4.	Real Estate Securities

	The following table presents the principal balance, amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company's real estate securities portfolio at March 31, 2013. The Company's non-Agency RMBS portfolio is not issued or guaranteed by Fannie Mae, Freddie Mac or any other U.S. Government agency or a federally chartered corporation and are therefore subject to additional credit risks.

			Premium			Amortized		Gross Unrealized ⁽¹⁾					Fair		Weighted Average
	Principal Balance		(Discount)			Cost		Gains		Losses			Value		Coupon		Yield ⁽²⁾
Real estate securities
Agency RMBS
30-year adjustable rate
mortgage	$	2,939,138	$	443,080		$	3,382,218	$	-	$	(303,810	)	$	3,078,408	2.83	%	2.28	%
30-year fixed rate mortgage		170,322,090		7,593,622			177,915,712		1,865,453		(570,884	)		179,210,281	3.36		3.07
Non-Agency RMBS
Alternative - A		114,455,922		(21,415,546	)		93,040,376		4,359,861		(36,009	)		97,364,228	5.31		5.90
Pay option adjustable rate		40,163,597		(8,849,272	)		31,314,325		328,480		(33,897	)		31,608,908	1.25		5.25
Prime		117,188,899		(13,506,628	)		103,682,271		6,582,403		(27,319	)		110,237,355	5.50		6.03
Subprime		47,558,339		(13,700,810	)		33,857,529		721,412		(149,648	)		34,429,293	0.66		6.62
Total RMBS	$	492,627,985	$	(49,435,554	)	$	443,192,431	$	13,857,609	$	(1,121,567	)	$	455,928,473	3.94	%	4.80	%

____________________

	(1)		The Company has elected the fair value option pursuant to ASC 825 for its real estate securities. The Company recorded net change in unrealized gain / loss on its real estate securities of $903,277 and $6,489,794 for the three months ended March 31, 2013 and 2012, respectively, as change in unrealized gain / loss on real estate securities and mortgage loans in the consolidated statements of operations.
	(2)		Unleveraged yield.

The following table presents the principal balance, amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company's real estate securities portfolio at December 31, 2012:

			Premium			Amortized		Gross Unrealized (1)					Fair		Weighted Average
	Principal Balance		(Discount)			Cost		Gains		Losses			Value		Coupon		Yield (2)
Real estate securities
Agency RMBS
30-year adjustable rate
mortgage	$	3,083,892	$	351,047		$	3,434,939	$	-	$	(194,609	)	$	3,240,330	2.84	%	2.28	%
30-year fixed rate mortgage		61,034,333		3,056,889			64,091,222		2,442,401		(13,921	)		66,519,702	3.82		3.44
Non-Agency RMBS
Alternative - A		38,549,827		(8,606,689	)		29,943,138		3,436,729		-			33,379,867	5.69		7.95
Pay option adjustable rate		1,249,426		(378,803	)		870,623		95,221		-			965,844	1.19		8.67
Prime		64,978,647		(8,074,525	)		56,904,122		5,668,301		(2,298	)		62,570,125	5.79		7.34
Subprime		4,419,732		(825,131	)		3,594,601		401,214		-			3,995,815	0.98		9.10
Total RMBS	$	173,315,857	$	(14,477,212	)	$	158,838,645	$	12,043,866	$	(210,828	)	$	170,671,683	4.81	%	5.89	%

____________________

	(1)		The Company has elected the fair value option pursuant to ASC 825 for its real estate securities.
	(2)		Unleveraged yield.

The following table presents certain information regarding the Company's Agency and non-Agency securities as of March 31, 2013 by weighted average life and weighted average yield:

	Agency Securities						Non-Agency Securities
					Weighted						Weighted
	Fair		Amortized		Average		Fair		Amortized		Average
	Value		Cost		Yield		Value		Cost		Yield
Weighted average life ⁽¹⁾
Greater than 5 years	$	182,288,689	$	181,297,930	3.05	%	$	273,639,784	$	261,894,501	5.97	%
	$	182,288,689	$	181,297,930	3.05	%	$	273,639,784	$	261,894,501	5.97	%
____________________

(1)

Actual maturities of real estate securities are generally shorter than stated contractual maturities. Maturities are affected by the contractual lives of the underlying mortgages, periodic payments of principal and prepayments of principal.

At March 31, 2013, the contractual maturities of the real estate securities ranged from 8.4 to 33.8 years, with a weighted average maturity of 26.5 years. All real estate securities held by the Company at March 31, 2013 are issued by issuers based in the United States of America.

The following table presents proceeds from the sale of real estate securities, realized losses on the sale of real estate securities and realized losses on other-than-temporary impairments:

	Three Months Ended
	March 31, 2013		March 31, 2012
Proceeds from the sale of real estate securities	$	6,801,398	$	25,502,294
Realized loss on the sale of real estate securities		-		(1,932,758	)
Realized loss on other-than-temporary impairments		-		(128,287	)

The following table presents certain information regarding the Company's Agency and non-Agency securities as of December 31, 2012 by weighted average life and weighted average yield:

	Agency Securities						Non-Agency Securities
					Weighted						Weighted
	Fair		Amortized		Average		Fair		Amortized		Average
	Value		Cost		Yield		Value		Cost		Yield
Weighted average life (1)
Greater than 5 years	$	69,760,032	$	67,526,161	3.38	%	$	100,911,651	$	91,312,484	7.63	%
	$	69,760,032	$	67,526,161	3.38	%	$	100,911,651	$	91,312,484	7.63	%
____________________

(1)

At December 31, 2012, the contractual maturities of the real estate securities ranged from 8.6 to 33.7 years, with a weighted average maturity of 26.1 years. All real estate securities held by the Company at December 31, 2012 are issued by issuers based in the United States of America.