Mortgage-Backed Securities (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Agency Securities Portfolio Backed by U.S. Government Agency or U.S. Government Sponsored Entity

The following table presents certain information about the Company’s agency securities at December 31, 2012.

	Agency Securities Amortized Cost		Gross Unrealized Loss			Gross Unrealized Gain		Estimated Fair Value
Agency Securities
Fannie Mae Certificates
ARMs	$	14,081,259	$	(100	)	$	329,780	$	14,410,939
Fixed Rate		743,299		—			9,296		752,595
Total Fannie Mae		14,824,558		(100	)		339,076		15,163,534
Freddie Mac Certificates
ARMs		7,850,630		(21	)		149,114		7,999,723
Fixed Rate		744,720		—			11,274		755,994
Total Freddie Mac		8,595,350		(21	)		160,388	$	8,755,717
Total Agency Securities	$	23,419,908	$	(121	)	$	499,464	$	23,919,251

The following table presents certain information about the Company’s agency securities at December 31, 2011.

	Amortized Cost		Unrealized Loss			Unrealized Gain		Estimated Fair Value
Agency Securities
Fannie Mae Certificates
ARMs	$	11,446,397	$	—		$	278,559	$	11,724,956
Fixed Rate		493,648		(132	)		1,076		494,592
Total Fannie Mae		11,940,045		(132	)		279,635		12,219,548
Freddie Mac Certificates
ARMs		4,925,438	$	—			103,540		5,028,978
Fixed Rate		491,289		(6	)		2,064		493,347
Total Freddie Mac		5,416,727		(6	)		105,604		5,522,325
Total Agency Securities	$	17,356,772	$	(138	)	$	385,239	$	17,741,873

Components of Carrying Value of Available-For-Sale Agency Securities

The components of the carrying value of available-for-sale agency securities at December 31, 2012 and 2011 are presented below.

	December 31, 2012			December 31, 2011
Principal balance	$	22,771,731		$	16,938,710
Unamortized premium		648,181			418,071
Unamortized discount		(4	)		(9	)
Gross unrealized gains		499,464			385,239
Gross unrealized losses		(121	)		(138	)
Carrying value/estimated fair value	$	23,919,251		$	17,741,873

Schedule of Agency Securities In Unrealized Loss Position

The Company monitors the performance and market value of its agency securities portfolio on an ongoing basis. At December 31, 2012 and 2011, the Company had the following securities in a loss position presented below:

	Less than 12 months as of December 31, 2012					Less than 12 months as of December 31, 2011
	Fair Market Value		Unrealized Loss			Fair Market Value		Unrealized Loss
Fannie Mae Certificates
ARMs	$	149,954	$	(100	)	$	—	$	—
Fixed Rate		—		—			210,743		(132	)
Freddie Mac Certificates
ARMs		41,625		(21	)		—		—
Fixed Rate		—		—			23,012		(6	)
Total temporarily impaired securities	$	191,579	$	(121	)	$	233,755	$	(138	)

Schedule of Interest Income

The following table presents components of interest income on the Company’s agency securities portfolio for the years ended December 31, 2012, 2011 and 2010:

	Twelve Months Ended
	December 31, 2012			December 31, 2011			December 31, 2010
Coupon interest	$	667,644		$	518,048		$	305,529
Net premium amortization		(162,844	)		(93,335	)		(41,778	)
Interest income, net	$	504,800		$	424,713		$	263,751

Schedule of Agency Securities Forward Purchase Commitments

The following table shows the agency securities forward purchase commitments shown as a net asset in other assets on the balance sheets as of December 31, 2012.

	Face		Cost		Fair Market Value		Due to Brokers(1)		Net Asset
December 31, 2012	$	565,000	$	585,100	$	587,247	$	585,100	$	2,147

The following table shows the agency securities forward purchase commitments shown as a net asset on the balance sheet as of December 31, 2011.

	Face		Cost		Fair Market Value		Due to Brokers(1)		Net Asset
December 31, 2011	$	340,000	$	348,937	$	351,249	$	348,937	$	2,312

(1) Amounts due to brokers are usually settled within 30-90 days after period end.

Adjustable Rate Securities

Information About Company's Adjustable Rate Agency Securities That will Reprice or Amortize Based on Contractual terms

The following table presents certain information about the Company’s adjustable rate agency securities that will reprice or amortize based on contractual terms, which do not consider prepayment assumptions, at December 31, 2012 and 2011.

	December 31, 2012								December 31, 2011
Months to Coupon Reset	Fair Value		% of Total			Weighted Average Coupon			Fair Value		% of Total			Weighted Average Coupon
0—12 Months	$	914,832		4.10	%		4.03	%	$	691,226		4.00	%		4.56	%
13—24 Months		966,854		4.30	%		3.88	%		769,239		4.60	%		4.93	%
25—36 Months		2,274,763		10.20	%		3.60	%		992,880		5.90	%		3.93	%
37—48 Months		3,207,245		14.30	%		3.06	%		3,669,359		21.90	%		3.65	%
49—60 Months		3,616,891		16.10	%		2.76	%		4,439,416		26.50	%		3.06	%
61—72 Months		3,027,295		13.50	%		3.26	%		2,071,610		12.40	%		3.41	%
73—84 Months		7,607,359		33.90	%		2.44	%		3,965,045		23.70	%		3.28	%
85—96 Months		133,487		0.60	%		3.08	%		9,866		0.10	%		4.33	%
97—108 Months		—		—			—			145,293		0.90	%		3.93	%
109—120 Months		641,013		2.90	%		2.81	%		—		—			—
121—140 Months		20,923		0.10	%		2.69	%		—		—			—
Total ARMS	$	22,410,662		100.00	%		2.95	%	$	16,753,934		100.00	%		3.49	%

Fixed Rate Securities

Information About Company's Adjustable Rate Agency Securities That will Reprice or Amortize Based on Contractual terms

The following table presents certain information about the Company’s fixed rate agency securities that will reprice or amortize based on contractual terms, which do not consider prepayment assumptions, at December 31, 2012 and 2011.
	December 31, 2012								December 31, 2011
Wtd Average Months to Maturity	Fair Value		% of Total			Weighted Average Coupon			Fair Value		% of Total			Weighted Average Coupon
155-167		102,158		6.80	%		3.00	%		—		—			—
168-180		1,406,431		93.20	%		2.60	%		987,939		100.00	%		3.05	%
Total Fixed Rate Securities	$	1,508,589		100.00	%		2.62	%	$	987,939		100.00	%		3.05	%