Mortgage Backed Securities

6 Months Ended

Jun. 30, 2014

Mortgage Backed Securities [Abstract]

NOTE 2. MORTGAGE-BACKED SECURITIES

The following table presents the Company’s RMBS portfolio as of June 30, 2014 and December 31, 2013:

(in thousands)
		June 30, 2014		December 31, 2013
Pass-Through RMBS Certificates:
	Hybrid Adjustable-rate Mortgages	$	75,061	$	76,118
	Adjustable-rate Mortgages		4,650		5,334
	Fixed-rate Mortgages		747,210		245,523
	Total Pass-Through Certificates		826,921		326,975
Structured RMBS Certificates:
	Interest-Only Securities		38,743		19,206
	Inverse Interest-Only Securities		10,340		5,042
	Total Structured RMBS Certificates		49,083		24,248
Total		$	876,004	$	351,223

The following table summarizes the Company’s RMBS portfolio as of June 30, 2014 and December 31, 2013, according to the contractual maturities of the securities in the portfolio. Actual maturities of RMBS investments are generally shorter than stated contractual maturities and are affected by the contractual lives of the underlying mortgages, periodic payments of principal, and prepayments of principal.

(in thousands)
	June 30, 2014		December 31, 2013
Greater than five years and less than ten years	$	1,134	$	1,521
Greater than or equal to ten years		874,870		349,702
Total	$	876,004	$	351,223

The Company generally pledges its RMBS assets as collateral under repurchase agreements. At June 30, 2014 and December 31, 2013, the Company had unpledged securities totaling $42.6 million and $15.4 million, respectively. The unpledged balance at June 30, 2014 includes an unsettled security purchase with a fair value of approximately $6.8 million that will be pledged as collateral under a repurchase agreement on its settlement date in July 2014.