-A
Debt Instrument [Line Items]
Carrying value of mortgages	53,118	53,673
Bond principal balance	32,903	33,674
Original balances at securitization cutoff date Mortgage UPB	75,835
Original balances at securitization cutoff date Bond principal balance	35,643
2015-B
Debt Instrument [Line Items]
Carrying value of mortgages	112,392	115,395
Bond principal balance	83,711	84,973
Original balances at securitization cutoff date Mortgage UPB	158,498
Original balances at securitization cutoff date Bond principal balance	87,174
2015-C
Debt Instrument [Line Items]
Carrying value of mortgages	106,245	108,238
Bond principal balance	78,011	$ 79,824
Original balances at securitization cutoff date Mortgage UPB	130,130
Original balances at securitization cutoff date Bond principal balance	$ 81,982
Deferred expenses
Debt Instrument [Line Items]
Carrying value of mortgages
Bond principal balance	$ (4,921)	$ (5,574)
Original balances at securitization cutoff date Mortgage UPB
Original balances at securitization cutoff date Bond principal balance	$ (6,968)

Debt (Details Textuals)

Debt (Details Textuals) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Nov. 25, 2014	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Percentage of guarantors beneficial interest		100.00%
Interest Rate		3.87%	3.91%
Mortgage loans | Re-performing loans | 2014-A
Debt Instrument [Line Items]
Servicing fees percentage		0.65%
Mortgage loans | Re-performing loans | 2014-B
Debt Instrument [Line Items]
Servicing fees percentage		0.65%
Mortgage loans | Re-performing loans | 2015-A
Debt Instrument [Line Items]
Servicing fees percentage		0.65%
Mortgage loans | Re-performing loans | 2015-B
Debt Instrument [Line Items]
Servicing fees percentage		0.65%
Mortgage loans | Re-performing loans | 2015-C
Debt Instrument [Line Items]
Servicing fees percentage		0.65%
Mortgage loans | Non-performing loans | 2014-A
Debt Instrument [Line Items]
Servicing fees percentage		1.25%
Mortgage loans | Non-performing loans | 2014-B
Debt Instrument [Line Items]
Servicing fees percentage		1.25%
Mortgage loans | Non-performing loans | 2015-A
Debt Instrument [Line Items]
Servicing fees percentage		1.25%
Mortgage loans | Non-performing loans | 2015-B
Debt Instrument [Line Items]
Servicing fees percentage		1.25%
Mortgage loans | Non-performing loans | 2015-C
Debt Instrument [Line Items]
Servicing fees percentage		1.25%
Master Repurchase Agreement | March 30, 2016
Debt Instrument [Line Items]
Interest Rate			2.53%
Master Repurchase Agreement | June 23, 2016
Debt Instrument [Line Items]
Interest Rate		2.91%	2.91%
Master Repurchase Agreement | September 09, 2016
Debt Instrument [Line Items]
Interest Rate		3.00%
Master Repurchase Agreement | September 30, 2016
Debt Instrument [Line Items]
Interest Rate		3.01%
Master Repurchase Agreement | Mortgage loans
Debt Instrument [Line Items]
Ownership interests in subsidiary	100.00%
Variable rate basis of borrowing	One-month LIBOR
Percentage of purchase price for each mortgage loan or REO	65.00%
Master Repurchase Agreement | Mortgage loans | Maximum
Debt Instrument [Line Items]
Loan amount	$ 200

Related party transactions (Det

Related party transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Gregory | Loan servicing fees
Related Party Transaction [Line Items]
Loan servicing fees	$ 1,403	$ 656
Gregory | Loan transaction expense
Related Party Transaction [Line Items]
Due diligence and related loan acquisition costs	26	18
Thetis | Management fees
Related Party Transaction [Line Items]
Management fee	$ 906	$ 747

Related party transactions (D44

Related party transactions (Details 1) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Receivable from servicer	$ 8,108	$ 5,444
Management fee payable	679	667
Gregory | Receivables from Servicer
Related Party Transaction [Line Items]
Receivable from servicer	8,108	5,444
Gregory | Accrued expenses and other liabilities
Related Party Transaction [Line Items]
Servicing fees payable	200	152
Thetis | Management fee payable
Related Party Transaction [Line Items]
Management fee payable	$ 679	667
Thetis | Prepaid expenses and other assets
Related Party Transaction [Line Items]
Expense reimbursement receivable		$ 37

Related party transactions (D45

Related party transactions (Details Textuals) - USD ($) $ in Thousands	Jul. 08, 2014	Mar. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Unpaid principal balance		$ 756,161	$ 725,709
Management fee payable		679	$ 667
Management agreement | Manager
Related Party Transaction [Line Items]
Term of agreement	15 years
Base management fee percentage	1.50%
Stock ownership limit percentage	9.80%
Description of incentive management fee payable	The Manager is also entitled to an incentive management fee that is payable quarterly in arrears in cash in an amount equal to one-fourth of 20% of the dollar amount by which (i) the sum of (A) the aggregate cash dividends, if any, declared out of the REIT taxable income of the Company by the Company’s Board of Directors payable to the holders of the Company’s common stock and (B) the aggregate cash distributions, if any, declared out of the REIT taxable income of the operating partnership (without duplication) by the operating partnership payable to holders of OP Units (other than any OP Units held by the Company as a limited partner) annualized, or the Annualized Dividends and Distributions, in respect of such calendar quarter exceeds (ii) the product of (1) the book value per share of the Company’s common stock as of the end of each such quarter multiplied by the number of shares of the Company’s common stock and OP Units (other than any OP Units held by the Company as a limited partner) outstanding as of the end of such calendar quarter and (2) 8%
Management fee payable		$ 1,000
Percentage of base management fees payable in cash		75.00%
Percentage of base management fee payable in shares of common stock		25.00%
Management fees, description		Base Management Fee in excess of $1 million will be payable in shares of the Company's common stock until payment is 50% in cash and 50% in shares (the "50/50 split").
Percentage of remaining incentive fee payable in common stock		20.00%
Percentage of remaining incentive fee payable in cash		80.00%
Servicing agreement | Servicer
Related Party Transaction [Line Items]
Term of agreement	15 years
Percentage of fair market value of REO		1.00%
Percentage of purchase price of REO		1.00%
Servicing agreement | Servicer | Minimum
Related Party Transaction [Line Items]
Servicing fees percentage	0.65%	0.65%
Servicing agreement | Servicer | Maximum
Related Party Transaction [Line Items]
Servicing fees percentage	1.25%	1.25%

Stock based payments and dire46

Stock based payments and director fees (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares		16,564	27,835
Amount of expense recognized	[1]	$ 252	$ 398
Management fees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares		14,916	26,087
Amount of expense recognized	[1]	$ 227	$ 373
Independent director fees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares		1,648	1,748
Amount of expense recognized	[1]	$ 25	$ 25
[1]	All management fees and independent director fees are fully expensed in the period in which they are incurred.

Stock based payments and dire47

Stock based payments and director fees (Details 1) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares		8,000
Total cost of grant		$ 119
Grant expense recognized		$ 2	$ 27
July 8, 2014 Directors Grants | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares	[1]	6,000
Per share value (in dollars per share)	[1]	$ 15
Total cost of grant	[1]	$ 90
Grant expense recognized	[1]		22
February 19, 2015 Director Grant | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares	[1]	2,000
Per share value (in dollars per share)	[1]	$ 14.25
Total cost of grant	[1]	$ 29
Grant expense recognized	[1]	$ 2	$ 5
[1]	Vesting period is one year from grant date.

Stock based payments and dire48

Stock based payments and director fees (Details Textuals)	1 Months Ended	3 Months Ended
	Feb. 28, 2015shares	Mar. 31, 2016USD ($)Directorshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Management fees | $		$ 900,000
Management fee paid with shares of stock | $		$ 200,000
Number of shares issued for payment for management fee | shares		14,916
Annual retainer amount | $		$ 50,000
Long term incentive plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance under Director Plan | shares		100,000
Number of independent directors | Director		4
Long term incentive plan | Initial public offering | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock awards issued to independent directors | shares	2,000	2,000
Vesting period	1 year	1 year

Income taxes (Details Textuals)

Income taxes (Details Textuals) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Income Tax Disclosure [Abstract]
Distribution percentage of Real Estate Investment Trust (REIT) taxable income	90.00%
Provision (benefit) for income taxes	$ (3)

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic EPS
Consolidated income attributable to common stockholders	$ 7,651	$ 3,640
Allocation of earnings to participating restricted shares	(14)	(13)
Consolidated income attributable to unrestricted common stockholders	7,637	3,627
Effect of dilutive securities
Operating partnership units	312	175
Restricted stock grants and Manager and director fee shares	14	13
Diluted EPS
Consolidated income attributable to common stockholders and dilutive securities	$ 7,963	$ 3,815
Basic EPS
Consolidated income attributable to common stockholders, shares	15,306,519	13,008,268
Allocation of earnings to participating restricted shares, shares
Consolidated income attributable to unrestricted common stockholders, shares	15,306,519	13,008,268
Effect of dilutive securities
Operating partnership units, shares	624,106	624,106
Restricted stock grants and Manager and director fee shares, shares	28,577	48,313
Diluted EPS
Consolidated income attributable to common stockholders and dilutive securities, shares	15,959,202	13,680,687
Per Share Amount
Consolidated income attributable to unrestricted common stockholders (in dollars per share)	$ 0.50	$ 0.28
Consolidated income attributable to unrestricted common stockholders (in dollars per share)	$ 0.50	$ 0.28

Subsequent events (Details Text

Subsequent events (Details Textuals) - USD ($) $ / shares in Units, $ in Thousands	Apr. 11, 2016	Apr. 27, 2016	Apr. 26, 2016	Mar. 31, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Senior securities issued in private offerings to institutional investors					$ 51,408
Common Stock
Subsequent Event [Line Items]
Stock issued in lieu of management fee				14,910	87,801
Senior securities issued in private offerings to institutional investors					$ 40
Subsequent events
Subsequent Event [Line Items]
Senior securities issued in private offerings to institutional investors	$ 101,400
Subordinated securities issued in private offerings to institutional investors	15,800
UPB of mortgage loans	$ 158,500
Subsequent events | Re-performing loans
Subsequent Event [Line Items]
Percentage of mortgage loans re-performing based on unpaid principal balance	83.10%
Subsequent events | Non-performing loans
Subsequent Event [Line Items]
Percentage of mortgage loans non-performing based on unpaid principal balance	16.90%
Subsequent events | Common Stock
Subsequent Event [Line Items]
Number of shares issued in payment of half of their quarterly director fees		412
Subsequent events | Manager | Common Stock
Subsequent Event [Line Items]
Stock issued in lieu of management fee		14,916
Subsequent events | Dividend declared | Board of directors
Subsequent Event [Line Items]
Dividend declared date			Apr. 26, 2016
Dividends payable, amount per share			$ 0.25
Dividend paid date			May 20, 2016
Dividend record date			May 13, 2016