9.	Borrowings

Repurchase Agreements

The Company uses repurchase agreements to finance purchases of securities. These repurchase agreements are collateralized by the Company’s securities and typically bear interest at rates that are closely related to LIBOR. At December 31, 2015 and 2014, the Company had repurchase indebtedness outstanding with 25 counterparties, with a weighted-average remaining contractual maturity of 0.9 and 1.0 months, respectively.

The following table presents the contractual maturity information regarding the Company’s repurchase agreements:

	December 31, 2015					December 31, 2014
			Weighted Average					Weighted Average
	Balance		Contractual Rate			Balance		Contractual Rate
Within 30 days	$	12,693,883		0.64	%	$	13,770,099		0.35	%
30 days to 3 months		-		0.00	%		1,489,732		0.36	%
3 months to 36 months		750,000		0.75	%		500,000		0.53	%
	$	13,443,883		0.65	%	$	15,759,831		0.36	%

The fair value of securities, and accrued interest the Company had pledged under repurchase agreements at December 31, 2015 and 2014 was $14,072,647 and $16,575,106, respectively.

Warehouse Lines of Credit

Beginning in 2015, the Company has access to warehouse lines of credit with three financial institutions to finance purchases of whole mortgage loans. Borrowings under these facilities are charged interest at a specified margin over the one-month LIBOR interest rate. At December 31, 2015, the Company has outstanding borrowings with two counterparties totaling $60,096 with maturity dates between March 2016 and September 2016. The Company has pledged mortgage loans with a fair value of $67,685 as collateral pursuant to these lines of credit. The borrowing limit under these lines of credit is $300 million.

Federal Home Loan Bank Advances

As discussed in Note 2, during 2015, a subsidiary of the Company became a member of the FHLB. As of December 31, 2015, the Company had $14,132 in advances outstanding with the FHLB at a borrowing rate of 0.4% with a maturity date of January 2016. The advances are secured by the pledge of agency MBS with a fair value of $15,714. The Company’s aggregate borrowing capacity with the FHLB is $1 billion. Unused capacity may be adjusted at the sole discretion of the FHLB. The ability to borrow from the FHLB is subject to the Company’s continued creditworthiness, pledging of sufficient eligible collateral to secure advances, and compliance with certain covenants. Each advance requires approval by the FHLB and is secured by collateral in accordance with the FHLB’s credit and collateral guidelines, which the FHLB may revise from time to time. Based on the current status of recent FHFA rulemaking, the Company will need to surrender its membership in the FHLB in 2016.

Collateralized Borrowing in Securitization Trusts

As discussed in Notes 2 and 3, the Company consolidates a CFE that has issued MBS backed by mortgage loans. The portion of the CFE’s collateralized borrowings that is not eliminated in consolidation is carried at fair value as a result of a fair value option election. Investors in the collateralized borrowings issued by the CFE have recourse against the assets within the CFE, but have no recourse against the Company itself. As of December 31, 2015, the collateralized borrowings has an outstanding principal amount of $58,052 and a weighted-average interest rate of 2.75%. The final scheduled distribution date thereof is November 2045. The actual maturity of the collateralized borrowing is based on the principal repayments of the underlying mortgage loans. As a result, the actual maturity of the borrowing may be substantially sooner than the final scheduled distribution date.