View Filing Data

$ 7,984

$ 5,813

$ 8,088

$ 5,827

$ 6,334

$ 6,542

$ 6,465

$ 7,156

$ 27,712

$ 26,497

$ 6,228

1,759

1,643

1,346

1,235

1,190

1,164

1,006

947

5,983

4,307

867

Net servicing income (loss)

6,225

4,170

6,742

4,592

5,144

5,378

5,459

6,209

21,729

22,190

5,361

Servicing fee income

1,100

463

156

1,719

Servicing costs

301

366

761

799

958

Other income (loss)

Realized gain (loss) on RMBS, net

393

269

(115)

307

166

(349)

854

(60)

(527)

Realized gain (loss) on derivatives, net

(1,672)

(947)

(52)

(1,242)

(1,359)

(1,025)

(187)

(72)

(3,913)

(2,643)

Realized gain (loss) on acquired assets, net

275

174

449

Unrealized gain (loss) on derivatives, net

4,634

(4,986)

2,835

(2,542)

(2,441)

2,025

(2,705)

(3,443)

(59)

(6,564)

2,747

Unrealized gain (loss) on investments in Excess MSRs

1,219

(2,059)

2,938

(2,117)

(301)

(2,348)

(1,976)

(475)

(19)

(5,100)

14,894

Unrealized gain (loss) on investments in MSRs

(560)

(541)

(22)

(1,123)

Total Income

11,313

(3,997)

12,562

(1,002)

1,209

4,078

666

1,870

18,876

7,823

22,534

Expenses

General and administrative expense

1,083

622

634

742

1,185

744

642

457

3,081

3,028

716

Management fee to affiliate

713

690

682

520

679

2,783

2,560

616

Total Expenses

1,796

1,312

1,324

1,432

1,867

1,264

1,321

1,136

5,864

5,588

1,332

Income (Loss) Before Income Taxes

9,517

(5,309)

11,238

(2,434)

(658)

2,814

(655)

734

13,012

2,235

21,202

Provision for corporate business taxes

(134)

(139)

(70)

(140)

(343)

^[1]

(140)

^[1]

Net (income) loss allocated to noncontrolling interests

9,651

(5,170)

11,308

(2,434)

(518)

2,814

(655)

734

13,355

2,375

21,202

(106)

(103)

(26)

(4)

(141)

(22)

(107)

Net Income (Loss) Applicable to Common Stockholders

$ 9,545

$ (5,124)

$ 11,205

$ (2,412)

$ (513)

$ 2,788

$ (652)

$ 730

$ 13,214

$ 2,353

$ 21,095

Net income (Loss) Per Share of Common Stock

Basic (in dollars per share)

$ 1.27

$ (0.68)

$ 1.49

$ (0.32)

$ (0.07)

$ 0.37

$ (0.09)

$ 0.10

$ 1.76

$ 0.31

$ 12.50

Diluted (in dollars per share)

$ 1.27

$ (0.68)

$ 1.49

$ (0.32)

$ (0.07)

$ 0.37

$ (0.09)

$ 0.10

$ 1.76

$ 0.31

$ 12.50

Weighted Average Number of Shares of Common Stock Outstanding

Basic (in shares)

7,509,543

7,508,549

7,506,560

7,504,572

7,502,505

7,509,543

7,505,546

1,688,275

Diluted (in shares)

7,519,038

7,511,653

7,509,543

7,506,680

7,512,444

7,508,827

1,688,275

[1]	The provision for income taxes is recorded at the TRS level.

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Comprehensive Income [Abstract]
Net income (loss)	$ 13,355	$ 2,375	$ 21,202
Other comprehensive income (loss):
Net unrealized gain (loss) on RMBS	(5,984)	11,614	(5,560)
Reclassification of net realized (gain) loss on RMBS in earnings	(854)	60	527
Other comprehensive income (loss)	(6,838)	11,674	(5,033)
Comprehensive income (loss)	6,517	14,049	16,169
Comprehensive income (loss) attributable to noncontrolling interests	69	129	81
Comprehensive income (loss) attributable to common stockholders	$ 6,448	$ 13,920	$ 16,088

Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands

Common Stock [Member]

Additional Paid-In Capital [Member]

Accumulated Other Comprehensive Income (Loss) [Member]

Retained Earnings (Deficit) [Member]

Non-Controlling Interest in Operating Partnership [Member]

Total

Beginning balance at Dec. 31, 2012

$ 0

^[1]

$ 1

$ 0

$ (25)

$ 0

$ (24)

Beginning balance (in shares) at Dec. 31, 2012

1,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Repurchase of common stock

$ 0

(1)

Repurchase of common stock (in shares)

(1,000)

Issuance of common stock, net of offering costs

$ 75

148,078

148,153

Issuance of common stock, net of offering costs (in shares)

7,500,000

Net income

$ 0

21,095

107

21,202

Other comprehensive income (loss)

(5,033)

LTIP-OP Unit awards

200

Common dividends declared

(3,375)

Ending balance at Dec. 31, 2013

$ 75

148,078

(5,033)

17,695

307

161,122

Ending balance (in shares) at Dec. 31, 2013

7,500,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of common stock, net of offering costs

$ 0

^[2]

180

Issuance of common stock, net of offering costs (in shares)

9,543

Net income

$ 0

2,353

2,375

Other comprehensive income (loss)

11,674

LTIP-OP Unit awards

320

Distribution paid on LTIP-OP Units

(104)

Common dividends declared

(15,249)

Ending balance at Dec. 31, 2014

$ 75

148,258

6,641

4,799

545

$ 160,318

Ending balance (in shares) at Dec. 31, 2014

7,509,543

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of common stock, net of offering costs

$ 0

^[1]

$ 74

Issuance of common stock, net of offering costs (in shares)

9,495

Net income

$ 0

13,214

141

13,355

Other comprehensive income (loss)

(6,838)

LTIP-OP Unit awards

463

Distribution paid on LTIP-OP Units

(155)

Common dividends declared

(14,880)

Ending balance at Dec. 31, 2015

$ 75

$ 148,332

$ (197)

$ 3,133

$ 994

$ 152,337

Ending balance (in shares) at Dec. 31, 2015

7,519,038

[1]	de minimis ($10 rounds to $0)
[2]	de minimis ($95 rounds to $0)

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Changes in Stockholders' Equity [Abstract]
Common dividends declared (in dollars per share)	$ 2.03	$ 2.03	$ 0.45

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash Flows From Operating Activities
Net income (loss)	$ 13,355	$ 2,375	$ 21,202
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Realized (gain) loss on RMBS, net	(854)	60	527
Realized gain on bargain purchase	(449)	0	0
Accretion of premium and other amortization	3,811	2,058	217
Change in fair value of investments in Servicing Related Assets	1,142	5,100	(14,894)
Unrealized (gain) loss on derivatives, net	59	6,564	(2,747)
Realized (gain) loss on derivatives, net	3,913	2,643	(59)
LTIP-OP Unit awards	463	320	200
Changes in:
Receivables from unsettled trades	309	6,930	(7,239)
Receivables and other assets	1,643	(414)	(4,106)
Due to affiliate	229	153	616
Accrued expenses and other liabilities	(246)	718	956
Net cash provided by (used in) operating activities	23,375	26,507	(5,327)
Cash Flows From Investing Activities
Purchase of RMBS	(303,278)	(202,679)	(416,695)
Principal paydown of RMBS	47,131	25,369	2,155
Proceeds from sale of RMBS	154,455	57,511	121,785
Acquisition of Excess MSRs	0	(2,181)	(98,968)
Principal paydown of Excess MSRs	13,261	16,065	3,556
Aurora acquisition, net of cash received	(3,839)	0	0
Acquisition of MSRs	(13,861)	0	0
Purchase of derivatives	(4,046)	(1,585)	(1,842)
Sale of derivatives	291	157	0
Purchases of Federal Home Loan Bank stock	(3,261)	0	0
Net cash provided by (used in) investing activities	(113,147)	(107,343)	(390,009)
Cash Flows From Financing Activities
Changes in restricted cash	(2,995)	(3,203)	(3,744)
Borrowings under repurchase agreements	1,672,421	1,510,859	641,140
Repayments of repurchase agreements	(1,648,983)	(1,410,035)	(379,838)
Proceeds from Federal Home Loan Bank advances	109,550	0	0
Repayments of Federal Home Loan Bank Borrowings	(47,300)	0	0
Proceeds from bank loans	25,000	0	0
Principal paydown of bank loans	(4,656)	0	0
Dividends paid	(15,028)	(14,789)	0
LTIP-OP Units distributions paid	(155)	(104)	0
Issuance of common stock, net of offering costs	74	180	148,152
Net cash provided by (used in) financing activities	87,928	82,908	405,710
Net Increase (Decrease) in Cash and Cash Equivalents	(1,844)	2,072	10,374
Cash and Cash Equivalents, Beginning of Period	12,447	10,375	1
Cash and Cash Equivalents, End of Period	10,603	12,447	10,375
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest expense	5,606	3,867	178
Dividends declared but not paid	$ 3,684	$ 3,830	$ 3,375

Organization and Operations	12 Months Ended
Organization and Operations	Dec. 31, 2015
Organization and Operations [Abstract]
Organization and Operations	Note 1 — Organization and Operations Cherry Hill Mortgage Investment Corporation (together with its consolidated subsidiaries, the “Company”) was organized in the state of Maryland on October 31, 2012 to invest in residential mortgage assets in the United States. Under the Company’s charter, as of December 31, 2012, the Company was authorized to issue 1,000 shares of common stock. On June 6, 2013, the Company amended and restated its charter and increased its authorized capitalization. Accordingly, at December 31, 2013, the Company was authorized to issue up to 500,000,000 shares of common stock and 100,000,000 shares of preferred stock, each with a par value of $0.01 per share. The accompanying consolidated financial statements include the accounts of the Company’s subsidiaries, Cherry Hill Operating Partnership LP, Cherry Hill QRS I, LLC, Cherry Hill QRS II, Cherry Hill QRS III, LLC, CHMI Insurance Company, LLC (“CHMI Insurance”) and CHMI Solutions, Inc. (“CHMI Solutions”) (formerly CHMI Solutions, LLC) and Aurora Financial Group, Inc., (“Aurora”). On October 9, 2013, the Company completed an initial public offering (the “IPO”) of 6,500,000 shares of common stock and a concurrent private placement of 1,000,000 shares of common stock. The IPO and concurrent private placement resulted in the sale of 7,500,000 shares of common stock, at a price per share of $20.00. The net proceeds to the Company from the IPO and the concurrent private placement were approximately $148.1 million, after deducting offering-related expenses payable by the Company. The Company did not conduct any activity prior to the IPO and the concurrent private placement. Substantially all of the net proceeds from the IPO and the concurrent private placement were used to invest in excess mortgage servicing rights on residential mortgage loans (“Excess MSRs”) and residential mortgage-backed securities (“RMBS” or “securities”), the payment of principal and interest on which is guaranteed by a U.S. government agency or a U.S. government sponsored enterprise (“Agency RMBS”). Prior to the IPO, the Company was a development stage company that had not commenced operations other than the organization of the Company. The Company completed the IPO and concurrent private placement on October 9, 2013, at which time the Company commenced operations. Prior to the IPO, the sole stockholder of the Company was Stanley Middleman. On December 4, 2012, Mr. Middleman made a $1,000 initial capital contribution to the Company in exchange for 1,000 shares of common stock, and, on October 9, 2013, the Company repurchased these shares from Mr. Middleman for $1,000. The Company is party to a management agreement (the “Management Agreement”) with Cherry Hill Mortgage Management, LLC (the “Manager”), a Delaware limited liability company which is controlled by Mr. Middleman. For a further discussion of the Management Agreement, see Note 7. The Company was taxed for U.S. federal income tax purposes as a Subchapter C corporation for the two month period from October 31, 2012 (date of inception) to December 31, 2012. On February 13, 2013, the Company elected to be taxed for U.S. federal income tax purposes as a Subchapter S corporation effective January 1, 2013, and, as such, all federal tax liabilities were the responsibility of the sole stockholder. In anticipation of the IPO, the Company elected to revoke its Subchapter S election on October 2, 2013. The Company elected to be taxed as a real estate investment trust (“REIT”), as defined under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the short taxable year ended December 31, 2013. As long as the Company continues to comply with a number of requirements under U.S. federal tax law and maintains its qualification as a REIT, the Company generally will not be subject to U.S. federal income taxes to the extent that the Company distributes its taxable income to its stockholders on an annual basis and does not engage in prohibited transactions. However, certain activities that the Company may perform may cause it to earn income that will not be qualifying income for REIT purposes.

Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Basis of Presentation and Significant Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Note 2 — Basis of Presentation and Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of CHMI and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. CHMI consolidates those entities in which it has an investment of 50% or more and has control over significant operating, financial and investing decisions of the entity.

Emerging Growth Company Status

On April 5, 2012, the Jumpstart Our Business Startups Act (the “JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. Because the Company qualifies as an “emerging growth company,” it may, under Section 7(a)(2)(B) of the Securities Act of 1933, delay adoption of new or revised accounting standards applicable to public companies until such standards would otherwise apply to private companies. The Company has elected to take advantage of this extended transition period until the first to occur of the date that it (i) is no longer an “emerging growth company” or (ii) affirmatively and irrevocably opts out of this extended transition period. As a result, the consolidated financial statements may not be comparable to those of other public companies that comply with such new or revised accounting standards. Until the date that the Company is no longer an “emerging growth company” or affirmatively and irrevocably opts out of the extended transition period, upon issuance of a new or revised accounting standard that applies to the consolidated financial statements and that has a different effective date for public and private companies, the Company will disclose the date on which adoption is required for non-emerging growth companies and the date on which it will adopt the recently issued accounting standard.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make a number of significant estimates and assumptions. These include estimates of fair value of Excess MSRs and MSRs (collectively, “Servicing Related Assets”), RMBS, derivatives and credit losses including the period of time during which the Company anticipates an increase in the fair values of securities sufficient to recover unrealized losses on those securities, and other estimates that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reporting period. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. The Company’s estimates are inherently subjective in nature. Actual results could differ from the Company’s estimates and differences may be material.

Risks and Uncertainties

In the normal course of business, the Company encounters primarily two significant types of economic risk: credit and market. Credit risk is the risk of default on the Company’s investments in RMBS, Servicing Related Assets and derivatives that results from a borrower’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments in RMBS, Servicing Related Assets and derivatives due to changes in interest rates, spreads or other market factors. The Company is subject to the risks involved with real estate and real estate-related debt instruments. These include, among others, the risks normally associated with changes in the general economic climate, changes in the mortgage market, changes in tax laws, interest rate levels, and the availability of financing.

The Company also is subject to significant tax risks. If the Company were to fail to qualify as a REIT in any taxable year, the Company would be subject to U.S. federal income tax (including any applicable alternative minimum tax), which could be material. Unless entitled to relief under certain statutory provisions, the Company would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost.

Investments in RMBS

Classification – The Company classifies its investments in RMBS as securities available for sale. Although the Company generally intends to hold most of its securities until maturity, it may, from time to time, sell any of its securities as part of its overall management of its portfolio. Securities available for sale are carried at fair value with the net unrealized gains or losses reported as a separate component of accumulated other comprehensive income, to the extent impairment losses, if any, are considered temporary. Unrealized losses on securities are charged to earnings if they reflect a decline in value that is other-than-temporary, as described below.

Fair value is determined under the guidance of ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). The Company determines fair value of its RMBS investments based upon prices obtained from third-party pricing providers. The third-party pricing providers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset period, issuer, prepayment speeds, credit enhancements and expected life of the security. In determining the fair value of RMBS, management’s judgment is used to arrive at fair value that considers prices obtained from third-party pricing providers and other applicable market data. The Company’s application of ASC 820 guidance is discussed in further detail in Note 9.

Investment securities transactions are recorded on the trade date. At disposition, the net realized gain or loss is determined on the basis of the cost of the specific investment and is included in earnings. All RMBS sold in the year ended December 31, 2015 were settled prior to period end.

Revenue Recognition – Interest income from coupon payments is accrued based on the outstanding principal amount of the RMBS and their contractual terms. Premiums and discounts associated with the purchase of the RMBS are accreted into interest income over the projected lives of the securities using the interest method. The Company’s policy for estimating prepayment speeds for calculating the effective yield is to evaluate historical performance, consensus on prepayment speeds, and current market conditions. Adjustments are made for actual prepayment activity. Approximately $1.5 million and $1.3 million in interest income was receivable at December 31, 2015 and December 31, 2014, respectively, and has been classified within “Receivables and other assets” on the consolidated balance sheet. For further discussion on Receivables and other assets, see Note 14.

Impairment – The Company evaluates its RMBS, on a quarterly basis, to assess whether a decline in the fair value below the amortized cost basis is an other-than-temporary impairment (“OTTI”). The presence of OTTI is based upon a fair value decline below a security’s amortized cost basis and a corresponding adverse change in expected cash flows due to credit related factors as well as non-credit factors, such as changes in interest rates and market spreads. Impairment is considered other-than-temporary if an entity (i) intends to sell the security, (ii) will more likely than not be required to sell the security before it recovers in value, or (iii) does not expect to recover the security’s amortized cost basis, even if the entity does not intend to sell the security. Under these scenarios, the impairment is other-than-temporary and the full amount of impairment should be recognized currently in earnings and the cost basis of the security is adjusted. However, if an entity does not intend to sell the impaired security and it is more likely than not that it will not be required to sell before recovery, the OTTI should be separated into (i) the estimated amount relating to credit loss, or the credit component, and (ii) the amount relating to all other factors, or the non-credit component. Only the estimated credit loss amount is recognized currently in earnings, with the remainder of the loss recognized in other comprehensive income. The difference between the new amortized cost basis and the cash flows expected to be collected is amortized into interest income in accordance with the effective interest method.

Investments in Excess MSRs

Classification – The Company has elected the fair value option to record its investments in Excess MSRs in order to provide users of the consolidated financial statements with better information regarding the effects of prepayment risk and other market factors on the Excess MSRs. Under this election, the Company records a valuation adjustment on its investments in Excess MSRs on a quarterly basis to recognize the changes in fair value in net income as described below. In determining the valuation of Excess MSRs, management used internally developed models that are primarily based on observable market-based inputs but which also include unobservable market data inputs (see Note 9).

Revenue Recognition – Excess MSRs are aggregated into pools as applicable. Each pool of Excess MSRs is accounted for in the aggregate. Interest income for Excess MSRs is accreted into interest income on an effective yield or “interest” method, based upon the expected excess mortgage servicing amount over the expected life of the underlying mortgages. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Under the retrospective method, the interest income recognized for a reporting period would be measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period, plus any cash received during the period. The amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimated future cash flows to the initial investment. The difference between the fair value of Excess MSRs and their amortized cost basis is recorded on the income statement as “Unrealized gain (loss) on investments in Excess MSRs.” Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Excess MSRs and, therefore, may differ from their effective yields. Approximately $2.2 million and $2.7 million in Excess MSR cashflow was receivable at December 31, 2015 and December 31, 2014, respectively, and has been classified within “Receivables and other assets” on the consolidated balance sheet.

Investments in MSRs

Classification – The Company has elected the fair value option to record its investments in MSRs in order to provide users of the consolidated financial statements with better information regarding the effects of prepayment risk and other market factors on the MSRs. Under this election, the Company records a valuation adjustment on its investments in MSRs on a quarterly basis to recognize the changes in fair value in net income as described below. The Company’s MSRs represent the right to service mortgage loans. As an owner and manager of MSRs, the Company may be obligated to fund advances of principal and interest payments due to third-party owners of the loans, but not yet received from the individual borrowers. These advances are reported as servicing advances within the Receivables and other assets line item on the consolidated balance sheets. MSRs are reported at fair value on the consolidated balance sheets. Although transactions in MSRs are observable in the marketplace, the valuation includes unobservable market data inputs (prepayment speeds, delinquency levels, costs to service and discount rates). Changes in the fair value of MSRs as well as servicing fee income and servicing expenses are reported on the consolidated statements of income. In determining the valuation of MSRs, management used internally developed models that are primarily based on observable market-based inputs but which also include unobservable market data inputs (see Note 9).

Revenue Recognition – Mortgage servicing fee income represents revenue earned for servicing mortgage loans. The servicing fees are based on a contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected. Corresponding costs to service are charged to expense as incurred. Approximately $787,000 in reimbursable servicing advances was receivable at December 31, 2015, and has been classified within “Receivables and other assets” on the consolidated balance sheet.

Servicing fee income received and servicing expenses incurred are reported on the consolidated statements of comprehensive income. The difference between the fair value of MSRs and their amortized cost basis is recorded on the income statement as “Unrealized gain (loss) on investments in MSRs.” Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the MSRs and, therefore, may differ from their effective yields.

Derivatives and Hedging Activities

Derivative transactions include swaps, swaptions, Treasury futures and “to-be-announced” securities (“TBAs”). Swaps and swaptions are entered into by the Company solely for interest rate risk management purposes. TBAs and treasury futures are used for duration risk and basis risk management purposes. The decision of whether or not a given transaction/position (or portion thereof) is economically hedged is made on a case-by-case basis, based on the risks involved and other factors as determined by senior management, including restrictions imposed by the Code on REITs. In determining whether to economically hedge a risk, the Company may consider whether other assets, liabilities, firm commitments and anticipated transactions already offset or reduce the risk. All transactions undertaken as economic hedges are entered into with a view towards minimizing the potential for economic losses that could be incurred by the Company. Generally, derivatives entered into are not intended to qualify as hedges under GAAP, unless specifically stated otherwise.

The Company’s derivative financial instruments contain credit risk to the extent that its bank counterparties may be unable to meet the terms of the agreements. The Company reduces such risk by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one party resulting from this type of credit risk is monitored. Finally, the Company’s interest rate swaps are required to be cleared on an exchange, which further mitigates, but does not eliminate, credit risk. Management does not expect any material losses as a result of default by other parties.

Classification – All derivatives are recognized as either assets or liabilities on the consolidated balance sheet and measured at fair value. Due to the nature of these instruments, they may be in a receivable/asset position or a payable/liability position at the end of an accounting period. Derivative amounts payable to, and receivable from, the same party under a contract may be offset as long as the following conditions are met: (i) each of the two parties owes the other determinable amounts; (ii) the reporting party has the right to offset the amount owed with the amount owed by the other party; (iii) the reporting party intends to offset; and (iv) the right to offset is enforceable by law. The Company reports the fair value of derivative instruments gross of cash paid or received pursuant to credit support agreements, and fair value may be reflected on a net counterparty basis when the Company believes a legal right of offset exists under an enforceable master netting agreement. For further discussion on offsetting assets and liabilities, see Note 8.

Revenue Recognition – With respect to derivatives that have not been designated as hedges, any net payments under, or fluctuations in the fair value of, such derivatives have been recognized currently in “Realized and unrealized gains (losses) on derivatives, net” in the consolidated statements of income. These derivatives may, to some extent, be economically effective as hedges.

Cash and Cash Equivalents and Restricted Cash

The Company considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. Restricted cash represents the Company’s cash held by counterparties as collateral against the Company’s derivatives (approximately $4.6 million), borrowings under its repurchase agreements (approximately $4.2 million) as well as cash held that relates to the $24.3 million of borrowings on a term loan (“Term Loan”) (approximately $1.1 million). For further information on the restricted cash as it relates to the Term Loan, see Note 14.

Due to Affiliate

This represents amounts due to the Manager pursuant to the Management Agreement. For further information on the Management Agreement, see Note 7.

Income Taxes

The Company elected to be taxed as a REIT under the Code commencing with its short taxable year ended December 31, 2013. The Company expects to continue to qualify to be treated as a REIT. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes at least 90% of its REIT taxable income to stockholders and does not engage in prohibited transactions. The Company’s taxable REIT subsidiaries (“TRSs”), Solutions and Aurora, are subject to U.S. federal income taxes on their taxable income.

The Company accounts for income taxes in accordance with ASC 740, Income Taxes. ASC 740 requires the recording of deferred income taxes that reflect the net tax effect of temporary differences between the carrying amounts of the Company’s assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, including operating loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the period that includes the enactment date. The Company assesses its tax positions for all open tax years and determines if it has any material unrecognized liabilities in accordance with ASC 740. The Company records these liabilities to the extent it deems them more-likely-than-not to be incurred. The Company records interest and penalties related to income taxes within the provision for income taxes in the consolidated statements of income (loss). The Company has not incurred any interest or penalties.

Realized Gain (Loss) on RMBS and Derivatives, Net

The following table presents gains and losses on sales of RMBS and derivatives for the periods indicated (dollars in thousands):

	Year Ended December 31,
	2015			2014			2013
Realized gain (loss) on RMBS, net
Gain on RMBS	$	1,398		$	303		$	116
Loss on RMBS		(544	)		(363	)		(643	)
Net realized gain (loss) on RMBS		854			(60	)		(527	)
Realized gain (loss) on derivatives, net		(3,913	)		(2,643	)		59
Unrealized gain (loss) on derivatives, net		(59	)		(6,564	)		2,747
Total	$	(3,118	)	$	(9,267	)	$	2,279

The gain and loss on RMBS presented above represent the amounts reclassified from other comprehensive income (loss) in earnings.

Repurchase Agreements and Interest Expense

The Company finances its investments in RMBS with short-term borrowings under master repurchase agreements. The repurchase agreements are generally short-term debt, which expire within one year. Borrowings under repurchase agreements generally bear interest rates of a specified margin over one-month LIBOR and are generally uncommitted. The repurchase agreements are treated as collateralized financing transactions and are carried at their contractual amounts, as specified in the respective agreements. Interest is recorded at the contractual amount on an accrual basis.

Federal Home Loan Bank of Indianapolis Advances

Advances from the Federal Home Loan Bank of Indianapolis (“FHLBI”) are secured by the pledge of Agency RMBS, have bullet maturities and bear interest at rates based on specified margins over LIBOR. Advances are treated as collateralized financing transactions and are carried at their contractual amounts. Interest is recorded at the contractual amount on an accrual basis.

Dividends Payable

Because the Company is organized as a REIT under the Code, it is required by law to distribute annually at least 90% of its REIT taxable income, which it does in the form of quarterly dividend payments. The Company accrues the dividend payable on the accounting date, which causes an offsetting reduction in retained earnings.

Comprehensive Income

Comprehensive income is defined as the change in equity of a business enterprise during a period resulting from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For the Company’s purposes, comprehensive income represents net income, as presented in the consolidated statements of income, adjusted for unrealized gains or losses on RMBS, which are designated as available for sale.

Business Combinations

Business combinations are accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations (“ASC 805”). Under the acquisition method the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including other identifiable assets, exceeds the purchase price, a bargain purchase gain is recognized. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value, if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the consolidated statement of income (loss) from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred. We applied this guidance to the Aurora acquisition.

Recent Accounting Pronouncements

Business Combinations – In September 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which amends ASC 805, Business Combinations. ASU 2015-16 requires that an acquirer recognize adjustments to previously identified provisional amounts in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Currently, management does not anticipate that the adoption of ASU 2015-16 will have a material impact on the consolidated statement of income (loss) or earnings per share.

Revenue Recognition – In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in ASC 606, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of 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 or services. ASU 2014-09 is effective for fiscal years and interim periods beginning after December 15, 2017. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in ASU 2014-09. Management is currently evaluating the impact ASU 2014-09 may have on its consolidated financial statements.

Transfers and Servicing – In June 2014, the FASB issued ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which amends ASC 860, Transfers and Servicing. ASU 2014-11, which affects all entities that enter into repurchase-to-maturity transactions or repurchase financings, requires two accounting changes. First, ASU 2014-11 changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, ASU 2014-11 requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. ASU 2014-11 also requires disclosures for certain transactions comprising (1) a transfer of a financial asset accounted for as a sale and (2) an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. For those transactions outstanding at the reporting date, the transferor is required to disclose additional information by type of transaction. ASU 2014-11 also requires certain disclosures for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. The accounting changes in ASU 2014-11 are effective for public business entities for the first interim or annual period beginning after December 15, 2014. For public business entities, the disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015, with early adoption prohibited. Adoption of ASU 2014-11 did not have a material impact on the consolidated balance sheet, statement of income (loss), or earnings per share.

Stock Compensation – In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved After the Requisite Service Period, which amends ASC 718, Compensation – Stock Compensation. ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. Currently, management does not anticipate that the adoption of ASU 2014-12 will have a material impact on the consolidated balance sheet, statement of income (loss), or earnings per share.

Going Concern – In August 2014, the FASB issued ASU 2014-15, Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which amends ASC Subtopic 205-40, Presentation of Financial Statements – Going Concern. ASU 2014-15 provides guidance in GAAP about management’s responsibility to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued and to provide related footnote disclosures of the relevant facts and circumstances. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, with early adoption permitted. Management does not expect the adoption of ASU 2014-15 to have an impact on its consolidated financial statements.

Changes in Presentation

Certain prior period amounts have been reclassified to conform to current period presentation.

Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

Note 3 — Segment Reporting

The Company conducts its business through the following segments: (i) investments in RMBS; (ii) investments in Servicing Related Assets; and (iii) “All Other” which consists primarily of general and administrative expenses including fees to the directors and management fees pursuant to the Management Agreement (see Note 7). For segment reporting purposes, the Company does not allocate interest income on short-term investments or general and administrative expenses.

Summary financial data on the Company’s segments is given below, together with a reconciliation to the same data for the Company as a whole (dollars in thousands):

	Servicing Related Assets			RMBS			All Other			Total
Income Statement
Year Ended December 31, 2015
Interest income	$	14,313		$	13,399		$	—		$	27,712
Interest expense		583			5,400			—			5,983
Net interest income		13,730			7,999			—			21,729
Servicing fee income		1,719			—			—			1,719
Servicing costs		761			—			—			761
Net servicing income		958			—			—			958
Other income		(693	)		(3,118	)		—			(3,811	)
Other operating expenses		—			—			5,864			5,864
(Benefit from) provision for corporate business taxes		(343	)		—			—			(343	)
Net income (loss)	$	14,338		$	4,881		$	(5,864	)	$	13,355

	Servicing Related Assets			RMBS			All Other			Total
Year Ended December 31, 2014
Interest income	$	15,854		$	10,643		$	—	^(A)	$	26,497
Interest expense		—			4,307			—			4,307
Net interest income		15,854			6,336			—			22,190
Servicing fee income		—			—			—			—
Servicing costs		—			—			—			—
Net servicing income		—			—			—			—
Other income		(5,100	)		(9,267	)		—			(14,367	)
Other operating expenses		—			—			5,588			5,588
(Benefit from) provision for corporate business taxes		(140	)		—			—			(140	)
Net income (loss)	$	10,894		$	(2,931	)	$	(5,588	)	$	2,375
Year Ended December 31, 2013
Interest income	$	3,552		$	2,676		$	—	^(A)	$	6,228
Interest expense		—			867			—			867
Net interest income		3,552			1,809			—			5,361
Servicing fee income		—			—			—			—
Servicing costs		—			—			—			—
Net servicing income		—			—			—			—
Other income		14,894			2,279			—			17,173
Other operating expenses		—			—			1,332			1,332
(Benefit from) provision for corporate business taxes		—			—			—			—
Net income (loss)	$	18,446		$	4,088		$	(1,332	)	$	21,202
Balance Sheet
December 31, 2015
Investments	$	97,803		$	508,242		$	—		$	606,045
Other assets		3,562			13,984			12,749			30,295
Total assets		101,365			522,226			12,749			636,340
Debt		24,313			447,810			—			472,123
Other liabilities		1,883			4,903			5,094			11,880
Total liabilities		26,196			452,713			5,094			484,003
GAAP book value	$	75,169		$	69,513		$	7,655		$	152,337
December 31, 2014
Investments	$	91,322		$	416,003		$	—		$	507,325
Other assets		2,713			8,920			12,968			24,601
Total assets		94,035			424,923			12,968			531,926
Debt		—			362,126			—			362,126
Other liabilities		—			4,319			5,163			9,482
Total liabilities		—			366,445			5,163			371,608
GAAP book value	$	94,035		$	58,478		$	7,805		$	160,318

(A)

de minimus ($192 rounds to $0)

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Investments in RMBS

12 Months Ended

Dec. 31, 2015

Investments in RMBS [Abstract]

Investments in RMBS

Note 4 — Investments in RMBS

All of the Company’s RMBS are classified as available for sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income except for securities that are OTTI. There were no OTTI securities as of December 31, 2015 and December 31, 2014. The following is a summary of the Company’s RMBS investments as of the periods indicated, (dollars in thousands):

Summary of RMBS Assets

As of December 31, 2015

Asset Type	Original Face Value		Book Value		Gross Unrealized					Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gains		Losses			Carrying Value^(A)		Number of Securities		Rating	Coupon			Yield^(C)			Maturity (Years)^(D)
RMBS
Fannie Mae	$	329,767	$	308,367	$	1,961	$	(1,556	)	$	308,772		44	(B)		3.77	%		3.59	%		24
Freddie Mac		208,154		193,567		821		(977	)		193,411		24	(B)		3.61	%		3.48	%		24
CMOs		16,646		6,493		—		(434	)		6,059		4	Unrated		4.55	%		7.39	%		10
Total/Weighted Average	$	554,567	$	508,427	$	2,782	$	(2,967	)	$	508,242		72			3.72	%		3.60	%		23

As of December 31, 2014

Asset Type	Original Face Value		Book Value		Gross Unrealized					Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gains		Losses			Carrying Value^(A)		Number of Securities		Rating	Coupon			Yield^(C)			Maturity (Years)^(D)
RMBS
Fannie Mae	$	267,516	$	263,924	$	4,674	$	(10	)	$	268,588		33	(B)		3.89	%		3.72	%		24
Freddie Mac		144,064		138,333		2,143		—			140,476		17	(B)		3.75	%		3.20	%		23
CMOs		25,964		7,105		—		(166	)		6,939		4	Unrated		4.18	%		13.04	%		14
Total/Weighted Average	$	437,544	$	409,362	$	6,817	$	(176	)	$	416,003		54			3.85	%		3.70	%		23

(A)

See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.

(B)

The Company used an implied AAA rating for the Fannie Mae and Freddie Mac securities.

(C)

The weighted average yield is based on the most recent annualized monthly interest income, divided by the Book Value. Prior period amounts have been reclassified to conform to current period presentation.

(D)

The weighted average stated maturity.

Summary of RMBS Assets by Maturity

As of December 31, 2015

Asset Type	Original Face Value		Book Value		Gross Unrealized					Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gains		Losses			Carrying Value^(A)		Number of Securities		Rating	Coupon			Yield^(C)			Maturity (Years)^(D)
Less than 1 Year	$	—	$	—	$	—	$	—		$	—		—			—	%		—	%		—
1-5 Years		—		—		—		—			—		—			—	%		—	%		—
5-10 Years		5,500		5,553		—		(216	)		5,337		3	(B)		4.76	%		4.96	%		9
Over 10 Years		549,067		502,874		2,782		(2,751	)		502,905		69	(B)		3.71	%		3.59	%		24
Total/Weighted Average	$	554,567	$	508,427	$	2,782	$	(2,967	)	$	508,242		72			3.72	%		3.60	%		23

As of December 31, 2014

Asset Type	Original Face Value		Book Value		Gross Unrealized					Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gains		Losses			Carrying Value^(A)		Number of Securities		Rating	Coupon			Yield^(C)			Maturity (Years)^(D)
Within 1 year	$	—	$	—	$	—	$	—		$	—		—			—	%		—	%		—
After 1 year through 5 years		—		—		—		—			—		—			—	%		—	%		—
After 5 years through 10 years		3,500		3,553		—		(126	)		3,426		2	(B)		4.68	%		4.76	%		10
After 10 years		434,044		405,809		6,817		(50	)		412,577		52	(B)		3.84	%		3.69	%		23
Total/Weighted Average	$	437,544	$	409,362	$	6,817	$	(176	)	$	416,003		54			3.85	%		3.70	%		23

(A)

See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.

(B)

The Company used an implied AAA rating for the Fannie Mae and Freddie Mac securities.

(C)

(D)

The weighted average stated maturity.

At December 31, 2015 and December 31, 2014, the Company pledged Agency RMBS investments with a carrying value of approximately $399.8 million and $380.7 million, respectively, as collateral for repurchase agreements. At December 31, 2015, the Company pledged Agency RMBS investments with a carrying value of approximately $83.2 million, as collateral for FHLBI advances. At December 31, 2015 and December 31, 2014, the Company did not have any securities purchased from and financed with the same counterparty that did not meet the conditions of ASC 860, Transfers and Servicing, to be considered linked transactions and, therefore, classified as derivatives.

Unrealized losses that are considered other-than-temporary are recognized currently in earnings. During the years ended December 31, 2015 and 2014, the Company did not record any OTTI charges. Based on management’s analysis of these securities, the performance of the underlying loans and changes in market factors, management determined that unrealized losses as of the balance sheet date on the Company’s securities were primarily the result of changes in market factors, rather than issuer-specific credit impairment. The Company performed analyses in relation to such securities, using management’s best estimate of their cash flows, which support its belief that the carrying values of such securities were fully recoverable over their expected holding period. Such market factors include changes in market interest rates and credit spreads, or certain macroeconomic events, which did not directly impact the Company’s ability to collect amounts contractually due. Management continually evaluates the credit status of each of the Company’s securities and the collateral supporting those securities. This evaluation includes a review of the credit of the issuer of the security (if applicable), the credit rating of the security (if applicable), the key terms of the security (including credit support), debt service coverage and loan to value ratios, the performance of the pool of underlying loans and the estimated value of the collateral supporting such loans, including the effect of local, industry and broader economic trends and factors. In connection with the above, the Company weighs the fact that all of its investments in Agency RMBS are guaranteed by U.S. government agencies or U.S. government sponsored entities.

These factors include underlying loan default expectations and loss severities, which are analyzed in connection with a particular security’s credit support, as well as prepayment rates. The result of this evaluation is considered when determining management’s estimate of cash flows and in relation to the amount of the unrealized loss and the period elapsed since it was incurred. Significant judgment is required in this analysis. The following tables summarize the Company’s securities in an unrealized loss position as of the dates indicated (dollars in thousands):

RMBS Unrealized Loss Positions

As of December 31, 2015

Asset Type	Original Face Value		Book Value		Gross Unrealized Losses			Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gross Unrealized Losses			Carrying Value^(A)		Number of Securities		Rating		Coupon		Yield^(C)		Maturity (Years)^(D)
Less than Twelve Months	$	224,765	$	229,732	$	(2,413	)	$	227,319		31	(B)	3.62	%	3.44	%	24
Twelve or More Months		57,966		46,204		(554	)		45,650		9	(B)	3.81	%	4.13	%	27
Total/Weighted Average	$	282,731	$	275,936	$	(2,967	)	$	272,969		40		3.65	%	3.55	%	25

As of December 31, 2014

Asset Type	Original Face Value		Book Value		Gross Unrealized Losses			Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gross Unrealized Losses			Carrying Value^(A)		Number of Securities		Rating		Coupon		Yield^(C)		Maturity (Years)^(D)
Less than Twelve Months	$	35,404	$	16,946	$	(176	)	$	16,770		5	(B)	3.78	%	5.39	%	23
Twelve or More Months		—		—		—			—		—		—	%	—	%	—
Total/Weighted Average	$	35,404	$	16,946	$	(176	)	$	16,770		5		3.78	%	5.39	%	23

(A)

See Note 9 regarding the estimation of fair value, which is equal to carrying value for all securities.

(B)

The Company used an implied AAA rating for the Fannie Mae and Freddie Mac securities, other than CMOs, which are unrated.

(C)

(D)

The weighted average stated maturity. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases which may be maturity.

The entire disclosure for investments in certain debt and equity securities.

Investments in Servicing Related Assets [Abstract]

Investments in Servicing Related Assets

12 Months Ended

Dec. 31, 2015

Investments in Servicing Related Assets

Note 5 — Investments in Servicing Related Assets

In October 2013, the Company entered into an agreement (“MSR Agreement 1”) with Freedom Mortgage Corporation (“Freedom Mortgage”) to invest in Excess MSRs with Freedom Mortgage. Freedom Mortgage originated the mortgage servicing rights on the related pool of residential fixed rate Ginnie Mae-eligible FHA and VA mortgage loans with an aggregate unpaid principal balance (“UPB”) of approximately $10.0 billion (“MSR Pool 1”). Freedom Mortgage is entitled to receive an initial weighted average total mortgage servicing amount of approximately 28 basis points (“bps”) on the performing UPB, as well as any ancillary income from MSR Pool 1. Pursuant to MSR Agreement 1, Freedom Mortgage performs all servicing functions and advancing functions related to MSR Pool 1 for a basic fee (the amount representing reasonable compensation for performing the servicing duties) of 8 bps. The remainder, or “excess mortgage servicing amount,” is initially equal to a weighted average of 20 bps.

The Company acquired the right to receive 85% of the excess mortgage servicing amount on MSR Pool 1 and, subject to certain limitations and pursuant to a recapture agreement (the “MSR Pool 1—Recapture Agreement”), 85% of the Excess MSRs on future mortgage loans originated by Freedom Mortgage that represent refinancings of loans in MSR Pool l (which loans then become part of MSR Pool 1) for approximately $60.6 million. Freedom Mortgage has co-invested, pari passu with the Company, in 15% of the Excess MSRs. Freedom Mortgage, as servicer, also retains the ancillary income and the servicing obligations and liabilities. If Freedom Mortgage is terminated as the servicer, the Company’s right to receive its portion of the excess mortgage servicing amount is also terminated. To the extent that Freedom Mortgage is terminated as the servicer and receives a termination payment, the Company is entitled to a pro rata share, or 85%, of such termination payment.

The value, and absolute amount, of recapture activity tends to vary inversely with the direction of interest rates. When interest rates are falling, recapture rates tend to be higher due to increased opportunities for borrowers to refinance. As interest rates increase, however, there is likely to be less recapture activity.

In October 2013, the Company entered into an agreement (“MSR Agreement 2”) with Freedom Mortgage to invest with Freedom Mortgage in another pool of Excess MSRs. Freedom Mortgage acquired the mortgage servicing rights from a third-party seller on a pool of residential Ginnie Mae-eligible VA hybrid adjustable rate mortgage loans with an outstanding principal balance of approximately $10.7 billion (“MSR Pool 2”). Freedom Mortgage is entitled to receive an initial weighted average total mortgage servicing amount of 44 bps on the performing UPB, as well as any ancillary income from MSR Pool 2. Pursuant to MSR Agreement 2, Freedom Mortgage performs all servicing functions and advancing functions related to MSR Pool 2 for a basic fee (the amount representing reasonable compensation for performing the servicing duties) of 10 bps. Therefore, the remainder, or “excess mortgage servicing amount” is initially equal to a weighted average of 34 bps.

The Company acquired the right to receive 50% of the excess mortgage servicing amount on MSR Pool 2 and, subject to certain limitations and pursuant to a recapture agreement (the “MSR Pool 2—Recapture Agreement”), 50% of the Excess MSRs on future mortgage loans originated by Freedom Mortgage that represent refinancings of loans in MSR Pool 2 (which loans then become part of MSR Pool 2) for approximately $38.4 million. Freedom Mortgage has co-invested, pari passu with the Company, in 50% of the Excess MSRs. Freedom Mortgage, as servicer, also retains the ancillary income and the servicing obligations and liabilities. If Freedom Mortgage is terminated as the servicer, the Company’s right to receive its portion of the excess mortgage servicing amount is also terminated. To the extent that Freedom Mortgage is terminated as the servicer and receives a termination payment, the Company is entitled to a pro rata share, or 50%, of such termination payment.

Upon completion of the IPO and the concurrent private placement, the Company also entered into a flow and bulk Excess MSR purchase agreement related to future purchases of Excess MSRs from Freedom Mortgage. On February 28, 2014, pursuant to the flow and bulk Excess MSR purchase agreement, the Company purchased from Freedom Mortgage Excess MSRs on mortgage loans originated by Freedom Mortgage during the first quarter of 2014 with an UPB of approximately $76.8 million. The Company acquired an approximate 85% interest in the Excess MSRs for approximately $567,000. The terms of the purchase include recapture provisions that are the same as those in the Excess MSR acquisition agreements the Company entered into with Freedom Mortgage in October 2013.

On March 31, 2014, pursuant to the flow and bulk Excess MSR purchase agreement, the Company purchased from Freedom Mortgage Excess MSRs on mortgage loans originated by a third party originator with an aggregate UPB of approximately $159.8 million. Freedom Mortgage purchased the MSRs on these mortgage loans from a third party on January 31, 2014. The Company acquired an approximate 71% interest in the Excess MSRs for approximately $946,000. The terms of the purchase include recapture provisions that are the same as those in the Excess MSR acquisition agreements the Company entered into with Freedom Mortgage in October 2013.

On June 30, 2014, pursuant to the flow and bulk Excess MSR purchase agreement, the Company purchased from Freedom Mortgage Excess MSRs on mortgage loans originated by Freedom Mortgage during the second quarter of 2014 with an aggregate UPB of approximately $98.1 million. The Company acquired an approximate 85% interest in the Excess MSRs for approximately $661,000. The terms of the purchase include recapture provisions that are the same as those in the Excess MSR acquisition agreements the Company entered into with Freedom Mortgage in October 2013.

The mortgage loans underlying the Excess MSRs purchased in 2014 are collectively referred to as “Pool 2014,” and the recapture provisions, which are identical, are collectively referred to as the “Pool 2014—Recapture Agreement.”

On May 29, 2015, in conjunction with the acquisition of Aurora, we acquired MSRs on conventional mortgage loans with an aggregate UPB of approximately $718.4 million. We have not entered into a recapture agreement covering the MSRs as of December 31, 2015.

On June 10, 2015, the Company agreed to transfer the direct servicing of the MSR portfolio to Freedom Mortgage pursuant to a subservicing agreement with Freedom Mortgage. The transfer occurred in September 2015. Pending the transfer, the former servicing employees of Aurora, now employees of Freedom Mortgage, directly serviced the portfolio for Aurora. The servicing, which was provided at cost pursuant to the Management Agreement with the Manager and the Services Agreement between the Manager and Freedom Mortgage. The cost for such services during the third quarter of 2015 is included in servicing costs on the consolidated statements of income (loss).

On October 30, 2015, Aurora acquired a portfolio of MSRs from an unrelated third party. The MSRs relate to loans owned or securitized by Fannie Mae or Freddie Mac with an aggregate unpaid principal balance of approximately $1.4 billion. Transfer of the responsibility for servicing occurred on December 1, 2015 for the Fannie Mae loans and December 16, 2015 for the Freddie Mac loans. The purchase price was funded by a portion of the proceeds of the Term Loan that were drawn in September 2015.

The following is a summary of the Company’s Servicing Related Assets (dollars in thousands):

Servicing Related Assets Summary

As of December 31, 2015

	Unpaid Principal Balance		Amortized Cost Basis^(A)		Carrying Value^(B)		Weighted Average Coupon			Weighted Average Maturity (Years)^(C)		Changes in Fair Value Recorded in Other Income (Loss)^(D)
Pool 1	$	7,416,465	$	39,483	$	42,837		3.51	%		26.0	$	(2,822	)
Pool 1 - Recapture Agreement		—		2,209		645		—			—		331
Pool 2		7,279,706		23,116		32,338		2.78	%		27.1		2,626
Pool 2 - Recapture Agreement		—		1,780		716		—			—		(324	)
Pool 2014		265,890		1,685		1,506		3.65	%		27.4		170
Pool 2014 - Recapture Agreement		—		—		—		—			—		—
MSRs		2,016,351		20,884		19,761		3.76	%		22.7		(1,123	)
Total	$	16,978,412	$	89,157	$	97,803		3.23	%		26.1	$	(1,142	)

As of December 31, 2014

	Unpaid Principal Balance		Amortized Cost Basis^(A)		Carrying Value^(B)		Weighted Average Coupon			Weighted Average Maturity (Years)^(C)		Changes in Fair Value Recorded in Other Income (Loss)^(D)
Pool 1	$	8,715,747	$	48,007	$	54,187		3.51	%		27.0	$	(2,660	)
Pool 1 - Recapture Agreement		—		2,506		611		—			—		(371	)
Pool 2		8,475,975		27,080		33,676		2.77	%		27.8		160
Pool 2 - Recapture Agreement		—		2,002		1,262		—			—		(1,882	)
Pool 2014		308,562		1,934		1,586		3.71	%		28.4		(348	)
Pool 2014 - Recapture Agreement		—		—		—		—			—		—
Total	$	17,500,284	$	81,529	$	91,322		3.16	%		27.4	$	(5,100	)

(A)

The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired.

(B)

Carrying value represents the fair value of the pools or recapture agreements, as applicable (see Note 9).

(C)

The weighted average maturity represents the weighted average expected timing of the receipt of cash flows of each investment.

(D)

The portion of the change in fair value of the recapture agreement relating to loans recaptured as of December 31, 2015 and December 31, 2014 is reflected in the respective pool.

The tables below summarize the geographic distribution for the states representing 5% or greater of the underlying residential mortgage loans of the Servicing Related Assets:

Geographic Concentration of Servicing Related Assets

As of December 31, 2015

	Percentage of Total Outstanding Unpaid Principal Balance
California		12.3	%
Texas		9.4	%
Florida		6.5	%
Virginia		6.0	%
North Carolina		5.2	%
Washington		5.1	%
Georgia		5.0	%
All other		50.5	%
Total		100.0	%

As of December 31, 2014

	Percentage of Total Outstanding Unpaid Principal Balance
California		13.3	%
Texas		10.1	%
Florida		6.9	%
Virginia		6.5	%
North Carolina		5.7	%
Georgia		5.3	%
Washington		5.1	%
All other		47.1	%
Total		100.0	%

Geographic concentrations of investments expose the Company to the risk of economic downturns within the relevant states. Any such downturn in a state where the Company holds significant investments could affect the underlying borrower’s ability to make the mortgage payment and, therefore, could have a meaningful, negative impact on the Company’s Servicing Related Assets.

Equity and Earnings per Share

12 Months Ended

Dec. 31, 2015

Equity and Earnings per Share [Abstract]

Equity and Earnings per Share

Note 6 — Equity and Earnings per Share

Equity Incentive Plan

During 2013, the board of directors approved and the Company adopted the Cherry Hill Mortgage Investment Corporation 2013 Equity Incentive Plan (“2013 Plan”). The 2013 Plan provides for the grant of options to purchase shares of the Company’s common stock, stock awards, stock appreciation rights, performance units, incentive awards and other equity-based awards, including long term incentive plan units (“LTIP-OP Units”) of the Company’s operating partnership, Cherry Hill Operating Partnership, LP (the “Operating Partnership”).

The following tables present certain information about the Company’s 2013 Plan as of the dates indicated:

Equity Incentive Plan Information

As of December 31, 2015

As of December 31, 2014

As of December 31, 2013

	Number of Securities Issued or to be Issued Upon Exercise		Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans
Equity compensation Plans Approved By Shareholders				1,462,500
LTIP-OP Units		37,500
Equity Compensation Plans Not Approved By Shareholders		—		—

LTIP-OP Units are a special class of partnership interest in the Operating Partnership. LTIP-OP Units may be issued to eligible participants for the performance of services to or for the benefit of the Operating Partnership. Initially, LTIP-OP Units do not have full parity with the Operating Partnership’s common units of limited partnership interest (“OP Units”) with respect to liquidating distributions; however, LTIP-OP Units receive, whether vested or not, the same per-unit distributions as OP Units and are allocated their pro-rata share of the Company’s net income or loss. Under the terms of the LTIP-OP Units, the Operating Partnership will revalue its assets upon the occurrence of certain specified events, and any increase in the Operating Partnership’s valuation from the time of grant of the LTIP-OP Units until such event will be allocated first to the holders of LTIP-OP Units to equalize the capital accounts of such holders with the capital accounts of the holders of OP Units. Upon equalization of the capital accounts of the holders of LTIP-OP Units with the other holders of OP Units, the LTIP-OP Units will achieve full parity with OP Units for all purposes, including with respect to liquidating distributions. If such parity is reached, vested LTIP-OP Units may be converted into an equal number of OP Units at any time and, thereafter, enjoy all the rights of OP Units, including redemption/exchange rights. Each LTIP-OP Unit awarded is deemed equivalent to an award of one share under the 2013 Plan and reduces the 2013 Plan’s share authorization for other awards on a one-for-one basis.

An LTIP-OP Unit and a share of common stock of the Company have substantially the same economic characteristics in as much as they effectively share equally in the net income or loss of the Operating Partnership. Holders of LTIP-OP Units that have reached parity with OP Units have the right to redeem their LTIP-OP Units, subject to certain restrictions. The redemption is required to be satisfied in shares of common stock, cash, or a combination thereof, at the Company’s option, calculated as follows: one share of the Company’s common stock, or cash equal to the fair value of a share of the Company’s common stock at the time of redemption, for each LTIP-OP Unit. When an LTIP-OP Units holder redeems an OP Unit (as described above), non-controlling interest in the Operating Partnership is reduced and the Company’s equity is increased.

The table below sets forth certain information regarding the LTIP-OP Units that have been granted by the board of directors (dollars in thousands, except per share data):

LTIP-OP Unit Grant Information

Grant Date	Number of Grantees		Stock Price on Grant Date		Number of Units Granted		Aggregate Fair Market Value
September 9, 2015		12	$	15.80		35,000	$	553
June 10, 2014		10	$	19.33		31,350	$	606
October 9, 2013		11	$	20.00		37,500	$	750

Except for 7,500 LTIP-OP Units that were granted to the Company’s independent directors at the time of the IPO, which vested immediately, LTIP-OP Units vest ratably over the first three year anniversaries of the grant date. The fair value of each LTIP-OP Unit was determined based on the initial offering price of the Company’s common stock in the case of the grant to the independent directors and based on the closing price of the Company’s common stock on the applicable grant date in all other cases.

As of December 31, 2015, 37,950 LTIP-OP Units have vested. The Company recognized approximately $463,000 and $320,000 in share-based compensation expense in the years ended December 31, 2015 and 2014, respectively. There was approximately $928,000 of total unrecognized share-based compensation expense as of December 31, 2015, related to the 65,900 non-vested LTIP-OP Units. This unrecognized share-based compensation expense is expected to be recognized ratably over the remaining vesting period of up to three years. The aggregate expense related to the LTIP-OP Unit grants is presented as “General and administrative expense” in the Company’s consolidated income statement.

On January 27, 2014, the Company granted each of the independent directors pursuant to the 2013 Plan 530 shares of common stock (for a total of 1,590 shares), which were fully vested on the date of grant, and 2,651 restricted shares of common stock (for a total of 7,953 shares) which were subject to forfeiture in certain circumstances within one year from the grant date. They are no longer subject to forfeiture and are vested.

On September 9, 2015, the Company granted each of the independent directors pursuant to the 2013 Plan 3,165 restricted shares of common stock (for a total of 9,495 shares) which were subject to forfeiture in certain circumstances within one year from the grant date. This unrecognized share-based compensation expense is expected to be recognized ratably over the remaining vesting period of up to three years.

As of December 31, 2015, 1,377,112 shares of common stock remain available for future issuance under the 2013 Plan.

Non-Controlling Interests in Operating Partnership

Non-controlling interests in the Operating Partnership in the accompanying consolidated financial statements relate to LTIP-OP Units in the Operating Partnership held by parties other than the Company.

As of December 31, 2015, the non-controlling interest holders in the Operating Partnership owned 103,850 LTIP-OP Units, or approximately 1.4% of the Operating Partnership. Pursuant to ASC 810, Consolidation, changes in a parent’s ownership interest (and transactions with non-controlling interest unit holders in the Operating Partnership) while the parent retains its controlling interest in its subsidiary should be accounted for as equity transactions. The carrying amount of the non-controlling interest will be adjusted to reflect the change in its ownership interest in the subsidiary, with the offset to equity attributable to the Company.

Earnings per Share

The Company is required to present both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period. In accordance with ASC 260, Earnings Per Share, if there is a loss from continuing operations, the common stock equivalents are deemed anti-dilutive and earnings (loss) per share is calculated excluding the potential common shares.

The following table presents basic earnings per share of common stock for the periods indicated (dollars in thousands, except per share data):

Earnings per Share Information

	Year Ended December 31,
	2015		2014		2013
Numerator:
Net income attributable to common stockholders and participating securities	$	13,355	$	2,375	$	21,202
Net income allocable to common stockholders	$	13,214	$	2,353	$	21,095
Denominator:
Weighted average common shares outstanding		7,509,543		7,505,546		1,688,275
Weighted average diluted shares outstanding		7,512,444		7,508,827		1,688,275
Basic and Dilutive:
Basic earnings per share	$	1.76	$	0.31	$	12.50
Diluted earnings per share	$	1.76	$	0.31	$	12.50

There were no participating securities or equity instruments outstanding that were anti-dilutive for purposes of calculating earnings per share for the periods presented.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
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Transactions with Affiliates and Affiliated Entities [Abstract]

Transactions with Affiliates and Affiliated Entities

12 Months Ended

Dec. 31, 2015

Transactions with Affiliates and Affiliated Entities

Note 7 — Transactions with Affiliates and Affiliated Entities

Manager

The Company has entered into a management agreement with the Manager, pursuant to which the Manager provides for the day-to-day management of the Company’s operations (the “Management Agreement”). The Management Agreement requires the Manager to manage the Company’s business affairs in conformity with the policies that are approved and monitored by the Company’s board of directors. The Management Agreement terminates on October 22, 2020, subject to automatic renewal for successive one-year terms and to certain termination rights. The Manager’s performance is reviewed prior to any renewal and may be terminated by the Company for cause without payment of a termination fee, or may be terminated without cause with payment of a termination fee, as defined in the Management Agreement, equal to three times the average annual management fee amount earned by the Manager during the two four-quarter periods ending as of the end of the most recently completed fiscal quarter prior to the effective date of the termination, upon either the affirmative vote of at least two-thirds of the members of the board of directors or the affirmative vote of the holders of at least a majority of the outstanding common stock. Pursuant to the Management Agreement, the Manager, under the supervision of the Company’s board of directors, formulates investment strategies, arranges for the acquisition of assets, arranges for financing, monitors the performance of the Company’s assets and provides certain advisory, administrative and managerial services in connection with the operations of the Company. For performing these services, the Company pays the Manager a quarterly management fee equal to the product of one quarter of the 1.5% Management Fee Annual Rate and the Stockholders’ Equity, adjusted as set forth in the Management Agreement, calculated and payable quarterly in arrears.

The Manager is a party to a services agreement (the “Services Agreement”) with Freedom Mortgage, pursuant to which Freedom Mortgage provides to the Manager the personnel, services and resources as needed by the Manager to enable the Manager to carry out its obligations and responsibilities under the Management Agreement. The Company is a named third-party beneficiary to the Services Agreement and, as a result, has, as a non-exclusive remedy, a direct right of action against Freedom Mortgage in the event of any breach by the Manager of any of its duties, obligations or agreements under the Management Agreement that arise out of or result from any breach by Freedom Mortgage of its obligations under the Services Agreement. The Services Agreement will terminate upon the termination of the Management Agreement. Pursuant to the Services Agreement, the Manager will make certain payments to Freedom Mortgage in connection with the services provided. All of the Company’s executive officers and the officers of the Manager are also officers or employees of Freedom Mortgage. As a result, the Management Agreement between the Company and the Manager was negotiated between related parties, and the terms, including fees payable, may not be as favorable to the Company as if it had been negotiated with an unaffiliated third party. Both the Manager and Freedom Mortgage are controlled by Mr. Stanley Middleman, who is also a shareholder of the Company.

The Management Agreement provides that the Company will reimburse the Manager for various expenses incurred by the Manager or its officers, and agents on the Company’s behalf, including costs of software, legal, accounting, tax, administrative and other similar services rendered for the Company by providers retained by the Manager. “Due to affiliates” consisted of the following for the periods indicated (dollars in thousands):

Management Fee to Affiliate

	Year Ended December 31,
	2015		2014		2013
Management fees	$	2,263	$	2,150	$	549
Expense reimbursement		520		410		67
Total	$	2,783	$	2,560	$	616

Subservicing Agreement

Freedom Mortgage is directly servicing the Company’s portfolio of Fannie Mae and Freddie Mac MSRs pursuant to a subservicing agreement entered into on June 10, 2015. The agreement has an initial term of three (3) years, expiring on September 1, 2018, and is subject to automatic renewal for additional three year terms unless either party chooses not to renew. The agreement may be terminated without cause by either party by giving notice as specified in the agreement. Under that agreement, Freedom Mortgage agrees to service the applicable mortgage loans in accordance with applicable law and the requirements of the applicable agency. The Company pays fees for specified services.

Other Affiliated Entities

See Note 5 for a discussion of the co-investments in Excess MSRs with Freedom Mortgage and the services provided by Freedom Mortgage during the period prior to transfer to Freedom Mortgage of the direct servicing obligations for the MSRs. See Note 10 for a discussion of the Acknowledgement Agreement among the Company, Freedom Mortgage and Ginnie Mae entered into in connection with the co-investments in Excess MSRs.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Derivative Instruments

12 Months Ended

Dec. 31, 2015

Derivative Instruments [Abstract]

Derivative Instruments

Note 8 — Derivative Instruments

Interest Rate Swap Agreements, Swaptions, TBAs and Treasury Futures

In order to help mitigate exposure to higher short-term interest rates in connection with its repurchase agreements, the Company enters into interest rate swap agreements. These agreements establish an economic fixed rate on related borrowings because the variable-rate payments received on the interest rate swap agreements largely offset interest accruing on the related borrowings, leaving the fixed-rate payments to be paid on the interest rate swap agreements as the Company’s effective borrowing rate, subject to certain adjustments including changes in spreads between variable rates on the interest rate swap agreements and actual borrowing rates. A swaption is an option granting its owner the right but not the obligation to enter into an underlying swap. The Company’s interest rate swap agreements and swaptions have not been designated as hedging instruments for GAAP purposes.

In order to help mitigate duration risk and basis risk management, the Company utilizes treasury futures and forward-settling purchases and sales of RMBS where the underlying pools of mortgage loans are TBAs. Pursuant to these TBA transactions, the Company agrees to purchase or sell, for future delivery, RMBS with certain principal and interest terms and certain types of underlying collateral, but the particular RMBS to be delivered is not identified until shortly before the TBA settlement date.

The following table summarizes the outstanding notional amounts of derivative instruments as of the dates indicated (dollars in thousands):

Non-hedge derivatives	December 31, 2015		December 31, 2014
Notional amount of interest rate swaps	$	300,300	$	224,100
Notional amount of swaptions		85,000		105,000
Notional amount of TBAs, net		—		—
Notional amount of Treasury Futures		—		8,000
Total notional amount	$	385,300	$	337,100

The following table presents information about the Company’s interest rate swap agreements as of the dates indicated (dollars in thousands):

	Notional Amount		Weighted Average Pay Rate			Weighted Average Receive Rate			Weighted Average Years to Maturity
December 31, 2015	$	300,300		1.71	%		0.37	%		4.3
December 31, 2014	$	224,100		1.84	%		0.23	%		5.4
December 31, 2013	$	171,700		1.95	%		0.24	%		6.7

The following table presents information about derivatives realized gain (loss), which is included on the consolidated statement of income for the periods indicated (dollars in thousands):

Realized Gains (Losses) on Derivatives

		Year Ended December 31,
Non-Hedge Derivatives	Income Statement Location	2015			2014			2013
Interest rate swaps	Realized gain/(loss) on derivative assets	$	(2,128	)	$	(686	)	$	53
Swaptions	Realized gain/(loss) on derivative assets		(1,036	)		(1,910	)		—
TBAs	Realized gain/(loss) on derivative assets		(400	)		60			17
Treasury futures	Realized gain/(loss) on derivative assets		(349	)		(107	)		(11	)
Total		$	(3,913	)	$	(2,643	)	$	59

Offsetting Assets and Liabilities

The Company has netting arrangements in place with all of its derivative counterparties pursuant to standard documentation developed by the International Swap and Derivatives Association, or ISDA. Under GAAP, if the Company has a valid right of offset, it may offset the related asset and liability and report the net amount. The Company presents interest rate swaps, swaptions and treasury futures assets and liabilities on a gross basis in its consolidated balance sheets. The Company presents TBA assets and liabilities on a net basis in its consolidated balance sheets. The Company presents repurchase agreements subject to master netting arrangements on a gross basis. Additionally, the Company does not offset financial assets and liabilities with the associated cash collateral on the consolidated balance sheets.

The following tables present information about the Company’s assets and liabilities that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s consolidated balance sheets as of the dates indicated (dollars in thousands):

Offsetting Assets and Liabilities

As of December 31, 2015

	Gross Amounts of Recognized Assets or Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet						Net Amount
							Financial Instruments			Cash Collateral Received (Pledged)			Net Amount
Assets
Interest rate swaps	$	51	$	—	$	51	$	(51	)	$	—		$	—
Swaptions		371		—		371		(371	)		—			—
TBAs		—		—		—		—			—			—
Treasury futures		—		—		—		—			(84	)
Total Assets	$	422	$	—	$	422	$	(422	)	$	(84	)	$	—

Liabilities
Repurchase agreements	$	385,560	$	—	$	385,560	$	(381,386	)	$	(4,174	)	$	—
Interest rate swaps		4,595		—		4,595		—			(4,595	)		—
Swaptions		—		—		—		—			—			—
TBAs		—		—		—		—			—			—
Treasury futures		—		—		—		—			—			—
Total Liabilities	$	390,155	$	—	$	390,155	$	(381,386	)	$	(8,769	)	$	—

As of December 31, 2014

	Gross Amounts of Recognized Assets or Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet						Net Amount
							Financial Instruments			Cash Collateral Received (Pledged)			Net Amount
Assets
Interest rate swaps	$	46	$	—	$	46	$	(46	)	$	—		$	—
Swaptions		291		—		291		(291	)		—			—
TBAs		—		—		—		—			—			—
Treasury futures		5		—		5		(5	)		(89	)
Total Assets	$	342	$	—	$	342	$	(342	)	$	(89	)	$	—

Liabilities
Repurchase agreements	$	362,126	$	—	$	362,126	$	(359,270	)	$	(2,856	)	$	—
Interest rate swaps		4,045		—		4,045		(43	)		(4,002	)		—
Swaptions		—		—		—		—			—			—
TBAs		43		—		43		(43	)		—			—
Treasury futures		—		—		—		—			—			—
Total Liabilities	$	366,214	$	—	$	366,214	$	(359,356	)	$	(6,858	)	$	—

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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Fair Value

12 Months Ended

Dec. 31, 2015

Fair Value [Abstract]

Note 9 – Fair Value

Fair Value Measurements

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices available in active markets (i.e., observable inputs) and the lowest priority to data lacking transparency (i.e., unobservable inputs). Additionally, ASC 820 requires an entity to consider all aspects of nonperformance risk, including the entity’s own credit standing, when measuring fair value of a liability.

ASC 820 establishes a three level hierarchy to be used when measuring and disclosing fair value. An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Following is a description of the three levels:

Level 1

Inputs are quoted prices in active markets for identical assets or liabilities as of the measurement date under current market conditions. Additionally, the entity must have the ability to access the active market and the quoted prices cannot be adjusted by the entity.

Level 2

Inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs that are observable or can be corroborated by observable market data by correlation or other means for substantially the full-term of the assets or liabilities.

Level 3

Unobservable inputs are supported by little or no market activity. The unobservable inputs represent the assumptions that management believes market participants would use to price the assets and liabilities, including risk. Generally, Level 3 assets and liabilities are valued using pricing models, discounted cash flow methodologies, or similar techniques that require significant judgment or estimation.

Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to those models and significant assumptions utilized.

RMBS

The Company holds a portfolio of RMBS that are classified as available for sale and are carried at fair value in the consolidated balance sheets. The Company determines the fair value of its RMBS based upon prices obtained from third-party pricing providers. The third-party pricing providers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset period, issuer, prepayment speeds, credit enhancements and expected life of the security. As a result, the Company classified 100% of its RMBS as Level 2 fair value assets at December 31, 2015 and December 31, 2014.

Excess MSRs

The Company holds a portfolio of Excess MSRs that are reported at fair value in the consolidated balance sheets. Although Excess MSR transactions are observable in the marketplace, the valuation includes unobservable market data inputs (prepayment speeds, delinquency levels and discount rates). As a result, the Company classified 100% of its Excess MSRs as Level 3 fair value assets at December 31, 2015 and December 31, 2014.

MSRs

The Company holds a portfolio of MSRs that are reported at fair value in the consolidated balance sheets. Although MSR transactions are observable in the marketplace, the valuation includes unobservable market data inputs (prepayment speeds, delinquency levels, costs to service and discount rates). As a result, the Company classified 100% of its MSRs as Level 3 fair value assets at December 31, 2015.

Derivative Instruments

The Company enters into a variety of derivative financial instruments as part of its economic hedging strategies. The Company executes interest rate swaps, swaptions, TBAs and treasury futures. The Company utilizes third-party pricing providers to value its financial derivative instruments. The Company classified 100% of the derivative instruments as Level 2 fair value assets and liabilities at December 31, 2015 and December 31, 2014.

Both the Company and the derivative counterparties under their netting arrangements are required to post cash collateral based upon the net underlying market value of the Company’s open positions with the counterparties. Posting of cash collateral typically occurs daily, subject to certain dollar thresholds. Due to the existence of netting arrangements, as well as frequent cash collateral posting at low posting thresholds, credit exposure to the Company and/or counterparties is considered materially mitigated. The Company’s interest rate swaps are required to be cleared on an exchange, which further mitigates, but does not eliminate, credit risk. Based on the Company’s assessment, there is no requirement for any additional adjustment to derivative valuations specifically for credit.

Recurring Fair Value Measurements

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated (dollars in thousands).

Recurring Fair Value Measurements

As of December 31, 2015

	Level 1		Level 2		Level 3		Carrying Value
Assets
RMBS
Fannie Mae	$	—	$	308,772	$	—	$	308,772
Freddie Mac		—		193,411		—		193,411
CMOs		—		6,059		—		6,059
RMBS total		—		508,242		—		508,242
Derivative assets
Interest rate swaps		—		51		—		51
Interest rate swaptions		—		371		—		371
TBAs		—		—		—		—
Treasury Futures		—		—		—		—
Derivative assets total		—		422		—		422
Servicing related assets		—		—		97,803		97,803
Total Assets	$	—	$	508,664	$	97,803	$	606,467
Liabilities
Derivative liabilities
Interest rate swaps		—		4,595		—		4,595
TBAs		—		—		—		—
Treasury Futures		—		—		—		—
Derivative liabilities total		—		4,595		—		4,595
Total Liabilities	$	—	$	4,595	$	—	$	4,595

As of December 31, 2014

	Level 1		Level 2		Level 3		Carrying Value
Assets
RMBS
Fannie Mae	$	—	$	268,588	$	—	$	268,588
Freddie Mac		—		140,476		—		140,476
CMOs		—		6,939		—		6,939
RMBS total		—		416,003		—		416,003
Derivative assets
Interest rate swaps		—		46		—		46
Interest rate swaptions		—		291		—		291
TBAs		—		—		—		—
Treasury Futures		—		5		—		5
Derivative assets total		—		342		—		342
Servicing Related Assets		—		—		91,322		91,322
Total Assets	$	—	$	416,345	$	91,322	$	507,667
Liabilities
Derivative liabilities
Interest rate swaps		—		4,045		—		4,045
TBAs		—		43		—		43
Treasury Futures		—		—		—		—
Derivative liabilities total		—		4,088		—		4,088
Total Liabilities	$	—	$	4,088	$	—	$	4,088

The Company may be required to measure certain assets or liabilities at fair value from time to time. These periodic fair value measures typically result from application of certain impairment measures under GAAP. These items would constitute nonrecurring fair value measures under ASC 820. As of December 31, 2015 and December 31, 2014, the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis in the periods presented.

Level 3 Assets and Liabilities

The valuation of Level 3 instruments requires significant judgment by the third-party pricing providers and management. The third-party pricing providers and management rely on inputs such as market price quotations from market makers (either market or indicative levels), original transaction price, recent transactions in the same or similar instruments, and changes in financial ratios or cash flows to determine fair value. Level 3 instruments may also be discounted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by third-party pricing providers and management in the absence of market information. Assumptions used by third-party pricing providers and management due to lack of observable inputs may significantly impact the resulting fair value and, therefore, the Company’s consolidated financial statements. The Company’s management reviews all valuations that are based on pricing information received from third-party pricing providers. As part of this review, prices are compared against other pricing or input data points in the marketplace, along with internal valuation expertise, to ensure the pricing is reasonable.

In connection with the above, the Company estimates the fair value of its Servicing Related Assets based on internal pricing models rather than quotations, and compares the results of these internal models against the results from models generated by third-party valuation specialists. The determination of estimated cash flows used in pricing models is inherently subjective and imprecise.

Changes in market conditions, as well as changes in the assumptions or methodology used to determine fair value, could result in a significant change to estimated fair values. It should be noted that minor changes in assumptions or estimation methodologies can have a material effect on these derived or estimated fair values, and that the fair values reflected below are indicative of the interest rate and credit spread environments as of December 31, 2015 and December 31, 2014 and do not take into consideration the effects of subsequent changes in market or other factors.

The tables below present the reconciliation for the Company’s Level 3 assets (Servicing Related Assets) measured at fair value on a recurring basis as of the dates indicated (dollars in thousands):

Level 3 Fair Value Measurements

As of December 31, 2015

	Level 3 ^(A)
	Pool 1			Pool 2			Pool 2014			MSRs			Total
Balance at December 31, 2014	$	54,798		$	34,938		$	1,586		$	—		$	91,322
Purchases and principal paydowns
Purchases		—			—			—			20,884			20,884
Proceeds from principal paydowns		(8,825	)		(4,186	)		(250	)		—			(13,261	)
Changes in fair value due to:
Mark to market gain (loss)		(2,491	)		2,302			170			(567	)		(586	)
Amortization of MSRs		—			—			—			(556	)		(556	)
Unrealized gain (loss) included in Net Income	$	(2,491	)	$	2,302		$	170		$	(1,123	)	$	(1,142	)
Balance at December 31, 2015	$	43,482		$	33,054		$	1,506		$	19,761		$	97,803

As of December 31, 2014

	Level 3 ^(A)
	Pool 1			Pool 2			Pool 2014			MSRs		Total
Balance at December 31, 2013	$	66,110		$	44,196		$	—		$	—	$	110,306
Purchases and principal paydowns
Purchases		—			—			2,181			—		2,181
Proceeds from principal paydowns		(8,281	)		(7,536	)		(247	)		—		(16,065	)
Unrealized gain included in Net Income		(3,031	)		(1,722	)		(348	)		—		(5,100	)
Balance at December 31, 2014	$	54,798		$	34,938		$	1,586		$	—	$	91,322

(A)

Includes the recapture agreement for each respective pool.

The tables below present information about the significant unobservable inputs used in the fair value measurement of the Company’s Servicing Related Assets classified as Level 3 fair value assets as of the dates indicated (dollars in thousands except per loan figures):

Fair Value Measurements

As of December 31, 2015

	Fair Value		Valuation Technique	Unobservable Input ^(A)	Range	Weighted Average
Pool 1	$	43,482	Discounted cash flow	Constant prepayment speed	4.0% - 19.0%		10.5	%
				Uncollected Payments	2.9% - 7.0%		6.2	%
				Discount rate			12.3	%
Pool 2	$	33,054	Discounted cash flow	Constant prepayment speed	8.3% - 42.3%		14.9	%
				Uncollected Payments	10.4% - 13.9%		13.0	%
				Discount rate			16.7	%
Pool 2014	$	1,506	Discounted cash flow	Constant prepayment speed	3.9% - 22.3%		11.2	%
				Uncollected Payments	5.9% - 7.1%		6.8	%
				Discount rate			11.9	%
MSRs	$	19,761	Discounted cash flow	Constant prepayment speed	0.0% - 13.8%		9.7	%
				Uncollected payments	1.2% - 3.4%		1.6	%
				Discount rate			8.3	%
				Annual cost to service, per loan		$	73
TOTAL	$	97,803	Discounted cash flow

As of December 31, 2014

	Fair Value		Valuation Technique	Unobservable Input ^(A)	Range	Weighted Average
Pool 1	$	54,798	Discounted cash flow	Constant prepayment speed	6.2% - 12.8%		10.4	%
				Uncollected Payments	2.8% - 7.0%		6.3	%
				Discount rate	—		12.2	%
Pool 2	$	34,938	Discounted cash flow	Constant prepayment speed	11.9% - 21.9%		16.7	%
				Uncollected Payments	9.6% - 15.2%		13.7	%
				Discount rate	—		17.3	%
Pool 2014	$	1,586	Discounted cash flow	Constant prepayment speed	8.7% - 15.4%		12.3	%
				Uncollected Payments	2.7% - 6.0%		5.4	%
				Discount rate	—		11.8	%
TOTAL	$	91,322	Discounted cash flow

(A)

Significant increases (decreases) in any of the inputs in isolation may result in significantly lower (higher) fair value measurement. A change in the assumption used for discount rates may be accompanied by a directionally similar change in the assumption used for the probability of uncollected payments and a directionally opposite change in the assumption used for prepayment rates.

Fair Value of Financial Instruments

In accordance with ASC 820, the Company is required to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the consolidated balance sheet, for which fair value can be estimated. The following describes the Company’s methods for estimating the fair value for financial instruments.

•

RMBS available for sale securities, Servicing Related Assets, derivative assets and derivative liabilities are recurring fair value measurements; carrying value equals fair value. See discussion of valuation methods and assumptions within the “Fair Value Measurements” section of this footnote.

•

Cash and cash equivalents and restricted cash have a carrying value which approximates fair value because of the short maturities of these instruments.

•

The carrying value of repurchase agreements that mature in less than one year generally approximates fair value due to the short maturities. The Company does not hold any repurchase agreements that are considered long-term.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Receivables and Other Assets [Abstract]

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 10 — Commitments and Contingencies The following represents commitments and contingencies of the Company as of December 31, 2015 and December 31, 2014: Management Agreement The Company pays the Manager a quarterly management fee, calculated and payable quarterly in arrears, equal to the product of one quarter of the 1.5% Management Fee Annual Rate and the Stockholders’ Equity, adjusted as set forth in the Management Agreement as of the end of such fiscal quarter. The Company relies on resources of Freedom Mortgage to provide the Manager with the necessary resources to conduct Company operations. For further discussion regarding the Management Fee, see Note 7. Legal and Regulatory From time to time the Company may be subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements, and, therefore, no accrual is required as of December 31, 2015 and December 31, 2014. Commitments to Purchase/Sell RMBS As of December 31, 2015 and December 31, 2014, the Company held forward TBA purchase and sale commitments, respectively, with counterparties, which are forward RMBS trades, whereby the Company committed to purchasing a pool of securities at a particular interest rate. As of the date of the trade, the mortgage-backed securities underlying the pool that will be delivered to fulfill a TBA trade are not yet designated. The securities are typically “to be announced” 48 hours prior to the established trade settlement date. As of December 31, 2015, and December 31, 2014, the Company was not obligated to purchase any securities and was obligated to sell less than $1,000 and approximately $43,000 of Fannie Mae securities, respectively. Acknowledgement Agreement In order to have Ginnie Mae acknowledge our interest in Excess MSRs related to FHA and VA mortgage loans that have been pooled into securities guaranteed by Ginnie Mae, the Company entered into an acknowledgment agreement with Ginnie Mae and Freedom Mortgage. Under that agreement, if Freedom Mortgage fails to make a required payment to the holders of the Ginnie Mae-guaranteed RMBS, the Company would be obligated to make that payment even though the payment may relate to loans for which the Company does not own any Excess MSRs. The Company’s failure to make that payment could result in liability to Ginnie Mae for any losses or claims that it suffers as a result. Management has determined, as of December 31, 2015, the risk of material loss to be remote and thus no liability has been accrued.

Repurchase Agreements

12 Months Ended

Dec. 31, 2015

Repurchase Agreements [Abstract]

Repurchase Agreements

Note 11 – Repurchase Agreements

The Company had outstanding approximately $385.6 million and $362.1 million of repurchase agreements as of December 31, 2015 and December 31, 2014, respectively. The Company’s obligations under these agreements had weighted average remaining maturities of 47 days and 63 days as of December 31, 2015 and December 31, 2014, respectively. RMBS and cash have been pledged as collateral under these repurchase agreements (see Notes 4 and 8).

The repurchase agreements had the following remaining maturities and weighted average rates (after giving effect to the Company’s interest rate swaps) as of the dates indicated (dollars in thousands):

Repurchase Agreements Characteristics

As of December 31, 2015

	Repurchase Agreements		Weighted Average Rate
Less than one month	$	93,926		0.55	%
One to three months		284,687		0.56	%
Greater than three months		6,947		0.52	%
Total/Weighted Average	$	385,560		0.56	%

As of December 31, 2014

	Repurchase Agreements		Weighted Average Rate
Less than one month	$	78,988		0.38	%
One to three months		208,533		0.38	%
Greater than three months		74,605		0.38	%
Total/Weighted Average	$	362,126		0.38	%

FHLBI Advances

12 Months Ended

Dec. 31, 2015

FHLBI Advances [Abstract]

FHLBI Advances

Note 12 – FHLBI Advances

The Company had outstanding approximately $62.3 million of FHLBI advances, with a weighted average borrowing rate of 0.54% as of December 31, 2015. The Company’s obligations under these advances had a weighted average remaining maturity of 94 days as of December 31, 2015. Agency RMBS and FHLBI stock have been pledged as collateral for these advances (see Note 4) (dollars in thousands).

Federal Home Loan Bank Advance Characteristics

As of December 31, 2015

	Federal Home Loan Bank Advances		Weighted Average Rate
Less than one month	$	15,000		0.44	%
One to three months		—		—	%
Greater than three months		47,250		0.57	%
Total/Weighted Average Federal Home Loan Bank Advances	$	62,250		0.54	%

Notes Payable	12 Months Ended
Notes Payable	Dec. 31, 2015
Notes Payable [Abstract]
Notes Payable	Note 13 – Notes Payable At December 31, 2015 the Company had outstanding borrowings of $24.3 million on a $25.0 million Term Loan. The outstanding borrowings bear interest at a weighted average interest rate of 5.57% per annum and are secured by the pledge of the Company’s existing portfolio of Excess MSRs. The principal payments on the borrowings are due monthly, beginning in September 2015, based on a 10-year amortization schedule with a maturity date in April 2020. Prior to September 2015, only interest was payable monthly.

Receivables and Other Assets

12 Months Ended

Dec. 31, 2015

Receivables and Other Assets

Note 14 – Receivables and Other Assets

The assets comprising “Receivables and other assets” as of December 31, 2015 and December 31, 2014 are summarized in the following table (dollars in thousands):

Receivables and Other Assets

	December 31, 2015		December 31, 2014
Excess servicing income receivable	$	2,159	$	2,713
Servicing advances		787		—
Interest receivable		1,497		1,322
Federal Home Loan Bank stock		3,261		—
Deferred tax receivable		203		146
Other receivables		1,421		375
Total other assets	$	9,328	$	4,556

Summarized Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2015

Summarized Quarterly Results (Unaudited) [Abstract]

Summarized Quarterly Results (Unaudited)

Note 15 – Summarized Quarterly Results (Unaudited)

The following tables present information about the Company’s quarterly operating results for the periods indicated below (dollars in thousands):

Summarized Quarterly Results

	2015
	December 31,			September 30,			June 30,			March 31,
Income
Interest income	$	7,984		$	5,813		$	8,088		$	5,827
Interest expense		1,759			1,643			1,346			1,235
Net interest income		6,225			4,170			6,742			4,592
Servicing fee income		1,100			463			156			—
Servicing costs		301			366			94			—
Net servicing income (loss)		799			97			62
Other income (loss)
Realized gain (loss) on RMBS, net		393			269			(115	)		307
Realized gain (loss) on derivatives, net		(1,672	)		(947	)		(52	)		(1,242	)
Realized gain (loss) on acquired assets, net		275			—			174			—
Unrealized gain (loss) on derivatives, net		4,634			(4,986	)		2,835			(2,542	)
Unrealized gain (loss) on investments in Excess MSRs		1,219			(2,059	)		2,938			(2,117	)
Unrealized gain (loss) on investments in MSRs		(560	)		(541	)		(22	)		—
Total Income		11,313			(3,997	)		12,562			(1,002	)
Expenses
General and administrative expense		1,083			622			634			742
Management fee to affiliate		713			690			690			690
Total Expenses		1,796			1,312			1,324			1,432
Income (Loss) Before Income Taxes		9,517			(5,309	)		11,238			(2,434	)
Provision for corporate business taxes		(134	)		(139	)		(70	)		—
Net Income (Loss)		9,651			(5,170	)		11,308			(2,434	)
Net (income) loss allocated to noncontrolling interests		(106	)		46			(103	)		22
Net Income (Loss) Applicable to Common Stockholders	$	9,545		$	(5,124	)	$	11,205		$	(2,412	)
Net income (Loss) Per Share of Common Stock		—			—			—			—
Basic	$	1.27		$	(0.68	)	$	1.49		$	(0.32	)
Diluted	$	1.27		$	(0.68	)	$	1.49		$	(0.32	)
Weighted Average Number of Shares of Common Stock
Basic		7,509,543			7,509,543			7,509,543			7,509,543
Diluted		7,519,038			7,511,653			7,509,543			7,509,543

	2014
	December 31,			September 30,			June 30,			March 31,
Income
Interest income	$	6,334		$	6,542		$	6,465		$	7,156
Interest expense		1,190			1,164			1,006			947
Net interest income		5,144			5,378			5,459			6,209
Servicing fee income		—			—			—			—
Servicing costs		—			—			—			—
Net servicing income (loss)		—			—			—			—
Other income (loss)
Realized gain (loss) on RMBS, net		166			48			75			(349	)
Realized gain (loss) on derivatives, net		(1,359	)		(1,025	)		(187	)		(72	)
Realized gain (loss) on acquired assets, net		—			—			—			—
Unrealized gain (loss) on derivatives, net		(2,441	)		2,025			(2,705	)		(3,443	)
Unrealized gain (loss) on investments in Excess MSRs		(301	)		(2,348	)		(1,976	)		(475	)
Unrealized gain (loss) on investments in MSRs		—			—			—			—
Total Income		1,209			4,078			666			1,870
Expenses
General and administrative expense		1,185			744			642			457
Management fee to affiliate		682			520			679			679
Total Expenses		1,867			1,264			1,321			1,136
Income (Loss) Before Income Taxes		(658	)		2,814			(655	)		734
Provision for corporate business taxes		(140	)		—			—			—
Net Income (Loss)		(518	)		2,814			(655	)		734
Net (income) loss allocated to noncontrolling interests		5			(26	)		3			(4	)
Net Income (Loss) Applicable to Common Stockholders	$	(513	)	$	2,788		$	(652	)	$	730
Net income (Loss) Per Share of Common Stock		—			—			—			—
Basic	$	(0.07	)	$	0.37		$	(0.09	)	$	0.10
Diluted	$	(0.07	)	$	0.37		$	(0.09	)	$	0.10
Weighted Average Number of Shares of Common Stock
Basic		7,508,549			7,506,560			7,504,572			7,502,505
Diluted		7,509,543			7,509,543			7,509,543			7,506,680

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Taxes [Abstract]

Income Taxes

Note 16 – Income Taxes

The Company has elected to be taxed as a REIT under Code Sections 856 through 860 beginning with its short taxable year ended December 31, 2013. As a REIT, the Company generally will not be subject to U.S. federal income tax to the extent that it distributes its taxable income to its stockholders. To maintain qualification as a REIT, the Company must distribute at least 90% of its annual REIT taxable income to its stockholders and meet certain other requirements such as assets it may hold, income it may generate and its stockholder composition. It is the Company’s policy to distribute all or substantially all of its REIT taxable income. To the extent there is any undistributed REIT taxable income at the end of a year, the Company can elect to distribute such shortfall within the next year as permitted by the Code.

Effective January 1, 2014, CHMI Solutions has elected to be taxed as a corporation for U.S. federal income tax purposes; prior to this date, CHMI Solutions was a disregarded entity for U.S. federal income tax purposes. CHMI Solutions has jointly elected with the Company, the ultimate beneficial owner of CHMI Solutions, to be treated as a TRS of the Company, and all activities conducted through CHMI Solutions and its wholly-owned subsidiary, Aurora, are subject to federal and state income taxes. CHMI Solutions files a consolidated tax return with Aurora Financial Group Inc., its wholly owned subsidiary, and is fully taxed as a U.S. C-Corporation.

The state and local tax jurisdictions for which the Company is subject to tax-filing obligations recognize the Company’s status as a REIT, and therefore, the Company generally does not pay income tax in such jurisdictions. CHMI Solutions and Aurora are subject to U.S. federal, state and local income taxes.

The components of the Company’s income tax expense (benefit) are as follows for the periods indicated below (dollars in thousands):

	Year Ended December 31,
	2015			2014			2013
Current federal income tax expense	$	—		$	—		$	—
Current state income tax expense		—			6			—
Deferred federal income tax expense (benefit)		(309	)		(124	)		—
Deferred state income tax expense (benefit)		(34	)		(22	)		—
Total Income Tax Expense	$	(343	)	$	(140	)	$	—

The following is a reconciliation of the statutory federal rate to the effective rate, for the periods indicated below (dollars in thousands):

	Year Ended December 31,
	2015					2014					2013
Computed income tax (benefit) expense at federal rate	$	4,554		35.0	%	$	824		35.0	%	$	7,383		35.0	%
State taxes, net of federal benefit, if applicable		(34	)	(0.0	)%		92		3.9	%		—		—	%
Permanent differences in taxable income from GAAP pre-tax income		(157	)	(1.4	)%		4,874		207.2	%		(6,071	)	(28.8	)%
REIT income not subject to tax		(4,706	)	(36.2	)%		(5,930	)	(252.0	)%		(1,312	)	(6.2	)%
(Benefit from) Provision for Income Taxes/Effective Tax Rate^(A)	$	(343	)	(2.6	)%	$	(140	)	(5.9	)%	$	—		—	%

(A)

The provision for income taxes is recorded at the TRS level.

The Company’s consolidated balance sheets, at December 31, 2015 and December 31, 2014, contain the following current and deferred tax liabilities and assets, which are recorded at the TRS level (dollars in thousands):

	Year Ended December 31,
	2015		2014		2013
Income taxes (payable) receivable
Federal income taxes (payable) receivable	$	—	$	—	$	—
State and local income taxes (payable) receivable		—		—		—
Income taxes (payable) receivable, net	$	—	$	—	$	—

	December 31, 2015			December 31, 2014		December 31, 2013
Deferred tax assets (liabilities)
Deferred tax asset - organizational expenses	$	72		$	84	$	—
Deferred tax asset - mortgage servicing rights		(121	)		—		—
Deferred tax asset - net operating loss		252			62		—
Total net deferred tax assets (liabilities)	$	203		$	146	$	—

The deferred tax asset as of December 31, 2015 and December 31, 2014 primarily consisted of net operating loss carryforwards and acquisition related costs capitalized for tax purposes. CHMI Solutions’ federal and state net operating loss carryforwards at December 31, 2015 and December 31, 2014 were approximately $693,000 and $154,000, respectively, and are available to offset future taxable income and expire in 2035 and 2034, respectively. Management has determined that it is more likely than not that all of CHMI Solutions’ deferred tax assets will be realized in the future. Accordingly, no valuation allowance has been established at December 31, 2015 and December 31, 2014. The deferred tax asset is included in “Receivables and other assets” in the consolidated balance sheets.

Based on the Company’s evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. Additionally, there were no amounts accrued for penalties or interest as of or during the periods presented in these consolidated financial statements.

The Company’s 2014, 2013 and 2012 federal, state and local income tax returns remain open for examination by the relevant authorities.

Business Combinations

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Business Combinations

Note 17 – Business Combinations

On May 29, 2015 (the acquisition date), CHMI Solutions acquired 100% of the outstanding voting stock of Aurora. The results of Aurora’s operations have been included in the consolidated financial statements since that date. Aurora is a licensed mortgage origination and servicing company. Aurora is a seller/servicer for Fannie Mae and Freddie Mac. At December 31, 2015, Aurora owned approximately $2.0 billion in UPB of Fannie Mae and Freddie Mac MSRs.

Aurora’s pipeline of mortgage loans was not closed out as of the acquisition date. As a result, CHMI Solutions agreed to maintain Aurora’s existing Warehouse Facility pending funding and disposition of the mortgage loans in the pipeline which occurred prior to the end of the third quarter of 2015. All proceeds of the disposition of the mortgage loans, net of all costs and expenses related hereto, including the costs of the Warehouse Facility, were for the benefit of Aurora’s former owners. The Warehouse Facility expired on August 31, 2015.

The acquisition-date fair value of the consideration transferred totaled approximately $3.9 million, which consisted of cash. Twenty percent (20%) of the consideration was deposited in an escrow account to provide a source of funds for the seller’s indemnification obligations. Transaction-related costs of approximately $95,400 were expensed as incurred, and are included in “General and administrative expenses” on the consolidated income statement.

In the Aurora acquisition agreement, the parties agreed to fix the valuation of the MSR portfolio, as a percentage of par, based on third party appraisals obtained at the end of January 2015. The agreement also provided that the UPB of the portfolio would be fixed 90 days after the agreement was signed. Due to the increase in interest rates between January and the closing date at the end of May 2015, the value of the MSR portfolio increased. In addition, the UPB of the portfolio declined between the end of April and the closing date in May. Valuation adjustments for intangible assets and loan loss reserves also contributed to the bargain purchase in the amount of approximately $734,000. The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition date (dollars in thousands):

	Final Fair value of consideration transferred
Cash	$	80
Mortgage receivables		2,772
Servicing escrow advances		410
Capital leases		46
Deposits held and prepaid items		28
License approvals		120
MSRs		7,069
Total identifiable assets acquired		10,525

Current liabilities		1,643
Settlement liability		260
Assumed debt		3,969
Total liabilities assumed		5,872

Net identifiable assets acquired		4,653
Cash consideration transferred		(3,919	)
Gain on bargain purchase	$	734
Deferred tax liabiltiy - bargin purchase		(285	)
Realized gain (loss) on acquired assets, net	$	449

The amounts of revenue and earnings of Aurora included in the Company’s consolidated income statement from the acquisition date to the period ending December 31, 2015 are as follows (dollars in thousands):

Revenue and Earnings Included in the Consolidated Income Statement

	For the period from May 30, 2015 to December 31, 2015
Revenue	$	1,719
Earnings		472

The following represents the pro forma consolidated income statement as if Aurora had been included in the consolidated results of the Company for the years ended December 31, 2015, 2014 and 2013. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of the Company’s future operating results or operating results that would have occurred had the Aurora acquisition been completed at the beginning of 2013. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions (dollars in thousands):

Pro Forma Consolidated Income Statement

	Year Ended December 31,
	2015		2014		2013
Revenue	$	18,871	$	7,811	$	22,522
Earnings (loss)	$	13,460	$	2,398	$	21,225

Earnings (Loss) Per Share of Common Stock
Basic	$	1.79	$	0.32	$	12.57
Diluted	$	1.79	$	0.32	$	12.57
Weighted Average Number of Shares of Common Stock Outstanding
Basic		7,509,543		7,505,546		1,688,275
Diluted		7,512,444		7,508,827		1,688,275

These amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Aurora primarily to reflect the exclusion of the bargain purchase and transaction costs together with the consequential tax effects.

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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Basis of Presentation and Significant Accounting Policies [Abstract]

CHMI Insurance Company	12 Months Ended
CHMI Insurance Company	Dec. 31, 2015
CHMI Insurance Company [Abstract]
CHMI Insurance Company	Note 18 – CHMI Insurance Company The Company’s indirectly owned subsidiary, CHMI Insurance Company LLC, or CHMI Insurance, became a member of the FHLBI on June 26, 2015. As a member of the FHLBI, CHMI Insurance had access to a variety of products and services offered by the FHLBI, including secured advances. As of December 31, 2015 CHMI Insurance had approximately $62.3 million of outstanding advances. See Note 19. The FHLBI retains the right to mark the underlying collateral for FHLBI advances to fair value. A reduction in the value of pledged assets would require CHMI Insurance to provide additional collateral. In addition, as a condition to membership in the FHLBI, CHMI Insurance is required to purchase and hold a certain amount of FHLBI stock, which is based, in part, upon the outstanding principal balance of advances from the FHLBI. At December 31, 2015, CHMI Insurance had stock in the FHLBI totaling approximately $3.3 million, which is included in Other Assets on the consolidated balance sheet. FHLBI stock is considered a non-marketable, long-term investment, is carried at cost and is subject to recoverability testing under applicable accounting standards. This stock can only be redeemed or sold at its par value, and only to the FHLBI. Accordingly, when evaluating FHLBI stock for impairment, the Company considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of December 31, 2015, the Company had not recognized an impairment charge related to its FHLBI stock.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 19 – Subsequent Events In January 2016, the Federal Housing Finance Agency issued a final regulation that requires the Federal Home Loan Banks to terminate the memberships of their captive insurance company members within one year or five years after the rule becomes effective. Under the rule, the membership in the FHLBI of CHMI Insurance will be terminated in the one-year time frame. In addition, it is not able to obtain any additional advances and will not be permitted to roll over any advances once the rule is published in the Federal Register. On January 29, 2016, Aurora acquired a portfolio of MSRs on Fannie Mae mortgage loans with an aggregate unpaid principal balance of approximately $463 million. Servicing functions, which transferred on March 1, 2016, will be performed by Freedom Mortgage pursuant to the sub-servicing agreement.

Basis of Presentation and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Basis of Accounting

Emerging Growth Company Status

Use of Estimates

Risks and Uncertainties

Investments in RMBS

Investments in Excess MSRs

Investments in MSRs

Derivatives and Hedging Activities

Cash and Cash Equivalents and Restricted Cash

Due to Affiliate

This represents amounts due to the Manager pursuant to the Management Agreement. For further information on the Management Agreement, see Note 7.

Income Taxes

Realized Gain (Loss) on RMBS and Derivatives, Net

The following table presents gains and losses on sales of RMBS and derivatives for the periods indicated (dollars in thousands):

	Year Ended December 31,
	2015			2014			2013
Realized gain (loss) on RMBS, net
Gain on RMBS	$	1,398		$	303		$	116
Loss on RMBS		(544	)		(363	)		(643	)
Net realized gain (loss) on RMBS		854			(60	)		(527	)
Realized gain (loss) on derivatives, net		(3,913	)		(2,643	)		59
Unrealized gain (loss) on derivatives, net		(59	)		(6,564	)		2,747
Total	$	(3,118	)	$	(9,267	)	$	2,279

The gain and loss on RMBS presented above represent the amounts reclassified from other comprehensive income (loss) in earnings.

Repurchase Agreements and Interest Expense

Federal Home Loan Bank of Indianapolis Advances

Dividends Payable

Comprehensive Income

Business Combinations

Recent Accounting Pronouncements

Changes in Presentation

Certain prior period amounts have been reclassified to conform to current period presentation.

Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Basis of Presentation and Significant Accounting Policies [Abstract]

Summary of Gains and Losses on Sale of RMBS and Derivatives

The following table presents gains and losses on sales of RMBS and derivatives for the periods indicated (dollars in thousands):

	Year Ended December 31,
	2015			2014			2013
Realized gain (loss) on RMBS, net
Gain on RMBS	$	1,398		$	303		$	116
Loss on RMBS		(544	)		(363	)		(643	)
Net realized gain (loss) on RMBS		854			(60	)		(527	)
Realized gain (loss) on derivatives, net		(3,913	)		(2,643	)		59
Unrealized gain (loss) on derivatives, net		(59	)		(6,564	)		2,747
Total	$	(3,118	)	$	(9,267	)	$	2,279

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

Summary of Financial Data on CHMI's Segments with Reconciliation

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Summary financial data on the Company’s segments is given below, together with a reconciliation to the same data for the Company as a whole (dollars in thousands):

	Servicing Related Assets			RMBS			All Other			Total
Income Statement
Year Ended December 31, 2015
Interest income	$	14,313		$	13,399		$	—		$	27,712
Interest expense		583			5,400			—			5,983
Net interest income		13,730			7,999			—			21,729
Servicing fee income		1,719			—			—			1,719
Servicing costs		761			—			—			761
Net servicing income		958			—			—			958
Other income		(693	)		(3,118	)		—			(3,811	)
Other operating expenses		—			—			5,864			5,864
(Benefit from) provision for corporate business taxes		(343	)		—			—			(343	)
Net income (loss)	$	14,338		$	4,881		$	(5,864	)	$	13,355

	Servicing Related Assets			RMBS			All Other			Total
Year Ended December 31, 2014
Interest income	$	15,854		$	10,643		$	—	^(A)	$	26,497
Interest expense		—			4,307			—			4,307
Net interest income		15,854			6,336			—			22,190
Servicing fee income		—			—			—			—
Servicing costs		—			—			—			—
Net servicing income		—			—			—			—
Other income		(5,100	)		(9,267	)		—			(14,367	)
Other operating expenses		—			—			5,588			5,588
(Benefit from) provision for corporate business taxes		(140	)		—			—			(140	)
Net income (loss)	$	10,894		$	(2,931	)	$	(5,588	)	$	2,375
Year Ended December 31, 2013
Interest income	$	3,552		$	2,676		$	—	^(A)	$	6,228
Interest expense		—			867			—			867
Net interest income		3,552			1,809			—			5,361
Servicing fee income		—			—			—			—
Servicing costs		—			—			—			—
Net servicing income		—			—			—			—
Other income		14,894			2,279			—			17,173
Other operating expenses		—			—			1,332			1,332
(Benefit from) provision for corporate business taxes		—			—			—			—
Net income (loss)	$	18,446		$	4,088		$	(1,332	)	$	21,202
Balance Sheet
December 31, 2015
Investments	$	97,803		$	508,242		$	—		$	606,045
Other assets		3,562			13,984			12,749			30,295
Total assets		101,365			522,226			12,749			636,340
Debt		24,313			447,810			—			472,123
Other liabilities		1,883			4,903			5,094			11,880
Total liabilities		26,196			452,713			5,094			484,003
GAAP book value	$	75,169		$	69,513		$	7,655		$	152,337
December 31, 2014
Investments	$	91,322		$	416,003		$	—		$	507,325
Other assets		2,713			8,920			12,968			24,601
Total assets		94,035			424,923			12,968			531,926
Debt		—			362,126			—			362,126
Other liabilities		—			4,319			5,163			9,482
Total liabilities		—			366,445			5,163			371,608
GAAP book value	$	94,035		$	58,478		$	7,805		$	160,318

(A)

de minimus ($192 rounds to $0)

Investments in RMBS (Tables)

12 Months Ended

Dec. 31, 2015

Investments in RMBS [Abstract]

Summary of RMBS Investments

The following is a summary of the Company’s RMBS investments as of the periods indicated, (dollars in thousands):

Summary of RMBS Assets

As of December 31, 2015

Asset Type	Original Face Value		Book Value		Gross Unrealized					Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gains		Losses			Carrying Value^(A)		Number of Securities		Rating	Coupon			Yield^(C)			Maturity (Years)^(D)
RMBS
Fannie Mae	$	329,767	$	308,367	$	1,961	$	(1,556	)	$	308,772		44	(B)		3.77	%		3.59	%		24
Freddie Mac		208,154		193,567		821		(977	)		193,411		24	(B)		3.61	%		3.48	%		24
CMOs		16,646		6,493		—		(434	)		6,059		4	Unrated		4.55	%		7.39	%		10
Total/Weighted Average	$	554,567	$	508,427	$	2,782	$	(2,967	)	$	508,242		72			3.72	%		3.60	%		23

As of December 31, 2014

Asset Type	Original Face Value		Book Value		Gross Unrealized					Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gains		Losses			Carrying Value^(A)		Number of Securities		Rating	Coupon			Yield^(C)			Maturity (Years)^(D)
RMBS
Fannie Mae	$	267,516	$	263,924	$	4,674	$	(10	)	$	268,588		33	(B)		3.89	%		3.72	%		24
Freddie Mac		144,064		138,333		2,143		—			140,476		17	(B)		3.75	%		3.20	%		23
CMOs		25,964		7,105		—		(166	)		6,939		4	Unrated		4.18	%		13.04	%		14
Total/Weighted Average	$	437,544	$	409,362	$	6,817	$	(176	)	$	416,003		54			3.85	%		3.70	%		23

(A)

See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.

(B)

The Company used an implied AAA rating for the Fannie Mae and Freddie Mac securities.

(C)

(D)

The weighted average stated maturity.

Summary of RMBS Investments by Maturity

Summary of RMBS Assets by Maturity

As of December 31, 2015

Asset Type	Original Face Value		Book Value		Gross Unrealized					Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gains		Losses			Carrying Value^(A)		Number of Securities		Rating	Coupon			Yield^(C)			Maturity (Years)^(D)
Less than 1 Year	$	—	$	—	$	—	$	—		$	—		—			—	%		—	%		—
1-5 Years		—		—		—		—			—		—			—	%		—	%		—
5-10 Years		5,500		5,553		—		(216	)		5,337		3	(B)		4.76	%		4.96	%		9
Over 10 Years		549,067		502,874		2,782		(2,751	)		502,905		69	(B)		3.71	%		3.59	%		24
Total/Weighted Average	$	554,567	$	508,427	$	2,782	$	(2,967	)	$	508,242		72			3.72	%		3.60	%		23

As of December 31, 2014

Asset Type	Original Face Value		Book Value		Gross Unrealized					Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gains		Losses			Carrying Value^(A)		Number of Securities		Rating	Coupon			Yield^(C)			Maturity (Years)^(D)
Within 1 year	$	—	$	—	$	—	$	—		$	—		—			—	%		—	%		—
After 1 year through 5 years		—		—		—		—			—		—			—	%		—	%		—
After 5 years through 10 years		3,500		3,553		—		(126	)		3,426		2	(B)		4.68	%		4.76	%		10
After 10 years		434,044		405,809		6,817		(50	)		412,577		52	(B)		3.84	%		3.69	%		23
Total/Weighted Average	$	437,544	$	409,362	$	6,817	$	(176	)	$	416,003		54			3.85	%		3.70	%		23

(A)

See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.

(B)

The Company used an implied AAA rating for the Fannie Mae and Freddie Mac securities.

(C)

(D)

The weighted average stated maturity.

Summary of RMBS Securities in an Unrealized Loss Position

The following tables summarize the Company’s securities in an unrealized loss position as of the dates indicated (dollars in thousands):

RMBS Unrealized Loss Positions

As of December 31, 2015

Asset Type	Original Face Value		Book Value		Gross Unrealized Losses			Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gross Unrealized Losses			Carrying Value^(A)		Number of Securities		Rating		Coupon		Yield^(C)		Maturity (Years)^(D)
Less than Twelve Months	$	224,765	$	229,732	$	(2,413	)	$	227,319		31	(B)	3.62	%	3.44	%	24
Twelve or More Months		57,966		46,204		(554	)		45,650		9	(B)	3.81	%	4.13	%	27
Total/Weighted Average	$	282,731	$	275,936	$	(2,967	)	$	272,969		40		3.65	%	3.55	%	25

As of December 31, 2014

Asset Type	Original Face Value		Book Value		Gross Unrealized Losses			Carrying Value^(A)		Number of Securities		Weighted Average
Asset Type	Original Face Value		Book Value		Gross Unrealized Losses			Carrying Value^(A)		Number of Securities		Rating		Coupon		Yield^(C)		Maturity (Years)^(D)
Less than Twelve Months	$	35,404	$	16,946	$	(176	)	$	16,770		5	(B)	3.78	%	5.39	%	23
Twelve or More Months		—		—		—			—		—		—	%	—	%	—
Total/Weighted Average	$	35,404	$	16,946	$	(176	)	$	16,770		5		3.78	%	5.39	%	23

(A)

See Note 9 regarding the estimation of fair value, which is equal to carrying value for all securities.

(B)

The Company used an implied AAA rating for the Fannie Mae and Freddie Mac securities, other than CMOs, which are unrated.

(C)

(D)

Investments in Servicing Related Assets (Tables)

12 Months Ended

Dec. 31, 2015

Investments in Servicing Related Assets [Abstract]

Summary of Servicing Related Assets

The following is a summary of the Company’s Servicing Related Assets (dollars in thousands):

Servicing Related Assets Summary

As of December 31, 2015

	Unpaid Principal Balance		Amortized Cost Basis^(A)		Carrying Value^(B)		Weighted Average Coupon			Weighted Average Maturity (Years)^(C)		Changes in Fair Value Recorded in Other Income (Loss)^(D)
Pool 1	$	7,416,465	$	39,483	$	42,837		3.51	%		26.0	$	(2,822	)
Pool 1 - Recapture Agreement		—		2,209		645		—			—		331
Pool 2		7,279,706		23,116		32,338		2.78	%		27.1		2,626
Pool 2 - Recapture Agreement		—		1,780		716		—			—		(324	)
Pool 2014		265,890		1,685		1,506		3.65	%		27.4		170
Pool 2014 - Recapture Agreement		—		—		—		—			—		—
MSRs		2,016,351		20,884		19,761		3.76	%		22.7		(1,123	)
Total	$	16,978,412	$	89,157	$	97,803		3.23	%		26.1	$	(1,142	)

As of December 31, 2014

	Unpaid Principal Balance		Amortized Cost Basis^(A)		Carrying Value^(B)		Weighted Average Coupon			Weighted Average Maturity (Years)^(C)		Changes in Fair Value Recorded in Other Income (Loss)^(D)
Pool 1	$	8,715,747	$	48,007	$	54,187		3.51	%		27.0	$	(2,660	)
Pool 1 - Recapture Agreement		—		2,506		611		—			—		(371	)
Pool 2		8,475,975		27,080		33,676		2.77	%		27.8		160
Pool 2 - Recapture Agreement		—		2,002		1,262		—			—		(1,882	)
Pool 2014		308,562		1,934		1,586		3.71	%		28.4		(348	)
Pool 2014 - Recapture Agreement		—		—		—		—			—		—
Total	$	17,500,284	$	81,529	$	91,322		3.16	%		27.4	$	(5,100	)

(A)

The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired.

(B)

Carrying value represents the fair value of the pools or recapture agreements, as applicable (see Note 9).

(C)

The weighted average maturity represents the weighted average expected timing of the receipt of cash flows of each investment.

(D)

The portion of the change in fair value of the recapture agreement relating to loans recaptured as of December 31, 2015 and December 31, 2014 is reflected in the respective pool.

Summary of Geographic Concentration of Servicing Related Assets

The tables below summarize the geographic distribution for the states representing 5% or greater of the underlying residential mortgage loans of the Servicing Related Assets:

Geographic Concentration of Servicing Related Assets

As of December 31, 2015

	Percentage of Total Outstanding Unpaid Principal Balance
California		12.3	%
Texas		9.4	%
Florida		6.5	%
Virginia		6.0	%
North Carolina		5.2	%
Washington		5.1	%
Georgia		5.0	%
All other		50.5	%
Total		100.0	%

As of December 31, 2014

	Percentage of Total Outstanding Unpaid Principal Balance
California		13.3	%
Texas		10.1	%
Florida		6.9	%
Virginia		6.5	%
North Carolina		5.7	%
Georgia		5.3	%
Washington		5.1	%
All other		47.1	%
Total		100.0	%

Equity and Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2015

Equity and Earnings per Share [Abstract]

Information about Company's 2013 Plan

The following tables present certain information about the Company’s 2013 Plan as of the dates indicated:

Equity Incentive Plan Information

As of December 31, 2015

As of December 31, 2014

As of December 31, 2013

	Number of Securities Issued or to be Issued Upon Exercise		Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans
Equity compensation Plans Approved By Shareholders				1,462,500
LTIP-OP Units		37,500
Equity Compensation Plans Not Approved By Shareholders		—		—

Information regarding the LTIP-OP Units

The table below sets forth certain information regarding the LTIP-OP Units that have been granted by the board of directors (dollars in thousands, except per share data):

LTIP-OP Unit Grant Information

Grant Date	Number of Grantees		Stock Price on Grant Date		Number of Units Granted		Aggregate Fair Market Value
September 9, 2015		12	$	15.80		35,000	$	553
June 10, 2014		10	$	19.33		31,350	$	606
October 9, 2013		11	$	20.00		37,500	$	750

Schedule of Basic Earnings per Share of Common Stock

The following table presents basic earnings per share of common stock for the periods indicated (dollars in thousands, except per share data):

Earnings per Share Information

	Year Ended December 31,
	2015		2014		2013
Numerator:
Net income attributable to common stockholders and participating securities	$	13,355	$	2,375	$	21,202
Net income allocable to common stockholders	$	13,214	$	2,353	$	21,095
Denominator:
Weighted average common shares outstanding		7,509,543		7,505,546		1,688,275
Weighted average diluted shares outstanding		7,512,444		7,508,827		1,688,275
Basic and Dilutive:
Basic earnings per share	$	1.76	$	0.31	$	12.50
Diluted earnings per share	$	1.76	$	0.31	$	12.50

Transactions with Affiliates and Affiliated Entities (Tables)

12 Months Ended

Dec. 31, 2015

Transactions with Affiliates and Affiliated Entities [Abstract]

Management Fee to Affiliate

“Due to affiliates” consisted of the following for the periods indicated (dollars in thousands):

Management Fee to Affiliate

	Year Ended December 31,
	2015		2014		2013
Management fees	$	2,263	$	2,150	$	549
Expense reimbursement		520		410		67
Total	$	2,783	$	2,560	$	616

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Instruments [Abstract]

Summary of Outstanding Notional Amounts of Derivative Instruments

The following table summarizes the outstanding notional amounts of derivative instruments as of the dates indicated (dollars in thousands):

Non-hedge derivatives	December 31, 2015		December 31, 2014
Notional amount of interest rate swaps	$	300,300	$	224,100
Notional amount of swaptions		85,000		105,000
Notional amount of TBAs, net		—		—
Notional amount of Treasury Futures		—		8,000
Total notional amount	$	385,300	$	337,100

Summary of Information about Company's Interest Rate Swap Agreements

The following table presents information about the Company’s interest rate swap agreements as of the dates indicated (dollars in thousands):

	Notional Amount		Weighted Average Pay Rate			Weighted Average Receive Rate			Weighted Average Years to Maturity
December 31, 2015	$	300,300		1.71	%		0.37	%		4.3
December 31, 2014	$	224,100		1.84	%		0.23	%		5.4
December 31, 2013	$	171,700		1.95	%		0.24	%		6.7

Summary of Realized Gain (Loss) Related to Derivatives

The following table presents information about derivatives realized gain (loss), which is included on the consolidated statement of income for the periods indicated (dollars in thousands):

Realized Gains (Losses) on Derivatives

		Year Ended December 31,
Non-Hedge Derivatives	Income Statement Location	2015			2014			2013
Interest rate swaps	Realized gain/(loss) on derivative assets	$	(2,128	)	$	(686	)	$	53
Swaptions	Realized gain/(loss) on derivative assets		(1,036	)		(1,910	)		—
TBAs	Realized gain/(loss) on derivative assets		(400	)		60			17
Treasury futures	Realized gain/(loss) on derivative assets		(349	)		(107	)		(11	)
Total		$	(3,913	)	$	(2,643	)	$	59

Summary of Assets and Liabilities Subject to Master Netting Arrangements or Similar Agreements

Offsetting Assets and Liabilities

As of December 31, 2015

	Gross Amounts of Recognized Assets or Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet						Net Amount
							Financial Instruments			Cash Collateral Received (Pledged)			Net Amount
Assets
Interest rate swaps	$	51	$	—	$	51	$	(51	)	$	—		$	—
Swaptions		371		—		371		(371	)		—			—
TBAs		—		—		—		—			—			—
Treasury futures		—		—		—		—			(84	)
Total Assets	$	422	$	—	$	422	$	(422	)	$	(84	)	$	—

Liabilities
Repurchase agreements	$	385,560	$	—	$	385,560	$	(381,386	)	$	(4,174	)	$	—
Interest rate swaps		4,595		—		4,595		—			(4,595	)		—
Swaptions		—		—		—		—			—			—
TBAs		—		—		—		—			—			—
Treasury futures		—		—		—		—			—			—
Total Liabilities	$	390,155	$	—	$	390,155	$	(381,386	)	$	(8,769	)	$	—

As of December 31, 2014

	Gross Amounts of Recognized Assets or Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet						Net Amount
							Financial Instruments			Cash Collateral Received (Pledged)			Net Amount
Assets
Interest rate swaps	$	46	$	—	$	46	$	(46	)	$	—		$	—
Swaptions		291		—		291		(291	)		—			—
TBAs		—		—		—		—			—			—
Treasury futures		5		—		5		(5	)		(89	)
Total Assets	$	342	$	—	$	342	$	(342	)	$	(89	)	$	—

Liabilities
Repurchase agreements	$	362,126	$	—	$	362,126	$	(359,270	)	$	(2,856	)	$	—
Interest rate swaps		4,045		—		4,045		(43	)		(4,002	)		—
Swaptions		—		—		—		—			—			—
TBAs		43		—		43		(43	)		—			—
Treasury futures		—		—		—		—			—			—
Total Liabilities	$	366,214	$	—	$	366,214	$	(359,356	)	$	(6,858	)	$	—

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41620-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Company's Assets and Liabilities Measured at Fair Value on Recurring Basis

Fair Value (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value [Abstract]

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated (dollars in thousands).

Recurring Fair Value Measurements

As of December 31, 2015

	Level 1		Level 2		Level 3		Carrying Value
Assets
RMBS
Fannie Mae	$	—	$	308,772	$	—	$	308,772
Freddie Mac		—		193,411		—		193,411
CMOs		—		6,059		—		6,059
RMBS total		—		508,242		—		508,242
Derivative assets
Interest rate swaps		—		51		—		51
Interest rate swaptions		—		371		—		371
TBAs		—		—		—		—
Treasury Futures		—		—		—		—
Derivative assets total		—		422		—		422
Servicing related assets		—		—		97,803		97,803
Total Assets	$	—	$	508,664	$	97,803	$	606,467
Liabilities
Derivative liabilities
Interest rate swaps		—		4,595		—		4,595
TBAs		—		—		—		—
Treasury Futures		—		—		—		—
Derivative liabilities total		—		4,595		—		4,595
Total Liabilities	$	—	$	4,595	$	—	$	4,595

As of December 31, 2014

	Level 1		Level 2		Level 3		Carrying Value
Assets
RMBS
Fannie Mae	$	—	$	268,588	$	—	$	268,588
Freddie Mac		—		140,476		—		140,476
CMOs		—		6,939		—		6,939
RMBS total		—		416,003		—		416,003
Derivative assets
Interest rate swaps		—		46		—		46
Interest rate swaptions		—		291		—		291
TBAs		—		—		—		—
Treasury Futures		—		5		—		5
Derivative assets total		—		342		—		342
Servicing Related Assets		—		—		91,322		91,322
Total Assets	$	—	$	416,345	$	91,322	$	507,667
Liabilities
Derivative liabilities
Interest rate swaps		—		4,045		—		4,045
TBAs		—		43		—		43
Treasury Futures		—		—		—		—
Derivative liabilities total		—		4,088		—		4,088
Total Liabilities	$	—	$	4,088	$	—	$	4,088

Company's Level 3 Assets (Servicing Related Assets) Measured at Fair Value on Recurring Basis

The tables below present the reconciliation for the Company’s Level 3 assets (Servicing Related Assets) measured at fair value on a recurring basis as of the dates indicated (dollars in thousands):

Level 3 Fair Value Measurements

As of December 31, 2015

	Level 3 ^(A)
	Pool 1			Pool 2			Pool 2014			MSRs			Total
Balance at December 31, 2014	$	54,798		$	34,938		$	1,586		$	—		$	91,322
Purchases and principal paydowns
Purchases		—			—			—			20,884			20,884
Proceeds from principal paydowns		(8,825	)		(4,186	)		(250	)		—			(13,261	)
Changes in fair value due to:
Mark to market gain (loss)		(2,491	)		2,302			170			(567	)		(586	)
Amortization of MSRs		—			—			—			(556	)		(556	)
Unrealized gain (loss) included in Net Income	$	(2,491	)	$	2,302		$	170		$	(1,123	)	$	(1,142	)
Balance at December 31, 2015	$	43,482		$	33,054		$	1,506		$	19,761		$	97,803

As of December 31, 2014

	Level 3 ^(A)
	Pool 1			Pool 2			Pool 2014			MSRs		Total
Balance at December 31, 2013	$	66,110		$	44,196		$	—		$	—	$	110,306
Purchases and principal paydowns
Purchases		—			—			2,181			—		2,181
Proceeds from principal paydowns		(8,281	)		(7,536	)		(247	)		—		(16,065	)
Unrealized gain included in Net Income		(3,031	)		(1,722	)		(348	)		—		(5,100	)
Balance at December 31, 2014	$	54,798		$	34,938		$	1,586		$	—	$	91,322

(A)

Includes the recapture agreement for each respective pool.

Significant Unobservable Inputs Used in Fair Value Measurement

Fair Value Measurements

As of December 31, 2015

	Fair Value		Valuation Technique	Unobservable Input ^(A)	Range	Weighted Average
Pool 1	$	43,482	Discounted cash flow	Constant prepayment speed	4.0% - 19.0%		10.5	%
				Uncollected Payments	2.9% - 7.0%		6.2	%
				Discount rate			12.3	%
Pool 2	$	33,054	Discounted cash flow	Constant prepayment speed	8.3% - 42.3%		14.9	%
				Uncollected Payments	10.4% - 13.9%		13.0	%
				Discount rate			16.7	%
Pool 2014	$	1,506	Discounted cash flow	Constant prepayment speed	3.9% - 22.3%		11.2	%
				Uncollected Payments	5.9% - 7.1%		6.8	%
				Discount rate			11.9	%
MSRs	$	19,761	Discounted cash flow	Constant prepayment speed	0.0% - 13.8%		9.7	%
				Uncollected payments	1.2% - 3.4%		1.6	%
				Discount rate			8.3	%
				Annual cost to service, per loan		$	73
TOTAL	$	97,803	Discounted cash flow

As of December 31, 2014

	Fair Value		Valuation Technique	Unobservable Input ^(A)	Range	Weighted Average
Pool 1	$	54,798	Discounted cash flow	Constant prepayment speed	6.2% - 12.8%		10.4	%
				Uncollected Payments	2.8% - 7.0%		6.3	%
				Discount rate	—		12.2	%
Pool 2	$	34,938	Discounted cash flow	Constant prepayment speed	11.9% - 21.9%		16.7	%
				Uncollected Payments	9.6% - 15.2%		13.7	%
				Discount rate	—		17.3	%
Pool 2014	$	1,586	Discounted cash flow	Constant prepayment speed	8.7% - 15.4%		12.3	%
				Uncollected Payments	2.7% - 6.0%		5.4	%
				Discount rate	—		11.8	%
TOTAL	$	91,322	Discounted cash flow

(A)

Repurchase Agreements (Tables)

12 Months Ended

Dec. 31, 2015

Repurchase Agreements [Abstract]

Repurchase Agreements Remaining Maturities and Weighted Average Rates

Repurchase Agreements Characteristics

As of December 31, 2015

	Repurchase Agreements		Weighted Average Rate
Less than one month	$	93,926		0.55	%
One to three months		284,687		0.56	%
Greater than three months		6,947		0.52	%
Total/Weighted Average	$	385,560		0.56	%

As of December 31, 2014

	Repurchase Agreements		Weighted Average Rate
Less than one month	$	78,988		0.38	%
One to three months		208,533		0.38	%
Greater than three months		74,605		0.38	%
Total/Weighted Average	$	362,126		0.38	%

FHLBI Advances (Tables)

12 Months Ended

Dec. 31, 2015

FHLBI Advances [Abstract]

FHLBI Advances Remaining Maturities and Weighted Average Rates

Agency RMBS and FHLBI stock have been pledged as collateral for these advances (see Note 4) (dollars in thousands).

Federal Home Loan Bank Advance Characteristics

As of December 31, 2015

	Federal Home Loan Bank Advances		Weighted Average Rate
Less than one month	$	15,000		0.44	%
One to three months		—		—	%
Greater than three months		47,250		0.57	%
Total/Weighted Average Federal Home Loan Bank Advances	$	62,250		0.54	%

Receivables and Other Assets (Tables)

12 Months Ended

Dec. 31, 2015

Receivables and Other Assets [Abstract]

Receivables and Other Assets

The assets comprising “Receivables and other assets” as of December 31, 2015 and December 31, 2014 are summarized in the following table (dollars in thousands):

Receivables and Other Assets

	December 31, 2015		December 31, 2014
Excess servicing income receivable	$	2,159	$	2,713
Servicing advances		787		—
Interest receivable		1,497		1,322
Federal Home Loan Bank stock		3,261		—
Deferred tax receivable		203		146
Other receivables		1,421		375
Total other assets	$	9,328	$	4,556

Summarized Quarterly Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2015

Summarized Quarterly Results (Unaudited) [Abstract]

Summary of Company's Quarterly Operating Results

The following tables present information about the Company’s quarterly operating results for the periods indicated below (dollars in thousands):

Summarized Quarterly Results

	2015
	December 31,			September 30,			June 30,			March 31,
Income
Interest income	$	7,984		$	5,813		$	8,088		$	5,827
Interest expense		1,759			1,643			1,346			1,235
Net interest income		6,225			4,170			6,742			4,592
Servicing fee income		1,100			463			156			—
Servicing costs		301			366			94			—
Net servicing income (loss)		799			97			62
Other income (loss)
Realized gain (loss) on RMBS, net		393			269			(115	)		307
Realized gain (loss) on derivatives, net		(1,672	)		(947	)		(52	)		(1,242	)
Realized gain (loss) on acquired assets, net		275			—			174			—
Unrealized gain (loss) on derivatives, net		4,634			(4,986	)		2,835			(2,542	)
Unrealized gain (loss) on investments in Excess MSRs		1,219			(2,059	)		2,938			(2,117	)
Unrealized gain (loss) on investments in MSRs		(560	)		(541	)		(22	)		—
Total Income		11,313			(3,997	)		12,562			(1,002	)
Expenses
General and administrative expense		1,083			622			634			742
Management fee to affiliate		713			690			690			690
Total Expenses		1,796			1,312			1,324			1,432
Income (Loss) Before Income Taxes		9,517			(5,309	)		11,238			(2,434	)
Provision for corporate business taxes		(134	)		(139	)		(70	)		—
Net Income (Loss)		9,651			(5,170	)		11,308			(2,434	)
Net (income) loss allocated to noncontrolling interests		(106	)		46			(103	)		22
Net Income (Loss) Applicable to Common Stockholders	$	9,545		$	(5,124	)	$	11,205		$	(2,412	)
Net income (Loss) Per Share of Common Stock		—			—			—			—
Basic	$	1.27		$	(0.68	)	$	1.49		$	(0.32	)
Diluted	$	1.27		$	(0.68	)	$	1.49		$	(0.32	)
Weighted Average Number of Shares of Common Stock
Basic		7,509,543			7,509,543			7,509,543			7,509,543
Diluted		7,519,038			7,511,653			7,509,543			7,509,543

	2014
	December 31,			September 30,			June 30,			March 31,
Income
Interest income	$	6,334		$	6,542		$	6,465		$	7,156
Interest expense		1,190			1,164			1,006			947
Net interest income		5,144			5,378			5,459			6,209
Servicing fee income		—			—			—			—
Servicing costs		—			—			—			—
Net servicing income (loss)		—			—			—			—
Other income (loss)
Realized gain (loss) on RMBS, net		166			48			75			(349	)
Realized gain (loss) on derivatives, net		(1,359	)		(1,025	)		(187	)		(72	)
Realized gain (loss) on acquired assets, net		—			—			—			—
Unrealized gain (loss) on derivatives, net		(2,441	)		2,025			(2,705	)		(3,443	)
Unrealized gain (loss) on investments in Excess MSRs		(301	)		(2,348	)		(1,976	)		(475	)
Unrealized gain (loss) on investments in MSRs		—			—			—			—
Total Income		1,209			4,078			666			1,870
Expenses
General and administrative expense		1,185			744			642			457
Management fee to affiliate		682			520			679			679
Total Expenses		1,867			1,264			1,321			1,136
Income (Loss) Before Income Taxes		(658	)		2,814			(655	)		734
Provision for corporate business taxes		(140	)		—			—			—
Net Income (Loss)		(518	)		2,814			(655	)		734
Net (income) loss allocated to noncontrolling interests		5			(26	)		3			(4	)
Net Income (Loss) Applicable to Common Stockholders	$	(513	)	$	2,788		$	(652	)	$	730
Net income (Loss) Per Share of Common Stock		—			—			—			—
Basic	$	(0.07	)	$	0.37		$	(0.09	)	$	0.10
Diluted	$	(0.07	)	$	0.37		$	(0.09	)	$	0.10
Weighted Average Number of Shares of Common Stock
Basic		7,508,549			7,506,560			7,504,572			7,502,505
Diluted		7,509,543			7,509,543			7,509,543			7,506,680

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes [Abstract]

Components of Income Tax Expense (Benefit)

The components of the Company’s income tax expense (benefit) are as follows for the periods indicated below (dollars in thousands):

	Year Ended December 31,
	2015			2014			2013
Current federal income tax expense	$	—		$	—		$	—
Current state income tax expense		—			6			—
Deferred federal income tax expense (benefit)		(309	)		(124	)		—
Deferred state income tax expense (benefit)		(34	)		(22	)		—
Total Income Tax Expense	$	(343	)	$	(140	)	$	—

Reconciliation of Statutory Federal Rate to Effective Rate

The following is a reconciliation of the statutory federal rate to the effective rate, for the periods indicated below (dollars in thousands):

	Year Ended December 31,
	2015					2014					2013
Computed income tax (benefit) expense at federal rate	$	4,554		35.0	%	$	824		35.0	%	$	7,383		35.0	%
State taxes, net of federal benefit, if applicable		(34	)	(0.0	)%		92		3.9	%		—		—	%
Permanent differences in taxable income from GAAP pre-tax income		(157	)	(1.4	)%		4,874		207.2	%		(6,071	)	(28.8	)%
REIT income not subject to tax		(4,706	)	(36.2	)%		(5,930	)	(252.0	)%		(1,312	)	(6.2	)%
(Benefit from) Provision for Income Taxes/Effective Tax Rate^(A)	$	(343	)	(2.6	)%	$	(140	)	(5.9	)%	$	—		—	%

(A)

The provision for income taxes is recorded at the TRS level.

Summary of Current and Deferred Tax Liabilities and Assets

	Year Ended December 31,
	2015		2014		2013
Income taxes (payable) receivable
Federal income taxes (payable) receivable	$	—	$	—	$	—
State and local income taxes (payable) receivable		—		—		—
Income taxes (payable) receivable, net	$	—	$	—	$	—

	December 31, 2015			December 31, 2014		December 31, 2013
Deferred tax assets (liabilities)
Deferred tax asset - organizational expenses	$	72		$	84	$	—
Deferred tax asset - mortgage servicing rights		(121	)		—		—
Deferred tax asset - net operating loss		252			62		—
Total net deferred tax assets (liabilities)	$	203		$	146	$	—

Business Combinations (Tables) - Aurora Financial Group, Inc [Member]

12 Months Ended

Dec. 31, 2015

Business Acquisition [Line Items]

Summary of Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition date (dollars in thousands):

	Final Fair value of consideration transferred
Cash	$	80
Mortgage receivables		2,772
Servicing escrow advances		410
Capital leases		46
Deposits held and prepaid items		28
License approvals		120
MSRs		7,069
Total identifiable assets acquired		10,525

Current liabilities		1,643
Settlement liability		260
Assumed debt		3,969
Total liabilities assumed		5,872

Net identifiable assets acquired		4,653
Cash consideration transferred		(3,919	)
Gain on bargain purchase	$	734
Deferred tax liabiltiy - bargin purchase		(285	)
Realized gain (loss) on acquired assets, net	$	449

Schedule of Amounts of Revenue and Earnings Included in Consolidated Income Statement

Revenue and Earnings Included in the Consolidated Income Statement

	For the period from May 30, 2015 to December 31, 2015
Revenue	$	1,719
Earnings		472

Schedule of Proforma Consolidated Income Statement

Pro Forma Consolidated Income Statement

	Year Ended December 31,
	2015		2014		2013
Revenue	$	18,871	$	7,811	$	22,522
Earnings (loss)	$	13,460	$	2,398	$	21,225

Earnings (Loss) Per Share of Common Stock
Basic	$	1.79	$	0.32	$	12.57
Diluted	$	1.79	$	0.32	$	12.57
Weighted Average Number of Shares of Common Stock Outstanding
Basic		7,509,543		7,505,546		1,688,275
Diluted		7,512,444		7,508,827		1,688,275

Organization and Operations (Details) - USD ($)			12 Months Ended
Organization and Operations (Details) - USD ($)	Oct. 09, 2013	Dec. 04, 2012	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Organization and Basis of Presentation [Line Items]
Common stock, shares issued (in shares)			7,519,038	7,509,543		1,000
Common stock, shares authorized (in shares)			500,000,000	500,000,000	500,000,000
Preferred stock, shares authorized (in shares)			100,000,000	100,000,000	100,000,000
Common stock, par value (in dollars per share)			$ 0.01	$ 0.01	$ 0.01
Preferred stock, par value (in dollars per share)			$ 0.01	$ 0.01	$ 0.01
Sale of common stock (in shares)	7,500,000
Sale of common stock, price per share (in dollars per share)	$ 20.00
Net proceeds from sale of common stock	$ 148,100,000		$ 74,000	$ 180,000	$ 148,153,000
Date of conducting IPO and concurrent private placement of common stock			Oct. 09, 2013
Repurchase of common stock					$ 1,000
IPO [Member]
Organization and Basis of Presentation [Line Items]
Sale of common stock (in shares)	6,500,000
Private Placement [Member]
Organization and Basis of Presentation [Line Items]
Sale of common stock (in shares)	1,000,000
Stanley Middleman [Member]
Organization and Basis of Presentation [Line Items]
Sale of common stock (in shares)		1,000
Initial capital contribution by sole stockholder to CHMI		$ 1,000
Repurchase of common stock	$ 1,000

Basis of Presentation and Significant Accounting Policies (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash and Cash Equivalents and Restricted Cash [Abstract]
Restricted cash	$ 9,942,000				$ 6,947,000				$ 9,942,000	$ 6,947,000
Realized Gain (Loss) on RMBS and Derivatives [Abstract]
Gain on RMBS									1,398,000	303,000	$ 116,000
Loss on RMBS									(544,000)	(363,000)	(643,000)
Net realized gain (loss) on RMBS	393,000	$ 269,000	$ (115,000)	$ 307,000	166,000	$ 48,000	$ 75,000	$ (349,000)	854,000	(60,000)	(527,000)
Realized gain (loss) on derivatives, net	(1,672,000)	(947,000)	(52,000)	(1,242,000)	(1,359,000)	(1,025,000)	(187,000)	(72,000)	(3,913,000)	(2,643,000)	59,000
Unrealized gain (loss) on derivatives, net	4,634,000	$ (4,986,000)	$ 2,835,000	$ (2,542,000)	(2,441,000)	$ 2,025,000	$ (2,705,000)	$ (3,443,000)	(59,000)	(6,564,000)	2,747,000
Total									(3,118,000)	(9,267,000)	$ 2,279,000
Term Loan [Member]
Cash and Cash Equivalents and Restricted Cash [Abstract]
Restricted cash	1,100,000								1,100,000
Line of credit, outstanding borrowings amount	24,300,000								24,300,000
Derivatives [Member]
Cash and Cash Equivalents and Restricted Cash [Abstract]
Restricted cash	4,600,000								4,600,000
Repurchase Agreements [Member]
Cash and Cash Equivalents and Restricted Cash [Abstract]
Restricted cash	4,200,000								4,200,000
Receivables and Other Assets [Member] \| RMBS [Member]
Investment in RMBS [Abstract]
Income receivable	1,500,000				1,300,000				1,500,000	1,300,000
Receivables and Other Assets [Member] \| Excess Mortgage Service Right [Member]
Investment in RMBS [Abstract]
Income receivable	2,200,000				$ 2,700,000				2,200,000	$ 2,700,000
Receivables and Other Assets [Member] \| Reimbursable Servicing Advances [Member]
Investment in RMBS [Abstract]
Income receivable	$ 787,000								$ 787,000

Segment Reporting (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 27,712

$ 26,497

$ 6,228

$ 1,759

$ 1,643

$ 1,346

$ 1,235

$ 1,190

$ 1,164

$ 1,006

$ 947

5,983

4,307

867

21,729

22,190

5,361

Servicing fee income

1,100

463

156

1,719

Servicing costs

301

366

761

Net servicing income

799

958

Other income

(3,811)

(14,367)

17,173

(Benefit from) provision for corporate business taxes

5,864

5,588

1,332

(134)

(139)

(70)

(140)

(343)

^[1]

(140)

^[1]

9,651

$ (5,170)

$ 11,308

$ (2,434)

(518)

$ 2,814

$ (655)

$ 734

13,355

2,375

21,202

606,045

507,325

606,045

507,325

30,295

24,601

30,295

24,601

636,340

531,926

636,340

531,926

Debt

472,123

362,126

472,123

362,126

Other liabilities

11,880

9,482

11,880

9,482

Total Liabilities

484,003

371,608

484,003

371,608

GAAP book value

152,337

160,318

152,337

160,318

14,313

15,854

3,552

583

13,730

15,854

3,552

1,719

761

958

(693)

(5,100)

14,894

(Benefit from) provision for corporate business taxes

(343)

(140)

14,338

10,894

18,446

97,803

91,322

97,803

91,322

3,562

2,713

3,562

2,713

RMBS [Member] | Operating Segments [Member]

101,365

94,035

101,365

94,035

24,313

1,883

26,196

75,169

94,035

75,169

94,035

13,399

10,643

2,676

5,400

4,307

867

7,999

6,336

1,809

(3,118)

(9,267)

2,279

(Benefit from) provision for corporate business taxes

4,881

(2,931)

4,088

508,242

416,003

508,242

416,003

13,984

8,920

13,984

8,920

522,226

424,923

522,226

424,923

Debt

447,810

362,126

447,810

362,126

Other liabilities

4,903

4,319

4,903

4,319

Total Liabilities

452,713

366,445

452,713

366,445

GAAP book value

69,513

58,478

69,513

58,478

All Other [Member]

^[2]

(Benefit from) provision for corporate business taxes

5,864

5,588

1,332

(5,864)

(5,588)

$ (1,332)

12,749

12,968

12,749

12,968

Schedule of Available-for-sale Securities [Line Items]

12,749

12,968

12,749

12,968

Debt

Other liabilities

5,094

5,163

5,094

5,163

Total Liabilities

5,094

5,163

5,094

5,163

GAAP book value

$ 7,655

$ 7,805

$ 7,655

$ 7,805

[1]	The provision for income taxes is recorded at the TRS level.
[2]	de minimus ($192 rounds to $0)

Investments in RMBS (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2015

USD ($)

Security

Dec. 31, 2014

USD ($)

Security

OTTI charges recognized in earnings

$ 508,242

$ 416,003

RMBS [Member]

Schedule of Available-for-sale Securities [Line Items]

OTTI securities

554,567

437,544

508,427

409,362

2,782

6,817

(2,967)

(176)

^[1]

$ 508,242

$ 416,003

3.72%

3.85%

^[2]

3.60%

3.70%

Carrying value of collateral for repurchase agreements

^[3]

23 years

$ 399,800

$ 380,700

Carrying value of collateral for FHLB

83,200

RMBS [Member] | Fannie Mae [Member]

Schedule of Available-for-sale Securities [Line Items]

329,767

267,516

308,367

263,924

1,961

4,674

(1,556)

(10)

^[1]

$ 308,772

$ 268,588

^[4]

3.77%

3.89%

^[2]

3.59%

3.72%

RMBS [Member] | Freddie Mac [Member]

^[3]

24 years

Schedule of Available-for-sale Securities [Line Items]

$ 208,154

$ 144,064

193,567

138,333

821

2,143

(977)

^[1]

$ 193,411

$ 140,476

^[4]

3.61%

3.75%

^[2]

3.48%

3.20%

RMBS [Member] | CMOs [Member]

^[3]

24 years

23 years

Schedule of Available-for-sale Securities [Line Items]

$ 16,646

$ 25,964

6,493

7,105

(434)

(166)

^[1]

$ 6,059

$ 6,939

Unrated

4.55%

4.18%

^[2]

7.39%

13.04%

Schedule of Available-for-sale Securities [Line Items]

^[3]

10 years

14 years

[1]	See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.
[2]	The weighted average yield is based on the most recent annualized monthly interest income, divided by the Book Value. Prior period amounts have been reclassified to conform to current period presentation.
[3]	The weighted average stated maturity.
[4]	The Company used an implied AAA rating for the Fannie Mae and Freddie Mac securities.

Investments in RMBS, Assets by Maturity (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2015

USD ($)

Security

Dec. 31, 2014

USD ($)

Security

Schedule of Available-for-sale Securities [Line Items]

$ 508,242

$ 416,003

RMBS [Member]

554,567

437,544

508,427

409,362

2,782

6,817

(2,967)

(176)

^[1]

$ 508,242

$ 416,003

3.72%

3.85%

^[2]

3.60%

3.70%

RMBS [Member] | Less than 1 Year [Member]

^[3]

23 years

Schedule of Available-for-sale Securities [Line Items]

$ 0

^[1]

$ 0

0.00%

^[2]

0.00%

RMBS [Member] | 1-5 Years [Member]

^[3]

0 years

Schedule of Available-for-sale Securities [Line Items]

$ 0

^[1]

$ 0

0.00%

^[2]

0.00%

RMBS [Member] | 5-10 Years [Member]

^[3]

0 years

Schedule of Available-for-sale Securities [Line Items]

$ 5,500

$ 3,500

5,553

3,553

(216)

(126)

^[1]

$ 5,337

$ 3,426

Weighted average rating

^[4]

4.76%

4.68%

^[2]

4.96%

4.76%

RMBS [Member] | Over 10 Years [Member]

^[3]

9 years

10 years

Schedule of Available-for-sale Securities [Line Items]

$ 549,067

$ 434,044

502,874

405,809

2,782

6,817

(2,751)

(50)

^[1]

$ 502,905

$ 412,577

Weighted average rating

^[4]

3.71%

3.84%

^[2]

3.59%

3.69%

Schedule of Available-for-sale Securities [Line Items]

^[3]

24 years

23 years

[1]	See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.
[2]	The weighted average yield is based on the most recent annualized monthly interest income, divided by the Book Value. Prior period amounts have been reclassified to conform to current period presentation.
[3]	The weighted average stated maturity.
[4]	The Company used an implied AAA rating for the Fannie Mae and Freddie Mac securities.

Investments in RMBS, Unrealized Loss Positions (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2015

USD ($)

Security

Dec. 31, 2014

USD ($)

Security

Schedule of Available-for-sale Securities [Line Items]

$ 508,242

$ 416,003

RMBS [Member]

554,567

437,544

508,427

409,362

(2,967)

(176)

^[1]

$ 508,242

$ 416,003

3.72%

3.85%

^[2]

3.60%

3.70%

RMBS [Member] | Unrealized Loss Positions [Member]

^[3]

23 years

Schedule of Available-for-sale Securities [Line Items]

$ 282,731

$ 35,404

275,936

16,946

(2,967)

(176)

^[4]

$ 272,969

$ 16,770

3.65%

3.78%

^[2]

3.55%

5.39%

RMBS [Member] | Less than Twelve Months [Member] | Unrealized Loss Positions [Member]

^[5]

25 years

23 years

Schedule of Available-for-sale Securities [Line Items]

$ 224,765

$ 35,404

229,732

16,946

(2,413)

(176)

^[4]

$ 227,319

$ 16,770

^[6]

3.62%

3.78%

^[2]

3.44%

5.39%

RMBS [Member] | Twelve or More Months [Member] | Unrealized Loss Positions [Member]

^[5]

24 years

23 years

Schedule of Available-for-sale Securities [Line Items]

$ 57,966

$ 0

46,204

(554)

^[4]

$ 45,650

$ 0

^[6]

3.81%

0.00%

^[2]

4.13%

0.00%

^[5]

27 years

0 years

[1]	See Note 9 regarding the estimation of fair value, which approximates carrying value for all securities.
[2]	The weighted average yield is based on the most recent annualized monthly interest income, divided by the Book Value. Prior period amounts have been reclassified to conform to current period presentation.
[3]	The weighted average stated maturity.
[4]	See Note 9 regarding the estimation of fair value, which is equal to carrying value for all securities.
[5]	The weighted average stated maturity. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases which may be maturity.
[6]	The Company used an implied AAA rating for the Fannie Mae and Freddie Mac securities, other than CMOs, which are unrated.

Investments in Servicing Related Assets (Details) - USD ($)				12 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Feb. 28, 2014	Dec. 31, 2015	Oct. 30, 2015	May 29, 2015	Oct. 31, 2013
Minimum [Member]
Investment [Line Items]
Threshold percentage for geographic distribution of residential mortgage loans				5.00%
Aurora Financial Group, Inc [Member]
Investment [Line Items]
Mortgage loans with an outstanding principal balance					$ 1,400,000,000
Aggregate unpaid principal balance						$ 718,400,000
Excess MSR Pool 1 [Member]
Investment [Line Items]
Mortgage loans with an outstanding principal balance							$ 10,000,000,000
Weighted average mortgage servicing amount on unpaid balance							0.28%
Amount representing reasonable compensation for performing the servicing duties							0.08%
Excess mortgage servicing amount							0.20%
Excess MSR Pool 1 [Member] \| Aurora Financial Group, Inc [Member]
Investment [Line Items]
Acquired servicing rights, excess mortgage servicing amount				85.00%
Refinancing of loans				$ 60,600,000
Percentage of co-investment in excess MSRs, pari passu				15.00%
Percentage of pro rata share of termination payment				85.00%
Excess MSR Pool 2 [Member]
Investment [Line Items]
Mortgage loans with an outstanding principal balance							$ 10,700,000,000
Weighted average mortgage servicing amount on unpaid balance							0.44%
Amount representing reasonable compensation for performing the servicing duties							0.10%
Excess mortgage servicing amount							0.34%
Excess MSR Pool 2 [Member] \| Aurora Financial Group, Inc [Member]
Investment [Line Items]
Acquired servicing rights, excess mortgage servicing amount				50.00%
Refinancing of loans				$ 38,400,000
Percentage of co-investment in excess MSRs, pari passu				50.00%
Percentage of pro rata share of termination payment				50.00%
Freedom Mortgage Excess Service Right [Member]
Investment [Line Items]
Aggregate unpaid principal balance	$ 98,100,000	$ 159,800,000	$ 76,800,000
Excess mortgage servicing acquired	85.00%	71.00%	85.00%
Excess mortgage servicing acquired, amount	$ 661,000	$ 946,000	$ 567,000

Investments in Servicing Related Assets, Summary (Details) - USD ($)

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

$ 16,978,412

$ 17,500,284

^[1]

89,157

81,529

^[2]

$ 97,803

$ 91,322

3.23%

3.16%

Changes in fair value recorded in other income (loss)

^[3]

26 years 1 month 6 days

27 years 4 months 24 days

^[4]

$ (1,142)

$ (5,100)

Pool 1 [Member]

7,416,465

8,715,747

^[1]

39,483

48,007

^[2]

$ 42,837

$ 54,187

3.51%

Changes in fair value recorded in other income (loss)

^[3]

26 years

27 years

^[4]

$ (2,822)

$ (2,660)

Pool 1 - Recapture Agreement [Member]

^[1]

2,209

2,506

Changes in fair value recorded in other income (loss)

^[2]

645

611

^[4]

331

(371)

Pool 2 [Member]

7,279,706

8,475,975

^[1]

23,116

27,080

^[2]

$ 32,338

$ 33,676

2.78%

2.77%

Changes in fair value recorded in other income (loss)

^[3]

27 years 1 month 6 days

27 years 9 months 18 days

^[4]

$ 2,626

$ 160

Pool 2 - Recapture Agreement [Member]

^[1]

1,780

2,002

Changes in fair value recorded in other income (loss)

^[2]

716

1,262

^[4]

(324)

(1,882)

Pool 2014 [Member]

265,890

308,562

^[1]

1,685

1,934

^[2]

$ 1,506

$ 1,586

3.65%

3.71%

Changes in fair value recorded in other income (loss)

^[3]

27 years 4 months 24 days

28 years 4 months 24 days

^[4]

$ 170

$ (348)

Pool 2014 - Recapture Agreement [Member]

^[1]

Changes in fair value recorded in other income (loss)

^[2]

^[4]

$ 0

Mortgage Service Rights (MSRs) [Member]

2,016,351

^[1]

20,884

^[2]

$ 19,761

3.76%

Changes in fair value recorded in other income (loss)

^[3]

22 years 8 months 12 days

^[4]

$ (1,123)

[1]	The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired.
[2]	Carrying value represents the fair value of the pools or recapture agreements, as applicable (see Note 9).
[3]	The weighted average maturity represents the weighted average expected timing of the receipt of cash flows of each investment.
[4]	The portion of the change in fair value of the recapture agreement relating to loans recaptured as of December 31, 2015 and December 31, 2014 is reflected in the respective pool.

Investments in Servicing Related Assets, Geographic Concentration (Details)	Dec. 31, 2015	Dec. 31, 2014
Investment [Line Items]
Outstanding unpaid principal balance	100.00%	100.00%
California [Member]
Investment [Line Items]
Outstanding unpaid principal balance	12.30%	13.30%
Texas [Member]
Investment [Line Items]
Outstanding unpaid principal balance	9.40%	10.10%
Florida [Member]
Investment [Line Items]
Outstanding unpaid principal balance	6.50%	6.90%
Virginia [Member]
Investment [Line Items]
Outstanding unpaid principal balance	6.00%	6.50%
North Carolina [Member]
Investment [Line Items]
Outstanding unpaid principal balance	5.20%	5.70%
Washington [Member]
Investment [Line Items]
Outstanding unpaid principal balance	5.10%	5.10%
Georgia [Member]
Investment [Line Items]
Outstanding unpaid principal balance	5.00%	5.30%
All Other [Member]
Investment [Line Items]
Outstanding unpaid principal balance	50.50%	47.10%

Equity and Earnings per Share, Equity (Details)					12 Months Ended
Equity and Earnings per Share, Equity (Details)	Sep. 09, 2015 USD ($) Individual $ / shares shares	Jun. 10, 2014 USD ($) Individual $ / shares shares	Jan. 27, 2014 shares	Oct. 09, 2013 USD ($) Individual $ / shares shares	Dec. 31, 2015 USD ($) shares	Dec. 31, 2014 USD ($) shares	Dec. 31, 2013 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of individuals granted units under the plan \| Individual	12	10		11
Price of the Company's common stock on the grant date (in dollars per share) \| $ / shares	$ 15.80	$ 19.33		$ 20.00
Number of units granted (in shares)	35,000	31,350		37,500
Aggregate Fair Market Value \| $	$ 553,000	$ 606,000		$ 750,000
Long Term Incentive Plan Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
LTIP-OP unit vested (in shares)					37,950
Share-based compensation expense recognized \| $					$ 463,000	$ 320,000
Unrecognized share-based compensation expense \| $					$ 928,000
Share-based compensation expense related to non-vested (in shares)					65,900
Noncontrolling Interest [Line Items]
Number of LTIP units owned by non-controlling interest holders in Operating Partnership (in shares)					103,850
Percentage of operating partnership					1.40%
Long Term Incentive Plan Units [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of unrecognized share-based compensation expense expected to vest					3 years
Long Term Incentive Plan Units [Member] \| Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)							7,500
Number of anniversaries years of the grant date							3 years
2013 Equity Compensation Plans Approved by Security Holders [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities remaining available for future issuance under equity compensation plans (in shares)					1,377,112	1,421,607	1,462,500
2013 Equity Compensation Plans Approved by Security Holders [Member] \| Long Term Incentive Plan Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities issued or to be issued upon exercise of outstanding options, warrants and rights (in shares)					103,850	68,850	37,500
2013 Equity Compensation Plans Approved by Security Holders [Member] \| Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities issued or to be issued upon exercise of outstanding options, warrants and rights (in shares)					19,038	9,543
2013 Equity Compensation Plans Not Approved By Security Holders [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities remaining available for future issuance under equity compensation plans (in shares)					0	0	0
2013 Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of unrecognized share-based compensation expense expected to vest	3 years
2013 Plan [Member] \| Long Term Incentive Plan Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share equivalent to unit awarded (in shares)					1
2013 Plan [Member] \| Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)			1,590
2013 Plan [Member] \| Common Stock [Member] \| Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)			530
2013 Plan [Member] \| Restricted Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)	9,495		7,953
Forfeiture period of restricted shares	1 year		1 year
2013 Plan [Member] \| Restricted Common Stock [Member] \| Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)	3,165		2,651

Equity and Earnings per Share, Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Numerator [Abstract]
Net income (loss)	$ 9,651	$ (5,170)	$ 11,308	$ (2,434)	$ (518)	$ 2,814	$ (655)	$ 734	$ 13,355	$ 2,375	$ 21,202
Net income allocable to common stockholders									$ 13,214	$ 2,353	$ 21,095
Denominator [Abstract]
Weighted average common shares outstanding (in shares)	7,509,543	7,509,543	7,509,543	7,509,543	7,508,549	7,506,560	7,504,572	7,502,505	7,509,543	7,505,546	1,688,275
Weighted average diluted shares outstanding (in shares)	7,519,038	7,511,653	7,509,543	7,509,543	7,509,543	7,509,543	7,509,543	7,506,680	7,512,444	7,508,827	1,688,275
Basic and Dilutive [Abstract]
Basic earnings per share (in dollars per share)	$ 1.27	$ (0.68)	$ 1.49	$ (0.32)	$ (0.07)	$ 0.37	$ (0.09)	$ 0.10	$ 1.76	$ 0.31	$ 12.50
Diluted earnings per share (in dollars per share)	$ 1.27	$ (0.68)	$ 1.49	$ (0.32)	$ (0.07)	$ 0.37	$ (0.09)	$ 0.10	$ 1.76	$ 0.31	$ 12.50
Anti-dilutive securities (in shares)									0	0	0

Transactions with Affiliates and Affiliated Entities (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
	Jun. 10, 2015	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Transactions with Affiliates and Affiliated Entities [Abstract]
Renew of management agreement subject to termination										1 year
Percentage of annual management fee paid equal to gross equity										1.50%
Subservicing agreement initial term	3 years
Subservicing agreement additional term	3 years
Management fees										$ 2,263	$ 2,150	$ 549
Expense reimbursement										520	410	67
Total		$ 713	$ 690	$ 690	$ 690	$ 682	$ 520	$ 679	$ 679	$ 2,783	$ 2,560	$ 616

Derivative Instruments - Summary of Outstanding Notional Amounts and Interest Rate Swap Agreements of Derivative Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Notional Amount of Interest Rate Swaps [Member]
Derivative [Line Items]
Total notional amount	$ 300,300	$ 224,100	$ 171,700
Weighted Average Pay Rate	1.71%	1.84%	1.95%
Weighted Average Receive Rate	0.37%	0.23%	0.24%
Weighted Average Years to Maturity	4 years 3 months 18 days	5 years 4 months 24 days	6 years 8 months 12 days
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Total notional amount	$ 385,300	$ 337,100
Not Designated as Hedging Instrument [Member] \| Notional Amount of Interest Rate Swaps [Member]
Derivative [Line Items]
Total notional amount	300,300	224,100
Not Designated as Hedging Instrument [Member] \| Notional Amount of Swaptions [Member]
Derivative [Line Items]
Total notional amount	85,000	105,000
Not Designated as Hedging Instrument [Member] \| Notional Amount of TBAs, Net [Member]
Derivative [Line Items]
Total notional amount	0	0
Not Designated as Hedging Instrument [Member] \| Notional Amount of Treasury Futures [Member]
Derivative [Line Items]
Total notional amount	$ 0	$ 8,000

Derivative Instruments - Summary of Realized Gain (Loss) Related to Derivatives (Details) - Not Designated as Hedging Instrument [Member] - Realized Gain/(Loss) on Derivative Assets [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) on derivatives	$ (3,913)	$ (2,643)	$ 59
Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) on derivatives	(2,128)	(686)	53
Swaptions [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) on derivatives	(1,036)	(1,910)	0
TBAs [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) on derivatives	(400)	60	17
Treasury Futures [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) on derivatives	$ (349)	$ (107)	$ (11)

Derivative Instruments - Summary of Assets and Liabilities Subject to Master Netting Arrangements or Similar Agreements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Offsetting Derivative Assets [Abstract]
Gross Amounts of Recognized Assets or Liabilities	$ 422	$ 342
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	422	342
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	(422)	(342)
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	(84)	(89)
Net Amount	0	0
Offsetting Derivative Liabilities [Abstract]
Gross Amounts of Recognized Assets or Liabilities	390,155	366,214
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	390,155	366,214
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	(381,386)	(359,356)
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	(8,769)	(6,858)
Net Amount	0	0
Repurchase Agreements [Member]
Offsetting Derivative Liabilities [Abstract]
Gross Amounts of Recognized Assets or Liabilities	385,560	362,126
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	385,560	362,126
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	(381,386)	(359,270)
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	(4,174)	(2,856)
Net Amount	0	0
Interest Rate Swaps [Member]
Offsetting Derivative Assets [Abstract]
Gross Amounts of Recognized Assets or Liabilities	51	46
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	51	46
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	(51)	(46)
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	0	0
Net Amount	0	0
Offsetting Derivative Liabilities [Abstract]
Gross Amounts of Recognized Assets or Liabilities	4,595	4,045
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	4,595	4,045
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	0	(43)
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	(4,595)	(4,002)
Net Amount	0	0
Swaptions [Member]
Offsetting Derivative Assets [Abstract]
Gross Amounts of Recognized Assets or Liabilities	371	291
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	371	291
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	(371)	(291)
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	0	0
Net Amount	0	0
Offsetting Derivative Liabilities [Abstract]
Gross Amounts of Recognized Assets or Liabilities	0	0
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	0	0
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	0	0
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	0	0
Net Amount	0	0
TBAs [Member]
Offsetting Derivative Assets [Abstract]
Gross Amounts of Recognized Assets or Liabilities	0	0
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	0	0
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	0	0
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	0	0
Net Amount	0	0
Offsetting Derivative Liabilities [Abstract]
Gross Amounts of Recognized Assets or Liabilities	0	43
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	0	43
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	0	(43)
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	0	0
Net Amount	0	0
Treasury Futures [Member]
Offsetting Derivative Assets [Abstract]
Gross Amounts of Recognized Assets or Liabilities	0	5
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	0	5
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	0	(5)
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	(84)	(89)
Offsetting Derivative Liabilities [Abstract]
Gross Amounts of Recognized Assets or Liabilities	0	0
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Assets Presented in the Consolidated Balance Sheet	0	0
Gross Amounts Not Offset in the Consolidated Balance Sheet in Financial Instruments	0	0
Gross Amounts Not Offset in the Consolidated Balance Sheet in Cash Collateral Received (Pledged)	0	0
Net Amount	$ 0	$ 0

Fair Value - Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets [Abstract]
Derivative assets total	$ 422	$ 342
Liabilities [Abstract]
Derivative liabilities total	$ 4,595	$ 4,088
Level 2 [Member] \| RMBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of derivative instruments classified as fair value assets and liabilities	100.00%	100.00%
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of derivative instruments classified as fair value assets and liabilities	100.00%
Level 3 [Member] \| Excess MSRs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of derivative instruments classified as fair value assets and liabilities	100.00%	100.00%
Interest Rate Swaps [Member]
Assets [Abstract]
Derivative assets total	$ 51	$ 46
Interest Rate Swaptions [Member]
Assets [Abstract]
Derivative assets total	371	291
TBAs [Member]
Assets [Abstract]
Derivative assets total	0	0
Treasury Futures [Member]
Assets [Abstract]
Derivative assets total	0	5
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member]
Assets [Abstract]
Derivative assets total	0	0
Servicing related assets	0	0
Total Assets	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Total Liabilities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	0	0
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Assets [Abstract]
Derivative assets total	422	342
Servicing related assets	0	0
Total Assets	508,664	416,345
Liabilities [Abstract]
Derivative liabilities total	4,595	4,088
Total Liabilities	4,595	4,088
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	508,242	416,003
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member]
Assets [Abstract]
Derivative assets total	0	0
Servicing related assets	97,803	91,322
Total Assets	97,803	91,322
Liabilities [Abstract]
Derivative liabilities total	0	0
Total Liabilities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	0	0
Fair Value, Measurements, Recurring [Member] \| Interest Rate Swaps [Member] \| Level 1 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] \| Interest Rate Swaps [Member] \| Level 2 [Member]
Assets [Abstract]
Derivative assets total	51	46
Liabilities [Abstract]
Derivative liabilities total	4,595	4,045
Fair Value, Measurements, Recurring [Member] \| Interest Rate Swaps [Member] \| Level 3 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] \| Interest Rate Swaptions [Member] \| Level 1 [Member]
Assets [Abstract]
Derivative assets total	0	0
Fair Value, Measurements, Recurring [Member] \| Interest Rate Swaptions [Member] \| Level 2 [Member]
Assets [Abstract]
Derivative assets total	371	291
Fair Value, Measurements, Recurring [Member] \| Interest Rate Swaptions [Member] \| Level 3 [Member]
Assets [Abstract]
Derivative assets total	0	0
Fair Value, Measurements, Recurring [Member] \| TBAs [Member] \| Level 1 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] \| TBAs [Member] \| Level 2 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	43
Fair Value, Measurements, Recurring [Member] \| TBAs [Member] \| Level 3 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] \| Treasury Futures [Member] \| Level 1 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] \| Treasury Futures [Member] \| Level 2 [Member]
Assets [Abstract]
Derivative assets total	0	5
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] \| Treasury Futures [Member] \| Level 3 [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] \| CMOs [Member] \| Level 1 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	0	0
Fair Value, Measurements, Recurring [Member] \| CMOs [Member] \| Level 2 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	6,059	6,939
Fair Value, Measurements, Recurring [Member] \| CMOs [Member] \| Level 3 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	0	0
Fair Value, Measurements, Recurring [Member] \| Carrying Value [Member]
Assets [Abstract]
Derivative assets total	422	342
Servicing related assets	97,803	91,322
Total Assets	606,467	507,667
Liabilities [Abstract]
Derivative liabilities total	4,595	4,088
Total Liabilities	4,595	4,088
Fair Value, Measurements, Recurring [Member] \| Carrying Value [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	508,242	416,003
Fair Value, Measurements, Recurring [Member] \| Carrying Value [Member] \| Interest Rate Swaps [Member]
Assets [Abstract]
Derivative assets total	51	46
Liabilities [Abstract]
Derivative liabilities total	4,595	4,045
Fair Value, Measurements, Recurring [Member] \| Carrying Value [Member] \| Interest Rate Swaptions [Member]
Assets [Abstract]
Derivative assets total	371	291
Fair Value, Measurements, Recurring [Member] \| Carrying Value [Member] \| TBAs [Member]
Assets [Abstract]
Derivative assets total	0	0
Liabilities [Abstract]
Derivative liabilities total	0	43
Fair Value, Measurements, Recurring [Member] \| Carrying Value [Member] \| Treasury Futures [Member]
Assets [Abstract]
Derivative assets total	0	5
Liabilities [Abstract]
Derivative liabilities total	0	0
Fair Value, Measurements, Recurring [Member] \| Carrying Value [Member] \| CMOs [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	6,059	6,939
Fair Value, Measurements, Recurring [Member] \| Fannie Mae [Member] \| Level 1 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	0	0
Fair Value, Measurements, Recurring [Member] \| Fannie Mae [Member] \| Level 2 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	308,772	268,588
Fair Value, Measurements, Recurring [Member] \| Fannie Mae [Member] \| Level 3 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	0	0
Fair Value, Measurements, Recurring [Member] \| Fannie Mae [Member] \| Carrying Value [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	308,772	268,588
Fair Value, Measurements, Recurring [Member] \| Freddie Mac [Member] \| Level 1 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	0	0
Fair Value, Measurements, Recurring [Member] \| Freddie Mac [Member] \| Level 2 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	193,411	140,476
Fair Value, Measurements, Recurring [Member] \| Freddie Mac [Member] \| Level 3 [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	0	0
Fair Value, Measurements, Recurring [Member] \| Freddie Mac [Member] \| Carrying Value [Member] \| RMBS [Member]
Assets [Abstract]
RMBS total	$ 193,411	$ 140,476
Derivative Instruments [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of derivative instruments classified as fair value assets and liabilities	100.00%	100.00%

Fair Value - Company's Level 3 Assets (Servicing Related Assets) Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 0

$ 2,181

$ 98,968

Fair Value, Measurements, Recurring [Member] | Level 3 [Member]

(1,142)

(5,100)

14,894

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

^[1]

91,322

110,306

^[1]

20,884

2,181

^[1]

(13,261)

(16,065)

^[1]

(586)

^[1]

(556)

^[1]

(1,142)

(5,100)

Pool 1 [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]

^[1]

97,803

91,322

110,306

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

^[1]

54,798

66,110

^[1]

^[1]

(8,825)

(8,281)

^[1]

(2,491)

^[1]

^[1]

(2,491)

(3,031)

Pool 2 [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]

^[1]

43,482

54,798

66,110

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

^[1]

34,938

44,196

^[1]

^[1]

(4,186)

(7,536)

^[1]

2,302

^[1]

^[1]

2,302

(1,722)

Pool 2014 [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]

^[1]

33,054

34,938

44,196

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

^[1]

1,586

^[1]

2,181

^[1]

(250)

(247)

^[1]

170

^[1]

^[1]

170

(348)

MSRs [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]

^[1]

1,506

1,586

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

^[1]

^[1]

20,884

^[1]

^[1]

(567)

^[1]

(556)

^[1]

(1,123)

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

$ 19,761

$ 0

[1]	Includes the recapture agreement for each respective pool.

Fair Value - Significant Unobservable Inputs Used in Fair Value Measurement (Details) - Level 3 [Member] - Discounted Cash Flow [Member] - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Fair Value Inputs, Assets, Quantitative Information [Line Items]

$ 97,803

$ 91,322

Pool 1 [Member]

Fair Value Inputs, Assets, Quantitative Information [Line Items]

43,482

54,798

Pool 2 [Member]

Fair Value Inputs, Assets, Quantitative Information [Line Items]

33,054

34,938

Pool 2014 [Member]

Fair Value Inputs, Assets, Quantitative Information [Line Items]

1,506

$ 1,586

MSRs [Member]

Annual cost to service, per loan

19,761

^[1]

$ 73

Minimum [Member] | Pool 1 [Member]

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

4.00%

6.20%

Minimum [Member] | Pool 2 [Member]

^[1]

2.90%

2.80%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

8.30%

11.90%

Minimum [Member] | Pool 2014 [Member]

^[1]

10.40%

9.60%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

3.90%

8.70%

Minimum [Member] | MSRs [Member]

^[1]

5.90%

2.70%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

0.00%

Maximum [Member] | Pool 1 [Member]

^[1]

1.20%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

19.00%

12.80%

Maximum [Member] | Pool 2 [Member]

^[1]

7.00%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

42.30%

21.90%

Maximum [Member] | Pool 2014 [Member]

^[1]

13.90%

15.20%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

22.30%

15.40%

Maximum [Member] | MSRs [Member]

^[1]

7.10%

6.00%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

13.80%

Weighted Average [Member] | Pool 1 [Member]

^[1]

3.40%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

10.50%

10.40%

^[1]

6.20%

6.30%

Weighted Average [Member] | Pool 2 [Member]

^[1]

12.30%

12.20%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

14.90%

16.70%

^[1]

13.00%

13.70%

Weighted Average [Member] | Pool 2014 [Member]

^[1]

16.70%

17.30%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

11.20%

12.30%

^[1]

6.80%

5.40%

Weighted Average [Member] | MSRs [Member]

^[1]

11.90%

11.80%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

9.70%

^[1]

1.60%

^[1]

8.30%

[1]

Commitments and Contingencies (Details) - USD ($)	12 Months Ended
Commitments and Contingencies (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Net Investment Income [Line Items]
Percentage of annual management fee paid equal to gross equity	1.50%
Accruals of legal and regulatory claims	$ 0	$ 0
Fannie Mae [Member]
Net Investment Income [Line Items]
Securities obligated to sell		$ 43,000
Fannie Mae [Member] \| Maximum [Member]
Net Investment Income [Line Items]
Securities obligated to sell	$ 1,000

Repurchase Agreements (Details) - USD ($) $ in Thousands	12 Months Ended
Repurchase Agreements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Repurchase Agreements [Abstract]
Repurchase agreements outstanding	$ 385,600	$ 362,100
Weighted average of remaining maturities days	47 days	63 days
Repurchase Agreement Characteristics, Remaining Maturities [Abstract]
Less than one month, repurchase agreements	$ 93,926	$ 78,988
One to three months, repurchase agreements	284,687	208,533
Greater than three months, repurchase agreements	6,947	74,605
Total Repurchase Agreements	$ 385,560	$ 362,126
Repurchase Agreement Characteristics, Weighted Average Rates [Abstract]
Less than one month, weighted average rate	55.00%	0.38%
One to three months, weighted average rate	56.00%	0.38%
Greater than three months, weighted average rate	52.00%	0.38%
Weighted average rate	56.00%	0.38%

FHLBI Advances (Details) - USD ($) $ in Thousands	12 Months Ended
FHLBI Advances (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
FHLBI Advances [Abstract]
Weighted average borrowing rate	0.54%
Weighted average of remaining maturities days	94 days
Federal Home Loan Bank, Advances, Remaining Maturities [Abstract]
Less than one month, Federal Home Loan Bank advances	$ 15,000
One to three months, Federal Home Loan Bank advances	0
Greater than three months, Federal Home Loan Bank advances	47,250
Total Federal Home Loan Bank advances	$ 62,250	$ 0
Federal Home Loan Bank Advances, Weighted Average Rates [Abstract]
Less than one month, weighted average rate	0.44%
One to three months, weighted average rate	0.00%
Greater than three months, weighted average rate	0.57%
Weighted average rate	0.54%

Notes Payable (Details) - Term Loan [Member] - Secured Notes Payable [Member] - 5.57% Notes Payable Due in April 2020 [Member] $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Line of credit, outstanding borrowings amount	$ 24.3
Maximum borrowing amount	$ 25.0
Interest rate on loans payable	5.57%
Debt instrument, amortization period	10 years
Debt instrument maturity date	Apr. 30, 2020

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

Receivables and Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Receivables and Other Assets [Abstract]
Excess servicing income receivable	$ 2,159	$ 2,713
Servicing advances	787	0
Interest receivable	1,497	1,322
Federal Home Loan Bank stock	3,261	0
Deferred tax receivable	203	146
Other receivables	1,421	375
Total other assets	$ 9,328	$ 4,556

Summarized Quarterly Results (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Income [Abstract]

$ 7,984

$ 5,813

$ 8,088

$ 5,827

$ 6,334

$ 6,542

$ 6,465

$ 7,156

$ 27,712

$ 26,497

$ 6,228

1,759

1,643

1,346

1,235

1,190

1,164

1,006

947

5,983

4,307

867

Net servicing income (loss)

6,225

4,170

6,742

4,592

5,144

5,378

5,459

6,209

21,729

22,190

5,361

Servicing fee income

1,100

463

156

1,719

Servicing costs

301

366

761

799

958

Other income (loss)

Realized gain (loss) on RMBS, net

393

269

(115)

307

166

(349)

854

(60)

(527)

Realized gain (loss) on derivatives, net

(1,672)

(947)

(52)

(1,242)

(1,359)

(1,025)

(187)

(72)

(3,913)

(2,643)

Realized gain (loss) on acquired assets, net

275

174

449

Unrealized gain (loss) on derivatives, net

4,634

(4,986)

2,835

(2,542)

(2,441)

2,025

(2,705)

(3,443)

(59)

(6,564)

2,747

Unrealized gain (loss) on investments in Excess MSRs

1,219

(2,059)

2,938

(2,117)

(301)

(2,348)

(1,976)

(475)

(19)

(5,100)

14,894

Unrealized gain (loss) on investments in MSRs

(560)

(541)

(22)

(1,123)

Total Income

11,313

(3,997)

12,562

(1,002)

1,209

4,078

666

1,870

18,876

7,823

22,534

Expenses [Abstract]

General and administrative expense

1,083

622

634

742

1,185

744

642

457

3,081

3,028

716

Management fee to affiliate

713

690

682

520

679

2,783

2,560

616

Total Expenses

1,796

1,312

1,324

1,432

1,867

1,264

1,321

1,136

5,864

5,588

1,332

Income (Loss) Before Income Taxes

9,517

(5,309)

11,238

(2,434)

(658)

2,814

(655)

734

13,012

2,235

21,202

Provision for corporate business taxes

(134)

(139)

(70)

(140)

(343)

^[1]

(140)

^[1]