Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Great Ajax Corp. | ||
Entity Central Index Key | 1,614,806 | ||
Trading Symbol | ajx | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 18,768,505 | ||
Entity Public Float | $ 166,682,683 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and cash equivalents | $ 35,723 | $ 30,795 | |
Cash held in trust | 1,185 | 39 | |
Mortgage loans, net | 870,587 | 554,877 | |
Property held-for-sale | 23,882 | 10,333 | |
Rental property, net | 1,289 | 58 | |
Investment in debt securities | 6,323 | ||
Receivable from Servicer | 12,481 | 5,444 | |
Investment in affiliates | 4,253 | 2,625 | |
Prepaid expenses and other assets | 1,679 | 5,634 | |
Total Assets | 957,402 | 609,805 | |
Liabilities: | |||
Secured borrowings | [1] | 442,670 | 265,006 |
Borrowings under repurchase transactions | 227,440 | 104,533 | |
Management fee payable | 750 | 667 | |
Accrued expenses and other liabilities | 3,819 | 1,786 | |
Total liabilities | 674,679 | 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, 18,122,387 shares at December 31, 2016 and 15,301,946 shares at December 31, 2015 issued and outstanding | 181 | 152 | |
Additional paid-in capital | 244,880 | 211,729 | |
Retained earnings | 27,231 | 15,921 | |
Equity attributable to common stockholders | 272,292 | 227,802 | |
Non-controlling interests | 10,431 | 10,011 | |
Total equity | 282,723 | 237,813 | |
Total Liabilities and Equity | $ 957,402 | $ 609,805 | |
[1] | Mortgage loans includes $598,643 and $398,696 of loans at December 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. Secured borrowings are presented net of deferred issuance costs, with deferred issuance costs of $7,082 and $5,574 at December 31, 2016 and December 31, 2015, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 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 | 18,122,387 | 15,301,946 |
Common stock shares outstanding | 18,122,387 | 15,301,946 |
Mortgage loans (in dollars) | $ 598,643 | $ 398,696 |
Deferred issuance costs (in dollars) | $ 7,082 | $ 5,574 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
INCOME | |||
Loan interest income | $ 6,940 | $ 70,688 | $ 47,700 |
Interest expense | (771) | (25,573) | (11,499) |
Net interest income | 6,169 | 45,115 | 36,201 |
Income from investment in Manager | 12 | 218 | 198 |
Other income (expense) | 87 | (646) | 1,069 |
Total income | 6,268 | 44,687 | 37,468 |
EXPENSE | |||
Related party expense - loan servicing fees | 485 | 6,262 | 3,993 |
Related party expense - management fee | 956 | 3,949 | 3,353 |
Loan transaction expense | 503 | 1,135 | 1,631 |
Professional fees | 277 | 1,484 | 1,430 |
Real estate operating expenses | 24 | 542 | 315 |
Other expense | 273 | 1,841 | 952 |
Total expense | 2,518 | 15,213 | 11,674 |
Loss on debt extinguishment | 565 | ||
Income before provision for income taxes | 3,750 | 28,909 | 25,794 |
Provision for income taxes | 35 | 2 | |
Consolidated net income | 3,750 | 28,874 | 25,792 |
Less: consolidated net income attributable to the non-controlling interest | 326 | 1,038 | 1,038 |
Consolidated net income attributable to common stockholders | $ 3,424 | $ 27,836 | $ 24,754 |
Basic earnings per common share (in dollars per share) | $ 0.41 | $ 1.65 | $ 1.68 |
Diluted earnings per common share (in dollars per share) | $ 0.40 | $ 1.65 | $ 1.68 |
Weighted average shares - basic (in shares) | 8,360,432 | 16,742,882 | 14,711,610 |
Weighted average shares - diluted (in shares) | 8,849,055 | 17,451,907 | 15,372,488 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Consolidated net income | $ 3,750 | $ 28,874 | $ 25,792 |
Adjustments to reconcile net income to net cash from operating activities | |||
Stock-based management fee and compensation expense | 560 | 1,468 | 1,410 |
Non-cash interest income accretion | (4,098) | (39,178) | (30,936) |
Gain on sale of property | (106) | (460) | |
Depreciation of property | 4 | 20 | 3 |
Impairments of property | 2,011 | 99 | |
Amortization of prepaid financing costs | 109 | 6,833 | 1,846 |
Net change in operating assets and liabilities | |||
Prepaid expenses and other assets | (2,178) | 1,693 | (4,678) |
Receivable from Servicer | (829) | (7,037) | (4,104) |
Undistributed income from investment in affiliate | (51) | (558) | (550) |
Accrued expenses and other liabilities | 1,550 | 2,116 | 903 |
Net cash from operating activities | (1,183) | (3,864) | (10,675) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of mortgage loans and related balances | (209,881) | (436,804) | (347,104) |
Purchase of other mortgage related assets | (1,315) | ||
Proceeds from sale of mortgage loans | 78,162 | ||
Principal paydowns on mortgage loans | 2,471 | 58,388 | 26,400 |
Purchase of securities | (6,323) | ||
Purchase of property held-for-sale and related balances | (814) | (2,940) | |
Purchase of rental property and related balances | (435) | ||
Proceeds from sale of property held-for-sale | 9,117 | 2,729 | |
Renovations of rental property and property held-for-sale | (9) | (785) | (294) |
Investment in affiliates | (2,187) | (1,111) | |
Distribution from affiliate | 365 | 162 | |
Loan to affiliate | (3,960) | ||
Repayment of loan to affiliate | 3,636 | ||
Net cash from investing activities | (210,855) | (300,630) | (321,047) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from repurchase transactions | 15,249 | 348,602 | 245,549 |
Proceeds from sale or issuance of secured notes | 86,191 | 288,436 | 204,799 |
Repayments on repurchase transactions | (225,695) | (156,265) | |
Repayments on secured notes | (1,512) | (109,263) | (18,898) |
Deferred financing costs on secured notes | (1,759) | (6,080) | (5,059) |
Sale of common stock, net of offering costs | 158,501 | 31,712 | 51,408 |
Sale of operating partnership units of subsidiary | 9,362 | ||
Distribution to non-controlling interest | (215) | (618) | (500) |
Dividends paid on common stock | (680) | (16,526) | (11,577) |
Net cash from financing activities | 265,137 | 310,568 | 309,457 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 53,099 | 6,074 | (22,265) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 30,834 | 53,099 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 53,099 | 36,908 | 30,834 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid for interest | 587 | 18,687 | 9,169 |
Cash paid for income taxes | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Transfer of loans to rental property or property held for sale | 349 | 25,037 | 7,922 |
Issuance of common stock for management fee and compensation expense | 560 | 1,468 | $ 1,410 |
Conversion of short-term loan to AS Ajax E to equity investment in AS Ajax E | $ 324 | ||
Exchange of membership interest in Little Ajax II for mortgage loans | 48,280 | ||
Loan acquisition payable | $ 11,401 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Total Stockholders' Equity | Noncontrolling Interest | Total |
Balance at Jan. 29, 2014 | $ 2 | $ 2 | $ 2 | |||
Balance (in shares) at Jan. 29, 2014 | 100 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Consolidation of majority-owned subsidiary | $ 10,598 | 10,598 | ||||
Issuance of shares | $ 112 | 158,389 | 158,501 | 158,501 | ||
Issuance of shares (in shares) | 11,202,012 | |||||
Issuance of Operating Partnership units | 9,362 | 9,362 | ||||
Net income | $ 3,424 | 3,424 | 326 | 3,750 | ||
Stock-based management fee expense | 477 | 477 | 477 | |||
Stock-based management fee expense (in shares) | 14,621 | |||||
Stock-based compensation expense | 83 | 83 | 83 | |||
Stock-based compensation expense (in shares) | 7,251 | |||||
Dissolution of majority-owned subsidiary | (10,598) | (10,598) | ||||
Dividends and distributions | (680) | (680) | (215) | (895) | ||
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] | ||||||
Issuance of shares | $ 27 | 31,685 | 31,712 | $ 31,712 | ||
Issuance of shares (in shares) | 2,593,262 | |||||
Net income | 27,836 | 27,836 | 1,038 | 28,874 | ||
Stock-based management fee expense | $ 2 | 1,066 | 1,068 | 1,068 | ||
Stock-based management fee expense (in shares) | 65,515 | |||||
Stock-based compensation expense | 400 | 400 | 400 | |||
Stock-based compensation expense (in shares) | 161,664 | |||||
Dividends and distributions | (16,526) | (16,526) | (618) | (17,144) | ||
Balance at Dec. 31, 2016 | $ 181 | $ 244,880 | $ 27,231 | $ 272,292 | $ 10,431 | $ 282,723 |
Balance (in shares) at Dec. 31, 2016 | 18,122,387 | 18,122,387 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 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, a company affiliated with Aspen Capital. The Company was formed to facilitate capital raising activities and to operate as a mortgage real estate investment trust (“REIT”). The Company primarily targets acquisitions of re-performing loans (“RPLs”) including residential mortgage loans and small balance commercial mortgage loans (“SBC loans”). RPLs are mortgage 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. The SBC loans that the Company intends to opportunistically purchase generally have a principal balance of up to $5 million and are secured by multi-family residential and commercial mixed use retail/residential properties 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. Additionally, the Company may invest in single-family and smaller commercial properties directly either through a foreclosure event of a loan in our mortgage portfolio or, less frequently, through a direct acquisition. Historically, the Company has made targeted investments in non-performing loans (“NPL”). NPLs are loans on which the most recent three payments have not been made. While the Company may acquire NPLs from time to time and continue to manage the NPLs on its balance sheet, this asset class is no longer a strategic acquisition target. 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 the “Servicer”), also an affiliated company. The Company has elected to be taxed as a 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. 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 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 and AJX Mortgage Trust II are wholly owned subsidiaries of the Operating Partnership formed to hold mortgage loans used as collateral for financings under the Company’s repurchase agreements. In addition, the Company, through its Operating Partnership, holds REO properties acquired upon the foreclosure or other settlement of its owned NPLs, 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. During the first quarter of 2016, the Company formed FLAIAS LLC, a wholly owned subsidiary of the Operating Partnership, to acquire property tax liens in the state of Florida, though this subsidiary’s activities have been minimal to date. Basis of Presentation and Use of Estimates 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 financial statements. Since the Company commenced operations in July 2014, the Company’s results of operations for the period from inception (January 30, 2014) through December 31, 2014 reflect its results for a partial period only. As a result, a comparison of the results of operations between the 2014, 2015 and 2016 periods may not be comparable and is not indicative of the expected period to period variations. 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 “Noncontrolling interests” on the consolidated balance sheet. As of December 31, 2016, the Company owned 96.7% of the outstanding OP Units and the remaining 3.3% 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 it 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, and the net realizable value of REO properties held for sale. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 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 REO. Observable inputs to the model include 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. RPLs 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 acquisition closing date but prior to pooling. Any gain or loss incurred on these loans is recognized in interest 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 amount. The excess of all undiscounted cash flows expected to be collected at acquisition over the initial investment in the loans is the 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 amount. The Company’s expectation of the amount of cash flows expected to be collected is evaluated at the end of each calendar quarter. If 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. If 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. Borrower payments on the Company’s mortgage loans are classified as principal, interest, payments of fees or escrow deposits. Amounts applied as interest on the borrower account are similarly classified as interest for accounting purposes and are classified as operating cash flows in the Company’s consolidated Statement of Cash Flows. Amounts applied as principal on the borrower account are classified as investing cash flows in the consolidated Statement of Cash Flows. Amounts received as payments of fees are recorded in other income and classified as operating cash flows in the consolidated Statement of Cash Flows. Escrow deposits are recorded on our Servicer’s balance sheet and do not impact the Company’s cash flow. 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. Real Estate The Company acquires real estate properties directly from sellers and when it forecloses on a borrower and takes title to the underlying property (REO). REO is recorded at cost if purchased, or at the present value of estimated future cash flows if obtained through foreclosure by the Company. REO that is currently being actively marketed for sale is classified as held-for-sale. REO held-for-sale is carried at the lower of its acquisition basis or net realizable value (estimated fair market value less expected selling costs), appraisals or independent Broker Price Opinions (“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 REO is REO not held-for-sale. Rental REOs are intended to be held as long-term investments but may eventually be held-for-sale. REO is held for investment as rental REO 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 REO not held-for-sale 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 REO 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 REO for its rental strategy. Such expenditures are part of its investment in a property and, therefore, are capitalized as part of the basis of the property. Subsequently, the residential REO, 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 Borrowings The Company, through securitization trusts, issues callable debt secured by its mortgage loans in the ordinary course of business. The secured borrowings are structured as debt financings, and the loans remain on the Company’s consolidated balance sheet as the Company is the primary beneficiary of the securitization trusts, which are VIEs. These secured borrowing 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 creditors do not have recourse to the primary beneficiary. Coupon interest on the debt is recognized using the accrual method of accounting. Deferred issuance costs, including 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 deferred issuance cost amortization. Repurchase Facilities The Company enters into repurchase financing facilities under which it nominally sells assets to a counterparty and simultaneously enters into an agreement to repurchase the sold assets at a price equal to the sold amount plus an interest factor. Despite being legally structured as sales and subsequent repurchases, repurchase transactions are generally accounted for as debt secured by the underlying assets. At the maturity of a repurchase financing, unless the repurchase financing is renewed, the Company is required to repay the borrowing including any accrued interest and concurrently receives back its pledged collateral from the lender. The repurchase financings are treated as collateralized financing transactions; pledged assets are recorded as assets in the Company’s consolidated balance sheets, and debt is recognized at the contractual amount. Interest is recorded at the contractual amount on an accrual basis. Costs associated with the set-up of a repurchasing contract are recorded as deferred expense at inception and amortized over the contractual life of the agreement. Any draw fees associated with individual transactions and any facility fees assessed on the amounts outstanding are recorded as deferred expense when incurred and amortized over the contractual life of the related borrowing. Management Fee and Expense Reimbursement The Company is a party to the Management Agreement with the Manager, which has a 15-year term, expiring on July 8, 2029. 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. Additionally, the Company pays directly for the internal audit function which reports directly to the Audit Committee and the Board of Directors. The Company does not currently have any employees that it pays directly and does not expect to have any employees that it pays directly in the foreseeable future. Each of the Company’s executive officers is an employee or officer, or both, of the Manager or the Servicer. Under the Management Agreement by and between the Company and the Manager as amended and restated on October 27, 2015, 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 The Company is also a party to a 15-year Servicing Agreement (the “Servicing Agreement”) with the Servicer, expiring July 8, 2029. Under the Servicing Agreement by and between the Company and the Servicer, the Servicer receives servicing fees of 0.65% annually of the outstanding Unpaid Principal Balance (UPB) for RPLs and 1.25% annually of the outstanding UPB of NPLs. The determination of RPL or NPL status is based on the status of the loan at acquisition and does not change regardless of the loan’s subsequent performance. 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 the Servicer services pursuant to the terms of the Servicing Agreement. 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. The Servicer 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 the Servicer 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 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. 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. Under the Company’s 2014 Director Equity Plan (the “Director Plan”), the Company may make stock-based awards to its directors. 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 LTIP Units from the Operating Partnership, available for issuance under the Director Plan is 90,000 shares. The Company has issued to each of its independent directors restricted stock awards of 2,000 shares of its common stock upon joining the Board, 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. On June 7, 2016, the Company’s stockholders approved the 2016 Equity Incentive Plan (the “2016 Plan”) to attract and retain non-employee directors, executive officers, key employees and service providers, including officers and employees of the Company’s affiliates. The 2016 Plan authorized the issuance of up to 5% of the Company’s outstanding shares from time to time on a fully diluted basis (assuming, if applicable, the exercise of all outstanding options and the conversion of all warrants and convertible securities, including OP Units and LTIP Units, into shares of common stock). Grants of restricted stock to officers of the Company use grant date fair value of the stock as the basis for measuring the cost of the grant. The cost of grants of restricted stock to employees of the Company’s affiliates is determined using the stock price as of the date at which the counterparty’s performance is complete. Forfeitures are accounted for in the period in which they occur. The shares vest over three years, with one third of the shares vesting on each of the first, second and third anniversaries of the grant date. The shares may not be sold until the third anniversary of the grant date. 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. Variable Interest Entities In the normal course of business, the Company enters into various types of transactions with special purpose entities, which have primarily consisted of trusts established for the Company’s secured borrowings (See “Secured Borrowings” above and Note 8 to the consolidated financial statements). Additionally, from time to time, the Company may enter into joint ventures with unrelated entities. The Company evaluates each transaction and its resulting beneficial interest to determine if the entity formed pursuant to the transaction should be classified as a VIE. If an entity created in a transaction meets the definition of a VIE and the Company determines that it or a consolidated subsidiary is the primary beneficiary, the Company will include the entity in its consolidated financial statements. Investment in debt securities The Company’s investment in debt securities is presented on the Company’s consolidated balance sheet at the investment’s amortized cost basis. The Company has the intent and ability to hold its debt securities to maturity and classifies its investments in debt securities as held to maturity. The Company monitors its investments to ensure it does not hold more than 10% of the vote or value of any one issuer. 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 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 is 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 EPS 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 EPS. Diluted EPS 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 that 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. 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. For valuation purposes, we disclose the fair value of any impaired REO at the lower of its acquisition basis, or its net realizable value (estimated fair market value less expected selling costs). We estimate fair market value using BPOs, comparable sales and competitive market analyses provided by local realtors. We use net realizable value as a proxy for fair value as it represents the liquidation proceeds to us and is most comparable to the fair value disclosure for loans. The Company calculates the fair value for the senior debt consolidated on its balance sheet from securitization trusts by using the Company’s proprietary pricing model to estimate the cash flows expected to be generated from the underlying collateral with the discount rate used in the present value calculation representing an estimate of the average rate for debt instruments with similar durations and risk factors. 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. In addition, notwithstanding the Company’s qualification as a REIT, it may also have to pay certain state and local income taxes, because not all states and localities treat REITs in the same manner that they are treated for U.S. federal income tax purposes. 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 the Manager through 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 furnishes annually to each stockholder a statement setting forth distributions paid during the preceding year and their U.S. federal income tax treatment. Offering Costs Costs associated with the Company’s completed offerings 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 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 of 1933 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. 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 VIEs, as amended 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 during its 2016 calendar year. As a result of this implementation, there was no effect on the application of 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 Securities and Exchange Commission (“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 during its 2016 calendar year. The result of this implementation was a reduction of approximately $5.6 million in Prepaid expenses and other assets, and an offsetting reduction of approximately $5.6 million in Secured borrowings in the Company’s opening consolidated balance sheet (December 31, 2015). There was no effect on the presentation of the Company’s Borrowings under repurchase agreement in its consolidated balance sheets as these borrowings are short-term in nature and as such are unaffected by the ASU. Additionally, there was no effect on consolidated net income, or equity. 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 o |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans [Abstract] | |
Mortgage Loans | Note 3 — Mortgage Loans Included on the Company’s consolidated balance sheets as of December 31, 2016 and December 31, 2015 are approximately million $870.6 million and $554.9 million, respectively, of residential and SBC loans at carrying value. The carrying value reflects the original investment amount, plus accretion of interest income, less principal and interest cash flows received. The carrying value is decreased by an allowance for losses, if any. To date, the Company has not recorded an allowance for losses against its purchased mortgage loans. The Company’s mortgage loans are secured by real estate. The Company categorizes mortgage loans as “re-performing” and “non-performing” at acquisition and monitors the credit quality of the mortgage loans in its portfolio on an ongoing basis, principally by considering loan payment activity or delinquency status. In addition, the Company assesses the expected cash flows from the mortgage loans, the fair value of the underlying collateral and other factors, and evaluates whether and when it becomes probable that all amounts contractually due will not be collected. The following table presents information regarding the accretable yield and non-accretable amount for loans acquired during the following periods. The Company’s loan acquisitions for the year ended December 31, 2016 consisted of 93.1% RPLs, and 6.9% NPLs, and for the year ended December 31, 2015, 85.0% RPLs, and 15.0 % NPLs: Year ended December 31, 2016 Year ended December 31, 2015 ($ in thousands) Re-performing loans (1) Non-performing loans Re-performing loans Non-performing loans Contractually required principal and interest $ 748,008 $ 6,387 $ 752,457 $ 67,393 Non-accretable amount (284,901 ) (4,143 ) (306,722 ) (39,352 ) Expected cash flows to be collected 463,107 2,244 445,735 28,041 Accretable yield (106,492 ) (222 ) (118,673 ) (8,281 ) Fair value at acquisition $ 356,615 $ 2,022 $ 327,062 $ 19,760 (1) Excludes $78.2 million of RPLs acquired and sold in the third quarter of 2016. Year ended December 31, 2016 Year ended December 31, 2015 Accretable yield ($ in thousands) Re-performing loans Non-performing loans Re-performing loans Non-performing loans Balance at beginning of period $ 136,455 $ 18,425 $ 54,940 $ 20,686 Accretable yield additions 106,492 222 118,673 8,281 Reclassification from (to) non-accretable amount, net 59,887 1,001 — — Accretion (62,976 ) (7,583 ) (37,158 ) (10,542 ) Balance at end of period $ 239,858 $ 12,065 $ 136,455 $ 18,425 For the years (or period) ended December 31, 2016, December 31, 2015 and December 31, 2014, the Company recognized no provision for loan loss. For the years ended December 31, 2016, December 31, 2015 and December 31, 2014, the Company accreted $70.7 million, $47.7 million, and $6.9 million, respectively, into interest income with respect to its loan portfolio. During the year ended December 31, 2016, the Company reclassified a net $60.9 million from non-accretable amount to accretable yield, consisting of a $59.9 million transfer from non-accretable amount to accretable yield for RPLs, and a $1.0 million for NPLs. Comparatively, during the year ended December 31, 2015, the Company reclassified $0 from non-accretable amount to accretable yield. The reclassification is based on an updated assessment of projected loan cash flows as compared to the projection at the acquisition date. Substantially fewer loans are defaulting than originally projected at acquisition, resulting in greater total cash flows being collected over a longer period of time. Performing loans have a longer duration than NPLs and generate higher cash flows over the expected life of the loan. This is offset by the removal of the accretable yield on loans converted to REO, which are removed from the mortgage loan pool. The following table sets forth the carrying value of the Company’s mortgage loans, and related unpaid principal balance by delinquency status as of December 31, 2016 and December 31, 2015: December 31, 2016 December 31, 2015 ($ in thousands) Number of loans Carrying value Unpaid principal balance Number of loans Carrying value Unpaid principal balance Current 2,306 $ 419,643 $ 510,058 1,072 $ 196,873 $ 251,216 30 797 141,228 173,482 521 91,502 118,895 60 482 84,498 101,727 353 57,344 72,870 90 911 143,061 179,718 898 133,386 174,979 Foreclosure 414 82,157 105,208 405 75,772 107,749 Mortgage loans 4,910 $ 870,587 $ 1,070,193 3,249 $ 554,877 $ 725,709 |
Real Estate Assets, Net
Real Estate Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Real Estate Assets, Net | Note 4 — Real Estate Assets, Net The Company primarily acquires REO when a mortgage loan is foreclosed upon and the Company takes title to the property on the foreclosure date. Additionally, from time to time, the Company will acquire real estate assets in purchase transactions. Rental Property As of December 31, 2016, the Company owned three REO properties with an aggregate carrying value of $1.3 million held for investment as rentals, at which time two properties were rented. Two of these properties were acquired, and one was acquired through foreclosure. As of December 31, 2015, the Company had one REO property having a carrying value of $0.1 million held for use as a rental, which was rented at that time. Property Held-for-Sale The Company classifies REO as held-for-sale if the REO is being actively marketed for sale. As of December 31, 2016 and December 31, 2015, the Company’s net investments in REO held-for-sale were $23.9 million and $10.3 million, respectively. At December 31, 2016, all of the Company’s 149 properties held-for-sale with a carrying value of $23.9 million had been acquired through foreclosure and reclassified out of its mortgage loan portfolio. As of December 31, 2015, 55 of the Company’s property held-for sale with an aggregate carrying value of $6.8 million had been acquired through foreclosure and reclassified out of its mortgage loan portfolio. The following table presents the activity in the Company’s carrying value of REO held-for-sale for the years ended December 31, 2016 and December 31, 2015: For the year ended Property Held-for-sale ($ in thousands) December 31, 2016 December 31, 2015 Count Amount Count Amount Balance at beginning of period 73 $ 10,333 12 $ 1,316 Transfers from mortgage loans 158 24,095 72 7,922 Adjustments to record at lower of cost or fair value — (2,011 ) — (99 ) Disposals (82 ) (8,991 ) (23 ) (2,269 ) Purchase of REO — — 12 2,942 Other — 456 — 521 Balance at end of period 149 $ 23,882 73 $ 10,333 Dispositions During the years ended December 31, 2016 and December 31, 2015, the Company sold 82 and 23 REO properties, realizing a net gain of approximately $0.1 million and approximately $0.3 million, respectively, which are included in Other Income on the Company’s consolidated statements of income. Following an updated assessment of liquidation amounts expected to be realized that was performed on all REO held-for-sale at the end of the year, an impairment of approximately $2.0 million was recorded to reflect certain REO properties at the lower of cost or estimated net realizable value. The Company recorded a lower of cost or estimated fair market value adjustment in 2015 of $0.1 million, and no adjustment for the period from inception (January 30, 2014) through December 31, 2014. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 5 — Fair Value The following tables set forth the fair value of certain assets and liabilities by level within the fair value hierarchy as of December 31, 2016 and December 31, 2015: Level 1 Level 2 Level 3 December 31, 2016 ($ in thousands) Carrying Quoted Observable Unobservable Not recognized on consolidated balance sheet at fair value (assets) Mortgage loans, net $ 870,587 — — $ 930,226 Impaired REO held for sale net at NRV $ 8,797 — $ 8,797 — Investment in securities $ 6,323 — $ 6,323 — Not recognized on consolidated balance sheet at fair value (liabilities) Secured borrowings $ 442,670 — — $ 436,623 Borrowings under repurchase transactions $ 227,440 — $ 227,440 — Level 1 Level 2 Level 3 December 31, 2015 ($ in thousands) Carrying Quoted 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 — Investment in securities — — — — Not recognized on consolidated balance sheet at fair value (liabilities) Secured borrowings $ 265,006 — — $ 259,646 Borrowings under repurchase transactions $ 104,533 — $ 104,533 — The Company has not transferred any assets from one level to another level during either the year ended December 31, 2016 or the year ended December 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. For valuation purposes, the Company discloses the fair value of impaired REO held for sale at the lower of its acquisition basis, or its net realizable value (estimated fair market value less expected selling costs). Fair market value is estimated using BPOs, comparable sales and competitive market analyses provided by local realtors. Net realizable value is used as a proxy for fair value as it represent the liquidation proceeds to the Company and is most comparable to the fair value disclosure for loans, The Company’s investment in securities was acquired in October 2016. Due to the short duration of the holding through the December 31, 2016 balance sheet date, the fair value had not materially diverged from the Company’s cost basis. 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 secured debt is estimated using the Manager’s proprietary pricing model, which estimates expected cash flows of the underlying mortgage loans which collateralize the debt, and which drive the cash flows used to make interest payments. The discount rate used in the present value calculation represents the estimated effective yield of the mortgages. 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 REO 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 December 31, 2016 and December 31, 2015: Range of Values Input December 31, December 31, Equity discount rate – Re-performing loans 5% – 10% 7% – 14% Equity discount rate – Non-performing loans 10% 10% – 18% Loan resolution timelines – Re-performing loans (in years) 0.6 – 7 4 – 7 Loan resolution timelines – Non-performing loans (in years) 0.1 – 7 1.4 – 4 |
Unconsolidated Affiliates
Unconsolidated Affiliates | 12 Months Ended |
Dec. 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 SBC loan secured by a commercial property in Portland, Oregon. The Company accounts for its investment in GA-E 2014-12 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 the Manager, a privately held company for which there is no public market for its securities. The Company accounts for its investment in the Manager 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. AS Ajax E LLC owns a 5% equity interest in Ajax E Master Trust which holds a portfolio of RPLs. At the time of the original investment, the Company held a 24.2% interest in AS Ajax E LLC. In October 2016, additional capital contributions were made, and the Company’s ownership interest in AS Ajax E, was reduced to a lower percentage of the total. At December 31, 2016, the Company’s interest in AS Ajax E was approximately 16.5%. The Company accounts for its investment using the equity method. During the year ended December 31, 2016, the Company sold $78.2 million of RPLs for total proceeds of $78.1 million to Ajax E Master Trust. Additionally, the Company made a loan to AS Ajax E LLC in the amount of $4.0 million at Libor plus 5.22% to fund its interest in the purchase, which was subsequently repaid during the year, less $0.3 million which was converted to equity. The table below shows the net income, assets and liabilities for the Company’s unconsolidated affiliates at 100%, and at the Company’s share: Net income, assets and liabilities at 100% ($ in thousands) Net income at 100% For the year ended December 31, 2016 For the year ended December 31, 2015 For the year ended December 31, 2014 GA-E 2014-12 $ 762 $ 871 $ 97 Thetis Asset Management $ 1,100 $ 998 $ 56 AS Ajax E LLC $ 138 $ — $ — December 31, 2016 December 31, 2015 Assets and Liabilities at 100% Assets Liabilities Assets Liabilities GA-E 2014-12 $ 6,259 $ — $ 5,966 $ — Thetis Asset Management $ 4,846 $ 1,167 $ 3,028 $ 520 AS Ajax E LLC $ 7,964 $ 12 $ — $ — Net income, assets and liabilities at Company share ($ in thousands) Net income at Company share For the year ended December 31, 2016 For the year ended December 31, 2015 For the year ended December 31, 2014 GA-E 2014-12 $ 308 $ 353 $ 39 Thetis Asset Management $ 218 $ 198 $ 11 AS Ajax E LLC $ 32 $ — $ — December 31, 2016 December 31, 2015 Assets and Liabilities at Company share Assets Liabilities Assets Liabilities GA-E 2014-12 $ 2,535 $ — $ 2,416 $ — Thetis Asset Management $ 960 $ 231 $ 600 $ 103 AS Ajax E LLC $ 1,314 $ 2 $ — $ — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 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 December 31, 2016, the Company had commitments to purchase 49 RPLs secured by single and one-to-four family residences with aggregate UPB of $9.3 million. The purchase price equals 78.5% of UPB and the estimated market value of the underlying collateral is $15.1 million. In three transactions from three different sellers the purchase price equaled 48.2% of the estimated market value of the underlying collateral. As of year end, we have not entered into a definitive agreement with respect to these loans, and there is no assurance that we will enter into a definitive agreement relating to these loans or, if such an agreement is executed, that we will actually close these acquisitions. 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 December 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 | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 — Debt Repurchase Agreement The Company has entered into two repurchase facilities whereby the Company, through two wholly-owned Delaware trusts (the “Trusts”) acquires pools of mortgage loans which are then sold by the Trusts, as “Seller” to two separate counterparties, the “buyer” or “buyers.” Each facility has a ceiling of $200.0 million at any one time. Upon the time of the initial sale to the buyer, the Trust, with a simultaneous agreement, also agrees to repurchase the pools of mortgage loans from the buyer. Mortgage loans sold under these facilities carry interest calculated based on a spread to one-month LIBOR, which are fixed for the term of the borrowing. The purchase price that the Trust realizes upon the initial sale of the mortgage loans to the buyer can vary between 70% and 85% of the asset’s acquisition price, depending upon the facility being utilized and/or the quality of the underlying collateral. The obligations of a Trust to repurchase these mortgage loans at a future date are guaranteed by the Company’s Operating Partnership. The difference between the market value of the asset and the amount of the repurchase agreement is generally the amount of equity the Company has in the position and is intended to provide the buyer with some protection against fluctuations in the value of the collateral, and/or a failure by the Company to repurchase the asset and repay the borrowing at maturity. The Company has effective control over the assets subject to these transactions; therefore the Company’s repurchase transactions are accounted for as financing arrangements. The Servicer services these mortgage loans pursuant to the terms of a Servicing Agreement by and among the Servicer and each Buyer 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 buyers a limited guaranty of certain losses incurred by the buyers in connection with certain events and/or the seller’s obligations under the mortgage loan purchase agreement, following the breach of certain covenants by the seller, the occurrence of certain bad acts by the Seller, the occurrence of certain insolvency events of the seller 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. Additionally, the Company has sold subordinate securities from its mortgage securitizations in repurchase transactions. The following table sets forth the details of the Company’s repurchase transactions and facilities: ($ in thousands) December 31, 2016 Maturity Date Origination date Maximum Amount Amount of Interest Rate March 9, 2017 September 9, 2016 $ 10,310 $ 10,309 $ 14,728 3.32 % March 30, 2017 September 30, 2016 10,797 10,797 15,424 3.34 % May 8, 2017 November 9, 2016 14,986 14,986 21,409 3.35 % November 21, 2017 November 22, 2016 200,000 21,302 36,044 4.20 % July 12, 2019 July 15, 2016 200,000 170,046 226,192 3.25 % Totals $ 436,093 $ 227,440 $ 313,797 3.35 % ($ in thousands) December 31, 2015 Maturity Date Origination date Maximum Amount Amount of Interest Rate March 30, 2016 September 30, 2015 $ 10,838 $ 10,838 $ 15,483 2.53 % June 23, 2016 December 23, 2015 9,374 9,374 13,391 2.91 % November 22, 2016 November 24, 2015 200,000 84,321 135,736 4.17 % Totals $ 220,212 $ 104,533 $ 164,610 3.91 % 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 collateral are presented as gross amounts in the Company’s consolidated balance sheets at December 31, 2016 and December 31, 2015. ($ in thousands) Gross amounts not offset in balance sheet Balance sheet date Gross amount of Gross amount Net amount December 31, 2016 $ 227,440 $ 313,797 $ 86,357 December 31, 2015 $ 104,533 $ 164,610 $ 60,077 Secured Borrowings From the commencement of operations to December 31, 2016, the Company has completed eight securitizations pursuant to Rule 144A under the Securities Act of 1933, two of which were called in October 2016. The securitizations are structured as debt financings and not sales through a REMIC, and the loans included in the securitizations remain on the Company’s consolidated balance sheet as the Company is the primary beneficiary of the securitization trusts, which are VIEs. The 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 trust certificates, which have rights to the residual interests in the mortgages once the notes are repaid. For each of the Company’s eight securitizations through December 31, 2016, the Company has retained the Class B note 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 trusts 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 outstanding at December 31, 2016 at their respective cutoff dates: Issuing Trust/Issue Date Security Original Principal Interest Rate Ajax Mortgage Loan Trust 2015-A/May 2015 Class A notes due 2054 $35.6 million 3.88 % Class B-1 notes due 2054 (1)(3) $8.7 million 5.25 % Class B-2 notes due 2054 (1)(3) $8.7 million 5.25 % Trust certificates (2) $22.8 million — Deferred issuance costs $(0.8) million — Ajax Mortgage Loan Trust 2015-B/July 2015 Class A notes due 2060 $87.2 million 3.88 % Class B-1 notes due 2060 (1)(3) $15.9 million 5.25 % Class B-2 notes due 2060 (1)(3) $7.9 million 5.25 % Trust certificates (2) $47.5 million — Deferred issuance costs $(1.5) million — Ajax Mortgage Loan Trust 2015-C/November 2015 Class A notes due 2057 $82.0 million 3.88 % Class B-1 notes due 2057 (1)(3) $6.5 million 5.25 % Class B-2 notes due 2057 (1)(3) $6.5 million 5.25 % Trust certificates (2) $35.1 million — Deferred issuance costs $(2.7) million — Ajax Mortgage Loan Trust 2016-A/April 2016 Class A notes due 2064 $101.4 million 4.25 % Class B-1 notes due 2064 (1)(3) $7.9 million 5.25 % Class B-2 notes due 2064 (1)(3) $7.9 million 5.25 % Trust certificates (2) $41.3 million — Deferred issuance costs $(2.7) million — Ajax Mortgage Loan Trust 2016-B/August 2016 Class A notes due 2065 $84.4 million 4.00 % Class B-1 notes due 2065 (1)(3) $6.6 million 5.25 % Class B-2 notes due 2065 (1)(3) $6.6 million 5.25 % Trust certificates (2) $34.1 million — Deferred issuance costs $(1.6) million — Ajax Mortgage Loan Trust 2016-C/October 2016 Class A notes due 2057 $102.6 million 4.00 % Class B-1 notes due 2057 (1)(3) $7.9 million 5.25 % Class B-2 notes due 2057 (1)(3) $7.9 million 5.25 % Trust certificates (2) $39.4 million — Deferred issuance costs $(1.6) million — (1) 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. (2) The trust certificates issued by the trusts and the beneficial ownership of the trusts are retained by Great Ajax Funding LLC as the depositor. As the holder of the trust certificates, we are entitled to receive any remaining amounts in the trusts after the Class A notes and Class B notes have been paid in full. (3) These securities are encumbered under a 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 outstanding UPB for RPLs at acquisition and 1.25% annually of outstanding UPB for loans that are non-performing at acquisition, and is paid monthly. The determination of RPL or NPL status is based on the status of the loan at acquisition and does not change regardless of the loan’s subsequent performance. The following table sets forth the status of the notes held by others at December 31, 2016 and December 31, 2015, and the securitization cutoff date: Balances at December 31, 2016 Balances at December 31, 2015 Original balances at Class of Notes Carrying Bond Carrying Bond Mortgage Bond 2014-A (1) $ — $ — $ 55,098 $ 36,463 $ 81,405 $ 45,000 2014-B (1) — — 66,292 35,646 91,535 41,191 2015-A 51,388 29,476 53,673 33,674 75,835 35,643 2015-B 104,111 75,258 115,395 84,973 158,498 87,174 2015-C 100,614 66,979 108,238 79,824 130,130 81,982 2016-A 118,189 96,158 — — 158,485 101,431 2016-B 97,660 80,672 — — 131,746 84,430 2016-C 126,681 101,209 — — 157,808 102,575 $ 598,643 $ 449,752 $ 398,696 $ 270,580 $ 985,442 $ 579,426 (1) Bonds issued under 2014-A and 2014-B were called in October 2016. 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 — Related Party Transactions The Company’s consolidated statements of income included the following significant related party transactions: Year ended December 31, 2016 ($ in thousands) Amount Counterparty Consolidated Statement of Income location Loan servicing fees $ 6,262 Gregory Related party expense – loan servicing fees Management fee $ 3,949 Thetis Related party expense – management fee Due diligence and related loan acquisition costs $ 100 Gregory Loan transaction expense Expense reimbursements $ 67 Gregory Other fees and expenses Expense reimbursements $ 28 Thetis Other fees and expenses Year ended December 31, 2015 Amount Counterparty Consolidated Statement of Income location Loan servicing fees $ 3,993 Gregory Related party expense – loan servicing fees Management fee $ 3,353 Thetis Related party expense – management fee Due diligence and related loan acquisition costs $ 75 Gregory Loan transaction expense Expense reimbursements $ — Gregory Other fees and expenses Expense reimbursements $ — Thetis Other fees and expenses Period from date of inception (January 30, 2014) through December 31, 2014 Amount Counterparty Consolidated Statement of Income location Loan servicing fees $ 485 Gregory Related party expense – loan servicing fees Management fee $ 956 Thetis Related party expense – management fee Due diligence and related loan acquisition costs $ 12 Aspen Yo Loan transaction expense Expense reimbursements $ 58 Thetis Professional fees Expense reimbursements $ — Thetis Other fees The Company’s consolidated balance sheets included the following significant related party balances: December 31, 2016 ($ in thousands) Amount Counterparty Consolidated Balance Sheet location Receivables from Servicer $ 12,481 Gregory Receivable from Servicer Investment in subordinated debt securities $ 6,323 Oileus Residential Investment in securities Management fee payable $ 750 Thetis Management fee payable Servicing fees payable $ 195 Gregory Accrued expenses and other liabilities Insurance expense reimbursement receivable $ — Thetis Prepaid expenses and other assets December 31, 2015 Amount Counterparty Consolidated Balance Sheet location Receivables from Servicer $ 5,444 Gregory Receivable from Servicer Investment in subordinated debt securities $ — Oileus Residential Investment in debt securities Management fee payable $ 677 Thetis Management fee payable Servicing fees payable $ 152 Gregory Accrued expenses and other liabilities Insurance expense reimbursement receivable $ 37 Thetis Prepaid expenses and other assets Additionally, Gregory is the holder of record for one loan each in Georgia and Illinois because the Company does not hold the necessary licenses to hold those assets directly in such states. Gregory sells a 95% participation interest in the assets to the Company in exchange for 95% of the purchase price for the assets to be purchased by Gregory, which pays for the balance of such assets. During October 2016, the Company acquired 370 RPLs with aggregate UPB of $69.9 million in three transactions from three related party trusts. These loans, which have been serviced by Gregory, have made at least 24 payments of scheduled principal and interest in the last 24 months and have a weighted average coupon of 5.84%. The loans were acquired at 93% of UPB and the estimated market value of the underlying collateral is $92.2 million. In October 2016, the Company purchased subordinate debt securities for $6.3 million from Oileus Residential Loan Trust, a related party. At December 31, 2016, these securities were carried on the Company’s consolidated balance sheet at an amortized cost basis of $6.3 million, which approximates fair value. The notes have a stated final maturity of October 25, 2056. Management Agreement The Company is a party to the Management Agreement with the Manager, which expires on July 8, 2029. 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 paid directly by them and does not expect to have any employees paid directly by them in the foreseeable future. Each of the Company’s executive officers is an employee or officer, or both, of the Manager or the 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: 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 consolidated 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 $1.0 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 $1.0 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. The quantity of common stock will be determined using the higher of the most recently reported book value or the average of the closing prices of the Company’s common stock on the NYSE on the five business days after the date on which the most recent regular quarterly dividend to holders of the Company’s 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. The Manager is also entitled to an incentive fee, payable quarterly and calculated in arrears, of 20% of the amount by which total dividends on common stock and distributions on OP units exceeds 8% of book value. However, no incentive fee will be payable to the Manager with respect to any calendar quarter unless the Company’s cumulative core earnings, defined as U.S. GAAP net income or loss less non-cash equity compensation, unrealized gains or losses from mark-to-market adjustments, one-time adjustments to earnings resulting from changes to U.S. GAAP, and certain other non-cash items, is greater than zero for the most recently completed eight calendar quarters. 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. To date, no incentive fees have been paid to the Manager. 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. Additionally, the Company may reimburse the Manager for 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 (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 The Company is also a party to the “Servicing Agreement, expiring July 8, 2029, with the Servicer. The Company’s overall servicing costs under the Servicing Agreement will vary based on the types of assets serviced. Servicing fees range from 0.65% to 1.25% annually of current UPB (or the fair market value or purchase price of REO the Company owns or acquires), and 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 are determined based on the loan’s status at acquisition and do not change if a performing loan becomes non-performing or vice versa. 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 Servicing 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 | 12 Months Ended |
Dec. 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 year ended December 31, 2016 of $3.9 million, of which the stock-based portion consists of $1.1 million in 70,957 shares of its common stock. The shares issued to the Manager are restricted securities subject to transfer restrictions, and were issued in private placement transactions, with 20,352 shares still issuable at December 31, 2016. See Note 9 — Related party transactions. In addition, each of the Company’s independent directors receives an annual retainer of $50,000, payable quarterly, half of which is paid in shares of the Company’s common stock on the same basis as the stock portion of the management fee payable to the Manager and half in cash. The following table sets forth the Company’s stock-based management fees and independent director fees: Management Fees and Director Fees For the year ended December 31, 2016 For the year ended December 31, 2015 For the year ended December 31, 2014 ($ in thousands except share amounts) Number of shares Amount of expense recognized (1) Number of shares Amount of expense recognized (1) Number of shares Amount of expense recognized (1) Management fees 70,957 $ 1,067 85,497 $ 1,239 31,835 $ 477 Independent director fees 6,648 100 6,872 100 2,502 38 77,605 $ 1,167 92,369 $ 1,339 34,337 $ 515 (1) All management fees and independent director fees are fully expensed in the period in which they are incurred. (2) Vesting occurs ratably over a three year period with restrictions on sale restricted until the third anniversary of the grant date. Restricted Stock Each independent director is issued a restricted stock award of 2,000 shares of the Company’s common stock subject to a one-year vesting period upon initial appointment to the Company’s Board. On August 17, 2016, the Company granted 153,000 shares of restricted stock to employees of its Manager and Servicer. The shares vest over three years, with one third of the shares vesting on each of the first, second and third anniversaries of the grant date. The shares may not be sold until the third anniversary of the vesting date. Grants of restricted stock to officers of the Company use grant date fair value of the stock as the basis for measuring the cost of the grant. The cost of grants of restricted stock to employees of the Company’s affiliates is determined using the stock price as of the date at which the counterparty’s performance is complete. The following table sets forth the activity in the Company’s restricted stock plans: ($ in thousands, except share and per share amounts) Non-vested shares at December 31, 2016 Fully-vested shares at December 31, 2016 Year ended December 31, 2016 Total shares granted Shares granted during the year Total expected cost of grant Grant expense recognized for the year Shares Per share grant fair value Shares Weighted average grant date fair value Directors’ Grants (1) 10,000 2,000 $ 28 $ 16 2,000 $ 13.79 8,000 $ 13.79 Employee and Service Provider Grant (2) 153,000 153,000 2,053 284 153,000 13.50 — — Totals 163,000 155,000 $ 2,081 $ 300 155,000 $ 13.50 8,000 $ 13.79 (1) Vesting period is one year from grant date. Weighted average remaining life of grant at December 31, 2016 is 0.5 years. (2) Vesting is ratable over three-year period from grant date. Weighted average remaining life of grant at December 31, 2016 is 2.6 years. Non-vested shares at December 31, 2015 Fully-vested shares at December 31, 2015 Year ended December 31, 2015 Total shares granted Shares granted during the year Total expected cost of grant Grant expense recognized for the year Shares Per share grant fair value Shares Weighted average grant date fair value Directors’ Grants (1) 8,000 2,000 $ 29 $ 71 2,000 $ 14.25 6,000 $ 14.25 Employee and Service Provider Grant (2) — — — — — — — Totals 8,000 2,000 $ 29 $ 71 2,000 $ 14.25 6,000 $ 14.25 (1) Vesting period is one year from grant date. (2) Vesting is ratable over three-year period from grant date. Non-vested shares at December 31, 2014 Fully-vested shares at December 31, 2014 Period from date of inception (January 30, 2014) through December 31, 2014 Total shares granted Shares granted during the period Total expected cost of grant Grant expense recognized for the period Shares Per share grant fair value Shares Weighted average grant date fair value Directors’ Grants (1) 6,000 6,000 $ 90 $ 45 6,000 $ 15.00 — $ — Employee and Service Provider Grant (2) — — — — — — — — Totals 6,000 6,000 $ 90 $ 45 6,000 $ 15.00 — $ — (1) Vesting period is one year from grant date. (2) Vesting is ratable over three-year period from grant date. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 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 two TRS entities, 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. For the year ended December 31, 2016, the Company’s taxable income was $15.9 million, with a provision for income taxes of $35,000. For the year ended December 31, 2015, the Company’s taxable income was $10.8 million, with a provision for income taxes of $2,000. Since inception (January 30, 2014) to December 31, 2014, the Company’s taxable income was $0.7 million with a provision for income taxes of $0. The Company recognized no deferred income tax assets or liabilities on its consolidated balance sheets at December 31, 2016 or December 31, 2015. The Company also recorded no interest or penalties during 2016, or for either the year ended December 31, 2015 or the period from inception (January 30, 2014) through December 31, 2015. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 12 — Earnings per Share The following table sets forth the components of basic and diluted EPS: Year ended December 31, 2016 ($ in thousands, except share and per share amounts) Income Shares Per Share Basic EPS Consolidated income attributable to common stockholders $ 27,836 16,742,882 Allocation of earnings to participating restricted shares (140 ) — Consolidated income attributable to unrestricted common stockholders $ 27,696 16,742,882 $ 1.65 Effect of dilutive securities Operating Partnership units 1,038 624,106 Restricted stock grants and Manager and director fee shares 140 84,919 Diluted EPS Consolidated income attributable to common stockholders and dilutive securities $ 28,874 17,451,907 $ 1.65 Year ended December 31, 2015 ($ in thousands, except share and per share amounts) Income Shares Per Share Basic EPS Consolidated income attributable to common stockholders $ 24,754 14,711,610 Allocation of earnings to participating restricted shares (62 ) — Consolidated income attributable to unrestricted common stockholders $ 24,692 14,711,610 $ 1.68 Effect of dilutive securities Operating Partnership units 1,038 624,106 Restricted stock grants and Manager and director fee shares 62 36,772 Diluted EPS Consolidated income attributable to common stockholders and dilutive securities $ 25,792 15,372,488 $ 1.68 Period from Inception (January 30, 2014) ($ in thousands, except share and per share amounts) Income Shares Per Share Basic EPS Consolidated income attributable to common stockholders $ 3,424 8,360,432 Allocation of earnings to participating restricted shares (11 ) — Consolidated income attributable to unrestricted common stockholders $ 3,413 8,360,432 $ 0.41 Effect of dilutive securities Operating Partnership units 147 461,964 Restricted stock grants and Manager and director fee shares 11 26,659 Diluted EPS Consolidated income attributable to common stockholders and dilutive securities $ 3,571 8,849,055 $ 0.40 |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information (unaudited): | Note 13 — Quarterly Financial Information (unaudited): The following table sets forth our quarterly financial information: ($ in thousands) For the year ended December 31, 2016 First Second Third Fourth Total income $ 11,411 $ 10,688 $ 11,619 $ 10,969 Income before provision for income tax $ 7,960 $ 6,887 $ 7,905 $ 6,157 Net income attributable to common stockholders $ 7,651 $ 6,605 $ 7,623 $ 5,957 Basic earnings common share $ 0.50 $ 0.42 $ 0.42 $ 0.33 Diluted earnings per common share $ 0.50 $ 0.42 $ 0.42 $ 0.33 For the year ended December 31, 2015 First Second Third Fourth Total income $ 6,033 $ 8,810 $ 10,936 $ 11,689 Income before provision for income tax $ 3,815 $ 5,675 $ 7,933 $ 8,371 Net income attributable to common stockholders $ 3,640 $ 5,436 $ 7,614 $ 8,064 Basic earnings common share $ 0.28 $ 0.36 $ 0.50 $ 0.53 Diluted earnings per common share $ 0.28 $ 0.36 $ 0.50 $ 0.53 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 14 — Subsequent Events Loan Acquisitions During January and February 2017, we acquired 21 RPLs with an aggregate UPB of $2.9 million in three transactions. The loans were acquired at 93.6% of UPB and the estimated market value of the underlying collateral is $5.5 million. The purchase price equaled 48.8% of the estimated market value of the underlying collateral. Additionally, we have agreed to acquire, subject to due diligence, 18 RPLs with aggregate UPB of $3.0 million in three transactions from three different sellers. The purchase price equals 85.0% of UPB and 57.9% of the estimated market value of the underlying collateral of $4.4 million. We have not entered into a definitive agreement with respect to these loans, and there is no assurance that we will enter into a definitive agreement relating to these loans or, if such an agreement is executed, that we will actually close the acquisitions or that the terms will not change. Dividend Declaration On February 16, 2017, the Company’s Board of Directors declared a dividend of $0.25 per share, to be paid on March 31, 2017 to stockholders of record as of March 15, 2017. Management Fees On February 22, 2017, the Company issued 20,352 shares of its common stock to the Manager in payment of the portion of the Base Management Fee which is payable in common stock for the fourth quarter of 2016 in a private transaction. The management fee expense associated with these shares was recorded as an expense in the fourth quarter of 2016. Directors’ Retainer On February 22, 2017, the Company issued each of each of its four independent directors 415 shares of its common stock in payment of half of their quarterly director fees for the fourth quarter of 2016. On February 16, 2017, our Board of Directors authorized an increase in the annual compensation of our independent directors from $50,000 to $75,000, payable half in shares of common stock of the Company and half in cash. |
Mortgage loans on real estate
Mortgage loans on real estate | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage loans on real estate | Schedule IV Description Loan Interest rate Maturity Carrying (1) Principal Amount of $0 – 49,999 418 0.00% – 14.78% 08/13/2008 – 10/01/2056 $ 11,300 $ 6,084 $ 1,361 $50,000 – 99,999 822 1.88% – 12.75% 09/01/2009 – 08/01/2065 50,820 27,171 5,081 $100,000 – 149,999 945 1.00% – 13.34% 04/19/2009 – 07/01/2064 96,684 57,161 9,184 $150,000 – 199,999 691 2.00% – 12.13% 10/26/2005 – 11/01/2056 98,137 57,646 10,728 $200,000 – 249,999 523 1.99% – 10.95% 08/01/2019 – 10/01/2056 93,993 51,357 14,628 $250,000+ 1,511 1.00% – 11.39% 01/01/2014 – 05/01/2066 519,652 255,508 120,483 Total 4,910 $ 870,587 $ 454,927 $ 161,465 (1) The aggregate cost for federal income tax purposes is ($825.9 million) as of December 31, 2016. The following table sets forth the activity in our mortgage loans: ($ in thousands) Mortgage loans January 1, 2016 Beginning balance $ 554,877 Mortgage loan portfolio acquisitions 434,782 Sale of mortgage loans (78,162 ) Accretion recognized 70,558 Mortgage loan payments (89,769 ) Transfers of mortgage loans to REO (25,037 ) Other 3,338 Ending balance $ 870,587 |
Summary of significant accoun22
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 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 REO. Observable inputs to the model include 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. RPLs 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 acquisition closing date but prior to pooling. Any gain or loss incurred on these loans is recognized in interest 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 amount. The excess of all undiscounted cash flows expected to be collected at acquisition over the initial investment in the loans is the 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 amount. The Company’s expectation of the amount of cash flows expected to be collected is evaluated at the end of each calendar quarter. If 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. If 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. Borrower payments on the Company’s mortgage loans are classified as principal, interest, payments of fees or escrow deposits. Amounts applied as interest on the borrower account are similarly classified as interest for accounting purposes and are classified as operating cash flows in the Company’s consolidated Statement of Cash Flows. Amounts applied as principal on the borrower account are classified as investing cash flows in the consolidated Statement of Cash Flows. Amounts received as payments of fees are recorded in other income and classified as operating cash flows in the consolidated Statement of Cash Flows. Escrow deposits are recorded on our Servicer’s balance sheet and do not impact the Company’s cash flow. |
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. |
Real Estate | Real Estate The Company acquires real estate properties directly from sellers and when it forecloses on a borrower and takes title to the underlying property (REO). REO is recorded at cost if purchased, or at the present value of estimated future cash flows if obtained through foreclosure by the Company. REO that is currently being actively marketed for sale is classified as held-for-sale. REO held-for-sale is carried at the lower of its acquisition basis or net realizable value (estimated fair market value less expected selling costs), appraisals or independent Broker Price Opinions (“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 REO is REO not held-for-sale. Rental REOs are intended to be held as long-term investments but may eventually be held-for-sale. REO is held for investment as rental REO 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 REO not held-for-sale 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 REO 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 REO for its rental strategy. Such expenditures are part of its investment in a property and, therefore, are capitalized as part of the basis of the property. Subsequently, the residential REO, 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 Borrowings | Secured Borrowings The Company, through securitization trusts, issues callable debt secured by its mortgage loans in the ordinary course of business. The secured borrowings are structured as debt financings, and the loans remain on the Company’s consolidated balance sheet as the Company is the primary beneficiary of the securitization trusts, which are VIEs. These secured borrowing 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 creditors do not have recourse to the primary beneficiary. Coupon interest on the debt is recognized using the accrual method of accounting. Deferred issuance costs, including 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 deferred issuance cost amortization. |
Repurchase Facilities | Repurchase Facilities The Company enters into repurchase financing facilities under which it nominally sells assets to a counterparty and simultaneously enters into an agreement to repurchase the sold assets at a price equal to the sold amount plus an interest factor. Despite being legally structured as sales and subsequent repurchases, repurchase transactions are generally accounted for as debt secured by the underlying assets. At the maturity of a repurchase financing, unless the repurchase financing is renewed, the Company is required to repay the borrowing including any accrued interest and concurrently receives back its pledged collateral from the lender. The repurchase financings are treated as collateralized financing transactions; pledged assets are recorded as assets in the Company’s consolidated balance sheets, and debt is recognized at the contractual amount. Interest is recorded at the contractual amount on an accrual basis. Costs associated with the set-up of a repurchasing contract are recorded as deferred expense at inception and amortized over the contractual life of the agreement. Any draw fees associated with individual transactions and any facility fees assessed on the amounts outstanding are recorded as deferred expense when incurred and amortized over the contractual life of the related borrowing. |
Management Fee and Expense Reimbursement | Management Fee and Expense Reimbursement The Company is a party to the Management Agreement with the Manager, which has a 15-year term, expiring on July 8, 2029. 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. Additionally, the Company pays directly for the internal audit function which reports directly to the Audit Committee and the Board of Directors. The Company does not currently have any employees that it pays directly and does not expect to have any employees that it pays directly in the foreseeable future. Each of the Company’s executive officers is an employee or officer, or both, of the Manager or the Servicer. Under the Management Agreement by and between the Company and the Manager as amended and restated on October 27, 2015, 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 The Company is also a party to a 15-year Servicing Agreement (the “Servicing Agreement”) with the Servicer, expiring July 8, 2029. Under the Servicing Agreement by and between the Company and the Servicer, the Servicer receives servicing fees of 0.65% annually of the outstanding Unpaid Principal Balance (UPB) for RPLs and 1.25% annually of the outstanding UPB of NPLs. The determination of RPL or NPL status is based on the status of the loan at acquisition and does not change regardless of the loan’s subsequent performance. 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 the Servicer services pursuant to the terms of the Servicing Agreement. 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. The Servicer 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 the Servicer 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 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. 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. Under the Company’s 2014 Director Equity Plan (the “Director Plan”), the Company may make stock-based awards to its directors. 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 LTIP Units from the Operating Partnership, available for issuance under the Director Plan is 90,000 shares. The Company has issued to each of its independent directors restricted stock awards of 2,000 shares of its common stock upon joining the Board, 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. On June 7, 2016, the Company’s stockholders approved the 2016 Equity Incentive Plan (the “2016 Plan”) to attract and retain non-employee directors, executive officers, key employees and service providers, including officers and employees of the Company’s affiliates. The 2016 Plan authorized the issuance of up to 5% of the Company’s outstanding shares from time to time on a fully diluted basis (assuming, if applicable, the exercise of all outstanding options and the conversion of all warrants and convertible securities, including OP Units and LTIP Units, into shares of common stock). Grants of restricted stock to officers of the Company use grant date fair value of the stock as the basis for measuring the cost of the grant. The cost of grants of restricted stock to employees of the Company’s affiliates is determined using the stock price as of the date at which the counterparty’s performance is complete. Forfeitures are accounted for in the period in which they occur. The shares vest over three years, with one third of the shares vesting on each of the first, second and third anniversaries of the grant date. The shares may not be sold until the third anniversary of the grant date. |
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. |
Variable Interest Entities | Variable Interest Entities In the normal course of business, the Company enters into various types of transactions with special purpose entities, which have primarily consisted of trusts established for the Company’s secured borrowings (See “Secured Borrowings” above and Note 8 to the consolidated financial statements). Additionally, from time to time, the Company may enter into joint ventures with unrelated entities. The Company evaluates each transaction and its resulting beneficial interest to determine if the entity formed pursuant to the transaction should be classified as a VIE. If an entity created in a transaction meets the definition of a VIE and the Company determines that it or a consolidated subsidiary is the primary beneficiary, the Company will include the entity in its consolidated financial statements. |
Investment in debt securities | Investment in debt securities The Company’s investment in debt securities is presented on the Company’s consolidated balance sheet at the investment’s amortized cost basis. The Company has the intent and ability to hold its debt securities to maturity and classifies its investments in debt securities as held to maturity. The Company monitors its investments to ensure it does not hold more than 10% of the vote or value of any one issuer. |
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 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 is 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 EPS 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 EPS. Diluted EPS 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 that 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. 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. For valuation purposes, we disclose the fair value of any impaired REO at the lower of its acquisition basis, or its net realizable value (estimated fair market value less expected selling costs). We estimate fair market value using BPOs, comparable sales and competitive market analyses provided by local realtors. We use net realizable value as a proxy for fair value as it represents the liquidation proceeds to us and is most comparable to the fair value disclosure for loans. The Company calculates the fair value for the senior debt consolidated on its balance sheet from securitization trusts by using the Company’s proprietary pricing model to estimate the cash flows expected to be generated from the underlying collateral with the discount rate used in the present value calculation representing an estimate of the average rate for debt instruments with similar durations and risk factors. |
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. In addition, notwithstanding the Company’s qualification as a REIT, it may also have to pay certain state and local income taxes, because not all states and localities treat REITs in the same manner that they are treated for U.S. federal income tax purposes. 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 the Manager through 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 furnishes annually to each stockholder a statement setting forth distributions paid during the preceding year and their U.S. federal income tax treatment. |
Offering Costs | Offering Costs Costs associated with the Company’s completed offerings 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 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 of 1933 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. |
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 VIEs, as amended 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 during its 2016 calendar year. As a result of this implementation, there was no effect on the application of 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 Securities and Exchange Commission (“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 during its 2016 calendar year. The result of this implementation was a reduction of approximately $5.6 million in Prepaid expenses and other assets, and an offsetting reduction of approximately $5.6 million in Secured borrowings in the Company’s opening consolidated balance sheet (December 31, 2015). There was no effect on the presentation of the Company’s Borrowings under repurchase agreement in its consolidated balance sheets as these borrowings are short-term in nature and as such are unaffected by the ASU. Additionally, there was no effect on consolidated net income, or equity. 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 elected to early-adopt ASU 2016-09 during the year ended December 31, 2016. Accordingly, the Company has made an entity-wide accounting policy election to account for forfeitures under its equity incentive plan as they occur. There was no effect on consolidated net income or equity. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows — Restricted Cash. ASU 2016-18 provides guidance on the presentation and classification of restricted cash within the statement of cash flows. Specifically, this guidance provides that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and restricted cash. This guidance is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, with early adoption permitted. The Company has elected to early-adopt ASU 2016-18 during the year ended December 31, 2016. The result of this early adoption is an increase to the ending cash balances in the statements of cash flows for the year ended December 31, 2016 of $1.2 million, for the year ended December 31, 2015 of $40,000, and for the period from date of inception (January 30, 2014 through December 31, 2014) of $0. |
Recently issued accounting standards | Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. 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. ASU 2014-09 may be applied using either a full retrospective or a modified retrospective approach. In August 2015, the FASB issued ASU 2015-14 deferring the effective date for ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. The Company is evaluating the impact of this amendment on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 Financial 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 June 2016, the FASB issued ASU 2016-13 Financial Instruments — Credit Losses. The main objective of this guidance is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity. To achieve this, the amendments in this guidance replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Specifically, the amendments in this guidance require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted, beginning with fiscal years after December 15, 2018. The Company is currently evaluating the impact on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows — Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. This guidance is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the effect that ASU 2016-15 will have on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-17, Consolidation — Interests Held through Related Parties That Are under Common Control. ASU 2016-17 is intended to revise guidance from ASU 2015-02 which, in practice, was leading to reporting of financial information that was not useful to financial statement users. Accordingly, ASU 2016-17 provides guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining if the reporting entity is the primary beneficiary of the VIE. This guidance is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the effect that ASU 2016-17 will have on its consolidated financial statements and related disclosures. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements — Revenue from Contracts with Customers. ASU 2016-20 clarifies and corrects the unintended application of narrow aspects of the guidance in ASU 2014-09, issued in May 2014. ASU 2016-20 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. The Company is evaluating the impact of this amendment on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations — Clarifying the Definition of a Business. ASU 2017-01 is intended to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or a business. This guidance is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the effect that ASU 2017-01 will have on its consolidated financial statements and related disclosures. |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans [Abstract] | |
Schedule of contractually required payments and estimated cash flows expected to be collected | Year ended Year ended ($ in thousands) Re-performing (1) Non-performing Re-performing Non-performing Contractually required principal and interest $ 748,008 $ 6,387 $ 752,457 $ 67,393 Non-accretable amount (284,901 ) (4,143 ) (306,722 ) (39,352 ) Expected cash flows to be collected 463,107 2,244 445,735 28,041 Accretable yield (106,492 ) (222 ) (118,673 ) (8,281 ) Fair value at acquisition $ 356,615 $ 2,022 $ 327,062 $ 19,760 (1) Excludes $78.2 million of RPLs acquired and sold in the third quarter of 2016. |
Schedule of accretable yield | Year ended Year ended December 31, 2015 Accretable yield ($ in thousands) Re-performing Non-performing Re-performing Non-performing Balance at beginning of period $ 136,455 $ 18,425 $ 54,940 $ 20,686 Accretable yield additions 106,492 222 118,673 8,281 Reclassification from (to) non-accretable amount, net 59,887 1,001 — — Accretion (62,976 ) (7,583 ) (37,158 ) (10,542 ) Balance at end of period $ 239,858 $ 12,065 $ 136,455 $ 18,425 |
Schedule of carrying value of mortgage loans and related UPB by delinquency status | December 31, 2016 December 31, 2015 ($ in thousands) Number of Carrying Unpaid Number of Carrying Unpaid Current 2,306 $ 419,643 $ 510,058 1,072 $ 196,873 $ 251,216 30 797 141,228 173,482 521 91,502 118,895 60 482 84,498 101,727 353 57,344 72,870 90 911 143,061 179,718 898 133,386 174,979 Foreclosure 414 82,157 105,208 405 75,772 107,749 Mortgage loans 4,910 $ 870,587 $ 1,070,193 3,249 $ 554,877 $ 725,709 |
Real Estate Assets, Net (Tables
Real Estate Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Schedule of activity in the Company's carrying value held-for-sale | For the year ended Property Held-for-sale ($ in thousands) December 31, 2016 December 31, 2015 Count Amount Count Amount Balance at beginning of period 73 $ 10,333 12 $ 1,316 Transfers from mortgage loans 158 24,095 72 7,922 Adjustments to record at lower of cost or fair value — (2,011 ) — (99 ) Disposals (82 ) (8,991 ) (23 ) (2,269 ) Purchase of REO — — 12 2,942 Other — 456 — 521 Balance at end of period 149 $ 23,882 73 $ 10,333 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial assets and liabilities | Level 1 Level 2 Level 3 December 31, 2016 ($ in thousands) Carrying Quoted Observable Unobservable Not recognized on consolidated balance sheet at fair value (assets) Mortgage loans, net $ 870,587 — — $ 930,226 Impaired REO held for sale net at NRV $ 8,797 — $ 8,797 — Investment in securities $ 6,323 — $ 6,323 — Not recognized on consolidated balance sheet at fair value (liabilities) Secured borrowings $ 442,670 — — $ 436,623 Borrowings under repurchase transactions $ 227,440 — $ 227,440 — Level 1 Level 2 Level 3 December 31, 2015 ($ in thousands) Carrying Quoted 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 — Investment in securities — — — — Not recognized on consolidated balance sheet at fair value (liabilities) Secured borrowings $ 265,006 — — $ 259,646 Borrowings under repurchase transactions $ 104,533 — $ 104,533 — |
Schedule of quantitative information about significant unobservable inputs | Range of Values Input December 31, December 31, Equity discount rate – Re-performing loans 5% – 10% 7% – 14% Equity discount rate – Non-performing loans 10% 10% – 18% Loan resolution timelines – Re-performing loans (in years) 0.6 – 7 4 – 7 Loan resolution timelines – Non-performing loans (in years) 0.1 – 7 1.4 – 4 |
Unconsolidated Affiliates (Tabl
Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of assets and liabilities for the Company's unconsolidated affiliates at 100%, and at the Company's share | Net income, assets and liabilities at 100% ($ in thousands) Net income at 100% For the year ended For the year ended For the year ended GA-E 2014-12 $ 762 $ 871 $ 97 Thetis Asset Management $ 1,100 $ 998 $ 56 AS Ajax E LLC $ 138 $ — $ — December 31, 2016 December 31, 2015 Assets and Liabilities at 100% Assets Liabilities Assets Liabilities GA-E 2014-12 $ 6,259 $ — $ 5,966 $ — Thetis Asset Management $ 4,846 $ 1,167 $ 3,028 $ 520 AS Ajax E LLC $ 7,964 $ 12 $ — $ — Net income, assets and liabilities at Company share ($ in thousands) Net income at Company share For the year ended For the year ended For the year ended GA-E 2014-12 $ 308 $ 353 $ 39 Thetis Asset Management $ 218 $ 198 $ 11 AS Ajax E LLC $ 32 $ — $ — December 31, 2016 December 31, 2015 Assets and Liabilities at Company share Assets Liabilities Assets Liabilities GA-E 2014-12 $ 2,535 $ — $ 2,416 $ — Thetis Asset Management $ 960 $ 231 $ 600 $ 103 AS Ajax E LLC $ 1,314 $ 2 $ — $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of details of repurchase agreement | ($ in thousands) December 31, 2016 Maturity Date Origination date Maximum Amount Amount of Interest Rate March 9, 2017 September 9, 2016 $ 10,310 $ 10,309 $ 14,728 3.32 % March 30, 2017 September 30, 2016 10,797 10,797 15,424 3.34 % May 8, 2017 November 9, 2016 14,986 14,986 21,409 3.35 % November 21, 2017 November 22, 2016 200,000 21,302 36,044 4.20 % July 12, 2019 July 15, 2016 200,000 170,046 226,192 3.25 % Totals $ 436,093 $ 227,440 $ 313,797 3.35 % ($ in thousands) December 31, 2015 Maturity Date Origination date Maximum Amount Amount of Interest Rate March 30, 2016 September 30, 2015 $ 10,838 $ 10,838 $ 15,483 2.53 % June 23, 2016 December 23, 2015 9,374 9,374 13,391 2.91 % November 22, 2016 November 24, 2015 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 | ($ in thousands) Gross amounts not offset in balance sheet Balance sheet date Gross amount of Gross amount Net amount December 31, 2016 $ 227,440 $ 313,797 $ 86,357 December 31, 2015 $ 104,533 $ 164,610 $ 60,077 |
Schedule of securitization of notes | Issuing Trust/Issue Date Security Original Principal Interest Rate Ajax Mortgage Loan Trust 2015-A/May 2015 Class A notes due 2054 $35.6 million 3.88 % Class B-1 notes due 2054 (1)(3) $8.7 million 5.25 % Class B-2 notes due 2054 (1)(3) $8.7 million 5.25 % Trust certificates (2) $22.8 million — Deferred issuance costs $(0.8) million — Ajax Mortgage Loan Trust 2015-B/July 2015 Class A notes due 2060 $87.2 million 3.88 % Class B-1 notes due 2060 (1)(3) $15.9 million 5.25 % Class B-2 notes due 2060 (1)(3) $7.9 million 5.25 % Trust certificates (2) $47.5 million — Deferred issuance costs $(1.5) million — Ajax Mortgage Loan Trust 2015-C/November 2015 Class A notes due 2057 $82.0 million 3.88 % Class B-1 notes due 2057 (1)(3) $6.5 million 5.25 % Class B-2 notes due 2057 (1)(3) $6.5 million 5.25 % Trust certificates (2) $35.1 million — Deferred issuance costs $(2.7) million — Ajax Mortgage Loan Trust 2016-A/April 2016 Class A notes due 2064 $101.4 million 4.25 % Class B-1 notes due 2064 (1)(3) $7.9 million 5.25 % Class B-2 notes due 2064 (1)(3) $7.9 million 5.25 % Trust certificates (2) $41.3 million — Deferred issuance costs $(2.7) million — Ajax Mortgage Loan Trust 2016-B/August 2016 Class A notes due 2065 $84.4 million 4.00 % Class B-1 notes due 2065 (1)(3) $6.6 million 5.25 % Class B-2 notes due 2065 (1)(3) $6.6 million 5.25 % Trust certificates (2) $34.1 million — Deferred issuance costs $(1.6) million — Ajax Mortgage Loan Trust 2016-C/October 2016 Class A notes due 2057 $102.6 million 4.00 % Class B-1 notes due 2057 (1)(3) $7.9 million 5.25 % Class B-2 notes due 2057 (1)(3) $7.9 million 5.25 % Trust certificates (2) $39.4 million — Deferred issuance costs $(1.6) million — (1) 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. (2) The trust certificates issued by the trusts and the beneficial ownership of the trusts are retained by Great Ajax Funding LLC as the depositor. As the holder of the trust certificates, we are entitled to receive any remaining amounts in the trusts after the Class A notes and Class B notes have been paid in full. (3) These securities are encumbered under a repurchase agreement. |
Schedule of status of mortgage loans | Balances at December 31, 2016 Balances at December 31, 2015 Original balances at Class of Notes Carrying Bond Carrying Bond Mortgage Bond 2014-A (1) $ — $ — $ 55,098 $ 36,463 $ 81,405 $ 45,000 2014-B (1) — — 66,292 35,646 91,535 41,191 2015-A 51,388 29,476 53,673 33,674 75,835 35,643 2015-B 104,111 75,258 115,395 84,973 158,498 87,174 2015-C 100,614 66,979 108,238 79,824 130,130 81,982 2016-A 118,189 96,158 — — 158,485 101,431 2016-B 97,660 80,672 — — 131,746 84,430 2016-C 126,681 101,209 — — 157,808 102,575 $ 598,643 $ 449,752 $ 398,696 $ 270,580 $ 985,442 $ 579,426 (1) Bonds issued under 2014-A and 2014-B were called in October 2016. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of consolidated statement of income | Year ended December 31, 2016 ($ in thousands) Amount Counterparty Consolidated Statement of Income location Loan servicing fees $ 6,262 Gregory Related party expense – loan servicing fees Management fee $ 3,949 Thetis Related party expense – management fee Due diligence and related loan acquisition costs $ 100 Gregory Loan transaction expense Expense reimbursements $ 67 Gregory Other fees and expenses Expense reimbursements $ 28 Thetis Other fees and expenses Year ended December 31, 2015 Amount Counterparty Consolidated Statement of Income location Loan servicing fees $ 3,993 Gregory Related party expense – loan servicing fees Management fee $ 3,353 Thetis Related party expense – management fee Due diligence and related loan acquisition costs $ 75 Gregory Loan transaction expense Expense reimbursements $ — Gregory Other fees and expenses Expense reimbursements $ — Thetis Other fees and expenses Period from date of inception (January 30, 2014) through December 31, 2014 Amount Counterparty Consolidated Statement of Income location Loan servicing fees $ 485 Gregory Related party expense – loan servicing fees Management fee $ 956 Thetis Related party expense – management fee Due diligence and related loan acquisition costs $ 12 Aspen Yo Loan transaction expense Expense reimbursements $ 58 Thetis Professional fees Expense reimbursements $ — Thetis Other fees |
schedule of related party transactions for consolidated balance sheet | December 31, 2016 ($ in thousands) Amount Counterparty Consolidated Balance Sheet location Receivables from Servicer $ 12,481 Gregory Receivable from Servicer Investment in subordinated debt securities $ 6,323 Oileus Residential Investment in securities Management fee payable $ 750 Thetis Management fee payable Servicing fees payable $ 195 Gregory Accrued expenses and other liabilities Insurance expense reimbursement receivable $ — Thetis Prepaid expenses and other assets December 31, 2015 Amount Counterparty Consolidated Balance Sheet location Receivables from Servicer $ 5,444 Gregory Receivable from Servicer Investment in subordinated debt securities $ — Oileus Residential Investment in debt securities Management fee payable $ 677 Thetis Management fee payable Servicing fees payable $ 152 Gregory Accrued expenses and other liabilities Insurance expense reimbursement receivable $ 37 Thetis Prepaid expenses and other assets |
Stock-based Payments and Dire29
Stock-based Payments and Director Fees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of management fees and director fees | Management Fees and Director Fees For the year ended For the year ended For the year ended ($ in thousands except share amounts) Number Amount of (1) Number Amount of (1) Number Amount of (1) Management fees 70,957 $ 1,067 85,497 $ 1,239 31,835 $ 477 Independent director fees 6,648 100 6,872 100 2,502 38 77,605 $ 1,167 92,369 $ 1,339 34,337 $ 515 (1) All management fees and independent director fees are fully expensed in the period in which they are incurred. (2) Vesting occurs ratably over a three year period with restrictions on sale restricted until the third anniversary of the grant date. |
Schedule of activity in restricted stock | The following table sets forth the activity in the Company’s restricted stock plans: ($ in thousands, except share Non-vested shares at Fully-vested shares at Year ended December 31, 2016 Total Shares Total Grant Shares Per share Shares Weighted Directors’ Grants (1) 10,000 2,000 $ 28 $ 16 2,000 $ 13.79 8,000 $ 13.79 Employee and Service Provider Grant (2) 153,000 153,000 2,053 284 153,000 13.50 — — Totals 163,000 155,000 $ 2,081 $ 300 155,000 $ 13.50 8,000 $ 13.79 (1) Vesting period is one year from grant date. Weighted average remaining life of grant at December 31, 2016 is 0.5 years. (2) Vesting is ratable over three-year period from grant date. Weighted average remaining life of grant at December 31, 2016 is 2.6 years. Non-vested shares at Fully-vested shares at Year ended December 31, 2015 Total Shares Total Grant Shares Per share Shares Weighted Directors’ Grants (1) 8,000 2,000 $ 29 $ 71 2,000 $ 14.25 6,000 $ 14.25 Employee and Service Provider Grant (2) — — — — — — — Totals 8,000 2,000 $ 29 $ 71 2,000 $ 14.25 6,000 $ 14.25 (1) Vesting period is one year from grant date. (2) Vesting is ratable over three-year period from grant date. Non-vested shares at Fully-vested shares at Period from date of inception Total Shares Total Grant Shares Per share Shares Weighted Directors’ Grants (1) 6,000 6,000 $ 90 $ 45 6,000 $ 15.00 — $ — Employee and Service Provider Grant (2) — — — — — — — — Totals 6,000 6,000 $ 90 $ 45 6,000 $ 15.00 — $ — (1) Vesting period is one year from grant date. (2) Vesting is ratable over three-year period from grant date. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted earnings per share | Year ended December 31, 2016 ($ in thousands, except share and per share amounts) Income Shares Per Share Basic EPS Consolidated income attributable to common stockholders $ 27,836 16,742,882 Allocation of earnings to participating restricted shares (140 ) — Consolidated income attributable to unrestricted common stockholders $ 27,696 16,742,882 $ 1.65 Effect of dilutive securities Operating Partnership units 1,038 624,106 Restricted stock grants and Manager and director fee shares 140 84,919 Diluted EPS Consolidated income attributable to common stockholders and dilutive securities $ 28,874 17,451,907 $ 1.65 Year ended December 31, 2015 ($ in thousands, except share and per share amounts) Income Shares Per Share Basic EPS Consolidated income attributable to common stockholders $ 24,754 14,711,610 Allocation of earnings to participating restricted shares (62 ) — Consolidated income attributable to unrestricted common stockholders $ 24,692 14,711,610 $ 1.68 Effect of dilutive securities Operating Partnership units 1,038 624,106 Restricted stock grants and Manager and director fee shares 62 36,772 Diluted EPS Consolidated income attributable to common stockholders and dilutive securities $ 25,792 15,372,488 $ 1.68 Period from Inception (January 30, 2014) ($ in thousands, except share and per share amounts) Income Shares Per Share Basic EPS Consolidated income attributable to common stockholders $ 3,424 8,360,432 Allocation of earnings to participating restricted shares (11 ) — Consolidated income attributable to unrestricted common stockholders $ 3,413 8,360,432 $ 0.41 Effect of dilutive securities Operating Partnership units 147 461,964 Restricted stock grants and Manager and director fee shares 11 26,659 Diluted EPS Consolidated income attributable to common stockholders and dilutive securities $ 3,571 8,849,055 $ 0.40 |
Quarterly Financial Informati31
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of quarterly financial information | For the year ended December 31, 2016 First Second Third Fourth Total income $ 11,411 $ 10,688 $ 11,619 $ 10,969 Income before provision for income tax $ 7,960 $ 6,887 $ 7,905 $ 6,157 Net income attributable to common stockholders $ 7,651 $ 6,605 $ 7,623 $ 5,957 Basic earnings common share $ 0.50 $ 0.42 $ 0.42 $ 0.33 Diluted earnings per common share $ 0.50 $ 0.42 $ 0.42 $ 0.33 For the year ended December 31, 2015 First Second Third Fourth Total income $ 6,033 $ 8,810 $ 10,936 $ 11,689 Income before provision for income tax $ 3,815 $ 5,675 $ 7,933 $ 8,371 Net income attributable to common stockholders $ 3,640 $ 5,436 $ 7,614 $ 8,064 Basic earnings common share $ 0.28 $ 0.36 $ 0.50 $ 0.53 Diluted earnings per common share $ 0.28 $ 0.36 $ 0.50 $ 0.53 |
Organization and Basis of Pre32
Organization and Basis of Presentation (Details Textuals) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Organization And Basis Of Presentation [Line Items] | |
Description of operating partnership units redeemed | The SBC loans that the Company intends to opportunistically purchase generally have a principal balance of up to $5 million and are secured by multi-family residential and commercial mixed use retail/residential properties 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 |
Percentage of outstanding OP units owned | 96.70% |
Percentage of outstanding OP owned by an unaffiliated holder | 3.30% |
Principal balance of small balance commercial mortgage loans secured by multi-family residential and commercial mixed use retail/residential properties | $ 454,927 |
Maximum | |
Organization And Basis Of Presentation [Line Items] | |
Principal balance of small balance commercial mortgage loans secured by multi-family residential and commercial mixed use retail/residential properties | $ 5,000 |
Thetis Asset Management | |
Organization And Basis Of Presentation [Line Items] | |
Ownership percentage | 19.80% |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details Textuals) $ in Thousands | Jun. 07, 2016shares | Jul. 08, 2014 | Dec. 31, 2016USD ($)Segmentshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
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 | ||||
Cash balances | $ 1,200 | $ 40,000 | $ 0 | ||
Accounting Standards 2015 - 03 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Reduction in prepaid expenses and other assets | 5,600 | ||||
Reduction in secured borrowings | $ 5,600 | ||||
Servicing agreement | Gregory | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of fair market value of REO | 1.00% | 1.00% | |||
Percentage of purchase price of REO | 1.00% | 1.00% | |||
Terms of agreement | 15 years | ||||
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% | |||
Management agreement | Manager | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Terms of agreement | 15 years | ||||
2014 Director Equity Plan | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of shares available under for distribution | shares | 90,000 | ||||
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 | ||||
2016 Equity Incentive Plan | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of outstanding shares on a fully diluted basis | 5.00% |
Mortgage Loans (Details)
Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Re-performing loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Contractually required principal and interest | $ 748,008 | [1] | $ 752,457 |
Non-accretable yield | (284,901) | [1] | (306,722) |
Expected cash flows to be collected | 463,107 | [1] | 445,735 |
Accretable yield | (106,492) | [1] | (118,673) |
Fair value at acquisition | 356,615 | [1] | 327,062 |
Non-performing loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Contractually required principal and interest | 6,387 | 67,393 | |
Non-accretable yield | (4,143) | (39,352) | |
Expected cash flows to be collected | 2,244 | 28,041 | |
Accretable yield | (222) | (8,281) | |
Fair value at acquisition | $ 2,022 | $ 19,760 | |
[1] | Excludes $78.2 million of RPLs acquired and sold in the third quarter of 2016. |
Mortgage Loans (Parentheticals)
Mortgage Loans (Parentheticals) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Ajax E Master Trust | Re-performing loans | Sale of re-performing mortgage loans | |
Mortgage Loans on Real Estate [Line Items] | |
Loans sold value | $ 78.2 |
Mortgage Loans (Details 1)
Mortgage Loans (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Reclassification from (to) non-accretable amount, net | $ 60,900 | $ 0 |
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 | 106,492 | 118,673 |
Reclassification from (to) non-accretable amount, net | 59,887 | |
Accretion | (62,976) | (37,158) |
Balance at end of period | 239,858 | 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 | 222 | 8,281 |
Reclassification from (to) non-accretable amount, net | 1,001 | |
Accretion | (7,583) | (10,542) |
Balance at end of period | $ 12,065 | $ 18,425 |
Mortgage Loans (Details 2)
Mortgage Loans (Details 2) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 4,910 | 3,249 |
Carrying value | $ 870,587 | $ 554,877 |
Unpaid principal balance | $ 1,070,193 | $ 725,709 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 2,306 | 1,072 |
Carrying value | $ 419,643 | $ 196,873 |
Unpaid principal balance | $ 510,058 | $ 251,216 |
30 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 797 | 521 |
Carrying value | $ 141,228 | $ 91,502 |
Unpaid principal balance | $ 173,482 | $ 118,895 |
60 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 482 | 353 |
Carrying value | $ 84,498 | $ 57,344 |
Unpaid principal balance | $ 101,727 | $ 72,870 |
90 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 911 | 898 |
Carrying value | $ 143,061 | $ 133,386 |
Unpaid principal balance | $ 179,718 | $ 174,979 |
Foreclosure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 414 | 405 |
Carrying value | $ 82,157 | $ 75,772 |
Unpaid principal balance | $ 105,208 | $ 107,749 |
Mortgage Loans (Details Textual
Mortgage Loans (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans | $ 870,587 | $ 554,877 | |
Interest income on loans | 70,700 | 47,700 | $ 6,900 |
Certain loans acquired in transfer not accounted for as debt securities, accretable yield, reclassifications (to) from nonaccretable difference | 60,900 | $ 0 | |
Re-performing loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Certain loans acquired in transfer not accounted for as debt securities, accretable yield, reclassifications (to) from nonaccretable difference | $ 59,900 | ||
Loan acquisitions | 93.10% | 85.00% | |
Non-performing loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Certain loans acquired in transfer not accounted for as debt securities, accretable yield, reclassifications (to) from nonaccretable difference | $ 1,000 | ||
Loan acquisitions | 6.90% | 15.00% |
Real Estate Assets, Net (Detail
Real Estate Assets, Net (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Property | Dec. 31, 2015USD ($)Property | |
Real Estate Held For Sale [Roll Forward] | ||
Balance at beginning of period, count | Property | 55 | 12 |
Balance at beginning of period | $ | $ 10,333 | $ 1,316 |
Transfers from mortgage loans, count | Property | 158 | 72 |
Transfers from mortgage loans | $ | $ 24,095 | $ 7,922 |
Adjustments to record at lower of cost or fair value, count | Property | ||
Adjustments to record at lower of cost or fair value | $ | $ (2,011) | $ (99) |
Disposals, count | Property | 82 | 23 |
Disposals | $ | $ (8,991) | $ (2,269) |
Purchase of REO, count | Property | 12 | |
Purchase of REO | $ | $ 2,942 | |
Other, count | Property | ||
Other | $ | $ 456 | $ 521 |
Balance at end of period , count | Property | 149 | 55 |
Balance at end of period | $ | $ 23,882 | $ 10,333 |
Real Estate Assets, Net (Deta40
Real Estate Assets, Net (Details Textuals) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Property | Dec. 31, 2015USD ($)Property | Dec. 31, 2014USD ($)Property | |
Real Estate [Line Items] | |||
Aggregate carrying value REO properties | $ 1,300 | $ 100 | |
Number of REO properties held for rental | Property | 2 | 2 | |
Gain on sale of property | $ 106 | $ 460 | |
Impaired REO held for sale net at NRV | $ 23,882 | $ 10,333 | $ 1,316 |
Number of REO properties held-for-sale | Property | 149 | 55 | 12 |
Foreclosed residential properties | $ 23,900 | $ 6,800 | |
Number of REO properties rented | Property | 1 | ||
Number of held-for-sale residential properties disposed | Property | 82 | 23 | |
Adjustment to record REO properties at lower of cost | $ 2,000 | $ 100 | |
Other Income | |||
Real Estate [Line Items] | |||
Gain on sale of property | $ 100 | $ 300 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Not recognized on consolidated balance sheet at fair value (assets) | ||||
Mortgage loans, net | $ 870,587 | $ 554,877 | ||
Impaired REO held for sale net at NRV | 23,882 | 10,333 | $ 1,316 | |
Not recognized on consolidated balance sheet at fair value (liabilities) | ||||
Secured borrowings | [1] | 442,670 | 265,006 | |
Borrowings under repurchase transactions | 227,440 | 104,533 | ||
Carrying Value | ||||
Not recognized on consolidated balance sheet at fair value (assets) | ||||
Mortgage loans, net | 870,587 | 554,877 | ||
Impaired REO held for sale net at NRV | 8,797 | 10,333 | ||
Investment in securities | 6,323 | |||
Not recognized on consolidated balance sheet at fair value (liabilities) | ||||
Secured borrowings | 442,670 | 265,006 | ||
Borrowings under repurchase transactions | 227,440 | 104,533 | ||
Level 1 Quoted prices in active markets | ||||
Not recognized on consolidated balance sheet at fair value (assets) | ||||
Mortgage loans, net | ||||
Impaired REO held for sale net at NRV | ||||
Investment in securities | ||||
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 | ||||
Impaired REO held for sale net at NRV | 8,797 | 12,581 | ||
Investment in securities | 6,323 | |||
Not recognized on consolidated balance sheet at fair value (liabilities) | ||||
Secured borrowings | ||||
Borrowings under repurchase agreement | 227,440 | 104,533 | ||
Level 3 Unobservable inputs | ||||
Not recognized on consolidated balance sheet at fair value (assets) | ||||
Mortgage loans, net | 930,226 | 627,112 | ||
Impaired REO held for sale net at NRV | ||||
Investment in securities | ||||
Not recognized on consolidated balance sheet at fair value (liabilities) | ||||
Secured borrowings | 436,623 | 259,646 | ||
Borrowings under repurchase agreement | ||||
[1] | Mortgage loans includes $598,643 and $398,696 of loans at December 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. Secured borrowings are presented net of deferred issuance costs, with deferred issuance costs of $7,082 and $5,574 at December 31, 2016 and December 31, 2015, respectively. |
Fair Value (Details 1)
Fair Value (Details 1) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Re-performing loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Equity discount rate | 5.00% | 7.00% |
Loan resolution timelines | 7 months 6 days | 4 years |
Re-performing loans | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Equity discount rate | 10.00% | 14.00% |
Loan resolution timelines | 7 years | 7 years |
Non-performing loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Equity discount rate | 10.00% | |
Non-performing loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Equity discount rate | 10.00% | |
Loan resolution timelines | 1 month 6 days | 1 year 4 months 24 days |
Non-performing loans | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Equity discount rate | 18.00% | |
Loan resolution timelines | 7 years | 4 years |
Unconsolidated Affiliates (Deta
Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Assets | $ 957,402 | $ 609,805 | |
Liabilities | 674,679 | 371,992 | |
Delaware Trust | |||
Schedule of Equity Method Investments [Line Items] | |||
Net income | 762 | 871 | $ 97 |
Assets | 6,259 | 5,966 | |
Liabilities | |||
Net income | 308 | 353 | 39 |
Assets | 2,535 | 2,416 | |
Liabilities | |||
Thetis Asset Management | |||
Schedule of Equity Method Investments [Line Items] | |||
Net income | 1,100 | 998 | 56 |
Assets | 4,846 | 3,028 | |
Liabilities | 1,167 | 520 | |
Net income | 218 | 198 | 11 |
Assets | 960 | 600 | |
Liabilities | 231 | 103 | |
AS Ajax E LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Net income | 138 | ||
Assets | 7,964 | ||
Liabilities | 12 | ||
Net income | 32 | ||
Assets | 1,314 | ||
Liabilities | $ 2 |
Unconsolidated Affiliates (De44
Unconsolidated Affiliates (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Mar. 14, 2016 | |
Manager | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 19.80% | |
Ajax E Master Trust | Re-performing loans | Sale of re-performing mortgage loans | ||
Schedule of Equity Method Investments [Line Items] | ||
Loans sold value | $ 78.2 | |
Proceeds of mortgage loans | $ 78.1 | |
Ajax E Master Trust | AS Ajax E LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest in real estate trust, percentage | 5.00% | |
AS Ajax E LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 16.50% | 24.20% |
Converted to equity investment | $ 0.3 | |
AS Ajax E LLC | Re-performing loans | Loan to equity method investee | ||
Schedule of Equity Method Investments [Line Items] | ||
Loan to AS Ajax E LLC | $ 4 | |
Basis of variable rate | Libor | |
Interest rate | 5.22% | |
Delaware Trust GA-E 2014-12 | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 40.50% |
Commitments and Contingencies (
Commitments and Contingencies (Details Textuals) - One-to-four family residences - Re-performing loans - Purchase commitment $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)Loan | |
Mortgage Loans on Real Estate [Line Items] | |
Number of mortgage loans on real estate | Loan | 49 |
Aggregate unpaid principal balance of mortgage loans on real estate | $ 9.3 |
Percentage of unpaid principal balance of loan acquired | 78.50% |
Estimated market value of the underlying collateral | $ 15.1 |
Percentage of estimated market value of the underlying collateral in three transactions from three different sellers | 48.20% |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Amount of collateral | $ 313,797 | $ 164,610 |
Master Repurchase Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 436,093 | 220,212 |
Amount outstanding | 227,440 | 104,533 |
Amount of collateral | $ 313,797 | $ 164,610 |
Interest rate | 3.35% | 3.91% |
Master Repurchase Agreement | March 9, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 9, 2017 | |
Origination date | Sep. 9, 2016 | |
Maximum borrowing capacity | $ 10,310 | |
Amount outstanding | 10,309 | |
Amount of collateral | $ 14,728 | |
Interest rate | 3.32% | |
Master Repurchase Agreement | March 30, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 30, 2017 | |
Origination date | Sep. 30, 2016 | |
Maximum borrowing capacity | $ 10,797 | |
Amount outstanding | 10,797 | |
Amount of collateral | $ 15,424 | |
Interest rate | 3.34% | |
Master Repurchase Agreement | May 8, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 8, 2017 | |
Origination date | Nov. 9, 2016 | |
Maximum borrowing capacity | $ 14,986 | |
Amount outstanding | 14,986 | |
Amount of collateral | $ 21,409 | |
Interest rate | 3.35% | |
Master Repurchase Agreement | November 21, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Nov. 21, 2017 | |
Origination date | Nov. 22, 2016 | |
Maximum borrowing capacity | $ 200,000 | |
Amount outstanding | 21,302 | |
Amount of collateral | $ 36,044 | |
Interest rate | 4.20% | |
Master Repurchase Agreement | July 12, 2019 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 12, 2019 | |
Origination date | Jul. 15, 2016 | |
Maximum borrowing capacity | $ 200,000 | |
Amount outstanding | 170,046 | |
Amount of collateral | $ 226,192 | |
Interest rate | 3.25% | |
Master Repurchase Agreement | March 30, 2016 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 30, 2016 | |
Origination date | Sep. 30, 2015 | |
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 | |
Origination date | Dec. 23, 2015 | |
Maximum borrowing capacity | $ 9,374 | |
Amount outstanding | 9,374 | |
Amount of collateral | $ 13,391 | |
Interest rate | 2.91% | |
Master Repurchase Agreement | November 22, 2016 | ||
Debt Instrument [Line Items] | ||
Maturity Date | Nov. 22, 2016 | |
Origination date | Nov. 24, 2015 | |
Maximum borrowing capacity | $ 200,000 | |
Amount outstanding | 84,321 | |
Amount of collateral | $ 135,736 | |
Interest rate | 4.17% |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Gross amount of recognized liabilities | $ 227,440 | $ 104,533 |
Gross amount pledged as collateral | 313,797 | 164,610 |
Net amount | $ 86,357 | $ 60,077 |
Debt (Details 2)
Debt (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Deferred issuance costs | $ (7,082) | $ (5,574) | |
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2015-A / May 2015 | |||
Debt Instrument [Line Items] | |||
Notes due | 2,054 | ||
Original Principal | $ 35,600 | ||
Interest Rate | 3.88% | ||
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2015-B / July 2015 | |||
Debt Instrument [Line Items] | |||
Notes due | 2,060 | ||
Original Principal | $ 87,200 | ||
Interest Rate | 3.88% | ||
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2015-C / November 2015 | |||
Debt Instrument [Line Items] | |||
Notes due | 2,057 | ||
Original Principal | $ 82,000 | ||
Interest Rate | 3.88% | ||
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2016-A/ April 2016 | |||
Debt Instrument [Line Items] | |||
Notes due | 2,064 | ||
Original Principal | $ 101,400 | ||
Interest Rate | 4.25% | ||
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2016-B / August 2016 | |||
Debt Instrument [Line Items] | |||
Notes due | 2,065 | ||
Original Principal | $ 84,400 | ||
Interest Rate | 4.00% | ||
Mortgage loans | Class A Notes | Ajax Mortgage Loan Trust 2016-C/ October 2016 | |||
Debt Instrument [Line Items] | |||
Notes due | 2,057 | ||
Original Principal | $ 102,600 | ||
Interest Rate | 4.00% | ||
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2015-A / May 2015 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,054 | |
Original Principal | [1],[2] | $ 8,700 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2015-B / July 2015 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,060 | |
Original Principal | [1],[2] | $ 15,900 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2015-C / November 2015 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,057 | |
Original Principal | [1],[2] | $ 6,500 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2016-A/ April 2016 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,064 | |
Original Principal | [1],[2] | $ 7,900 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2016-B / August 2016 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,065 | |
Original Principal | [1],[2] | $ 6,600 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 1 Notes | Ajax Mortgage Loan Trust 2016-C/ October 2016 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,057 | |
Original Principal | [1],[2] | $ 7,900 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2015-A / May 2015 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,054 | |
Original Principal | [1],[2] | $ 8,700 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2015-B / July 2015 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,060 | |
Original Principal | [1],[2] | $ 7,900 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2015-C / November 2015 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,057 | |
Original Principal | [1],[2] | $ 6,500 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2016-A/ April 2016 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,064 | |
Original Principal | [1],[2] | $ 7,900 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2016-B / August 2016 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,065 | |
Original Principal | [1],[2] | $ 6,600 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Class B 2 Notes | Ajax Mortgage Loan Trust 2016-C/ October 2016 | |||
Debt Instrument [Line Items] | |||
Notes due | [1],[2] | 2,057 | |
Original Principal | [1],[2] | $ 7,900 | |
Interest Rate | [1],[2] | 5.25% | |
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2015-A / May 2015 | |||
Debt Instrument [Line Items] | |||
Original Principal | [3] | $ 22,800 | |
Interest Rate | [3] | ||
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2015-B / July 2015 | |||
Debt Instrument [Line Items] | |||
Original Principal | [3] | $ 47,500 | |
Interest Rate | [3] | ||
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2015-C / November 2015 | |||
Debt Instrument [Line Items] | |||
Original Principal | [3] | $ 35,100 | |
Interest Rate | [3] | ||
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2016-A/ April 2016 | |||
Debt Instrument [Line Items] | |||
Original Principal | [3] | $ 41,300 | |
Interest Rate | [3] | ||
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2016-B / August 2016 | |||
Debt Instrument [Line Items] | |||
Original Principal | [3] | $ 34,100 | |
Interest Rate | [3] | ||
Mortgage loans | Trust Certificate | Ajax Mortgage Loan Trust 2016-C/ October 2016 | |||
Debt Instrument [Line Items] | |||
Original Principal | [3] | $ 39,400 | |
Interest Rate | [3] | ||
Mortgage loans | Deferred issuance costs | Ajax Mortgage Loan Trust 2015-A / May 2015 | |||
Debt Instrument [Line Items] | |||
Interest Rate | |||
Deferred issuance costs | $ (800) | ||
Mortgage loans | Deferred issuance costs | Ajax Mortgage Loan Trust 2015-B / July 2015 | |||
Debt Instrument [Line Items] | |||
Interest Rate | |||
Deferred issuance costs | $ (1,500) | ||
Mortgage loans | Deferred issuance costs | Ajax Mortgage Loan Trust 2015-C / November 2015 | |||
Debt Instrument [Line Items] | |||
Interest Rate | |||
Deferred issuance costs | $ (2,700) | ||
Mortgage loans | Deferred issuance costs | Ajax Mortgage Loan Trust 2016-A/ April 2016 | |||
Debt Instrument [Line Items] | |||
Interest Rate | |||
Deferred issuance costs | $ (2,700) | ||
Mortgage loans | Deferred issuance costs | Ajax Mortgage Loan Trust 2016-B / August 2016 | |||
Debt Instrument [Line Items] | |||
Interest Rate | |||
Deferred issuance costs | $ (1,600) | ||
Mortgage loans | Deferred issuance costs | Ajax Mortgage Loan Trust 2016-C/ October 2016 | |||
Debt Instrument [Line Items] | |||
Interest Rate | |||
Deferred issuance costs | $ (1,600) | ||
[1] | 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. | ||
[2] | These securities are encumbered under a repurchase agreement. | ||
[3] | The trust certificates issued by the trusts and the beneficial ownership of the trusts are retained by Great Ajax Funding LLC as the depositor. As the holder of the trust certificates, we are entitled to receive any remaining amounts in the trusts after the Class A notes and Class B notes have been paid in full. |
Debt (Details 3)
Debt (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Carrying value of mortgages | [1] | $ 870,587 | |
Mortgage loans | |||
Debt Instrument [Line Items] | |||
Carrying value of mortgages | 598,643 | $ 398,696 | |
Bond principal balance | 449,752 | 270,580 | |
Original balances at securitization cutoff date Mortgage UPB | 985,442 | ||
Original balances at securitization cutoff date Bond principal balance | 579,426 | ||
Mortgage loans | 2014-A | |||
Debt Instrument [Line Items] | |||
Carrying value of mortgages | [2] | 55,098 | |
Bond principal balance | [2] | 36,463 | |
Original balances at securitization cutoff date Mortgage UPB | 81,405 | ||
Original balances at securitization cutoff date Bond principal balance | 45,000 | ||
Mortgage loans | 2014-B | |||
Debt Instrument [Line Items] | |||
Carrying value of mortgages | [2] | 66,292 | |
Bond principal balance | [2] | 35,646 | |
Original balances at securitization cutoff date Mortgage UPB | 91,535 | ||
Original balances at securitization cutoff date Bond principal balance | 41,191 | ||
Mortgage loans | 2015-A | |||
Debt Instrument [Line Items] | |||
Carrying value of mortgages | 51,388 | 53,673 | |
Bond principal balance | 29,476 | 33,674 | |
Original balances at securitization cutoff date Mortgage UPB | 75,835 | ||
Original balances at securitization cutoff date Bond principal balance | 35,643 | ||
Mortgage loans | 2015-B | |||
Debt Instrument [Line Items] | |||
Carrying value of mortgages | 104,111 | 115,395 | |
Bond principal balance | 75,258 | 84,973 | |
Original balances at securitization cutoff date Mortgage UPB | 158,498 | ||
Original balances at securitization cutoff date Bond principal balance | 87,174 | ||
Mortgage loans | 2015-C | |||
Debt Instrument [Line Items] | |||
Carrying value of mortgages | 100,614 | 108,238 | |
Bond principal balance | 66,979 | 79,824 | |
Original balances at securitization cutoff date Mortgage UPB | 130,130 | ||
Original balances at securitization cutoff date Bond principal balance | 81,982 | ||
Mortgage loans | 2016-A | |||
Debt Instrument [Line Items] | |||
Carrying value of mortgages | 118,189 | ||
Bond principal balance | 96,158 | ||
Original balances at securitization cutoff date Mortgage UPB | 158,485 | ||
Original balances at securitization cutoff date Bond principal balance | 101,431 | ||
Mortgage loans | 2016-B | |||
Debt Instrument [Line Items] | |||
Carrying value of mortgages | 97,660 | ||
Bond principal balance | 80,672 | ||
Original balances at securitization cutoff date Mortgage UPB | 131,746 | ||
Original balances at securitization cutoff date Bond principal balance | 84,430 | ||
Mortgage loans | 2016 C | |||
Debt Instrument [Line Items] | |||
Carrying value of mortgages | 126,681 | ||
Bond principal balance | 101,209 | ||
Original balances at securitization cutoff date Mortgage UPB | 157,808 | ||
Original balances at securitization cutoff date Bond principal balance | $ 102,575 | ||
[1] | The aggregate cost for federal income tax purposes is ($825.9 million) as of December 31, 2016. | ||
[2] | Bonds issued under 2014-A and 2014-B were called in October 2016. |
Debt (Details Textuals)
Debt (Details Textuals) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)Facility | |
Debt Instrument [Line Items] | |
Percentage of guarantors beneficial interest | 100.00% |
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 | Re-performing loans | 2016-A | |
Debt Instrument [Line Items] | |
Servicing fees percentage | 0.65% |
Mortgage loans | Re-performing loans | 2016-B | |
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% |
Mortgage loans | Non-performing loans | 2016-A | |
Debt Instrument [Line Items] | |
Servicing fees percentage | 1.25% |
Mortgage loans | Non-performing loans | 2016-B | |
Debt Instrument [Line Items] | |
Servicing fees percentage | 1.25% |
Master Repurchase Agreement | Mortgage loans | Re-performing loans | 2016-A | |
Debt Instrument [Line Items] | |
Servicing fees percentage | 0.65% |
Master Repurchase Agreement | Mortgage loans | Re-performing loans | 2016-B | |
Debt Instrument [Line Items] | |
Servicing fees percentage | 0.65% |
Master Repurchase Agreement | Mortgage loans | Re-performing loans | 2016 C | |
Debt Instrument [Line Items] | |
Servicing fees percentage | 0.65% |
Master Repurchase Agreement | Mortgage loans | Non-performing loans | 2016-A | |
Debt Instrument [Line Items] | |
Servicing fees percentage | 1.25% |
Master Repurchase Agreement | Mortgage loans | Non-performing loans | 2016-B | |
Debt Instrument [Line Items] | |
Servicing fees percentage | 1.25% |
Master Repurchase Agreement | Mortgage loans | Non-performing loans | 2016 C | |
Debt Instrument [Line Items] | |
Servicing fees percentage | 1.25% |
Master Repurchase Agreement | Delaware Trust | Mortgage loans | |
Debt Instrument [Line Items] | |
Number of facilities repurchased | Facility | 2 |
Ceiling for each repurchase facility | $ | $ 200 |
Variable rate basis of borrowing | one-month LIBOR |
Master Repurchase Agreement | Delaware Trust | Mortgage loans | Maximum | |
Debt Instrument [Line Items] | |
Percentage of purchase price for each mortgage loan or REO | 85.00% |
Master Repurchase Agreement | Delaware Trust | Mortgage loans | Minimum | |
Debt Instrument [Line Items] | |
Percentage of purchase price for each mortgage loan or REO | 70.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gregory | Loan servicing fees | |||
Related Party Transaction [Line Items] | |||
Loan servicing fees | $ 6,262 | $ 3,993 | $ 485 |
Gregory | Loan transaction expense | |||
Related Party Transaction [Line Items] | |||
Due diligence and related loan acquisition costs | 100 | 75 | |
Gregory | Other fees and expenses | |||
Related Party Transaction [Line Items] | |||
Expense reimbursements | 67 | ||
Thetis | Management fees | |||
Related Party Transaction [Line Items] | |||
Management fee | 3,949 | 3,353 | 956 |
Thetis | Professional fees | |||
Related Party Transaction [Line Items] | |||
Expense reimbursements | 58 | ||
Thetis | Other fees and expenses | |||
Related Party Transaction [Line Items] | |||
Expense reimbursements | $ 28 | ||
Aspen Yo | Loan transaction expense | |||
Related Party Transaction [Line Items] | |||
Due diligence and related loan acquisition costs | $ 12 |
Related Party Transactions (D52
Related Party Transactions (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Receivable from Servicer | $ 12,481 | $ 5,444 |
Management fee payable | 750 | 667 |
Investment in subordinated debt securities | 6,323 | |
Gregory | Receivables from Servicer | ||
Related Party Transaction [Line Items] | ||
Receivable from Servicer | 12,481 | 5,444 |
Gregory | Accrued expenses and other liabilities | ||
Related Party Transaction [Line Items] | ||
Servicing fees payable | 195 | 152 |
Thetis | Management fee payable | ||
Related Party Transaction [Line Items] | ||
Management fee payable | 750 | 677 |
Thetis | Prepaid expenses and other assets | ||
Related Party Transaction [Line Items] | ||
Insurance expense reimbursement receivable | 37 | |
Oileus Residential Loan Trust | Investment in securities | ||
Related Party Transaction [Line Items] | ||
Investment in subordinated debt securities | $ 6,323 | |
Oileus Residential Loan Trust | Investment in debt securities | ||
Related Party Transaction [Line Items] | ||
Investment in subordinated debt securities |
Related party transactions (D53
Related party transactions (Details Textuals) $ in Thousands | Jul. 08, 2014 | Oct. 31, 2016USD ($)Loan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Related Party Transaction [Line Items] | ||||
Investment In Debt Securities | $ 6,323 | |||
Securities carried on amortized cost basis | 6,300 | |||
Unpaid principal balance | 1,070,193 | $ 725,709 | ||
Management fee payable | $ 750 | $ 667 | ||
Servicer | ||||
Related Party Transaction [Line Items] | ||||
Percentage of participation interest held | 95.00% | |||
Three Related Party Trusts | Re-performing loans | ||||
Related Party Transaction [Line Items] | ||||
Number of mortgage loans on real estate | Loan | 370 | |||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 69,900 | |||
Weighted average coupon rate | 5.84% | |||
Percentage of unpaid principal balance of loan acquired | 93.00% | |||
Estimated market value of the underlying collateral | $ 92,200 | |||
Oileus Residential Loan Trust | Investment in securities | ||||
Related Party Transaction [Line Items] | ||||
Investment In Debt Securities | $ 6,323 | |||
Management agreement | Manager | ||||
Related Party Transaction [Line Items] | ||||
Base management fee percentage | 1.50% | |||
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% | ||
Amended And Restated Management Agreement | Manager | ||||
Related Party Transaction [Line Items] | ||||
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 $1.0 million will be payable in shares of the Company’s common stock until payment is 50% in cash and 50% in shares (the “50/50 split”). | |||
Percentage of remaining incentive fee payable in common stock | 20.00% | |||
Percentage of remaining incentive fee payable in cash | 8.00% |
Stock-based Payments and Dire54
Stock-based Payments and Director Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares | 77,605 | 92,369 | 34,337 | |
Amount of expense recognized | [1] | $ 1,167 | $ 1,339 | $ 515 |
Management fees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares | 70,957 | 85,497 | 31,835 | |
Amount of expense recognized | [1] | $ 1,067 | $ 1,239 | $ 477 |
Independent director fees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares | 6,648 | 6,872 | 2,502 | |
Amount of expense recognized | [1] | $ 100 | $ 100 | $ 38 |
[1] | All management fees and independent director fees are fully expensed in the period in which they are incurred. |
Stock-based Payments and Dire55
Stock-based Payments and Director Fees (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total shares granted | 163,000 | 8,000 | 6,000 | ||||
Shares granted during the year | 155,000 | 2,000 | 6,000 | ||||
Total expected cost of grant | $ 2,081 | $ 29 | $ 90 | ||||
Grant expense recognized for the year | $ 300 | $ 71 | $ 45 | ||||
Non-vested shares | 155,000 | 2,000 | 6,000 | ||||
Non-vested Per share grant fair value | $ 13.50 | $ 14.25 | $ 15 | ||||
Fully-vested shares | 8,000 | 6,000 | |||||
Fully-vested weighted average grant date fair value | $ 13.79 | $ 14.25 | |||||
Restricted stock | Directors' Grants | Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total shares granted | 10,000 | [1] | 8,000 | [2] | 6,000 | [2] | |
Shares granted during the year | 2,000 | [1] | 2,000 | [2] | 6,000 | [2] | |
Total expected cost of grant | $ 28 | [1] | $ 29 | [2] | $ 90 | [2] | |
Grant expense recognized for the year | $ 16 | [1] | $ 71 | [2] | $ 45 | [2] | |
Non-vested shares | 2,000 | [1] | 2,000 | [2] | 6,000 | [2] | |
Non-vested Per share grant fair value | $ 13.79 | [1] | $ 14.25 | [2] | $ 15 | [2] | |
Fully-vested shares | 8,000 | [1] | 6,000 | [2] | [2] | ||
Fully-vested weighted average grant date fair value | [2] | $ 13.79 | [1] | $ 14.25 | |||
Restricted stock | Employee and Service Provider Grants | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total shares granted | 153,000 | [3] | [4] | [4] | |||
Shares granted during the year | 153,000 | [3] | [4] | [4] | |||
Total expected cost of grant | $ 2,053 | [3] | [4] | [4] | |||
Grant expense recognized for the year | $ 284 | [3] | [4] | [4] | |||
Non-vested shares | 153,000 | [3] | [4] | [4] | |||
Non-vested Per share grant fair value | $ 13.50 | [3] | [4] | [4] | |||
Fully-vested shares | [3] | [4] | [4] | ||||
Fully-vested weighted average grant date fair value | [3] | [4] | [4] | ||||
[1] | Vesting period is one year from grant date. Weighted average remaining life of grant at December 31, 2016 is 0.5 years. | ||||||
[2] | Vesting period is one year from grant date. | ||||||
[3] | Vesting is ratable over three-year period from grant date. Weighted average remaining life of grant at December 31, 2016 is 2.6 years. | ||||||
[4] | Vesting is ratable over three-year period from grant date. |
Stock-based Payments and Dire56
Stock-based Payments and Director Fees (Details Textuals) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Aug. 17, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Management fees | $ 3,900 | |
Management fee paid with shares of stock | $ 1,100 | |
Number of shares issued for payment for management fee | 70,957 | |
Annual retainer amount | $ 50,000 | |
Restricted stock | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted stock awards issued to independent directors | 153,000 | |
Vesting period | 3 years | |
Private Placement | Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted stock awards issued to independent directors | 20,352 | |
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 | 2,000 | |
Vesting period | 1 year |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Distribution percentage of Real Estate Investment Trust (REIT) taxable income | 90.00% | ||
Taxable income | $ 700 | $ 15,900 | $ 10,800 |
Provision for income taxes | $ 35 | $ 2 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic EPS | |||||||||||
Consolidated net income attributable to common stockholders | $ 10,969 | $ 11,619 | $ 10,688 | $ 11,411 | $ 11,689 | $ 10,936 | $ 8,810 | $ 6,033 | $ 3,424 | $ 27,836 | $ 24,754 |
Allocation of earnings to participating restricted shares | (11) | (140) | (62) | ||||||||
Consolidated net income attributable to unrestricted common stockholders | $ 5,957 | $ 7,623 | $ 6,605 | $ 7,651 | $ 8,064 | $ 7,614 | $ 5,436 | $ 3,640 | 3,413 | 27,696 | 24,692 |
Effect of dilutive securities | |||||||||||
Operating partnership units | 147 | 1,038 | 1,038 | ||||||||
Restricted stock grants and Manager and director fee shares | 11 | 140 | 62 | ||||||||
Diluted EPS | |||||||||||
Consolidated income attributable to common stockholders and dilutive securities | $ 3,571 | $ 28,874 | $ 25,792 | ||||||||
Basic EPS | |||||||||||
Consolidated income attributable to common stockholders, shares | 8,360,432 | 16,742,882 | 14,711,610 | ||||||||
Allocation of earnings to participating restricted shares, shares | |||||||||||
Consolidated income attributable to unrestricted common stockholders, shares | 8,360,432 | 16,742,882 | 14,711,610 | ||||||||
Effect of dilutive securities | |||||||||||
Operating partnership units, shares | 461,964 | 624,106 | 624,106 | ||||||||
Restricted stock grants and Manager and director fee shares, shares | 26,659 | 84,919 | 36,772 | ||||||||
Diluted EPS | |||||||||||
Consolidated income attributable to common stockholders and dilutive securities, shares | 8,849,055 | 17,451,907 | 15,372,488 | ||||||||
Per Share Amount | |||||||||||
Consolidated income attributable to unrestricted common stockholders (in dollars per share) | $ 0.33 | $ 0.42 | $ 0.42 | $ 0.5 | $ 0.53 | $ 0.5 | $ 0.36 | $ 0.28 | $ 0.41 | $ 1.65 | $ 1.68 |
Consolidated net income attributable to unrestricted common stockholders (in dollars per share) | $ 0.33 | $ 0.42 | $ 0.42 | $ 0.5 | $ 0.53 | $ 0.5 | $ 0.36 | $ 0.28 | $ 0.40 | $ 1.65 | $ 1.68 |
Quarterly Financial Informati59
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total income | $ 10,969 | $ 11,619 | $ 10,688 | $ 11,411 | $ 11,689 | $ 10,936 | $ 8,810 | $ 6,033 | $ 3,424 | $ 27,836 | $ 24,754 |
Income before provision for income taxes | 6,157 | 7,905 | 6,887 | 7,960 | 8,371 | 7,933 | 5,675 | 3,815 | 3,750 | 28,909 | 25,794 |
Net income attributable to common stockholders | $ 5,957 | $ 7,623 | $ 6,605 | $ 7,651 | $ 8,064 | $ 7,614 | $ 5,436 | $ 3,640 | $ 3,413 | $ 27,696 | $ 24,692 |
Basic earnings per common share (in dollars per share) | $ 0.33 | $ 0.42 | $ 0.42 | $ 0.5 | $ 0.53 | $ 0.5 | $ 0.36 | $ 0.28 | $ 0.41 | $ 1.65 | $ 1.68 |
Diluted earnings per common share (in dollars per share) | $ 0.33 | $ 0.42 | $ 0.42 | $ 0.5 | $ 0.53 | $ 0.5 | $ 0.36 | $ 0.28 | $ 0.40 | $ 1.65 | $ 1.68 |
Subsequent Events (Details Text
Subsequent Events (Details Textuals) - Subsequent events - Re-performing loans $ in Millions | 2 Months Ended |
Feb. 28, 2017USD ($)Loan | |
Subsequent Event [Line Items] | |
Number of mortgage loans on real estate | Loan | 21 |
Aggregate unpaid principal balance of mortgage loans on real estate | $ 2.9 |
Percentage of unpaid principal balance of loan acquired | 93.60% |
Estimated market value of the underlying collateral | $ 5.5 |
Percentage of estimated market value of the underlying collateral | 48.80% |
Three sellers | |
Subsequent Event [Line Items] | |
Number of mortgage loans on real estate | Loan | 18 |
Aggregate unpaid principal balance of mortgage loans on real estate | $ 3 |
Percentage of unpaid principal balance of loan acquired | 85.00% |
Estimated market value of the underlying collateral | $ 4.4 |
Percentage of estimated market value of the underlying collateral | 57.90% |
Subsequent Events (Details Te61
Subsequent Events (Details Textuals 1) $ / shares in Units, $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Feb. 22, 2017Directorshares | Feb. 16, 2017USD ($)$ / shares | Dec. 31, 2014shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015shares | |
Subsequent Event [Line Items] | |||||
Increase in annual compensation | $ | $ 50,000 | ||||
Common Stock | |||||
Subsequent Event [Line Items] | |||||
Stock issued in lieu of management fee | 14,621 | 65,515 | 87,801 | ||
Subsequent events | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued in payment of half of their quarterly director fees | 415 | ||||
Number of independent directors | Director | 4 | ||||
Subsequent events | Manager | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Stock issued in lieu of management fee | 20,352 | ||||
Subsequent events | Board of directors | |||||
Subsequent Event [Line Items] | |||||
Dividend declared date | Feb. 16, 2017 | ||||
Dividends payable, amount per share | $ / shares | $ 0.25 | ||||
Dividend paid date | Mar. 31, 2017 | ||||
Dividend record date | Mar. 15, 2017 | ||||
Increase in annual compensation | $ | $ 75,000 |
Mortgage loans on real estate (
Mortgage loans on real estate (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015Loan | ||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | Loan | 4,910 | 3,249 | |
Carrying amount of mortgages | [1] | $ 870,587 | |
Principal amount subject to delinquent principal and interest | 454,927 | ||
Amount of balloon payments at maturity | 161,465 | ||
Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Principal amount subject to delinquent principal and interest | $ 5,000 | ||
$0-49,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | Loan | 418 | ||
Carrying amount of mortgages | [1] | $ 11,300 | |
Principal amount subject to delinquent principal and interest | 6,084 | ||
Amount of balloon payments at maturity | $ 1,361 | ||
$0-49,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 0.00% | ||
Maturity | Aug. 13, 2008 | ||
$0-49,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 14.78% | ||
Maturity | Oct. 1, 2056 | ||
$50,000-99,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | Loan | 822 | ||
Carrying amount of mortgages | [1] | $ 50,820 | |
Principal amount subject to delinquent principal and interest | 27,171 | ||
Amount of balloon payments at maturity | $ 5,081 | ||
$50,000-99,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 1.88% | ||
Maturity | Sep. 1, 2009 | ||
$50,000-99,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 12.75% | ||
Maturity | Aug. 1, 2065 | ||
$100,000-149,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | Loan | 945 | ||
Carrying amount of mortgages | [1] | $ 96,684 | |
Principal amount subject to delinquent principal and interest | 57,161 | ||
Amount of balloon payments at maturity | $ 9,184 | ||
$100,000-149,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 1.00% | ||
Maturity | Apr. 19, 2009 | ||
$100,000-149,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 13.34% | ||
Maturity | Jul. 1, 2064 | ||
$150,000-199,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | Loan | 691 | ||
Carrying amount of mortgages | [1] | $ 98,137 | |
Principal amount subject to delinquent principal and interest | 57,646 | ||
Amount of balloon payments at maturity | $ 10,728 | ||
$150,000-199,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 2.00% | ||
Maturity | Oct. 26, 2005 | ||
$150,000-199,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 12.13% | ||
Maturity | Nov. 1, 2056 | ||
$200,000-249,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | Loan | 523 | ||
Carrying amount of mortgages | [1] | $ 93,993 | |
Principal amount subject to delinquent principal and interest | 51,357 | ||
Amount of balloon payments at maturity | $ 14,628 | ||
$200,000-249,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 1.99% | ||
Maturity | Aug. 1, 2019 | ||
$200,000-249,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 10.95% | ||
Maturity | Oct. 1, 2056 | ||
$250,000+ | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | Loan | 1,511 | ||
Carrying amount of mortgages | [1] | $ 519,652 | |
Principal amount subject to delinquent principal and interest | 255,508 | ||
Amount of balloon payments at maturity | $ 120,483 | ||
$250,000+ | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 1.00% | ||
Maturity | Jan. 1, 2014 | ||
$250,000+ | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Minimum Interest rate | 11.39% | ||
Maturity | May 1, 2066 | ||
[1] | The aggregate cost for federal income tax purposes is ($825.9 million) as of December 31, 2016. |
Mortgage loans on real estate63
Mortgage loans on real estate (Parentheticals) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Mortgage Loans on Real Estate [Abstract] | |
Aggregate cost for federal income tax purposes | $ 825.9 |
Mortgage loans on real estate64
Mortgage loans on real estate (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Beginning balance | $ 554,877 |
Mortgage loan portfolio acquisitions | 434,782 |
Sale of mortgage loans | (78,162) |
Accretion recognized | 70,558 |
Mortgage loan payments | (89,769) |
Transfers of mortgage loans to REO | (25,037) |
Other | 3,338 |
Ending balance | $ 870,587 |