Dynex Capital (DX) 10-K 15 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 28, 2017	Jun. 30, 2016
Entity Information [Line Items]
Entity Registrant Name	DYNEX CAPITAL INC
Entity Central Index Key	826,675
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		49,192,310
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 310,217,722

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets:
Mortgage-backed securities (including pledged of $3,150,610 and $3,361,635, respectively)	$ 3,212,084	$ 3,493,701
Mortgage loans held for investment, net	19,036	24,145
Investment in limited partnership	0	10,835
Investment in FHLB stock	9	11,475
Cash and cash equivalents	74,120	33,935
Restricted cash	24,769	51,190
Derivative assets	28,534	7,835
Principal receivable on investments	11,978	6,193
Accrued interest receivable	20,396	22,764
Other assets, net	6,805	7,975
Total assets	3,397,731	3,670,048
Liabilities:
Repurchase agreements	2,898,952	2,589,420
FHLB advances	0	520,000
Non-recourse collateralized financing	6,440	8,442
Derivative liabilities	6,922	41,205
Accrued interest payable	3,156	1,743
Accrued dividends payable	12,268	13,709
Other liabilities	2,809	3,504
Total liabilities	2,930,547	3,178,023
Shareholders' Equity:
Preferred stock, par value $.01 per share; 50,000,000 shares authorized; 4,571,937 and 4,550,000 shares issued and outstanding, respectively ($114,298 and $113,750 aggregate liquidation preference, respectively)	110,005	109,658
Common stock, par value $.01 per share, 200,000,000 shares authorized; 49,153,463 and 49,047,335 shares issued and outstanding, respectively	492	490
Additional paid-in capital	727,369	725,358
Accumulated other comprehensive loss	(32,609)	(12,768)
Accumulated deficit	(338,073)	(330,713)
Total shareholders' equity	467,184	492,025
Total liabilities and shareholders’ equity	$ 3,397,731	$ 3,670,048

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets:
Pledged MBS	$ 3,150,610	$ 3,361,635
Shareholders' Equity:
Preferred Stock, Par Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	4,571,937	4,550,000
Preferred stock, shares outstanding	4,571,937	4,550,000
Preferred Stock, aggregate liquidation preference	$ 114,298	$ 113,750
Common stock, par value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	49,153,463	49,047,335
Common stock, shares outstanding	49,153,463	49,047,335

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest income	$ 91,898	$ 100,244	$ 105,644
Interest expense	25,231	22,605	25,915
Net interest income	66,667	77,639	79,729
Loss on derivative instruments, net	(5,606)	(43,128)	(53,393)
(Loss) gain on sale of investments, net	(4,238)	(978)	16,223
Fair value adjustments, net	103	69	208
Other income, net	880	610	1,046
General and administrative expenses:
Compensation and benefits	(7,550)	(9,103)	(9,509)
Other general and administrative	(7,157)	(8,565)	(6,498)
Net income	43,099	16,544	27,806
Preferred stock dividends	(9,185)	(9,176)	(9,176)
Net income to common shareholders	33,914	7,368	18,630
Other comprehensive income:
Change in net unrealized gain on available-for-sale investments	(23,828)	(38,561)	64,567
Reclassification adjustment for loss (gain) on sale of investments, net	4,238	978	(16,223)
Reclassification adjustment for de-designated cash flow hedges	(251)	3,499	6,788
Total other comprehensive (loss) income	(19,841)	(34,084)	55,132
Comprehensive income (loss) to common shareholders	$ 14,073	$ (26,716)	$ 73,762
Net income per common share-basic and diluted	$ 0.69	$ 0.14	$ 0.34
Weighted average common shares-basic and diluted	49,114	52,847	54,701

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity Statement - USD ($) $ in Thousands	Total	Preferred Stock	Preferred Stock Including Additional Paid in Capital [Member]	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit
Balance, Preferred stock, shares outstanding at Dec. 31, 2013		4,550,000
Balance, Common stock, shares outstanding at Dec. 31, 2013				54,310,484
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Shares, New Issues				16,753
Restricted stock granted, shares				471,210
Adjustments for tax withholding on share-based compensation, shares				(59,336)
Balance, Preferred stock, shares outstanding at Dec. 31, 2014		4,550,000
Balance, Common stock, shares outstanding at Dec. 31, 2014				54,739,111
Balance at Dec. 31, 2013	$ 585,876		$ 109,658	$ 543	$ 761,550	$ (33,816)	$ (252,059)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issuance	252			1	251
Restricted stock granted, value, net of amortization	2,719			4	2,715
Adjustments for tax withholding on share-based compensation, value	(507)			(1)	(506)
Stock issuance costs	(75)				(75)
Net income	27,806						27,806
Dividends on preferred stock	(9,176)						(9,176)
Dividends on common stock	(54,725)						(54,725)
Other comprehensive income (loss)	55,132					55,132
Balance at Dec. 31, 2014	$ 607,302		109,658	$ 547	763,935	21,316	(288,154)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Shares, New Issues				22,607
Restricted stock granted, shares				263,829
Adjustments for tax withholding on share-based compensation, shares				(67,296)
Common stock repurchased, shares				(5,910,916)
Balance, Preferred stock, shares outstanding at Dec. 31, 2015	4,550,000	4,550,000
Balance, Common stock, shares outstanding at Dec. 31, 2015	49,047,335			49,047,335
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issuance	$ 166			$ 0	166
Restricted stock granted, value, net of amortization	2,965			3	2,962
Adjustments for tax withholding on share-based compensation, value	(557)			(1)	(556)
Stock issuance costs	(37)				(37)
Common stock repurchased, value	(41,171)			(59)	(41,112)
Net income	16,544						16,544
Dividends on preferred stock	(9,176)						(9,176)
Dividends on common stock	(49,927)						(49,927)
Other comprehensive income (loss)	(34,084)					(34,084)
Balance at Dec. 31, 2015	$ 492,025		109,658	$ 490	725,358	(12,768)	(330,713)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Shares, New Issues		21,937		20,582
Restricted stock granted, shares				214,878
Adjustments for tax withholding on share-based compensation, shares				(80,888)
Common stock repurchased, shares				(48,444)
Balance, Preferred stock, shares outstanding at Dec. 31, 2016	4,571,937	4,571,937
Balance, Common stock, shares outstanding at Dec. 31, 2016	49,153,463			49,153,463
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issuance	$ 685		548	$ 1	136
Restricted stock granted, value, net of amortization	2,709			2	2,707
Adjustments for tax withholding on share-based compensation, value	(485)			(1)	(484)
Stock issuance costs	(239)		(201)		(38)
Common stock repurchased, value	(310)			0	(310)
Net income	43,099						43,099
Dividends on preferred stock	(9,185)						(9,185)
Dividends on common stock	(41,274)						(41,274)
Other comprehensive income (loss)	(19,841)					(19,841)
Balance at Dec. 31, 2016	$ 467,184		$ 110,005	$ 492	$ 727,369	$ (32,609)	$ (338,073)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net income	$ 43,099	$ 16,544	$ 27,806
Adjustments to reconcile net income to cash provided by operating activities:
Decrease (increase) in accrued interest receivable	2,368	(1,607)	546
Increase (decrease) in accrued interest payable	1,413	(204)	(600)
Loss on derivative instruments, net	5,606	43,128	53,393
Loss (gain) on sale of investments, net	(4,238)	(978)	16,223
Fair value adjustments, net	(103)	(69)	(208)
Amortization of investment premiums, net	150,729	152,308	137,837
Other amortization and depreciation, net	1,502	5,338	8,900
Stock-based compensation expense	2,709	2,965	2,719
Other operating activities	(1,047)	(2,430)	306
Net cash and cash equivalents provided by operating activities	210,514	216,951	214,476
Investing activities:
Purchase of investments	(435,046)	(1,122,970)	(599,381)
Principal payments received on investments	448,567	494,275	518,303
Proceeds from sales of investments	99,284	449,921	503,918
Principal payments received on mortgage loans held for investment, net	4,953	15,570	16,787
Payment to acquire interest in limited partnership	0	(6,000)	(4,000)
Distributions received from limited partnership	10,835	0	0
Net payments on derivatives, including terminations	(60,588)	(39,929)	(11,415)
Other investing activities	(37)	(237)	(7)
Net cash and cash equivalents provided by (used in) investing activities	67,968	(209,370)	424,205
Financing activities:
Borrowings under repurchase agreements and FHLB advances	40,594,639	23,555,007	22,547,991
Repayments of repurchase agreement borrowings and FHLB advances	(40,805,107)	(23,458,697)	(23,115,878)
Principal payments on non-recourse collateralized financing	(2,039)	(2,395)	(2,167)
Decrease (increase) in restricted cash	26,421	(8,927)	(28,878)
Proceeds from issuance of preferred stock	548	0	0
Proceeds from issuance of common stock	137	166	252
Cash paid for stock issuance costs	(201)	0	0
Cash paid for repurchases of common stock	(310)	(41,171)	0
Payments related to tax withholding for stock-based compensation	(485)	(557)	(507)
Dividends paid	(51,900)	(61,016)	(64,880)
Net cash and cash equivalents used in financing activities	(238,297)	(17,590)	(664,067)
Net increase (decrease) in cash and cash equivalents	40,185	(10,009)	(25,386)
Cash and cash equivalents at beginning of period	33,935	43,944	69,330
Cash and cash equivalents at end of period	74,120	33,935	43,944
Supplemental Disclosure of Cash Activity:
Cash paid for interest	$ 24,033	$ 19,260	$ 19,445

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Dynex Capital, Inc., ("Company”) was incorporated in the Commonwealth of Virginia on December 18, 1987 and commenced operations in February 1988. The Company primarily earns income from investing on a leveraged basis in mortgage-backed securities ("MBS") that are issued or guaranteed by the U.S. Government or U.S. Government sponsored agencies ("Agency MBS") and MBS issued by others ("non-Agency MBS"). Basis of Presentation The accompanying consolidated financial statements of Dynex Capital, Inc. and its subsidiaries (together, “Dynex” or, as appropriate, the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) the instructions to the Annual Report on Form 10-K and Article 3 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”). Reclassifications Certain items in the prior periods' consolidated financial statements have been reclassified to conform to the current period's presentation. The Company's equity in income of limited partnership for the year ended December 31, 2015 is now included within "other income, net" on the Company's consolidated statements of comprehensive income (loss). The Company has reclassified amortization of stock issuance costs which was previously recorded in "proceeds from issuance of common stock, net of issuance costs" in the financing activities section of the Company's consolidated statements of cash flows for the years ended December 31, 2015 and December 31, 2014. Amortization of stock issuance costs is now presented within "other operating activities" in the operating activities section of the Company's consolidated statements of cash flows. These presentation changes have no effect on reported financial condition or results of operations, and did not have a material impact on cash flows from operating or financing activities. Consolidation The consolidated financial statements include the accounts of the Company and the accounts of its majority owned subsidiaries and variable interest entities ("VIE") for which it is the primary beneficiary. As a primary beneficiary, the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. The Company is required to reconsider its evaluation of whether to consolidate a VIE each reporting period, based upon changes in the facts and circumstances pertaining to the VIE. The Company consolidates certain trusts through which it has securitized mortgage loans as a result of not meeting the sale criteria under GAAP at the time the financial assets were transferred to the trust. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. The most significant estimates used by management include, but are not limited to, amortization of premiums and discounts, fair value measurements of its investments, and other-than-temporary impairments. These items are discussed further below within this note to the consolidated financial statements. Income Taxes The Company has elected to be taxed as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986 and the corresponding provisions of state law. To qualify as a REIT, the Company must meet certain tests including investing in primarily real estate-related assets and the required distribution of at least 90% of its annual REIT taxable income to stockholders after consideration of its net operating loss ("NOL") carryforward and not including taxable income retained in its taxable subsidiaries. As a REIT, the Company generally will not be subject to federal income tax on the amount of its income or capital gains that is distributed as dividends to shareholders. The Company assesses its tax positions for all open tax years and determines whether the Company has any material unrecognized liabilities in accordance with Accounting Standards Codification ("ASC") Topic 740. The Company records these liabilities, if any, to the extent they are deemed more likely than not to have been incurred. Net Income (Loss) Per Common Share The Company calculates basic net income (loss) per common share by dividing net income (loss) to common shareholders for the period by weighted-average shares of common stock outstanding for that period. The Company did not have any potentially dilutive securities outstanding during the years ended December 31, 2016 , December 31, 2015 , or December 31, 2014. Holders of unvested shares of the Company's issued and outstanding restricted common stock are eligible to receive non-forfeitable dividends. As such, these unvested shares are considered participating securities as per ASC Topic 260-10 and therefore are included in the computation of basic net income (loss) per common share using the two-class method. Upon vesting, restrictions on transfer expire on each share of restricted stock, and each such share of restricted stock represents one unrestricted share of common stock. Because the Company's 8.50% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) and 7.625% Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”) are redeemable at the Company's option for cash only and may convert into shares of common stock only upon a change of control of the Company, the effect of those shares and their related dividends is excluded from the calculation of diluted net income (loss) per common share. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. Restricted Cash Restricted cash consists of cash the Company has pledged to cover initial and variation margin with its financing and derivative counterparties. Mortgage-Backed Securities The Company invests in Agency and non-Agency RMBS, CMBS and CMBS IO securities, all of which are designated as available-for-sale ("AFS"). All of the Company’s MBS are recorded at fair value on the consolidated balance sheet. Changes in unrealized gain (loss) on the Company's MBS are reported in other comprehensive income ("OCI") until each security is collected, disposed of, or determined to be other than temporarily impaired. Although the Company generally intends to hold its AFS securities until maturity, it may sell any of these securities as part of the overall management of its business. Upon the sale of an AFS security, any unrealized gain or loss is reclassified out of accumulated other comprehensive income ("AOCI") into net income as a realized "gain (loss) on sale of investments, net" using the specific identification method. The Company’s MBS pledged as collateral against repurchase agreements and derivative instruments are included in MBS on the consolidated balance sheets with the fair value of the MBS pledged disclosed parenthetically. Interest Income, Premium Amortization, and Discount Accretion. Interest income on MBS is accrued based on the outstanding principal balance (or notional balance in the case of interest-only, or "IO", securities) and their contractual terms. Premiums and discounts on Agency MBS as well as any non-Agency MBS rated 'AA' and higher at the time of purchase are amortized into interest income over the expected life of such securities using the effective yield method and adjustments to premium amortization are made for actual cash payments as well as changes in projected future cash payments. The Company's projections of future cash payments are based on input and analysis received from external sources and internal models, and include assumptions about the amount and timing of loan prepayment rates, fluctuations in interest rates, credit losses, and other factors. On at least a quarterly basis, the Company reviews and makes any necessary adjustments to its cash flow projections and updates the yield recognized on these assets. The Company holds certain non-Agency MBS that had credit ratings of less than 'AA' at the time of purchase or were not rated by any of the nationally recognized credit rating agencies. A portion of these non-Agency MBS were purchased at discounts to their par value, which management does not believe to be substantial. The discount is accreted into income over the security's expected life, which reflects management's estimate of the security's projected cash flows. Future changes in the timing of projected cash flows or differences arising between projected cash flows and actual cash flows received may result in a prospective change in the effective yield on those securities. Determination of MBS Fair Value. The Company estimates the fair value of the majority of its MBS based upon prices obtained from third-party pricing services and broker quotes. The remainder of the Company's MBS are valued by discounting the estimated future cash flows derived from cash flow models that utilize information such as the security's coupon rate, estimated prepayment speeds, expected weighted average life, collateral composition, estimated future interest rates, expected losses, and credit enhancements as well as certain other relevant information. Refer to Note 7 for further discussion of MBS fair value measurements. Other-than-Temporary Impairment. MBS is considered impaired when its fair value is less than its amortized cost. The Company evaluates all of its impaired MBS for other-than-temporary impairments ("OTTI") on at least a quarterly basis. An impairment is considered other-than-temporary if: (1) the Company intends to sell the MBS; (2) it is more likely than not that the Company will be required to sell the MBS before its fair value recovers; or (3) the Company does not expect to recover the full amortized cost basis of the MBS. If either of the first two conditions is met, the entire amount of the impairment is recognized in earnings. If the impairment is solely due to the inability to fully recover the amortized cost basis, the security is further analyzed to quantify any credit loss, which is the difference between the present value of cash flows expected to be collected on the MBS and its amortized cost. The credit loss, if any, is then recognized in earnings, while the balance of impairment related to other factors is recognized in other comprehensive income. Following the recognition of an OTTI through earnings, a new cost basis is established for the security. Any subsequent recoveries in fair value may be accreted back into the amortized cost basis of the MBS on a prospective basis through interest income. Please see Note 2 for additional information related to the Company's evaluation for OTTI. Secured Borrowings The Company's repurchase agreements which are used to finance its purchases of MBS, are accounted for, and Federal Home Loan Bank (or "FHLB") advances, which were previously used to finance the Company’s purchase of MBS, were accounted for as secured borrowings under which the Company pledges its securities as collateral to secure a loan, which is equal in value to a specified percentage of the estimated fair value of the pledged collateral. The Company retains beneficial ownership of the pledged collateral. At the maturity of a repurchase agreement, the Company is required to repay the loan and concurrently receives back its pledged collateral from the lender or, with the consent of the lender, the Company may renew the agreement at the then prevailing financing rate. A repurchase agreement lender may require the Company to pledge additional collateral in the event of a decline in the fair value of the collateral pledged. Repurchase agreement financing is recourse to the Company and the assets pledged. Most of the Company’s repurchase agreements are based on the September 1996 version of the Bond Market Association Master Repurchase Agreement, which generally provides that the lender, as buyer, is responsible for obtaining collateral valuations from a generally recognized source agreed to by both the Company and the lender, or, in an instance when such source is not available, the value determination is made by the lender. Derivative Instruments The Company's derivative instruments are accounted for at fair value. Derivative instruments in a gain position are reported as derivative assets and derivative instruments in a loss position are reported as derivative liabilities on the Company's consolidated balance sheet. All periodic interest costs and changes in fair value of derivative instruments, including gains and losses realized upon termination or maturity, are recorded in "gain (loss) on derivative instruments, net" on the Company's consolidated statement of comprehensive income. Cash receipts and payments related to derivative instruments are classified in the investing activities section of our consolidated statements of cash flows in accordance with the underlying nature or purpose of the derivative transactions. Please refer to Note 5 for additional information regarding the Company's accounting for its derivative instruments. Although MBS have characteristics that meet the definition of a derivative instrument, ASC Topic 815 specifically excludes these instruments from its scope because they are accounted for as debt securities under ASC Topic 320. Share-Based Compensation Pursuant to the Company’s 2009 Stock and Incentive Plan, the Company may grant share-based compensation to eligible employees, directors or consultants or advisers to the Company, including stock awards, stock options, stock appreciation rights, dividend equivalent rights, performance shares, and restricted stock units. The Company's restricted stock currently issued and outstanding under this plan may be settled only in shares of its common stock, and therefore are treated as equity awards with their fair value measured at the grant date and recognized as compensation cost over the requisite service period with a corresponding credit to shareholders' equity. The requisite service period is the period during which an employee is required to provide service in exchange for an award, which is equivalent to the vesting period specified in the terms of the time-based restricted stock award. None of the Company's restricted stock awards have performance based conditions. The Company does not currently have any share-based compensation issued or outstanding other than restricted stock. Recent Accounting Pronouncements The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers , which is a comprehensive revenue recognition standard that supersedes virtually all existing revenue guidance under U.S. GAAP. The standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Revenue recognition with respect to financial instruments is not within the scope of ASU 2014-09, and, therefore, the Company does not expect this ASU will have a material impact on its consolidated financial statements. The Company will continue to assess the impact of ASU 2014-09, which is effective on January 1, 2018. The FASB issued ASU No. 2016-02, Leases , which includes the following amendments: • for operating and finance leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments in its consolidated balance sheet; • for finance leases, a lessee is required to recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income; • for finance leases, a lessee is required to classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows; • for operating leases, a lessee is required to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis in the statement of comprehensive income; and • for operating leases, a lessee is required to classify all cash payments within operating activities in the statement of cash flows. Under the new guidance, lessor accounting is largely unchanged. ASU No. 2016-02 is effective for public companies for fiscal years beginning after December 15, 2018, and early adoption is permitted. The Company does not expect this ASU to have a material impact on the Company's consolidated financial statements because the Company does not currently have any material lease agreements. The FASB issued ASU No. 2016-09, Compensation - Stock Compensation, which simplifies several aspects of the accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement cash flows. The amendments are effective for public companies for fiscal years beginning after December 15, 2016, and early adoption is permitted. The Company has adopted the amendments in this ASU, and it did not have a material impact on the Company's consolidated financial statements. The FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which replaces the incurred loss impairment methodology in current 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. For assets measured at amortized cost, the amendments in this ASU eliminate the probable initial recognition threshold in current GAAP and broaden the information that an entity must consider in developing its expected credit loss estimate to include the use of forecasted information. For assets classified as available-for-sale with changes in fair value recorded in other comprehensive income, measurement of credit losses will be similar to current GAAP. However, the amendments in this ASU require that credit losses be presented as an allowance rather than as a write-down, which is referred to in current GAAP as an other-than-temporary impairment. An entity will be able to record reversals of credit losses, if credit loss estimates decline, in net income for the current period. The amendments in this ASU will not permit an entity to use the length of time a debt security has been in an unrealized loss position to avoid recording a credit loss and removes the requirements to consider historical and implied volatility of the fair value of a security as well as recoveries or declines in fair value after the balance sheet date. The amendments in this ASU will affect an entity by varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. These amendments will become effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption will be permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Based on the credit quality of the Company's investments as of December 31, 2016, the Company does not currently anticipate this ASU having a material impact on its consolidated financial statements. The Company continuously monitors for credit losses on its investments and will adopt the changes in this ASU as deemed applicable in the future. The FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, in order to provide guidance for eight cash flow classification issues which are either unclear or do not have specific guidance under current GAAP. The issues identified are as follows: • debt prepayment or debt extinguishment costs; • settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates insignificant in relation to the effective interest rate of the borrowing; • contingent consideration payments made after a business combination; • proceeds from the settlement of insurance claims; • proceeds from settlement of corporate-owned life insurance policies; • distributions received from equity method investees; • beneficial interests in securitization transactions; and • separately identifiable cash flows and application of the predominance principle. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The amendments in this ASU should be applied using a retrospective transition method to each period presented. This ASU does not change accounting principles and only impacts presentation requirements on the statement of cash flows. As such, the Company does not expect this ASU to have a material impact on the Company's consolidated financial statements. The FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash, which requires amounts generally described as restricted cash or restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on statement of cash flows. This amendment will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and early adoption is permitted. This ASU does not change accounting principles and only impacts presentation requirements on the statement of cash flows. As such, the Company does not expect this ASU to have a material impact on the Company's consolidated financial statements.

Mortgage Backed Securities (Not

Mortgage Backed Securities (Notes)	12 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Mortgage-backed securities	MORTGAGE-BACKED SECURITIES The majority of the Company's MBS are pledged as collateral for the Company's secured borrowings. The following tables present the Company’s MBS by investment type as of the dates indicated: December 31, 2016 Par Net Premium (Discount) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value WAC (1) RMBS: Agency $ 1,157,258 $ 57,066 $ 1,214,324 $ 2,832 $ (15,951 ) $ 1,201,205 3.05 % Non-Agency 33,572 (24 ) 33,548 64 (50 ) 33,562 3.58 % 1,190,830 57,042 1,247,872 2,896 (16,001 ) 1,234,767 CMBS: Agency 1,152,586 13,868 1,166,454 6,209 (28,108 ) 1,144,555 3.12 % Non-Agency 79,467 (6,718 ) 72,749 5,467 — 78,216 4.72 % 1,232,053 7,150 1,239,203 11,676 (28,108 ) 1,222,771 CMBS IO (2) : Agency — 411,737 411,737 3,523 (3,362 ) 411,898 0.67 % Non-Agency — 346,155 346,155 1,548 (5,055 ) 342,648 0.61 % — 757,892 757,892 5,071 (8,417 ) 754,546 Total AFS securities: $ 2,422,883 $ 822,084 $ 3,244,967 $ 19,643 $ (52,526 ) $ 3,212,084 (1) The weighted average coupon ("WAC") is the gross interest rate of the pool of mortgages underlying the security weighted by the outstanding principal balance (or by notional balance in the case of an IO security). (2) The notional balance for Agency CMBS IO and non-Agency CMBS IO was $13,106,912 and $10,884,964 , respectively, as of December 31, 2016 . December 31, 2015 Par Net Premium (Discount) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value WAC (1) RMBS: Agency $ 1,536,733 $ 77,617 $ 1,614,350 $ 4,362 $ (20,190 ) $ 1,598,522 3.03 % Non-Agency 66,003 (45 ) 65,958 70 (818 ) 65,210 3.25 % 1,602,736 77,572 1,680,308 4,432 (21,008 ) 1,663,732 CMBS: Agency 876,751 13,252 890,003 10,542 (14,614 ) 885,931 3.45 % Non-Agency 156,218 (8,133 ) 148,085 7,039 (941 ) 154,183 4.29 % 1,032,969 5,119 1,038,088 17,581 (15,555 ) 1,040,114 CMBS IO (2) : Agency — 421,857 421,857 5,922 (1,651 ) 426,128 0.80 % Non-Agency — 365,554 365,554 1,992 (3,819 ) 363,727 0.71 % — 787,411 787,411 7,914 (5,470 ) 789,855 Total AFS securities: $ 2,635,705 $ 870,102 $ 3,505,807 $ 29,927 $ (42,033 ) $ 3,493,701 (1) The weighted average coupon ("WAC") is the gross interest rate of the pool of mortgages underlying the security weighted by the outstanding principal balance (or by notional balance in the case of an IO security). (2) The notional balance for the Agency CMBS IO and non-Agency CMBS IO was $12,180,291 and $10,328,628 , respectively, as of December 31, 2015 . Actual maturities of MBS are affected by the contractual lives of the underlying mortgage collateral, periodic payments of principal, prepayments of principal, and the payment priority structure of the security; therefore, actual maturities are generally shorter than the securities' stated contractual maturities. The following table presents information regarding the sales included in "(loss) gain on sale of investments, net" on the Company's consolidated statements of comprehensive income (loss) for the periods indicated: Year Ended December 31, 2016 2015 2014 Proceeds Received Realized Gain (Loss) Proceeds Received Realized Gain (Loss) Proceeds Received Realized Gain (Loss) Agency RMBS $ 54,178 $ (3,010 ) $ 174,565 $ (2,865 ) $ 137,350 $ (5,762 ) Agency CMBS — — 149,360 (604 ) — — Non-Agency CMBS 33,640 (1,228 ) 30,775 (566 ) 245,839 19,773 Agency CMBS IO — — 45,096 1,698 107,635 1,630 Non-Agency CMBS IO — — 50,125 1,359 13,094 582 $ 87,818 $ (4,238 ) $ 449,921 $ (978 ) $ 503,918 $ 16,223 The following table presents certain information for those MBS in an unrealized loss position as of the dates indicated: December 31, 2016 December 31, 2015 Fair Value Gross Unrealized Losses # of Securities Fair Value Gross Unrealized Losses # of Securities Continuous unrealized loss position for less than 12 months: Agency MBS $ 1,738,094 $ (38,469 ) 133 $ 1,332,849 $ (19,062 ) 109 Non-Agency MBS 205,484 (2,773 ) 48 351,650 (5,347 ) 72 Continuous unrealized loss position for 12 months or longer: Agency MBS $ 427,405 $ (8,952 ) 72 $ 775,484 $ (17,393 ) 72 Non-Agency MBS 81,660 (2,332 ) 26 8,306 (231 ) 7 Because the principal related to Agency MBS is guaranteed by the government-sponsored entities Fannie Mae and Freddie Mac which have the implicit guarantee of the U.S. government, the Company does not consider any of the unrealized losses on its Agency MBS to be credit related. Although the unrealized losses are not credit related, the Company assesses its ability and intent to hold any Agency MBS with an unrealized loss until the recovery in its value. This assessment is based on the amount of the unrealized loss and significance of the related investment as well as the Company’s current leverage and anticipated liquidity. Based on this analysis, the Company has determined that the unrealized losses on its Agency MBS as of December 31, 2016 and December 31, 2015 were temporary. The Company reviews any non-Agency MBS in an unrealized loss position to evaluate whether any decline in fair value represents an OTTI. The evaluation includes a review of the credit ratings of these non-Agency MBS and the seasoning of the mortgage loans collateralizing these securities as well as the estimated future cash flows which include projected losses. The Company performed this evaluation for the non-Agency MBS in an unrealized loss position and has determined that there have not been any adverse changes in the timing or amount of estimated future cash flows that necessitate a recognition of OTTI amounts as of December 31, 2016 or December 31, 2015.

Mortgage Loans Held for Investm

Mortgage Loans Held for Investment, Net and Related Non-Recourse Collateralized Financing (Notes)	12 Months Ended
	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	MORTGAGE LOANS HELD FOR INVESTMENT, NET AND RELATED NON-RECOURSE COLLATERALIZED FINANCING The majority of the Company's mortgage loans held for investment, net are securitized single-family mortgage loans which were originated or purchased by the Company from 1992 through 1998 and reported at an amortized cost of $19,317 as of December 31, 2016 compared to $24,337 as of December 31, 2015. The unpaid principal balance of the Company's single-family mortgage loans identified as seriously delinquent as of December 31, 2016 was $1,094 compared to $1,343 as of December 31, 2015. The Company continues to accrue interest on its seriously delinquent securitized single-family mortgage loans because the primary servicer continues to advance the interest and/or principal due on the loan. An allowance has been established for currently existing and probable losses on the Company's mortgage loans held for investment, which was $281 as of December 31, 2016 compared to $192 as of December 31, 2015. The Company's single-family mortgage loans are considered homogeneous and are evaluated on a pool basis for a general allowance. The Company considers various factors in determining its general allowance requirement, including whether a loan is delinquent, the Company’s historical experience with similar types of loans, historical cure rates of delinquent loans, and historical and anticipated loss severity of the mortgage loans as they are liquidated. The allowance for loan losses is evaluated and adjusted periodically by management based on the actual and estimated timing and amount of probable credit losses, using the above factors, as well as industry loss experience. The Company recorded $130 , $180 , and $0 as provision for loan losses for the years ended December 31, 2016, 2015, and 2014, respectively, which is included within "other income, net" on the Company's consolidated statements of comprehensive income (loss). The majority of the Company's mortgage loans held for investment, net are pledged as collateral for the one remaining class of the Company's single-family securitization financing bond, which is recorded on the Company's balance sheet as "non-recourse collateralized financing". The interest rate on this bond is based on 1-month LIBOR plus 0.30% and is expected to mature on January 31, 2025 based on scheduled principal payments projected as of December 31, 2016. As of December 31, 2016, $7,200 of the principal balance of the single-family mortgage loans held for investment was pledged as collateral for the Company's non-recourse collateralized financing which had a remaining principal balance of $6,533 . As of December 31, 2015, $9,220 of the principal balance of the Company's mortgage loans held for investment was pledged as collateral for the remaining principal balance of the outstanding bonds of $8,573 .

Secured Borrowings (Notes)

Secured Borrowings (Notes)	12 Months Ended
	Dec. 31, 2016
Disclosure of Repurchase Agreements [Abstract]
Secured Borrowings	The Company’s secured borrowings that were outstanding as of December 31, 2016 and December 31, 2015 are summarized in the following tables: December 31, 2016 Collateral Type Balance Weighted Average Rate Fair Value of Collateral Pledged Agency RMBS $ 1,157,302 0.82 % $ 1,191,147 Non-Agency RMBS 26,149 1.98 % 31,952 Agency CMBS 1,005,726 0.82 % 1,095,002 Non-Agency CMBS 66,881 1.63 % 77,840 Agency CMBS IO 346,892 1.57 % 407,481 Non-Agency CMBS IO 291,199 1.67 % 341,139 Securitization financing bond 4,803 2.00 % 5,278 Total repurchase agreements $ 2,898,952 1.03 % $ 3,149,839 FHLB advances — — % — Total secured borrowings $ 2,898,952 1.03 % $ 3,149,839 December 31, 2015 Collateral Type Balance Weighted Average Rate Fair Value of Collateral Pledged Agency RMBS $ 1,439,436 0.47 % $ 1,483,152 Non-Agency RMBS 52,128 1.77 % 64,286 Agency CMBS 301,427 0.49 % 345,728 Non-Agency CMBS 126,378 1.26 % 143,785 Agency CMBS IOs 360,245 1.24 % 421,285 Non-Agency CMBS IOs 302,771 1.33 % 359,351 Securitization financing bond 7,035 1.65 % 8,054 Total repurchase agreements $ 2,589,420 0.75 % $ 2,825,641 FHLB advances (1) 520,000 0.40 % 541,771 Total secured borrowings $ 3,109,420 0.69 % $ 3,367,412 (1) FHLB advances were collateralized primarily with Agency CMBS as of December 31, 2015. As a result of a final rule issued by the Federal Housing Finance Administration ("FHFA") in January 2016 regarding the exclusion of captive insurance entities from membership in the FHLB, the Company's wholly owned subsidiary, Mackinaw Insurance Company, LLC ("Mackinaw"), must terminate its membership in the FHLB of Indianapolis by February 19, 2017 and is no longer permitted new advances or renewals of existing advances. The Company has repaid all FHLB advances as of December 31, 2016 . As of December 31, 2016 , the weighted average remaining term to maturity of our repurchase agreements was 20 days compared to 22 days as of December 31, 2015. The following table provides a summary of the original term to maturity of our secured borrowings as of December 31, 2016 and December 31, 2015 : Original Term to Maturity December 31, December 31, Less than 30 days $ 910,937 $ 551,643 30 to 90 days 533,112 782,393 91 to 180 days 1,454,903 1,512,384 181 to 364 days — — 1 year or longer — 263,000 $ 2,898,952 $ 3,109,420 The following table lists the counterparties with whom the Company had over 10% of its shareholders' equity at risk (defined as the excess of collateral pledged over the borrowings outstanding): December 31, 2016 Counterparty Name Balance Weighted Average Rate Equity at Risk Wells Fargo Bank, N. A. and affiliates $ 342,160 1.64 % $ 62,041 Of the amount outstanding with Wells Fargo Bank, N.A. and affiliates, $329,424 is under a committed repurchase facility which has an aggregate maximum borrowing capacity of $350,000 and is scheduled to mature on August 6, 2018, subject to early termination provisions contained in the master repurchase agreement. The facility is collateralized primarily by CMBS IO, and its weighted average borrowing rate as of December 31, 2016 was 1.64% . As of December 31, 2016 , the Company had repurchase agreement amounts outstanding with 19 of its 32 available repurchase agreement counterparties. The Company's counterparties, as set forth in the master repurchase agreement with the counterparty, require the Company to comply with various customary operating and financial covenants, including, but not limited to, minimum net worth, maximum declines in net worth in a given period, and maximum leverage requirements as well as maintaining the Company's REIT status. In addition, some of the agreements contain cross default features, whereby default under an agreement with one lender simultaneously causes default under agreements with other lenders. To the extent that the Company fails to comply with the covenants contained in these financing agreements or is otherwise found to be in default under the terms of such agreements, the counterparty has the right to accelerate amounts due under the master repurchase agreement. The Company was in full compliance with all covenants as of December 31, 2016 . Please see Note 6 for the Company's disclosures related to offsetting assets and liabilities.

Derivatives (Notes)

Derivatives (Notes)	12 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	DERIVATIVES The Company utilizes derivative instruments to economically hedge a portion of its exposure to interest rate risk. As of December 31, 2016, the Company primarily uses pay-fixed interest rate swaps to hedge its exposure to changes in interest rates and uses receive-fixed interest rate swaps to offset a portion of its pay-fixed interest rate swaps in order to manage its overall hedge position. The objective of the Company's risk management strategy is to mitigate declines in book value resulting from fluctuations in the fair value of the Company's assets from changing interest rates and to protect some portion of the Company's earnings from rising interest rates. Please refer to Note 1 for information related to the Company's accounting policy for its derivative instruments. The table below summarizes information about the Company’s derivative instruments treated as trading instruments on its consolidated balance sheet as of the dates indicated: December 31, 2016 Derivative Assets Derivative Liabilities Trading Instruments Fair Value Notional Fair Value Notional Interest rate swaps $ 28,534 $ 2,670,000 $ (6,922 ) $ 1,210,000 Eurodollar futures (1) — — — — Total $ 28,534 $ 2,670,000 $ (6,922 ) $ 1,210,000 December 31, 2015 Derivative Assets Derivative Liabilities Trading Instruments Fair Value Notional Fair Value Notional Interest rate swaps $ 7,835 $ 460,000 $ (12,108 ) $ 2,920,000 Eurodollar futures (1) — — (29,097 ) 6,300,000 Total $ 7,835 $ 460,000 $ (41,205 ) $ 9,220,000 (1) The Eurodollar futures aggregate notional amount represents the total notional of the 3-month contracts with expiration dates from 2017 to 2020. The maximum notional outstanding for any future 3-month period did not exceed $725,000 as of December 31, 2015. The following table summarizes the notional activity related to derivative instruments for the period indicated: For the year ended December 31, 2016: Beginning of Period Notional Amount Additions Settlement, Termination, Expiration or Exercise End of Period Notional Amount Receive-fixed interest rate swaps $ 425,000 $ — $ — $ 425,000 Pay-fixed interest rate swaps (1) 2,955,000 3,500,000 (3,000,000 ) 3,455,000 Eurodollar futures 6,300,000 — (6,300,000 ) — $ 9,680,000 $ 3,500,000 $ (9,300,000 ) $ 3,880,000 (1) The notional amount of pay-fixed interest rate swaps that were forward starting as of December 31, 2016 was $2,725,000 . The table below provides detail of the Company's "loss on derivative instruments, net" by type of derivative for the periods indicated: Year Ended December 31, Type of Derivative Instrument 2016 2015 2014 Receive-fixed interest rate swaps $ 2,515 $ 6,522 $ 4,912 Pay-fixed interest rate swaps (3,306 ) (28,687 ) (30,754 ) Eurodollar futures (4,815 ) (20,963 ) (27,551 ) Loss on derivative instruments, net $ (5,606 ) $ (43,128 ) $ (53,393 ) There is a net unrealized gain of $670 remaining in AOCI on the Company's consolidated balance sheet as of December 31, 2016 which represents the activity related to interest rate swap agreements while they were previously designated as cash flow hedges, and this amount will be recognized in the Company's net income as a portion of "interest expense" over the remaining contractual life of the agreements. The Company estimates a credit of $268 will be reclassified to net income as a reduction of "interest expense" within the next 12 months. A portion of the Company's interest rate swaps were entered into under bilateral agreements which contain cross-default provisions with other agreements between the parties. In addition, these bilateral agreements contain financial and operational covenants similar to those contained in our repurchase agreements as described in Note 4 . The Company was in compliance with all covenants with respect to bilateral agreements under which interest rate swaps were entered into as of December 31, 2016 . Please see Note 6 for the Company's disclosures related to offsetting assets and liabilities.

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities Offsetting Assets and Liabilities (Notes)	12 Months Ended
	Dec. 31, 2016
Offsetting [Abstract]
Offsetting Assets and Liabilities [Text Block]	OFFSETTING ASSETS AND LIABILITIES The Company's repurchase agreements and derivatives are subject to underlying agreements with master netting or similar arrangements, which provide for the right of offset in the event of default or in the event of bankruptcy of either party to the transactions. The Company reports its assets and liabilities subject to these arrangements on a gross basis. The following tables present information regarding those assets and liabilities subject to such arrangements as if the Company had presented them on a net basis as of December 31, 2016 and December 31, 2015: Offsetting of Assets Gross Amount of Recognized Assets Gross Amount Offset in the Balance Sheet Net Amount of Assets Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (1) Net Amount Financial Instruments Received as Collateral Cash Received as Collateral December 31, 2016 Derivative assets $ 28,534 $ — $ 28,534 $ (6,449 ) $ (22,085 ) $ — December 31, 2015: Derivative assets $ 7,835 $ — $ 7,835 $ (7,835 ) $ — $ — Offsetting of Liabilities Gross Amount of Recognized Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (1) Net Amount Financial Instruments Posted as Collateral Cash Posted as Collateral December 31, 2016 Derivative liabilities $ 6,922 $ — $ 6,922 $ (6,913 ) $ — $ 9 Repurchase agreements 2,898,952 — 2,898,952 (2,898,952 ) — — $ 2,905,874 $ — $ 2,905,874 $ (2,905,865 ) $ — $ 9 December 31, 2015: Derivative liabilities $ 41,205 $ — $ 41,205 $ (9,079 ) $ (32,111 ) $ 15 Repurchase agreements 2,589,420 — 2,589,420 (2,589,420 ) — — $ 2,630,625 $ — $ 2,630,625 $ (2,598,499 ) $ (32,111 ) $ 15 (1) Amounts disclosed for collateral received by or posted to the same counterparty include cash and the fair value of MBS up to and not exceeding the net amount of the asset or liability presented in the balance sheet. The fair value of the actual collateral received by or posted to the same counterparty may exceed the amounts presented.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	FAIR VALUE OF FINANCIAL INSTRUMENTS ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and also requires an entity to consider all aspects of nonperformance risk, including the entity's own credit standing, when measuring fair value of a liability. ASC Topic 820 established a valuation hierarchy of three levels as follows: • Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. • Level 2 – Inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs either directly observable or indirectly observable through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. • Level 3 – Unobservable inputs are supported by little or no market activity. The unobservable inputs represent management’s best estimate of how market participants would price the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The Company reviews the classification of its financial instruments within the fair value hierarchy on a quarterly basis, and management may conclude that its financial instruments should be reclassified to a different level in the future if a change in type of inputs occurs. The following table presents the fair value of the Company’s assets and liabilities presented on its consolidated balance sheets, segregated by the hierarchy level of the fair value estimate, that are measured at fair value on a recurring basis as of the dates indicated: December 31, 2016 Fair Value Level 1 - Unadjusted Quoted Prices in Active Markets Level 2 - Observable Inputs Level 3 - Unobservable Inputs Assets: Mortgage-backed securities $ 3,212,084 $ — $ 3,201,157 $ 10,927 Derivative assets 28,534 — 28,534 — Total assets carried at fair value $ 3,240,618 $ — $ 3,229,691 $ 10,927 Liabilities: Derivative liabilities $ 6,922 $ — $ 6,922 $ — Total liabilities carried at fair value $ 6,922 $ — $ 6,922 $ — December 31, 2015 Fair Value Level 1 - Unadjusted Quoted Prices in Active Markets Level 2 - Observable Inputs Level 3 - Unobservable Inputs Assets: Mortgage-backed securities $ 3,493,701 $ — $ 3,477,266 $ 16,435 Derivative assets 7,835 — 7,835 — Total assets carried at fair value $ 3,501,536 $ — $ 3,485,101 $ 16,435 Liabilities: Derivative liabilities $ 41,205 $ 29,097 $ 12,108 $ — Total liabilities carried at fair value $ 41,205 $ 29,097 $ 12,108 $ — The Company did not have assets or liabilities measured at fair value on a non-recurring basis as of December 31, 2016 or December 31, 2015 . As of December 31, 2016, the Company's derivative assets and liabilities consisted only of interest rate swaps as the Company terminated all positions in Eurodollar futures during the fourth quarter of 2016. Eurodollar futures as of December 31, 2015 were valued based on closing exchange prices and were thus classified as Level 1 measurements. Interest rate swaps are valued using the income approach with the primary input being the forward interest rate swap curve, which is considered an observable input, and thus their fair values are considered Level 2 measurements as of December 31, 2016 and December 31, 2015. The fair value measurements for a majority of the Company's MBS are considered Level 2. These Level 2 securities are substantially similar to securities that either are actively traded or have been recently traded in their respective markets. The Company receives a price evaluation for each of its MBS from a primary pricing service selected by the Company. To determine each security's valuation, the primary pricing service uses either a market approach, which uses observable prices and other relevant information that is generated by market transactions of identical or similar securities, or an income approach, which uses valuation techniques to convert future amounts to a single, discounted present value amount. The Company also reviews the assumptions and inputs utilized in the valuation techniques of its primary pricing service. Examples of these observable inputs and assumptions include market interest rates, credit spreads, and projected prepayment speeds, among other things. The Company compares the price received from its primary pricing service to other prices received from additional third party pricing services and multiple broker quotes for reasonableness. The Company owns certain non-Agency MBS for which there are not sufficiently recent trades of substantially similar securities, and their fair value measurements are thus considered Level 3. The Company determines the fair value of its Level 3 securities by discounting the estimated future cash flows derived from cash flow models using significant inputs which are determined by the Company when market observable inputs are not available. Information utilized in those pricing models include the security’s credit rating, coupon rate, estimated prepayment speeds, expected weighted average life, collateral composition, estimated future interest rates, expected credit losses, and credit enhancement as well as certain other relevant information. Significant changes in any of these inputs in isolation may result in a significantly different fair value measurement. Level 3 assets are generally most sensitive to the default rate and severity assumptions. The table below presents quantitative information about the significant unobservable inputs used in the fair value measurement for the Company's Level 3 non-Agency CMBS and RMBS as of December 31, 2016 : Unobservable Inputs Prepayment Speed Default Rate Severity Discount Rate Non-Agency CMBS (1) 0 CPY — — 9.8 % Non-Agency RMBS 10 CPR 1.0 % 20.0 % 6.3 % (1) As of December 31, 2016, there are too few loans collateralizing our non-Agency CMBS to reasonably apply average prepayment speed, average default rate, or average severity. The loans were individually evaluated for prepayment and default in projecting the cash flows. Based on that review, the loans are expected to pay as scheduled. The activity of the instruments measured at fair value on a recurring basis using Level 3 inputs is presented in the following table for the period indicated: Level 3 Fair Value Non-Agency CMBS Non-Agency RMBS Total assets Balance as of December 31, 2015 $ 14,903 $ 1,532 $ 16,435 Unrealized loss included in OCI (1) (1,055 ) (2 ) (1,057 ) Principal payments (5,747 ) (272 ) (6,019 ) Accretion 1,568 — 1,568 Balance as of December 31, 2016 $ 9,669 $ 1,258 $ 10,927 (1) Amount included in "change in net unrealized gain on available-for-sale investments" on consolidated statements of comprehensive income (loss). The following table presents a summary of the carrying value and estimated fair values of the Company’s financial instruments as of the dates indicated: December 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Mortgage-backed securities $ 3,212,084 $ 3,212,084 $ 3,493,701 $ 3,493,701 Mortgage loans held for investment, net (1) 19,036 15,971 24,145 20,849 Investment in FHLB stock 9 9 11,475 11,475 Derivative assets 28,534 28,534 7,835 7,835 Liabilities: Repurchase agreements (2) $ 2,898,952 $ 2,898,952 $ 2,589,420 $ 2,589,420 FHLB advances (2) — — 520,000 520,000 Non-recourse collateralized financing (1) 6,440 6,357 8,442 8,102 Derivative liabilities 6,922 6,922 41,205 41,205 (1) The Company determines the fair value of its mortgage loans held for investment, net and its non-recourse collateralized financing using internally developed cash flow models with inputs similar to those used to estimate the fair value of the Company's Level 3 non-Agency MBS. (2) The carrying value of repurchase agreements and FHLB advances generally approximates fair value due to their short term maturities.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Preferred Stock	Preferred Stock The Company's articles of incorporation authorize the issuance of up to 50,000,000 shares of preferred stock, par value $0.01 per share, of which the Company's Board of Directors has designated 8,000,000 shares of 8.50% Series A Preferred Stock and 7,000,000 shares of 7.625% Series B Preferred Stock, (the Series A Preferred Stock and the Series B Preferred Stock collectively, the "Preferred Stock"). The Company had 2,300,000 shares of its Series A Preferred Stock and 2,271,937 shares of its Series B Preferred Stock issued and outstanding as of December 31, 2016 compared to 2,300,000 shares of Series A Preferred Stock and 2,250,000 shares of Series B Preferred Stock as of December 31, 2015. The Company's Preferred Stock has no maturity and will remain outstanding indefinitely unless redeemed or otherwise repurchased or converted into common stock pursuant to the terms of the Preferred Stock. Except under certain limited circumstances intended to preserve the Company's REIT status, upon the occurrence of a change in control as defined in Article IIIA, Section 7(d) of the Company’s Articles of Incorporation, or to avoid the direct or indirect imposition of a penalty tax in respect of, or to protect the tax status of, any of the Company’s real estate mortgage investment conduits (“REMIC”) interests or a REMIC in which the Company may acquire an interest (as permitted by the Company’s Articles of Incorporation), the Company may not redeem the Series A Preferred Stock prior to July 31, 2017 or the Series B Preferred Stock prior to April 30, 2018. On or after these dates, at any time and from time to time, the Preferred Stock may be redeemed in whole, or in part, at the Company's option at a cash redemption price of $25.00 per share plus any accumulated and unpaid dividends. Because the Preferred Stock is redeemable only at the option of the issuer, it is classified as equity on the Company's consolidated balance sheet. The Series A Preferred Stock pays a cumulative cash dividend equivalent to 8.50% of the $25.00 liquidation preference per share each year and the Series B Preferred Stock pays a cumulative cash dividend equivalent to 7.625% of the $25.00 liquidation preference per share each year. The Company announced that it will pay its regular quarterly dividends on its Preferred Stock for the fourth quarter on January 16, 2017 to shareholders of record as of January 1, 2017 .
Shareholders' Equity	SHAREHOLDERS' EQUITY AND SHARE-BASED COMPENSATION Preferred Stock The Company's articles of incorporation authorize the issuance of up to 50,000,000 shares of preferred stock, par value $0.01 per share, of which the Company's Board of Directors has designated 8,000,000 shares of 8.50% Series A Preferred Stock and 7,000,000 shares of 7.625% Series B Preferred Stock, (the Series A Preferred Stock and the Series B Preferred Stock collectively, the "Preferred Stock"). The Company had 2,300,000 shares of its Series A Preferred Stock and 2,271,937 shares of its Series B Preferred Stock issued and outstanding as of December 31, 2016 compared to 2,300,000 shares of Series A Preferred Stock and 2,250,000 shares of Series B Preferred Stock as of December 31, 2015. The Company's Preferred Stock has no maturity and will remain outstanding indefinitely unless redeemed or otherwise repurchased or converted into common stock pursuant to the terms of the Preferred Stock. Except under certain limited circumstances intended to preserve the Company's REIT status, upon the occurrence of a change in control as defined in Article IIIA, Section 7(d) of the Company’s Articles of Incorporation, or to avoid the direct or indirect imposition of a penalty tax in respect of, or to protect the tax status of, any of the Company’s real estate mortgage investment conduits (“REMIC”) interests or a REMIC in which the Company may acquire an interest (as permitted by the Company’s Articles of Incorporation), the Company may not redeem the Series A Preferred Stock prior to July 31, 2017 or the Series B Preferred Stock prior to April 30, 2018. On or after these dates, at any time and from time to time, the Preferred Stock may be redeemed in whole, or in part, at the Company's option at a cash redemption price of $25.00 per share plus any accumulated and unpaid dividends. Because the Preferred Stock is redeemable only at the option of the issuer, it is classified as equity on the Company's consolidated balance sheet. The Series A Preferred Stock pays a cumulative cash dividend equivalent to 8.50% of the $25.00 liquidation preference per share each year and the Series B Preferred Stock pays a cumulative cash dividend equivalent to 7.625% of the $25.00 liquidation preference per share each year. The Company announced that it will pay its regular quarterly dividends on its Preferred Stock for the fourth quarter on January 16, 2017 to shareholders of record as of January 1, 2017 . Common Stock The Company declared a fourth quarter common stock dividend of $0.21 per share payable on January 31, 2017 to shareholders of record as of December 30, 2016 . In December 2016, the Company's Board of Directors authorized the repurchase of up to $40,000 of its outstanding shares of common stock through December 31, 2018 . This stock repurchase plan replaced the Company's prior repurchase plan which was authorized through December 31, 2016 . The Company did not repurchase any shares under with plan during the three months ended December 31, 2016. 2009 Stock and Incentive Plan. Of the 2,500,000 shares of common stock authorized for issuance under its 2009 Stock and Incentive Plan, the Company had 860,106 available for issuance as of December 31, 2016 . Total stock-based compensation expense recognized by the Company for the year ended December 31, 2016 was $2,709 compared to $2,965 and $2,719 for the years ended December 31, 2015 and December 31, 2014, respectively. The following table presents a rollforward of the restricted stock activity for the periods indicated: Year Ended December 31, 2016 2015 2014 Shares Weighted Average Grant Date Fair Value Per Share Shares Weighted Average Grant Date Fair Value Per Share Shares Weighted Average Grant Date Fair Value Per Share Restricted stock outstanding as of beginning of period 696,597 $ 8.54 731,809 $ 8.89 520,987 $ 10.26 Restricted stock granted 214,878 6.28 263,829 8.21 457,538 8.09 Restricted stock vested (358,079 ) 8.71 (299,041 ) 9.12 (246,716 ) 10.29 Restricted stock outstanding as of end of period 553,396 $ 7.55 696,597 $ 8.54 731,809 $ 8.89 As of December 31, 2016 , the grant date fair value of the Company’s remaining nonvested restricted stock is $2,137 which will be amortized into compensation expense over a weighted average period of 1.4 years .

Income Taxes (Notes)

Income Taxes (Notes)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	INCOME TAXES The Company's estimated REIT taxable income before consideration of its NOL carryforward was $21,702 for the year ended December 31, 2016, $52,964 for the year ended December 31, 2015, and $79,229 for the year ended December 31, 2014. After common and preferred dividend distributions during those years as well as utilization of the Company's NOL carryforward to offset taxable earnings, the Company does not expect to incur any income tax liability for the year ended December 31, 2016 and did not incur any material income tax liability for the years ending December 31, 2015 or December 31, 2014. The Company's estimated NOL carryforward as of December 31, 2016 is $89,775 . Because the Company incurred an "ownership change" under Section 382 of the Internal Revenue Code ("Section 382"), the Company's ability to utilize its NOL carryforward to offset its taxable income after any required dividend distributions is limited to approximately $13,451 per year with any unused amounts being accumulated and carried forward for use in subsequent years. As of December 31, 2016, the Company had $38,641 of NOL that is not subject to the existing Section 382 limitations available to offset any future taxable income. The NOL will expire beginning in 2020 to the extent it is not used. After reviewing for any potentially uncertain income tax positions, the Company has concluded that it does not have any uncertain tax positions that meet the recognition or measurement criteria of ASC 740 as of December 31, 2016, December 31, 2015, or December 31, 2014, although its tax returns for those tax years are open to examination by the IRS. In the event that the Company incurs income tax related interest and penalties, its policy is to classify them as a component of provision for income taxes.

Related Party Transactions (Not

Related Party Transactions (Notes)	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	RELATED PARTY TRANSACTIONS As noted in previous filings, DCI Commercial, Inc. (“DCI”), a former affiliate of the Company and formerly known as Dynex Commercial, Inc., was named a party to several lawsuits in 1999 and 2000 regarding the activities of DCI while it was an operating subsidiary of an affiliate of the Company. In certain instances, the Company was also a party to the lawsuit due to its affiliation with DCI. In December 2000, the Company and DCI entered into a Litigation Cost Sharing Agreement whereby the parties set forth how the costs of defending against such litigation would be shared, and whereby the Company agreed to advance DCI's portion of the costs of defending against such litigation. The Company is no longer a defendant in any litigation related to the activities of DCI. In 2013, in the conclusion of litigation that was tried in 2004, plaintiffs in that case (the “DCI Plaintiffs”) were awarded a judgment of $26.5 million against DCI (the “DCI Judgment”). In 2014, third parties were awarded a judgment against certain of the DCI Plaintiffs in a matter not involving the Company or DCI. Those parties are now pursuing a garnishment action against the DCI Judgment. Those parties have requested from the Company certain information related to DCI while it was an operating subsidiary of an affiliate of the Company and certain other information related to the activities of DCI. The Litigation Cost Sharing Agreement remained in effect as of December 31, 2016. DCI costs advanced by the Company are loans and bear simple interest at the rate of Prime plus 8.0% per annum. The Company's advances to cover DCI's costs during the years ended December 31, 2016, 2015, and 2014 were $173 , $228 , and $237 , respectively. The total amount due to the Company under the Litigation Cost Sharing Agreement including interest was $10,240 as of December 31, 2016 compared to $9,630 as of December 31, 2015. Because DCI does not currently have any assets, the amount due as of December 31, 2016 has been fully reserved for collectibility by the Company. DCI is currently wholly owned by a company unaffiliated with the Company. An executive of the Company is the sole shareholder of this unaffiliated company.

Selected Quarterly Information

Selected Quarterly Information (Unaudited) (Notes)	12 Months Ended
	Dec. 31, 2016
Selected Quarterly Information (Unaudited) [Abstract]
Quarterly Financial Information [Text Block]	SELECTED QUARTERLY INFORMATION (UNAUDITED) Year Ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Operating results: Interest income $ 25,089 $ 22,816 $ 21,135 $ 22,858 Interest expense 6,310 6,100 6,068 6,753 Net interest income 18,779 16,716 15,067 16,105 (Loss) gain on derivatives instruments, net (48,264 ) (16,297 ) 2,409 56,546 Loss on sale of investments, net (3,941 ) (297 ) — — Fair value adjustments and other income (expense) amounts, net 87 318 579 (1 ) General and administrative expenses (4,092 ) (3,671 ) (3,355 ) (3,589 ) Preferred stock dividends (2,294 ) (2,294 ) (2,294 ) (2,303 ) Net (loss) income to common shareholders (39,725 ) (5,525 ) 12,406 66,758 Other comprehensive income (loss) 41,728 22,947 670 (85,186 ) Comprehensive income (loss) to common shareholders $ 2,003 $ 17,422 $ 13,076 $ (18,428 ) Net (loss) income per common share $ (0.81 ) $ (0.11 ) $ 0.25 $ 1.36 Dividends declared per common share $ 0.21 $ 0.21 $ 0.21 $ 0.21 Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Operating results: Interest income $ 24,099 $ 24,527 $ 26,096 $ 25,522 Interest expense 5,371 5,542 5,859 5,833 Net interest income 18,728 18,985 20,237 19,689 (Loss) gain on derivatives instruments, net (25,323 ) 17,090 (52,749 ) 17,854 Gain (loss) on sale of investments, net 1,308 (1,491 ) 113 (908 ) Fair value adjustments and other income (expense) amounts, net 72 632 (199 ) 174 General and administrative expenses (4,257 ) (4,754 ) (4,379 ) (4,278 ) Preferred stock dividends (2,294 ) (2,294 ) (2,294 ) (2,294 ) Net (loss) income to common shareholders (11,766 ) 28,168 (39,271 ) 30,237 Other comprehensive income (loss) 23,054 (39,679 ) 27,418 (44,877 ) Comprehensive income (loss) to common shareholders $ 11,288 $ (11,511 ) $ (11,853 ) $ (14,640 ) Net (loss) income per common share $ (0.21 ) $ 0.52 $ (0.74 ) $ 0.61 Dividends declared per common share $ 0.24 $ 0.24 $ 0.24 $ 0.24

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Management has evaluated events and circumstances occurring as of and through the date this Annual Report on Form 10-K was filed with the SEC and has determined that there have been no significant events or circumstances that qualify as a "recognized" or "nonrecognized" subsequent event as defined by ASC Topic 855.

Organization and Summary of S19

Organization and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Organization [Text Block]	Organization Dynex Capital, Inc., ("Company”) was incorporated in the Commonwealth of Virginia on December 18, 1987 and commenced operations in February 1988. The Company primarily earns income from investing on a leveraged basis in mortgage-backed securities ("MBS") that are issued or guaranteed by the U.S. Government or U.S. Government sponsored agencies ("Agency MBS") and MBS issued by others ("non-Agency MBS").
Basis of Presentation [Policy Text Block]	Basis of Presentation The accompanying consolidated financial statements of Dynex Capital, Inc. and its subsidiaries (together, “Dynex” or, as appropriate, the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) the instructions to the Annual Report on Form 10-K and Article 3 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”).
Reclassifications [Text Block]	Reclassifications Certain items in the prior periods' consolidated financial statements have been reclassified to conform to the current period's presentation. The Company's equity in income of limited partnership for the year ended December 31, 2015 is now included within "other income, net" on the Company's consolidated statements of comprehensive income (loss). The Company has reclassified amortization of stock issuance costs which was previously recorded in "proceeds from issuance of common stock, net of issuance costs" in the financing activities section of the Company's consolidated statements of cash flows for the years ended December 31, 2015 and December 31, 2014. Amortization of stock issuance costs is now presented within "other operating activities" in the operating activities section of the Company's consolidated statements of cash flows. These presentation changes have no effect on reported financial condition or results of operations, and did not have a material impact on cash flows from operating or financing activities.
Consolidation [Policy Text Block]	Consolidation The consolidated financial statements include the accounts of the Company and the accounts of its majority owned subsidiaries and variable interest entities ("VIE") for which it is the primary beneficiary. As a primary beneficiary, the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. The Company is required to reconsider its evaluation of whether to consolidate a VIE each reporting period, based upon changes in the facts and circumstances pertaining to the VIE. The Company consolidates certain trusts through which it has securitized mortgage loans as a result of not meeting the sale criteria under GAAP at the time the financial assets were transferred to the trust. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. The most significant estimates used by management include, but are not limited to, amortization of premiums and discounts, fair value measurements of its investments, and other-than-temporary impairments. These items are discussed further below within this note to the consolidated financial statements.
Income Taxes [Policy Text Block]	Income Taxes The Company has elected to be taxed as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986 and the corresponding provisions of state law. To qualify as a REIT, the Company must meet certain tests including investing in primarily real estate-related assets and the required distribution of at least 90% of its annual REIT taxable income to stockholders after consideration of its net operating loss ("NOL") carryforward and not including taxable income retained in its taxable subsidiaries. As a REIT, the Company generally will not be subject to federal income tax on the amount of its income or capital gains that is distributed as dividends to shareholders. The Company assesses its tax positions for all open tax years and determines whether the Company has any material unrecognized liabilities in accordance with Accounting Standards Codification ("ASC") Topic 740. The Company records these liabilities, if any, to the extent they are deemed more likely than not to have been incurred.
Net Income (Loss) Per Common Share [Text Block]	Net Income (Loss) Per Common Share The Company calculates basic net income (loss) per common share by dividing net income (loss) to common shareholders for the period by weighted-average shares of common stock outstanding for that period. The Company did not have any potentially dilutive securities outstanding during the years ended December 31, 2016 , December 31, 2015 , or December 31, 2014. Holders of unvested shares of the Company's issued and outstanding restricted common stock are eligible to receive non-forfeitable dividends. As such, these unvested shares are considered participating securities as per ASC Topic 260-10 and therefore are included in the computation of basic net income (loss) per common share using the two-class method. Upon vesting, restrictions on transfer expire on each share of restricted stock, and each such share of restricted stock represents one unrestricted share of common stock. Because the Company's 8.50% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) and 7.625% Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”) are redeemable at the Company's option for cash only and may convert into shares of common stock only upon a change of control of the Company, the effect of those shares and their related dividends is excluded from the calculation of diluted net income (loss) per common share.
Cash and Cash Equivalents [Policy Text Block]	Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less.
Restricted Cash [Policy Text Block]	Restricted Cash Restricted cash consists of cash the Company has pledged to cover initial and variation margin with its financing and derivative counterparties.
Mortgage-Backed Securities [Policy Text Block]	Mortgage-Backed Securities The Company invests in Agency and non-Agency RMBS, CMBS and CMBS IO securities, all of which are designated as available-for-sale ("AFS"). All of the Company’s MBS are recorded at fair value on the consolidated balance sheet. Changes in unrealized gain (loss) on the Company's MBS are reported in other comprehensive income ("OCI") until each security is collected, disposed of, or determined to be other than temporarily impaired. Although the Company generally intends to hold its AFS securities until maturity, it may sell any of these securities as part of the overall management of its business. Upon the sale of an AFS security, any unrealized gain or loss is reclassified out of accumulated other comprehensive income ("AOCI") into net income as a realized "gain (loss) on sale of investments, net" using the specific identification method. The Company’s MBS pledged as collateral against repurchase agreements and derivative instruments are included in MBS on the consolidated balance sheets with the fair value of the MBS pledged disclosed parenthetically. Interest Income, Premium Amortization, and Discount Accretion. Interest income on MBS is accrued based on the outstanding principal balance (or notional balance in the case of interest-only, or "IO", securities) and their contractual terms. Premiums and discounts on Agency MBS as well as any non-Agency MBS rated 'AA' and higher at the time of purchase are amortized into interest income over the expected life of such securities using the effective yield method and adjustments to premium amortization are made for actual cash payments as well as changes in projected future cash payments. The Company's projections of future cash payments are based on input and analysis received from external sources and internal models, and include assumptions about the amount and timing of loan prepayment rates, fluctuations in interest rates, credit losses, and other factors. On at least a quarterly basis, the Company reviews and makes any necessary adjustments to its cash flow projections and updates the yield recognized on these assets. The Company holds certain non-Agency MBS that had credit ratings of less than 'AA' at the time of purchase or were not rated by any of the nationally recognized credit rating agencies. A portion of these non-Agency MBS were purchased at discounts to their par value, which management does not believe to be substantial. The discount is accreted into income over the security's expected life, which reflects management's estimate of the security's projected cash flows. Future changes in the timing of projected cash flows or differences arising between projected cash flows and actual cash flows received may result in a prospective change in the effective yield on those securities. Determination of MBS Fair Value. The Company estimates the fair value of the majority of its MBS based upon prices obtained from third-party pricing services and broker quotes. The remainder of the Company's MBS are valued by discounting the estimated future cash flows derived from cash flow models that utilize information such as the security's coupon rate, estimated prepayment speeds, expected weighted average life, collateral composition, estimated future interest rates, expected losses, and credit enhancements as well as certain other relevant information. Refer to Note 7 for further discussion of MBS fair value measurements. Other-than-Temporary Impairment. MBS is considered impaired when its fair value is less than its amortized cost. The Company evaluates all of its impaired MBS for other-than-temporary impairments ("OTTI") on at least a quarterly basis. An impairment is considered other-than-temporary if: (1) the Company intends to sell the MBS; (2) it is more likely than not that the Company will be required to sell the MBS before its fair value recovers; or (3) the Company does not expect to recover the full amortized cost basis of the MBS. If either of the first two conditions is met, the entire amount of the impairment is recognized in earnings. If the impairment is solely due to the inability to fully recover the amortized cost basis, the security is further analyzed to quantify any credit loss, which is the difference between the present value of cash flows expected to be collected on the MBS and its amortized cost. The credit loss, if any, is then recognized in earnings, while the balance of impairment related to other factors is recognized in other comprehensive income. Following the recognition of an OTTI through earnings, a new cost basis is established for the security. Any subsequent recoveries in fair value may be accreted back into the amortized cost basis of the MBS on a prospective basis through interest income. Please see Note 2 for additional information related to the Company's evaluation for OTTI.
Secured Borrowings [Policy Text Block]	Secured Borrowings The Company's repurchase agreements which are used to finance its purchases of MBS, are accounted for, and Federal Home Loan Bank (or "FHLB") advances, which were previously used to finance the Company’s purchase of MBS, were accounted for as secured borrowings under which the Company pledges its securities as collateral to secure a loan, which is equal in value to a specified percentage of the estimated fair value of the pledged collateral. The Company retains beneficial ownership of the pledged collateral. At the maturity of a repurchase agreement, the Company is required to repay the loan and concurrently receives back its pledged collateral from the lender or, with the consent of the lender, the Company may renew the agreement at the then prevailing financing rate. A repurchase agreement lender may require the Company to pledge additional collateral in the event of a decline in the fair value of the collateral pledged. Repurchase agreement financing is recourse to the Company and the assets pledged. Most of the Company’s repurchase agreements are based on the September 1996 version of the Bond Market Association Master Repurchase Agreement, which generally provides that the lender, as buyer, is responsible for obtaining collateral valuations from a generally recognized source agreed to by both the Company and the lender, or, in an instance when such source is not available, the value determination is made by the lender.
Derivative Instruments [Policy Text Block]	Derivative Instruments The Company's derivative instruments are accounted for at fair value. Derivative instruments in a gain position are reported as derivative assets and derivative instruments in a loss position are reported as derivative liabilities on the Company's consolidated balance sheet. All periodic interest costs and changes in fair value of derivative instruments, including gains and losses realized upon termination or maturity, are recorded in "gain (loss) on derivative instruments, net" on the Company's consolidated statement of comprehensive income. Cash receipts and payments related to derivative instruments are classified in the investing activities section of our consolidated statements of cash flows in accordance with the underlying nature or purpose of the derivative transactions. Please refer to Note 5 for additional information regarding the Company's accounting for its derivative instruments. Although MBS have characteristics that meet the definition of a derivative instrument, ASC Topic 815 specifically excludes these instruments from its scope because they are accounted for as debt securities under ASC Topic 320.
Stock-based Compensation [Policy Text Block]	Share-Based Compensation Pursuant to the Company’s 2009 Stock and Incentive Plan, the Company may grant share-based compensation to eligible employees, directors or consultants or advisers to the Company, including stock awards, stock options, stock appreciation rights, dividend equivalent rights, performance shares, and restricted stock units. The Company's restricted stock currently issued and outstanding under this plan may be settled only in shares of its common stock, and therefore are treated as equity awards with their fair value measured at the grant date and recognized as compensation cost over the requisite service period with a corresponding credit to shareholders' equity. The requisite service period is the period during which an employee is required to provide service in exchange for an award, which is equivalent to the vesting period specified in the terms of the time-based restricted stock award. None of the Company's restricted stock awards have performance based conditions. The Company does not currently have any share-based compensation issued or outstanding other than restricted stock.
Recent Accounting Pronouncements [Text Block]	Recent Accounting Pronouncements The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers , which is a comprehensive revenue recognition standard that supersedes virtually all existing revenue guidance under U.S. GAAP. The standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Revenue recognition with respect to financial instruments is not within the scope of ASU 2014-09, and, therefore, the Company does not expect this ASU will have a material impact on its consolidated financial statements. The Company will continue to assess the impact of ASU 2014-09, which is effective on January 1, 2018. The FASB issued ASU No. 2016-02, Leases , which includes the following amendments: • for operating and finance leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments in its consolidated balance sheet; • for finance leases, a lessee is required to recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income; • for finance leases, a lessee is required to classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows; • for operating leases, a lessee is required to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis in the statement of comprehensive income; and • for operating leases, a lessee is required to classify all cash payments within operating activities in the statement of cash flows. Under the new guidance, lessor accounting is largely unchanged. ASU No. 2016-02 is effective for public companies for fiscal years beginning after December 15, 2018, and early adoption is permitted. The Company does not expect this ASU to have a material impact on the Company's consolidated financial statements because the Company does not currently have any material lease agreements. The FASB issued ASU No. 2016-09, Compensation - Stock Compensation, which simplifies several aspects of the accounting for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement cash flows. The amendments are effective for public companies for fiscal years beginning after December 15, 2016, and early adoption is permitted. The Company has adopted the amendments in this ASU, and it did not have a material impact on the Company's consolidated financial statements. The FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which replaces the incurred loss impairment methodology in current 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. For assets measured at amortized cost, the amendments in this ASU eliminate the probable initial recognition threshold in current GAAP and broaden the information that an entity must consider in developing its expected credit loss estimate to include the use of forecasted information. For assets classified as available-for-sale with changes in fair value recorded in other comprehensive income, measurement of credit losses will be similar to current GAAP. However, the amendments in this ASU require that credit losses be presented as an allowance rather than as a write-down, which is referred to in current GAAP as an other-than-temporary impairment. An entity will be able to record reversals of credit losses, if credit loss estimates decline, in net income for the current period. The amendments in this ASU will not permit an entity to use the length of time a debt security has been in an unrealized loss position to avoid recording a credit loss and removes the requirements to consider historical and implied volatility of the fair value of a security as well as recoveries or declines in fair value after the balance sheet date. The amendments in this ASU will affect an entity by varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. These amendments will become effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption will be permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Based on the credit quality of the Company's investments as of December 31, 2016, the Company does not currently anticipate this ASU having a material impact on its consolidated financial statements. The Company continuously monitors for credit losses on its investments and will adopt the changes in this ASU as deemed applicable in the future. The FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, in order to provide guidance for eight cash flow classification issues which are either unclear or do not have specific guidance under current GAAP. The issues identified are as follows: • debt prepayment or debt extinguishment costs; • settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates insignificant in relation to the effective interest rate of the borrowing; • contingent consideration payments made after a business combination; • proceeds from the settlement of insurance claims; • proceeds from settlement of corporate-owned life insurance policies; • distributions received from equity method investees; • beneficial interests in securitization transactions; and • separately identifiable cash flows and application of the predominance principle. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The amendments in this ASU should be applied using a retrospective transition method to each period presented. This ASU does not change accounting principles and only impacts presentation requirements on the statement of cash flows. As such, the Company does not expect this ASU to have a material impact on the Company's consolidated financial statements. The FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash, which requires amounts generally described as restricted cash or restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on statement of cash flows. This amendment will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and early adoption is permitted. This ASU does not change accounting principles and only impacts presentation requirements on the statement of cash flows. As such, the Company does not expect this ASU to have a material impact on the Company's consolidated financial statements.

Mortgage Backed Securities (Tab

Mortgage Backed Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	The following tables present the Company’s MBS by investment type as of the dates indicated: December 31, 2016 Par Net Premium (Discount) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value WAC (1) RMBS: Agency $ 1,157,258 $ 57,066 $ 1,214,324 $ 2,832 $ (15,951 ) $ 1,201,205 3.05 % Non-Agency 33,572 (24 ) 33,548 64 (50 ) 33,562 3.58 % 1,190,830 57,042 1,247,872 2,896 (16,001 ) 1,234,767 CMBS: Agency 1,152,586 13,868 1,166,454 6,209 (28,108 ) 1,144,555 3.12 % Non-Agency 79,467 (6,718 ) 72,749 5,467 — 78,216 4.72 % 1,232,053 7,150 1,239,203 11,676 (28,108 ) 1,222,771 CMBS IO (2) : Agency — 411,737 411,737 3,523 (3,362 ) 411,898 0.67 % Non-Agency — 346,155 346,155 1,548 (5,055 ) 342,648 0.61 % — 757,892 757,892 5,071 (8,417 ) 754,546 Total AFS securities: $ 2,422,883 $ 822,084 $ 3,244,967 $ 19,643 $ (52,526 ) $ 3,212,084 (1) The weighted average coupon ("WAC") is the gross interest rate of the pool of mortgages underlying the security weighted by the outstanding principal balance (or by notional balance in the case of an IO security). (2) The notional balance for Agency CMBS IO and non-Agency CMBS IO was $13,106,912 and $10,884,964 , respectively, as of December 31, 2016 . December 31, 2015 Par Net Premium (Discount) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value WAC (1) RMBS: Agency $ 1,536,733 $ 77,617 $ 1,614,350 $ 4,362 $ (20,190 ) $ 1,598,522 3.03 % Non-Agency 66,003 (45 ) 65,958 70 (818 ) 65,210 3.25 % 1,602,736 77,572 1,680,308 4,432 (21,008 ) 1,663,732 CMBS: Agency 876,751 13,252 890,003 10,542 (14,614 ) 885,931 3.45 % Non-Agency 156,218 (8,133 ) 148,085 7,039 (941 ) 154,183 4.29 % 1,032,969 5,119 1,038,088 17,581 (15,555 ) 1,040,114 CMBS IO (2) : Agency — 421,857 421,857 5,922 (1,651 ) 426,128 0.80 % Non-Agency — 365,554 365,554 1,992 (3,819 ) 363,727 0.71 % — 787,411 787,411 7,914 (5,470 ) 789,855 Total AFS securities: $ 2,635,705 $ 870,102 $ 3,505,807 $ 29,927 $ (42,033 ) $ 3,493,701 (1) The weighted average coupon ("WAC") is the gross interest rate of the pool of mortgages underlying the security weighted by the outstanding principal balance (or by notional balance in the case of an IO security). (2) The notional balance for the Agency CMBS IO and non-Agency CMBS IO was $12,180,291 and $10,328,628 , respectively, as of December 31, 2015 .
Schedule of Realized Gain (Loss)	The following table presents information regarding the sales included in "(loss) gain on sale of investments, net" on the Company's consolidated statements of comprehensive income (loss) for the periods indicated: Year Ended December 31, 2016 2015 2014 Proceeds Received Realized Gain (Loss) Proceeds Received Realized Gain (Loss) Proceeds Received Realized Gain (Loss) Agency RMBS $ 54,178 $ (3,010 ) $ 174,565 $ (2,865 ) $ 137,350 $ (5,762 ) Agency CMBS — — 149,360 (604 ) — — Non-Agency CMBS 33,640 (1,228 ) 30,775 (566 ) 245,839 19,773 Agency CMBS IO — — 45,096 1,698 107,635 1,630 Non-Agency CMBS IO — — 50,125 1,359 13,094 582 $ 87,818 $ (4,238 ) $ 449,921 $ (978 ) $ 503,918 $ 16,223
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	The following table presents certain information for those MBS in an unrealized loss position as of the dates indicated: December 31, 2016 December 31, 2015 Fair Value Gross Unrealized Losses # of Securities Fair Value Gross Unrealized Losses # of Securities Continuous unrealized loss position for less than 12 months: Agency MBS $ 1,738,094 $ (38,469 ) 133 $ 1,332,849 $ (19,062 ) 109 Non-Agency MBS 205,484 (2,773 ) 48 351,650 (5,347 ) 72 Continuous unrealized loss position for 12 months or longer: Agency MBS $ 427,405 $ (8,952 ) 72 $ 775,484 $ (17,393 ) 72 Non-Agency MBS 81,660 (2,332 ) 26 8,306 (231 ) 7

Secured Borrowings Secured Borr

Secured Borrowings Secured Borrowings (Tables)	12 Months Ended
	Dec. 31, 2016
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings	The Company’s secured borrowings that were outstanding as of December 31, 2016 and December 31, 2015 are summarized in the following tables: December 31, 2016 Collateral Type Balance Weighted Average Rate Fair Value of Collateral Pledged Agency RMBS $ 1,157,302 0.82 % $ 1,191,147 Non-Agency RMBS 26,149 1.98 % 31,952 Agency CMBS 1,005,726 0.82 % 1,095,002 Non-Agency CMBS 66,881 1.63 % 77,840 Agency CMBS IO 346,892 1.57 % 407,481 Non-Agency CMBS IO 291,199 1.67 % 341,139 Securitization financing bond 4,803 2.00 % 5,278 Total repurchase agreements $ 2,898,952 1.03 % $ 3,149,839 FHLB advances — — % — Total secured borrowings $ 2,898,952 1.03 % $ 3,149,839 December 31, 2015 Collateral Type Balance Weighted Average Rate Fair Value of Collateral Pledged Agency RMBS $ 1,439,436 0.47 % $ 1,483,152 Non-Agency RMBS 52,128 1.77 % 64,286 Agency CMBS 301,427 0.49 % 345,728 Non-Agency CMBS 126,378 1.26 % 143,785 Agency CMBS IOs 360,245 1.24 % 421,285 Non-Agency CMBS IOs 302,771 1.33 % 359,351 Securitization financing bond 7,035 1.65 % 8,054 Total repurchase agreements $ 2,589,420 0.75 % $ 2,825,641 FHLB advances (1) 520,000 0.40 % 541,771 Total secured borrowings $ 3,109,420 0.69 % $ 3,367,412 (1) FHLB advances were collateralized primarily with Agency CMBS as of December 31, 2015.
Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity	The following table lists the counterparties with whom the Company had over 10% of its shareholders' equity at risk (defined as the excess of collateral pledged over the borrowings outstanding): December 31, 2016 Counterparty Name Balance Weighted Average Rate Equity at Risk Wells Fargo Bank, N. A. and affiliates $ 342,160 1.64 % $ 62,041

Derivatives (Tables)

Derivatives (Tables)	12 Months Ended
	Dec. 31, 2016
Derivative [Line Items]
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The table below summarizes information about the Company’s derivative instruments treated as trading instruments on its consolidated balance sheet as of the dates indicated: December 31, 2016 Derivative Assets Derivative Liabilities Trading Instruments Fair Value Notional Fair Value Notional Interest rate swaps $ 28,534 $ 2,670,000 $ (6,922 ) $ 1,210,000 Eurodollar futures (1) — — — — Total $ 28,534 $ 2,670,000 $ (6,922 ) $ 1,210,000 December 31, 2015 Derivative Assets Derivative Liabilities Trading Instruments Fair Value Notional Fair Value Notional Interest rate swaps $ 7,835 $ 460,000 $ (12,108 ) $ 2,920,000 Eurodollar futures (1) — — (29,097 ) 6,300,000 Total $ 7,835 $ 460,000 $ (41,205 ) $ 9,220,000 (1) The Eurodollar futures aggregate notional amount represents the total notional of the 3-month contracts with expiration dates from 2017 to 2020. The maximum notional outstanding for any future 3-month period did not exceed $725,000 as of December 31, 2015.
Schedule of Notional Amounts of Outstanding Derivative Positions	The following table summarizes the notional activity related to derivative instruments for the period indicated: For the year ended December 31, 2016: Beginning of Period Notional Amount Additions Settlement, Termination, Expiration or Exercise End of Period Notional Amount Receive-fixed interest rate swaps $ 425,000 $ — $ — $ 425,000 Pay-fixed interest rate swaps (1) 2,955,000 3,500,000 (3,000,000 ) 3,455,000 Eurodollar futures 6,300,000 — (6,300,000 ) — $ 9,680,000 $ 3,500,000 $ (9,300,000 ) $ 3,880,000 (1) The notional amount of pay-fixed interest rate swaps that were forward starting as of December 31, 2016 was $2,725,000 .
Derivative Instruments, Gain (Loss) [Table Text Block]	The table below provides detail of the Company's "loss on derivative instruments, net" by type of derivative for the periods indicated: Year Ended December 31, Type of Derivative Instrument 2016 2015 2014 Receive-fixed interest rate swaps $ 2,515 $ 6,522 $ 4,912 Pay-fixed interest rate swaps (3,306 ) (28,687 ) (30,754 ) Eurodollar futures (4,815 ) (20,963 ) (27,551 ) Loss on derivative instruments, net $ (5,606 ) $ (43,128 ) $ (53,393 )

Offsetting Assets and Liabili23

Offsetting Assets and Liabilities Offsetting Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Offsetting Assets [Line Items]
Offsetting Assets	Offsetting of Assets Gross Amount of Recognized Assets Gross Amount Offset in the Balance Sheet Net Amount of Assets Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (1) Net Amount Financial Instruments Received as Collateral Cash Received as Collateral December 31, 2016 Derivative assets $ 28,534 $ — $ 28,534 $ (6,449 ) $ (22,085 ) $ — December 31, 2015: Derivative assets $ 7,835 $ — $ 7,835 $ (7,835 ) $ — $ —

Offsetting Assets and Liabili24

Offsetting Assets and Liabilities Offsetting Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Offsetting Liabilities [Line Items]
Offsetting Liabilities	Offsetting of Liabilities Gross Amount of Recognized Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (1) Net Amount Financial Instruments Posted as Collateral Cash Posted as Collateral December 31, 2016 Derivative liabilities $ 6,922 $ — $ 6,922 $ (6,913 ) $ — $ 9 Repurchase agreements 2,898,952 — 2,898,952 (2,898,952 ) — — $ 2,905,874 $ — $ 2,905,874 $ (2,905,865 ) $ — $ 9 December 31, 2015: Derivative liabilities $ 41,205 $ — $ 41,205 $ (9,079 ) $ (32,111 ) $ 15 Repurchase agreements 2,589,420 — 2,589,420 (2,589,420 ) — — $ 2,630,625 $ — $ 2,630,625 $ (2,598,499 ) $ (32,111 ) $ 15

Fair Value of Financial Instr25

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table presents the fair value of the Company’s assets and liabilities presented on its consolidated balance sheets, segregated by the hierarchy level of the fair value estimate, that are measured at fair value on a recurring basis as of the dates indicated: December 31, 2016 Fair Value Level 1 - Unadjusted Quoted Prices in Active Markets Level 2 - Observable Inputs Level 3 - Unobservable Inputs Assets: Mortgage-backed securities $ 3,212,084 $ — $ 3,201,157 $ 10,927 Derivative assets 28,534 — 28,534 — Total assets carried at fair value $ 3,240,618 $ — $ 3,229,691 $ 10,927 Liabilities: Derivative liabilities $ 6,922 $ — $ 6,922 $ — Total liabilities carried at fair value $ 6,922 $ — $ 6,922 $ — December 31, 2015 Fair Value Level 1 - Unadjusted Quoted Prices in Active Markets Level 2 - Observable Inputs Level 3 - Unobservable Inputs Assets: Mortgage-backed securities $ 3,493,701 $ — $ 3,477,266 $ 16,435 Derivative assets 7,835 — 7,835 — Total assets carried at fair value $ 3,501,536 $ — $ 3,485,101 $ 16,435 Liabilities: Derivative liabilities $ 41,205 $ 29,097 $ 12,108 $ — Total liabilities carried at fair value $ 41,205 $ 29,097 $ 12,108 $ —
Fair Value Inputs, Assets, Quantitative Information	The table below presents quantitative information about the significant unobservable inputs used in the fair value measurement for the Company's Level 3 non-Agency CMBS and RMBS as of December 31, 2016 : Unobservable Inputs Prepayment Speed Default Rate Severity Discount Rate Non-Agency CMBS (1) 0 CPY — — 9.8 % Non-Agency RMBS 10 CPR 1.0 % 20.0 % 6.3 % (1) As of December 31, 2016, there are too few loans collateralizing our non-Agency CMBS to reasonably apply average prepayment speed, average default rate, or average severity. The loans were individually evaluated for prepayment and default in projecting the cash flows. Based on that review, the loans are expected to pay as scheduled.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation	The activity of the instruments measured at fair value on a recurring basis using Level 3 inputs is presented in the following table for the period indicated: Level 3 Fair Value Non-Agency CMBS Non-Agency RMBS Total assets Balance as of December 31, 2015 $ 14,903 $ 1,532 $ 16,435 Unrealized loss included in OCI (1) (1,055 ) (2 ) (1,057 ) Principal payments (5,747 ) (272 ) (6,019 ) Accretion 1,568 — 1,568 Balance as of December 31, 2016 $ 9,669 $ 1,258 $ 10,927
Recorded basis and fair value	The following table presents a summary of the carrying value and estimated fair values of the Company’s financial instruments as of the dates indicated: December 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Assets: Mortgage-backed securities $ 3,212,084 $ 3,212,084 $ 3,493,701 $ 3,493,701 Mortgage loans held for investment, net (1) 19,036 15,971 24,145 20,849 Investment in FHLB stock 9 9 11,475 11,475 Derivative assets 28,534 28,534 7,835 7,835 Liabilities: Repurchase agreements (2) $ 2,898,952 $ 2,898,952 $ 2,589,420 $ 2,589,420 FHLB advances (2) — — 520,000 520,000 Non-recourse collateralized financing (1) 6,440 6,357 8,442 8,102 Derivative liabilities 6,922 6,922 41,205 41,205

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	The following table presents a rollforward of the restricted stock activity for the periods indicated: Year Ended December 31, 2016 2015 2014 Shares Weighted Average Grant Date Fair Value Per Share Shares Weighted Average Grant Date Fair Value Per Share Shares Weighted Average Grant Date Fair Value Per Share Restricted stock outstanding as of beginning of period 696,597 $ 8.54 731,809 $ 8.89 520,987 $ 10.26 Restricted stock granted 214,878 6.28 263,829 8.21 457,538 8.09 Restricted stock vested (358,079 ) 8.71 (299,041 ) 9.12 (246,716 ) 10.29 Restricted stock outstanding as of end of period 553,396 $ 7.55 696,597 $ 8.54 731,809 $ 8.89

Mortgage Backed Securities Desi

Mortgage Backed Securities Designated as AFS (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance		$ 2,422,883		$ 2,635,705
Available-for-sale MBS, Unamortized Premium (Discount)		822,084		870,102
Available-for-sale MBS, Amortized Cost		3,244,967		3,505,807
Available-for-sale MBS, Gross Unrealized Gain		19,643		29,927
Available-for-sale MBS, Gross Unrealized Loss		(52,526)		(42,033)
Available-for-sale MBS, Fair Value		3,212,084		3,493,701
Available-for-sale MBS, Sale Proceeds		87,818		449,921		$ 503,918
Available-for-sale MBS, Gross Realized Gain (Loss)		(4,238)		(978)		16,223
RMBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance		1,190,830		1,602,736
Available-for-sale MBS, Unamortized Premium (Discount)		57,042		77,572
Available-for-sale MBS, Amortized Cost		1,247,872		1,680,308
Available-for-sale MBS, Gross Unrealized Gain		2,896		4,432
Available-for-sale MBS, Gross Unrealized Loss		(16,001)		(21,008)
Available-for-sale MBS, Fair Value		1,234,767		1,663,732
CMBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance		1,232,053		1,032,969
Available-for-sale MBS, Unamortized Premium (Discount)		7,150		5,119
Available-for-sale MBS, Amortized Cost		1,239,203		1,038,088
Available-for-sale MBS, Gross Unrealized Gain		11,676		17,581
Available-for-sale MBS, Gross Unrealized Loss		(28,108)		(15,555)
Available-for-sale MBS, Fair Value		1,222,771		1,040,114
CMBS IO
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance		0		0
Available-for-sale MBS, Unamortized Premium (Discount)		757,892		787,411
Available-for-sale MBS, Amortized Cost		757,892		787,411
Available-for-sale MBS, Gross Unrealized Gain		5,071		7,914
Available-for-sale MBS, Gross Unrealized Loss		(8,417)		(5,470)
Available-for-sale MBS, Fair Value		754,546		789,855
Agency MBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Continuous Unrealized Loss Position for less than 12 months, Fair Value		1,738,094		1,332,849
Available-for-sale MBS, Continuous Unrealized Loss Position for less than 12 months, Accumulated Loss		$ (38,469)		$ (19,062)
Available-for-sale MBS, Number of Securities in Continuous Unrealized Loss Position for less than 12 months		133		109
Available-for-sale MBS, Continuous Unrealized Loss Position for 12 months or longer, Fair Value		$ 427,405		$ 775,484
Available-for-sale MBS, Continuous Unrealized Loss Position for 12 months or longer, Accumulated Loss		$ (8,952)		$ (17,393)
Available-for-sale MBS, Number of Securities in Continuous Unrealized Loss Position for 12 months or longer		72		72
Agency MBS | RMBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance		$ 1,157,258		$ 1,536,733
Available-for-sale MBS, Unamortized Premium (Discount)		57,066		77,617
Available-for-sale MBS, Amortized Cost		1,214,324		1,614,350
Available-for-sale MBS, Gross Unrealized Gain		2,832		4,362
Available-for-sale MBS, Gross Unrealized Loss		(15,951)		(20,190)
Available-for-sale MBS, Fair Value		$ 1,201,205		$ 1,598,522
Available-for-sale MBS, Weighted Average Coupon	[1]	3.05%		3.03%
Available-for-sale MBS, Sale Proceeds		$ 54,178		$ 174,565		137,350
Available-for-sale MBS, Gross Realized Gain (Loss)		3,010		2,865		5,762
Agency MBS | CMBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance		1,152,586		876,751
Available-for-sale MBS, Unamortized Premium (Discount)		13,868		13,252
Available-for-sale MBS, Amortized Cost		1,166,454		890,003
Available-for-sale MBS, Gross Unrealized Gain		6,209		10,542
Available-for-sale MBS, Gross Unrealized Loss		(28,108)		(14,614)
Available-for-sale MBS, Fair Value		$ 1,144,555		$ 885,931
Available-for-sale MBS, Weighted Average Coupon	[1]	3.12%		3.45%
Available-for-sale MBS, Sale Proceeds				$ 149,360
Available-for-sale MBS, Gross Realized Gain (Loss)				604
Agency MBS | CMBS IO
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance		$ 0	[2]	0	[3]
Available-for-sale MBS, Unamortized Premium (Discount)		411,737		421,857
Available-for-sale MBS, Amortized Cost		411,737		421,857
Available-for-sale MBS, Gross Unrealized Gain		3,523		5,922
Available-for-sale MBS, Gross Unrealized Loss		(3,362)		(1,651)
Available-for-sale MBS, Fair Value		$ 411,898		$ 426,128
Available-for-sale MBS, Weighted Average Coupon	[1]	0.67%		0.80%
Notional balance for interest only securities		$ 13,106,912		$ 12,180,291
Available-for-sale MBS, Sale Proceeds				45,096		107,635
Available-for-sale MBS, Gross Realized Gain (Loss)				1,698		1,630
Non-Agency MBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Continuous Unrealized Loss Position for less than 12 months, Fair Value		205,484		351,650
Available-for-sale MBS, Continuous Unrealized Loss Position for less than 12 months, Accumulated Loss		$ (2,773)		$ (5,347)
Available-for-sale MBS, Number of Securities in Continuous Unrealized Loss Position for less than 12 months		48		72
Available-for-sale MBS, Continuous Unrealized Loss Position for 12 months or longer, Fair Value		$ 81,660		$ 8,306
Available-for-sale MBS, Continuous Unrealized Loss Position for 12 months or longer, Accumulated Loss		$ (2,332)		$ (231)
Available-for-sale MBS, Number of Securities in Continuous Unrealized Loss Position for 12 months or longer		26		7
Non-Agency MBS | RMBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance		$ 33,572		$ 66,003
Available-for-sale MBS, Unamortized Premium (Discount)		(24)		(45)
Available-for-sale MBS, Amortized Cost		33,548		65,958
Available-for-sale MBS, Gross Unrealized Gain		64		70
Available-for-sale MBS, Gross Unrealized Loss		(50)		(818)
Available-for-sale MBS, Fair Value		$ 33,562		$ 65,210
Available-for-sale MBS, Weighted Average Coupon	[1]	3.58%		3.25%
Non-Agency MBS | CMBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance		$ 79,467		$ 156,218
Available-for-sale MBS, Unamortized Premium (Discount)		(6,718)		(8,133)
Available-for-sale MBS, Amortized Cost		72,749		148,085
Available-for-sale MBS, Gross Unrealized Gain		5,467		7,039
Available-for-sale MBS, Gross Unrealized Loss		0		(941)
Available-for-sale MBS, Fair Value		$ 78,216		$ 154,183
Available-for-sale MBS, Weighted Average Coupon	[1]	4.72%		4.29%
Available-for-sale MBS, Sale Proceeds		$ 33,640		$ 30,775		245,839
Available-for-sale MBS, Gross Realized Gain (Loss)		1,228		566		19,773
Non-Agency MBS | CMBS IO
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale MBS, Par Balance	[2]	0
Available-for-sale MBS, Unamortized Premium (Discount)		346,155		365,554
Available-for-sale MBS, Amortized Cost		346,155		365,554
Available-for-sale MBS, Gross Unrealized Gain		1,548		1,992
Available-for-sale MBS, Gross Unrealized Loss		(5,055)		(3,819)
Available-for-sale MBS, Fair Value		$ 342,648		$ 363,727
Available-for-sale MBS, Weighted Average Coupon	[1]	0.61%		0.71%
Notional balance for interest only securities		$ 10,884,964		$ 10,328,628
Available-for-sale MBS, Sale Proceeds				50,125		13,094
Available-for-sale MBS, Gross Realized Gain (Loss)				$ 1,359		$ 582
[1]	The weighted average coupon ("WAC") is the gross interest rate of the pool of mortgages underlying the security weighted by the outstanding principal balance (or by notional balance in the case of an IO security).
[2]	The notional balance for Agency CMBS IO and non-Agency CMBS IO was $13,106,912 and $10,884,964, respectively, as of December 31, 2016.
[3]	The notional balance for the Agency CMBS IO and non-Agency CMBS IO was $12,180,291 and $10,328,628, respectively, as of December 31, 2015.

Mortgage Loans Held for Inves28

Mortgage Loans Held for Investment, Net and Related Non-Recourse Collateralized Financing (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Single-family mortgage loans held for investment, amortized cost	$ 19,317	$ 24,337
Delinquent Amount at End of Period on Loans Managed and Securitized or Asset-backed Financing Arrangement	1,094	1,343
Allowance for loan losses	(281)	(192)
Provision for Loan and Lease Losses	$ 130	180	$ 0
Debt Instrument, Description of Variable Rate Basis	1-month LIBOR
Debt Instrument, Basis Spread on Variable Rate	0.30%
Debt Instrument, Maturity Date	Jan. 31, 2025
Pledged Financial Instruments, Not Separately Reported, Loans Receivable, for Other Arrangements	$ 7,200	9,220
Non-Recourse Debt	$ 6,533	$ 8,573

Secured Borrowings (Details)

Secured Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 2,898,952	$ 3,109,420
Secured borrowing, weighted average interest rate	1.03%	0.69%
Fair Value of Collateral Pledged	$ 3,149,839	$ 3,367,412
Weighted average maturity remaining	20 days	22 days
Line of Credit Facility, Amount Outstanding	$ 329,424
Line of Credit Facility, Maximum Borrowing Capacity	$ 350,000
Line of Credit Facility, Interest Rate at Period End	1.64%
Securitization financing bond
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 4,803	$ 7,035
Secured borrowing, weighted average interest rate	2.00%	1.65%
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements	$ 5,278	$ 8,054
RMBS | Agency MBS
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 1,157,302	$ 1,439,436
Secured borrowing, weighted average interest rate	0.82%	0.47%
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements	$ 1,191,147	$ 1,483,152
RMBS | Non-Agency MBS
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 26,149	$ 52,128
Secured borrowing, weighted average interest rate	1.98%	1.77%
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements	$ 31,952	$ 64,286
CMBS | Agency MBS
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 1,005,726	$ 301,427
Secured borrowing, weighted average interest rate	0.82%	0.49%
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements	$ 1,095,002	$ 345,728
CMBS | Non-Agency MBS
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 66,881	$ 126,378
Secured borrowing, weighted average interest rate	1.63%	1.26%
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements	$ 77,840	$ 143,785
CMBS IO | Agency MBS
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 346,892	$ 360,245
Secured borrowing, weighted average interest rate	1.57%	1.24%
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements	$ 407,481	$ 421,285
CMBS IO | Non-Agency MBS
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 291,199	$ 302,771
Secured borrowing, weighted average interest rate	1.67%	1.33%
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements	$ 341,139	$ 359,351
Repurchase agreements
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 2,898,952	$ 2,589,420
Secured borrowing, weighted average interest rate	1.03%	0.75%
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements	$ 3,149,839	$ 2,825,641
Federal Home Loan Bank Advances [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 0	$ 520,000
Secured borrowing, weighted average interest rate	0.00%	0.40%
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank	$ 0	$ 541,771	[1]
[1]	FHLB advances were collateralized primarily with Agency CMBS as of December 31, 2015.

Secured Borrowings Term to Orig

Secured Borrowings Term to Original Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 2,898,952	$ 3,109,420
Less than 30 days
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	910,937	551,643
30 to 90 days
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	533,112	782,393
91 to 180 days
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	1,454,903	1,512,384
181 to 364 days
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	0	0
1 year or longer
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 0	$ 263,000

Secured Borrowings Counterparty

Secured Borrowings Counterparty Information (Details) $ in Thousands	Dec. 31, 2016USD ($)Agreements
Counterparty Information [Line Items]
Number of Counterparties with Borrowings Outstanding | Agreements	19
Available Repurchase Agreement Counterparties | Agreements	32
Wells Fargo Bank, N. A. and affiliates
Counterparty Information [Line Items]
Repurchase Agreement Counterparty, Amount at Risk | $	$ 62,041
Borrowings outstanding with counterparty | $	$ 342,160
WAVG interest rate for amount outstanding with named counterparty	1.64%

Derivatives (Details)

Derivatives (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016		Dec. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Derivative assets, fair value		$ 28,534		$ 7,835
Derivative assets, aggregate notional amount		2,670,000		460,000
Derivative liabilities, fair value		(6,922)		(41,205)
Derivative liabilities, aggregate notional amount		1,210,000		9,220,000
Interest Rate Swap
Derivative [Line Items]
Derivative assets, fair value		28,534		7,835
Derivative assets, aggregate notional amount		2,670,000		460,000
Derivative liabilities, fair value		(6,922)		(12,108)
Derivative liabilities, aggregate notional amount		1,210,000		2,920,000
ERROR in label resolution.
Derivative [Line Items]
Derivative assets, fair value		0		0
Derivative assets, aggregate notional amount		0	[1]	0
Derivative liabilities, fair value		0		(29,097)
Derivative liabilities, aggregate notional amount	[1]	0		6,300,000
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
(Loss) gain on derivative instruments, net		(5,606)		(43,128)	$ (53,393)
Not Designated as Hedging Instrument [Member] | ERROR in label resolution.
Derivative [Line Items]
(Loss) gain on derivative instruments, net		(4,815)		(20,963)	(27,551)
Not Designated as Hedging Instrument [Member] | Receive-fixed interest rate swap | Interest Rate Swap
Derivative [Line Items]
(Loss) gain on derivative instruments, net		2,515		6,522	4,912
Not Designated as Hedging Instrument [Member] | Pay-fixed interest rate swap | Interest Rate Swap
Derivative [Line Items]
(Loss) gain on derivative instruments, net		$ (3,306)		$ (28,687)	$ (30,754)
[1]	The Eurodollar futures aggregate notional amount represents the total notional of the 3-month contracts with expiration dates from 2017 to 2020. The maximum notional outstanding for any future 3-month period did not exceed $725,000 as of December 31, 2015.

Derivatives Volume of Activity

Derivatives Volume of Activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Derivative [Line Items]
Beginning of Period Notional Amount	$ 9,680,000
Notional Amount of Derivative Instruments Added	3,500,000
Notional Amount of Derivative Instruments Terminated	9,300,000
End of Period Notional Amount	3,880,000
Forward Contracts [Member] | Pay-fixed interest rate swap
Derivative [Line Items]
End of Period Notional Amount	2,725,000	[1]
Interest Rate Swap | Receive-fixed interest rate swap
Derivative [Line Items]
Beginning of Period Notional Amount	425,000
Notional Amount of Derivative Instruments Added	0
Notional Amount of Derivative Instruments Terminated	0
End of Period Notional Amount	425,000
Interest Rate Swap | Pay-fixed interest rate swap
Derivative [Line Items]
Beginning of Period Notional Amount	2,955,000
Notional Amount of Derivative Instruments Added	3,500,000
Notional Amount of Derivative Instruments Terminated	3,000,000
End of Period Notional Amount	3,455,000	[1]
ERROR in label resolution.
Derivative [Line Items]
Beginning of Period Notional Amount	6,300,000
Notional Amount of Derivative Instruments Added	0
Notional Amount of Derivative Instruments Terminated	6,300,000
End of Period Notional Amount	$ 0
[1]	The notional amount of pay-fixed interest rate swaps that were forward starting as of December 31, 2016 was $2,725,000.

Derivatives Effect on Accumulat

Derivatives Effect on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax		$ 670
Scenario, Forecast [Member]
Derivative [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	$ 268

Offsetting Assets and Liabili35

Offsetting Assets and Liabilities Offsetting Assets (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
Offsetting Assets [Line Items]
Derivative assets, fair value, gross asset		$ 28,534	$ 7,835
Derivative assets, fair value, gross liability		0	0
Derivative assets, fair value, amount not offset against collateral		28,534	7,835
Derivative assets, gross amount not offset in the balance sheet, financial instruments received as collateral	[1]	(6,449)	(7,835)
Derivative assets, gross amounts not offset in the balance sheet, cash received as collateral	[1]	(22,085)	0
Derivative assets, fair value, net amount offset against collateral		$ 0	$ 0
[1]	Amounts disclosed for collateral received by or posted to the same counterparty include cash and the fair value of MBS up to and not exceeding the net amount of the asset or liability presented in the balance sheet. The fair value of the actual collateral received by or posted to the same counterparty may exceed the amounts presented.

Offsetting Assets and Liabili36

Offsetting Assets and Liabilities Offsetting Liabilities (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
Offsetting Liabilities [Line Items]
Derivative liabilities, fair value, gross liability		$ 6,922	$ 41,205
Derivative liabilities, fair value, gross amount offset in balance sheet		0	0
Derivative liabilities, fair value, amount not offset against collateral		6,922	41,205
Derivative liabilities, gross amount not offset in the balance sheet, financial instruments posted as collateral	[1]	(6,913)	(9,079)
Derivative liabilties, gross amount not offset in the balance sheet, cash posted as collateral	[1]	0	(32,111)
Derivative liabilities, fair value, net amount offset against collateral		9	15
Repurchase agreements, gross liability		2,898,952	2,589,420
Repurchase agreements, gross amount offset in balance sheet		0	0
Repurchase agreements, amount not offset against collateral		2,898,952	2,589,420
Repurchase agreements, gross amount not offset in balance sheet, financial instruments posted as collateral	[1]	(2,898,952)	(2,589,420)
Repurchase agreements, gross amount not offset in balance sheet, cash posted as collateral	[1]	0	0
Repurchase agreements, net amount offset against collateral		0	0
Total gross liabilities		2,905,874	2,630,625
Total gross liabilities, gross amount offset in balance sheet		0	0
Total liabilities, amount not offset against collateral		2,905,874	2,630,625
Total liabilities, gross amount not offset in balance sheet, financial instruments posted as collateral	[1]	(2,905,865)	(2,598,499)
Total liabilities, gross amount not offset in the balance sheet, cash posted as collateral	[1]	0	(32,111)
Total liabilities, net amount offset against collateral		$ 9	$ 15
[1]	Amounts disclosed for collateral received by or posted to the same counterparty include cash and the fair value of MBS up to and not exceeding the net amount of the asset or liability presented in the balance sheet. The fair value of the actual collateral received by or posted to the same counterparty may exceed the amounts presented.

Fair Value of Financial Instr37

Fair Value of Financial Instruments Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities	$ 3,212,084	$ 3,493,701
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	28,534	7,835
Derivative assets	28,534	7,835
Derivative liabilities	6,922	41,205
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities	3,212,084	3,493,701
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	28,534
Derivative assets		7,835
Total assets carried at fair value	3,240,618	3,501,536
Derivative liabilities	6,922	41,205
Total liabilities carried at fair value	6,922	41,205
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities	0	0
Derivative assets	0	0
Total assets carried at fair value	0	0
Derivative liabilities	0	29,097
Total liabilities carried at fair value	0	29,097
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities	3,201,157	3,477,266
Derivative assets	28,534	7,835
Total assets carried at fair value	3,229,691	3,485,101
Derivative liabilities	6,922	12,108
Total liabilities carried at fair value	6,922	12,108
Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed securities	10,927	16,435
Derivative assets	0	0
Total assets carried at fair value	10,927	16,435
Derivative liabilities	0	0
Total liabilities carried at fair value	$ 0	$ 0

Fair Value of Financial Instr38

Fair Value of Financial Instruments Significant Unobservable Inputs Level 3 (Details) - Fair Value, Measurements, Recurring - Level 3	12 Months Ended
	Dec. 31, 2016
CMBS
Fair Value Inputs, Quantitative Information [Abstract]
Fair Value Inputs, Prepayment Rate	0.00%	[1]
Fair Value Inputs, Probability of Default	0.00%	[1]
Fair Value Inputs, Loss Severity	0.00%	[1]
Fair Value Inputs, Discount Rate	9.80%
RMBS
Fair Value Inputs, Quantitative Information [Abstract]
Fair Value Inputs, Prepayment Rate	10.00%
Fair Value Inputs, Probability of Default	1.00%
Fair Value Inputs, Loss Severity	20.00%
Fair Value Inputs, Discount Rate	6.30%
[1]	As of December 31, 2016, there are too few loans collateralizing our non-Agency CMBS to reasonably apply average prepayment speed, average default rate, or average severity. The loans were individually evaluated for prepayment and default in projecting the cash flows. Based on that review, the loans are expected to pay as scheduled.

Fair Value of Financial Instr39

Fair Value of Financial Instruments Level 3 (Details) - Fair Value, Measurements, Recurring $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the beginning of the period	$ 16,435
Unrealized (loss) gain included in OCI	(1,057)
Principal payments	(6,019)
Accretion	1,568
Balance at the end of the period	10,927
Non-Agency CMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the beginning of the period	14,903
Unrealized (loss) gain included in OCI	(1,055)
Principal payments	(5,747)
Accretion	1,568
Balance at the end of the period	9,669
Non-Agency RMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the beginning of the period	1,532
Unrealized (loss) gain included in OCI	(2)
Principal payments	(272)
Accretion	0
Balance at the end of the period	$ 1,258

Fair Value of Financial Instr40

Fair Value of Financial Instruments Recorded basis and Fair Value (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets		$ 28,534	$ 7,835
Derivative liabilities		6,922	41,205
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure		3,212,084	3,493,701
Mortgage loans held for investment, net, Fair Value Disclosure		19,036	24,145
Investment in FHLB stock, Fair Value Disclosure		9	11,475
Derivative assets		28,534	7,835
Repurchase agreements, Fair Value Disclosure		2,898,952	2,589,420
FHLB advances, Fair Value Disclosure		0	520,000
Non-recourse collateralized financing, Fair Value		6,440	8,442
Derivative liabilities		6,922	41,205
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure		3,212,084	3,493,701
Mortgage loans held for investment, net, Fair Value Disclosure	[1]	15,971	20,849
Investment in FHLB stock, Fair Value Disclosure	[2]	9	11,475
Derivative assets		28,534	7,835
Repurchase agreements, Fair Value Disclosure	[2]	2,898,952	2,589,420
FHLB advances, Fair Value Disclosure	[2]	0	520,000
Non-recourse collateralized financing, Fair Value	[1]	6,357	8,102
Derivative liabilities		$ 6,922	$ 41,205
[1]	The Company determines the fair value of its mortgage loans held for investment, net and its non-recourse collateralized financing using internally developed cash flow models with inputs similar to those used to estimate the fair value of the Company's Level 3 non-Agency MBS.
[2]	The carrying value of repurchase agreements and FHLB advances generally approximates fair value due to their short term maturities

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)	3 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, 2016
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	50,000,000				50,000,000				50,000,000
Preferred Stock, Par Value Per Share	$ 0.01				$ 0.01				$ 0.01
Preferred Stock, Shares Issued	4,571,937				4,550,000				4,571,937
Preferred Stock, Liquidation Preference Per Share	$ 25								$ 25
Preferred Stock, Dividend Payment Terms									The Series A Preferred Stock pays a cumulative cash dividend equivalent to 8.50% of the $25.00 liquidation preference per share each year and the Series B Preferred Stock pays a cumulative cash dividend equivalent to 7.625% of the $25.00 liquidation preference per share each year.
Dividends declared per common share	$ 0.21	$ 0.21	$ 0.21	$ 0.21	$ 0.24	$ 0.24	$ 0.24	$ 0.24
Stock Repurchase Program, Authorized Amount	$ 40,000,000								$ 40,000,000
Stock Repurchase Program Expiration Date									Dec. 31, 2018
Series A Preferred Stock
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	8,000,000								8,000,000
Preferred Stock, Shares Issued	2,300,000				2,300,000				2,300,000
Preferred Stock, Dividend Rate, Percentage									8.50%
Series B Preferred Stock
Class of Stock [Line Items]
Preferred Stock, Shares Authorized	7,000,000								7,000,000
Preferred Stock, Shares Issued	2,271,937				2,250,000				2,271,937
Preferred Stock, Dividend Rate, Percentage									7.625%
Preferred Stock
Class of Stock [Line Items]
Dividends Payable, Date to be Paid	Jan. 16, 2017
Dividends Payable, Date of Record	Jan. 1, 2017
Common Stock
Class of Stock [Line Items]
Dividends Payable, Date to be Paid	Jan. 31, 2017
Dividends Payable, Date of Record	Dec. 30, 2016

Shareholders' Equity Share-base

Shareholders' Equity Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based incentive plan, number of shares authorized for issuance	2,500,000
Share-based incentive plan, number of shares remaining for issuance	860,106
Stock-based compensation expense	$ 2,709	$ 2,965	$ 2,719
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 7.55	$ 8.54	$ 8.89	$ 10.26
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	6.28	8.21	8.09
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 8.71	$ 9.12	$ 10.29
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Rollforward]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 2,137
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 4 months 9 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Rollforward]
Restricted stock outstanding as of beginning of period	696,597	731,809	520,987
Restricted stock granted	214,878	263,829	457,538
Restricted stock vested	(358,079)	(299,041)	(246,716)
Restricted stock outstanding as of end of period	553,396	696,597	731,809

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Estimated REIT taxable income	$ 21,702,000	$ 52,964,000	$ 79,229,000
Operating Loss Carryforwards	$ 89,775,000
Operating Loss Carryforwards, Limitations on Use	Because the Company incurred an "ownership change" under Section 382 of the Internal Revenue Code ("Section 382"), the Company's ability to utilize its NOL carryforward to offset its taxable income after any required dividend distributions is limited to approximately $13,451 per year with any unused amounts being accumulated and carried forward for use in subsequent years. As of December 31, 2016, the Company had $38,641 of NOL that is not subject to the existing Section 382 limitations available to offset any future taxable income. The NOL will expire beginning in 2020 to the extent it is not used.

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Related Party Transaction, Amounts of Transaction	$ 173,000	$ 228,000	$ 237,000
Related Party Transaction, Rate	8.00%
Due from Related Parties	$ 10,240,000	$ 9,630,000
Related Party Transaction, Terms and Manner of Settlement	Because DCI does not currently have any assets, the amount due as of December 31, 2016 has been fully reserved for collectibility by the Company.

Selected Quarterly Informatio45

Selected Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 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, 2016	Dec. 31, 2015	Dec. 31, 2014
Selected Quarterly Information (Unaudited) [Abstract]
Interest income	$ 22,858	$ 21,135	$ 22,816	$ 25,089	$ 25,522	$ 26,096	$ 24,527	$ 24,099	$ 91,898	$ 100,244	$ 105,644
Interest expense	6,753	6,068	6,100	6,310	5,833	5,859	5,542	5,371	25,231	22,605	25,915
Net interest income	16,105	15,067	16,716	18,779	19,689	20,237	18,985	18,728	66,667	77,639	79,729
(Loss) gain on derivatives instruments, net	56,546	2,409	(16,297)	(48,264)	17,854	(52,749)	17,090	(25,323)	(5,606)	(43,128)	(53,393)
(Loss) gain on sale of investments, net	0	0	(297)	(3,941)	(908)	113	(1,491)	1,308	(4,238)	(978)	16,223
Fair value adjustments and other income (expense) amounts, net	(1)	579	318	87	174	(199)	632	72
General and administrative expenses	(3,589)	(3,355)	(3,671)	(4,092)	(4,278)	(4,379)	(4,754)	(4,257)
Preferred stock dividends	(2,303)	(2,294)	(2,294)	(2,294)	(2,294)	(2,294)	(2,294)	(2,294)	(9,185)	(9,176)	(9,176)
Net Income (Loss) Available to Common Stockholders, Basic	66,758	12,406	(5,525)	(39,725)	30,237	(39,271)	28,168	(11,766)	33,914	7,368	18,630
Other comprehensive income (loss)	(85,186)	670	22,947	41,728	(44,877)	27,418	(39,679)	23,054	(19,841)	(34,084)	55,132
Comprehensive income (loss) to common shareholders	$ (18,428)	$ 13,076	$ 17,422	$ 2,003	$ (14,640)	$ (11,853)	$ (11,511)	$ 11,288	$ 14,073	$ (26,716)	$ 73,762
Net income per common share-basic and diluted	$ 1.36	$ 0.25	$ (0.11)	$ (0.81)	$ 0.61	$ (0.74)	$ 0.52	$ (0.21)	$ 0.69	$ 0.14	$ 0.34
Dividends declared per common share	$ 0.21	$ 0.21	$ 0.21	$ 0.21	$ 0.24	$ 0.24	$ 0.24	$ 0.24