SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 15. SUBSEQUENT EVENTS

January 2021 Stock Offering

On January 20, 2021, Orchid entered into an underwriting agreement (the “2021 Underwriting Agreement”) with J.P. Morgan

Securities LLC (the “Underwriter”), relating to the offer and sale of

7,600,000

 shares of the Company’s common stock. The Underwriter

purchased the shares of the Company’s common stock from the Company pursuant to the 2021 Underwriting Agreement at $

5.20

 per

share. In addition, the Company granted the Underwriter a 30-day option to purchase up to an additional

1,140,000

 shares of the

Company’s common stock on the same terms and conditions, which the Underwriter exercised in full on January 21, 2021. The closing

of the offering of

8,740,000

 shares of the Company’s common stock occurred on January 25, 2021, with net proceeds to the Company

of approximately $

45.3

 million after deduction of estimated offering expenses payable by the Company.

COVID-19 and CARES Act Update

The Federal Housing Financing Agency (the “FHFA”) has instructed the GSEs on how they will handle servicer advances for

loans that back Agency RMBS that enter into forbearance, which should limit prepayments during the forbearance period that could

have resulted otherwise. On January 29, 2021, the CDC issued guidance extending eviction moratoriums for covered persons through

March 31, 2021. In addition, on February 9, 2021, the FHFA announced that the foreclosure moratorium begun under the CARES Act

for loans backed by Fannie Mae and Freddie Mac and the eviction moratorium for real estate owned by Fannie Mae and Freddie Mac

were extended until March 31, 2021. On February 16, 2021, the U.S. Housing and Urban Development Department announced the

extension of the FHA eviction and foreclosure moratorium to June 30, 2021. The moratoriums on foreclosures and evictions will likely

delay potential defaults on loans that would otherwise be bought out of Agency MBS pools. Depending on the ultimate resolution of the

foreclosure or evictions, when and if it occurs, these loans may be removed from the pool into which they were securitized. If this were

to occur, it would have the effect of delaying a prepayment on the Company’s securities until such time. As the majority of the

Company’s Agency RMBS assets were acquired at a premium to par, this will tend to increase the realized yield on the asset in

question.