Mortgage-Backed Securities and Agency CRT securities (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Agency Securities Invests at Times in 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 securities portfolio at December 31, 2015.

	Amortized Cost		Gross Unrealized Loss			Gross Unrealized Gain		Estimated Fair Value
Agency Securities
Fannie Mae Certificates
ARMs	$	7,392,021	$	(14,465	)	$	102,247	$	7,479,803
Fixed-Rate		1,005,458		(8,148	)		-		997,310
Total Fannie Mae		8,397,479		(22,613	)		102,247		8,477,113
Freddie Mac Certificates
ARMs		5,806,425		(22,551	)		41,243		5,825,117
Fixed-Rate		-		-			-		-
Total Freddie Mac		5,806,425		(22,551	)		41,243		5,825,117
Total Agency MBS	$	14,203,904	$	(45,164	)	$	143,490	$	14,302,230
Agency CRT Securities	$	111,217	$	(1,830	)	$	-	$	109,387

The following table presents the composition of the Company’s securities portfolio 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 MBS		17,279,316		(35,531	)		267,623		17,511,408
Total Non-Agency MBS (ARMs)		75,454		-			148		75,602
Total MBS	$	17,354,770	$	(35,531	)	$	267,771	$	17,587,010

Components of Carrying Value of the Company's Securities

The components of the carrying value of the Company’s securities at December 31, 2015 and 2014 are presented below.

	December 31,			December 31,
	2015			2014
Principal balance	$	13,935,533		$	16,864,583
Unamortized premium		381,851			490,187
Unamortized discount		(2,263	)		-
Gross unrealized gains		143,490			267,771
Gross unrealized losses		(46,994	)		(35,531	)
Carrying value/estimated fair value	$	14,411,617		$	17,587,010

Schedule of Interest Income

The following table presents components of interest income on the Company’s securities for the three years ended December 31, 2015:

	Years Ended December 31
	2015			2014			2013
Coupon interest	$	423,371		$	456,415		$	616,632
Net premium amortization		(117,654	)		(101,979	)		(165,924	)
Interest income	$	305,717		$	354,436		$	450,708

Gross Gains and Losses from MBS Sales

Gross gains and losses from sales of available-for sale MBS and agency CRT securities for the three years ended December 31, 2015 were as follows:

	Years Ended December 31
	2015			2014			2013
Gross gains	$	36,805		$	15,821		$	18,717
Gross losses		(4,074	)		(10,625	)		(301,729	)
Net gain (loss)	$	32,731		$	5,196		$	(283,012	)

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

	As of December 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		1,712,043	$	(7,922	)	$	511,884	$	(6,542	)	$	2,223,927	$	(14,464	)
Fixed-Rate		997,310		(8,148	)		-		-			997,310		(8,148	)
Freddie Mac Certificates
ARMs		1,814,773		(9,246	)		861,198		(13,306	)		2,675,971		(22,552	)
Fixed-Rate		-		-			-		-			-		-
Total temporarily impaired securities	$	4,524,126	$	(25,316	)	$	1,373,082	$	(19,848	)	$	5,897,208	$	(45,164	)
Number of securities in an unrealized loss position				223					52					275

	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

Adjustable Rate Residential Mortgage

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

The following table presents certain information about the Company’s adjustable rate securities that will reprice or amortize based on contractual terms, which do not consider prepayment assumptions, at December 31, 2015 and 2014.

	December 31, 2015								December 31, 2014
						Weighted								Weighted
						Average								Average
	Fair Value		% of Total			Coupon			Fair Value		% of Total			Coupon
Wtd Average Months to Reset
0 - 12	$	2,377,014		17.7	%		2.84	%	$	2,272,988		14.0	%		3.02	%
13 - 24		1,467,597		10.9	%		2.69	%		1,799,368		11.0	%		2.97	%
25 - 36		1,692,591		12.6	%		2.87	%		2,026,261		12.4	%		2.73	%
37 - 48		4,805,462		35.8	%		2.50	%		2,268,665		13.9	%		2.89	%
49 - 60		1,338,716		10.0	%		2.43	%		5,855,524		35.9	%		2.52	%
61 - 72		1,015,398		7.6	%		2.95	%		880,039		5.4	%		2.52	%
73 - 84		684,191		5.1	%		2.73	%		1,207,531		7.4	%		2.98	%
109 - 120		33,338		0.3	%		2.85	%		-		-			-
Total ARMS and Agency CRTs	$	13,414,307		100.0	%		2.67	%	$	16,310,376		100.0	%		2.75	%

Fixed Rate Residential Mortgage

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

The following table presents certain information about the Company’s fixed rate MBS that will reprice or amortize based on contractual terms, which do not consider prepayment assumptions, at December 31, 2015 and 2014.

	December 31, 2015								December 31, 2014
						Weighted								Weighted
						Average								Average
Wtd Average Months to Maturity	Fair Value		% of Total			Coupon			Fair Value		% of Total			Coupon
121-132	$	-		-			-		$	73,814		5.8	%		3.50	%
133-144		-		-			-			589,051		46.1	%		3.50	%
145-156		-		-			-			613,769		48.1	%		3.43	%
349-360		997,310		100	%		3.50	%		-		-			-
Total Fixed-Rate Securities	$	997,310		100.0	%		3.50	%	$	1,276,634		100.0	%		3.47	%