Mortgage-Backed Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investments Debt And Equity Securities [Abstract]

Schedule of Agency Securities and Non Agency Securities Portfolio Which are MBS not Issued or Guaranteed by a U.S. Government Agency or U.S. Government Sponsored Entity

The Company’s investment portfolio consists of MBS, including agency securities and non-agency securities (MBS not issued or guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity).  The following table presents certain information about the Company’s MBS at September 30, 2014.  

	Amortized Cost		Gross Unrealized Loss			Gross Unrealized Gain		Estimated Fair Value
Agency Securities
Fannie Mae Certificates
ARMs	$	9,217,059	$	(20,004	)	$	175,699	$	9,372,754
Fixed-Rate		569,736		(615	)		2,380		571,501
Total Fannie Mae		9,786,795		(20,619	)		178,079		9,944,255
Freddie Mac Certificates
ARMs		6,667,896		(31,236	)		66,537		6,703,197
Fixed-Rate		166,394		(30	)		858		167,222
Total Freddie Mac		6,834,290		(31,266	)		67,395		6,870,419
Total Agency Securities		16,621,085		(51,885	)		245,474		16,814,674
Total Non-Agency ARMs		76,200		(450	)		-		75,750
Total Mortgage-Backed Securities	$	16,697,285	$	(52,335	)	$	245,474	$	16,890,424

The following table presents certain information about the Company’s MBS at December 31, 2013.  

	Amortized Cost		Gross Unrealized Loss			Gross Unrealized Gain		Estimated Fair Value
Agency Securities
Fannie Mae Certificates
ARMs	$	9,620,743	$	(44,871	)	$	167,848	$	9,743,720
Fixed-Rate		806,312		(1,798	)		3,832		808,346
Total Fannie Mae		10,427,055		(46,669	)		171,680		10,552,066
Freddie Mac Certificates
ARMs		6,671,013		(70,752	)		57,808		6,658,069
Fixed-Rate		338,738		(1,600	)		21		337,159
Total Freddie Mac		7,009,751		(72,352	)		57,829		6,995,228
Ginnie Mae Certificates
ARMs		-		-			-		-
Fixed-Rate		96,236		(998	)		-		95,238
Total Ginnie Mae		96,236		(998	)		-		95,238
Total Mortgage-Backed Securities	$	17,533,042	$	(120,019	)	$	229,509	$	17,642,532

Components of Carrying Value of Available-For-Sale MBS

The components of the carrying value of available-for-sale MBS at September 30, 2014 and December 31, 2013 are presented below:  

	September 30, 2014			December 31, 2013
Principal balance	$	16,236,142		$	17,044,190
Unamortized premium		461,143			488,854
Unamortized discount		-			(2	)
Gross unrealized gains		245,474			229,509
Gross unrealized losses		(52,335	)		(120,019	)
Carrying value/estimated fair value	$	16,890,424		$	17,642,532

Schedule of Interest Income

The following table presents components of interest income on the Company’s MBS portfolio for the three months and nine months ended September 30, 2014 and 2013.

	Three Months Ended September 30						Nine Months Ended September 30
	2014			2013			2014			2013
Coupon interest	$	110,382		$	154,203		$	343,108		$	485,601
Net premium amortization		(29,413	)		(47,163	)		(76,374	)		(139,205	)
Interest income	$	80,969		$	107,040		$	266,734		$	346,396

Gross Gains and Losses from Securities Sales

Gross gains and losses from sales of MBS for the three months and nine months ended September 30, 2014 and 2013 were as follows:

	Three Months Ended September 30					Nine Months Ended September 30
	2014		2013			2014			2013
Gross gains	$	237	$	7,327		$	13,713		$	18,629
Gross losses		-		(232,962	)		(10,624	)		(232,962	)
Net gain (loss)	$	237	$	(225,635	)	$	3,089		$	(214,333	)

Schedule of MBS in Unrealized Loss Position

The Company monitors the performance and market value of its MBS portfolio on an ongoing basis, and on a quarterly basis reviews its MBS for impairment.  At September 30, 2014 and December 31, 2013, the Company had the following securities in a loss position presented below:

	As of September 30, 2014
	Less than 12 Months					Greater than 12 Months					Total
	Fair Market		Unrealized			Fair Market		Unrealized			Fair Market		Unrealized
	Value		Loss			Value		Loss			Value		Loss
Fannie Mae Certificates
ARMs	$	966,859	$	(2,084	)	$	1,467,791	$	(17,920	)	$	2,434,650	$	(20,004	)
Fixed-Rate		295,297		(615	)		-		-			295,297		(615	)
Freddie Mac Certificates
ARMs		875,078		(2,419	)		2,007,443		(28,817	)		2,882,521		(31,236	)
Fixed-Rate		8,692		(30	)		-		-			8,692		(30	)
Non-Agency ARMs		75,750		(450	)		-		-			75,750		(450	)
Total temporarily impaired securities	$	2,221,676	$	(5,598	)	$	3,475,234	$	(46,737	)	$	5,696,910	$	(52,335	)
Number of securities in an unrealized loss position				70					128					198

	As of December 31, 2013
	Less than 12 Months					Greater than 12 Months				Total
	Fair Market		Unrealized			Fair Market		Unrealized		Fair Market		Unrealized
	Value		Loss			Value		Loss		Value		Loss
Fannie Mae Certificates
ARMs	$	3,233,274	$	(44,871	)	$	-	$	-	$	3,233,274	$	(44,871	)
Fixed-Rate		281,760		(1,798	)		-		-		281,760		(1,798	)
Freddie Mac Certificates
ARMs		4,046,473		(70,752	)		-		-		4,046,473		(70,752	)
Fixed-Rate		316,835		(1,600	)		-		-		316,835		(1,600	)
Ginnie Mae Certificates
ARMs		-		-			-		-		-		-
Fixed-Rate		95,238		(998	)		-		-		95,238		(998	)
Total temporarily impaired securities	$	7,973,580	$	(120,019	)	$	-	$	-	$	7,973,580	$	(120,019	)
Number of securities in an unrealized loss position				279					-				279