Mortgage Backed Securities

9 Months Ended

Sep. 30, 2014

Mortgage Backed Securities [Abstract]

NOTE 2. MORTGAGE-BACKED SECURITIES

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

(in thousands)
		September 30, 2014		December 31, 2013
Pass-Through RMBS Certificates:
	Hybrid Adjustable-rate Mortgages	$	71,442	$	76,118
	Adjustable-rate Mortgages		3,847		5,334
	Fixed-rate Mortgages		1,035,857		245,523
	Total Pass-Through Certificates		1,111,146		326,975
Structured RMBS Certificates:
	Interest-Only Securities		45,947		19,206
	Inverse Interest-Only Securities		18,439		5,042
	Total Structured RMBS Certificates		64,386		24,248
Total		$	1,175,532	$	351,223

The following table summarizes the Company’s RMBS portfolio as of September 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)
	September 30, 2014		December 31, 2013
Greater than five years and less than ten years	$	1,047	$	1,521
Greater than or equal to ten years		1,174,485		349,702
Total	$	1,175,532	$	351,223

The Company generally pledges its RMBS assets as collateral under repurchase agreements. At September 30, 2014 and December 31, 2013, the Company had unpledged securities totaling $101.7 million and $15.4 million, respectively. The unpledged balance at September 30, 2014 includes unsettled security purchases with a fair value of approximately $67.1 million that will be pledged as collateral under repurchase agreements on their settlement dates in October 2014.