Mortgage-Backed Securities (Tables)

3 Months Ended

Mar. 31, 2015

Investments Debt And Equity Securities [Abstract]

Schedule of Agency Securities and MBS Portfolio Includes MBS not Issued or Guaranteed by U.S. Government Agency or U.S. Government Sponsored Entity

The following table presents the composition of the Company’s MBS at March 31, 2015.

	Amortized Cost		Gross Unrealized Loss			Gross Unrealized Gain		Estimated Fair Value
Agency Securities
Fannie Mae Certificates
ARMs	$	8,707,525	$	(2,435	)	$	205,411	$	8,910,501
Fixed-Rate		1,054,982		-			8,815		1,063,797
Total Fannie Mae		9,762,507		(2,435	)		214,226		9,974,298
Freddie Mac Certificates
ARMs		6,589,841		(6,704	)		97,288		6,680,425
Fixed-Rate		150,666		-			2,423		153,089
Total Freddie Mac		6,740,507		(6,704	)		99,711		6,833,514
Total Agency Securities		16,503,014		(9,139	)		313,937		16,807,812
Total Non-Agency Securities (ARMs)		72,791		-			202		72,993
Total GSE CRT Bonds		43,293		-			906		44,199
Total MBS	$	16,619,098	$	(9,139	)	$	315,045	$	16,925,004

The following table presents the composition of the Company’s MBS at December 31, 2014.  

	Amortized Cost		Gross Unrealized Loss			Gross Unrealized Gain		Estimated Fair Value
Agency Securities
Fannie Mae Certificates
ARMs	$	9,203,741	$	(13,737	)	$	183,889	$	9,373,893
Fixed-Rate		1,111,288		-			5,177		1,116,465
Total Fannie Mae		10,315,029		(13,737	)		189,066		10,490,358
Freddie Mac Certificates
ARMs		6,805,885		(21,794	)		76,790		6,860,881
Fixed-Rate		158,402		-			1,767		160,169
Total Freddie Mac		6,964,287		(21,794	)		78,557		7,021,050
Total Agency Securities		17,279,316		(35,531	)		267,623		17,511,408
Total Non-Agency ARMs		75,454		-			148		75,602
Total MBS	$	17,354,770	$	(35,531	)	$	267,771	$	17,587,010

Components of Carrying Value of Available-For-Sale MBS

The components of the carrying value of available-for-sale MBS at March 31, 2015 and December 31, 2014 are presented below:  

	March 31,			December 31,
	2015			2014
Principal balance	$	16,157,895		$	16,864,583
Unamortized premium		462,410			490,187
Unamortized discount		(1,207	)		-
Gross unrealized gains		315,045			267,771
Gross unrealized losses		(9,139	)		(35,531	)
Carrying value/estimated fair value	$	16,925,004		$	17,587,010

Schedule of Interest Income

The following table presents components of interest income on the Company’s MBS portfolio for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31
	2015			2014
Coupon interest	$	113,478		$	118,398
Net premium amortization		(27,116	)		(22,091	)
Interest income	$	86,362		$	96,307

Gross Gains and Losses from MBS Sales

Gross gains and losses from sales of MBS for the three months ended March 31, 2015 and 2014 were as follows:

	Three Months Ended March 31
	2015			2014
Gross gains	$	16,510		$	7,436
Gross losses		(57	)		-
Net gain	$	16,453		$	7,436

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 March 31, 2015 and December 31, 2014, the Company had the following securities in a loss position as presented in the following two tables:

	As of March 31, 2015
	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	$	25,695	$	(139	)	$	624,502	$	(2,297	)	$	650,197	$	(2,436	)
Fixed-Rate		-		-			-		-			-		-
Freddie Mac Certificates
ARMs		10,017		(6	)		1,093,617		(6,697	)		1,103,634		(6,703	)
Fixed-Rate		-		-			-		-			-		-
Total temporarily impaired securities	$	35,712	$	(145	)	$	1,718,119	$	(8,994	)	$	1,753,831	$	(9,139	)
Number of securities in an unrealized loss position				2					56					58

	As of December 31, 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	$	806,600	$	(1,240	)	$	1,306,153	$	(12,497	)	$	2,112,753	$	(13,737	)
Fixed-Rate		-		-			-		-			-		-
Freddie Mac Certificates
ARMs		498,994		(792	)		1,737,760		(21,002	)		2,236,754		(21,794	)
Fixed-Rate		-		-			-		-			-		-
Total temporarily impaired securities	$	1,305,594	$	(2,032	)	$	3,043,913	$	(33,499	)	$	4,349,507	$	(35,531	)
Number of securities in an unrealized loss position				56					108					164