Residential Loans at Amortized Cost, Net (Tables)

6 Months Ended

Jun. 30, 2014

Residential loans at amortized cost, net are comprised of the following components (in thousands):



	June 30, 2014			December 31, 2013
Residential loans, principal balance	$	1,499,184		$	1,542,056
Unamortized discounts and other cost basis adjustments, net ⁽¹⁾	(126,101		)	(132,865		)
Allowance for loan losses	(11,930		)	(14,320		)
Residential loans at amortized cost, net ⁽²⁾	$	1,361,153		$	1,394,871

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(1)	Included in unamortized discounts and other cost-basis adjustments, net is $12.4 million and $12.8 million of accrued interest receivable at June 30, 2014 and December 31, 2013, respectively.


(2)	Included in residential loans at amortized cost, net is $21.5 million and $17.2 million of unencumbered forward loans at June 30, 2014 and December 31, 2013, respectively.

Activity in Allowance for Loan Losses on Residential Loans at Amortized Cost

The following table summarizes the activity in the allowance for loan losses on residential loans at amortized cost, net (in thousands):



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Balance at beginning of the period	$	12,084		$	19,932		$	14,320		$	20,435
Provision for loan losses⁽¹⁾	1,521			95			517			1,821
Charge-offs, net of recoveries ⁽²⁾	(1,675		)	(1,721		)	(2,907		)	(3,950		)
Balance at end of the period	$	11,930		$	18,306		$	11,930		$	18,306

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(1)	Provision for loan losses is included in other expense, net on the consolidated statements of comprehensive income (loss).


(2)	Includes charge-offs recognized upon acquisition of real estate in satisfaction of residential loans of $1.0 million and $2.0 million for the three months ended June 30, 2014 and 2013, respectively, and $2.1 million and $4.0 million for the six months ended June 30, 2014 and 2013, respectively.

Schedule of Ending Balance of Allowance for Loan Losses and Recorded Investment in Residential Loans Carried at Amortized Cost by Basis of Accounting

The following table summarizes the ending balance of the allowance for loan losses and the recorded investment in residential loans at amortized cost by basis of accounting (in thousands):



	June 30, 2014		December 31, 2013
Allowance for loan losses
Loans collectively evaluated for impairment	$	10,372	$	13,058
Loans collectively evaluated for impairment and acquired with deteriorated credit quality	1,558		1,262
Total	$	11,930	$	14,320

Recorded investment in residential loans at amortized cost
Loans collectively evaluated for impairment	$	1,347,883	$	1,383,252
Loans collectively evaluated for impairment and acquired with deteriorated credit quality	25,200		25,939
Total	$	1,373,083	$	1,409,191

Aging of Past Due Residential Loans Portfolio Accounted for Amortized Cost

The following table presents the aging of the residential loan portfolio accounted for at amortized cost, net (in thousands):



	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due ⁽¹⁾		Current ⁽²⁾		Total Residential Loans		Non- Accrual Loans
Recorded investment in residential loans at amortized cost
June 30, 2014	$	22,876	$	8,901	$	51,516	$	83,293	$	1,289,790	$	1,373,083	$	51,516
December 31, 2013	18,798		7,186		54,836		80,820		1,328,371		1,409,191		54,836

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(1)	Balances represent non-performing loans for the credit quality profile.


(2)	Balances represent performing loans for the credit quality profile.