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 March 31, 2016 and December 31, 2015, the Company had repurchase indebtedness outstanding with 26 and 25 counterparties with a weighted average remaining contractual maturity of 0.8 and 0.9 months, respectively.

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

	March 31, 2016					December 31, 2015
			Weighted Average					Weighted Average
	Balance		Contractual Rate			Balance		Contractual Rate
Within 30 days	$	10,669,354		0.66	%	$	12,693,883		0.64	%
30 days to 3 months		500,000		0.90	%		-		0.00	%
3 months to 36 months		250,000		0.79	%		750,000		0.75	%
	$	11,419,354		0.67	%	$	13,443,883		0.65	%

The fair value of securities and accrued interest the Company had pledged under repurchase agreements at March 31, 2016 and December 31, 2015 was $11,676,938 and $14,072,647, 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 March 31, 2016, the Company has outstanding borrowings with two counterparties totaling $63,615 with maturity dates between June 2016 and December 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. As of December 31, 2015, the Company had outstanding borrowings of $60,096 under these lines of credit.

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 March 31, 2016 and December 31, 2015, the Company had advances outstanding of $0 and $14,132, respectively. The advances as of December 31, 2015 were 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 March 31, 2016, the collateralized borrowings has an outstanding principal amount of $60,567 and a weighted-average interest rate of 2.75%. 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.