Residential Loans at Fair Value - Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Credit Risk

Credit Risk

The Company is subject to credit risk associated with mortgage loans that it purchases and originates during the period of time prior to the sale of these loans. The Company considers credit risk associated with these loans to be insignificant as it holds the loans for a short period of time, which is, on average, approximately 20 days from the date of borrowing, and the market for these loans continues to be highly liquid. The Company is also subject to credit risk associated with mortgage loans it has repurchased as a result of breaches of representations and warranties during the period of time between repurchase and resale. At December 31, 2016, the Company held $4.4 million in repurchased loans.