Prepaid Expenses

12 Months Ended

Dec. 31, 2012

Prepaid Expense And Other Assets [Abstract]

Prepaid Expenses and Other Assets, Net

NOTE 5. PREPAID EXPENSES AND OTHER ASSETS, NET

The composition of prepaid expenses and other assets, net follows:

(in thousands)
		December 31,
			2012		2011
Prepaid expenses		$	324	$	367
Surety bonds, including accrued interest			525		1,041
Servicing advances - net of allowance for doubtful accounts of
	$256 at December 31, 2012 and 2011		1,310		1,739
Servicing sale receivable, including accrued interest			793		969
Investment in Bimini Capital Trust II			804		804
Other			180		193
Total		$	3,936	$	5,113

Receivables are carried at their estimated collectible amounts. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the counterparty to make required payments. Management considers the following factors when determining the collectability of specific accounts: past transaction activity, current economic conditions and changes in payment terms. Amounts that the Company determines are no longer collectible are written off. Collections on amounts previously written off are included in income as received.