6.	Repurchase Agreements

	*Real Estate Securities*

	Repurchase agreements related to real estate securities involve the sale and a simultaneous agreement to repurchase the transferred assets or similar assets at a future date. The amount borrowed generally is equal to the fair value of the assets pledged less an agreed-upon discount, referred to as a "haircut." Repurchase agreements related to real estate securities entered into by the Company are accounted for as financings and require the repurchase of the transferred securities at the end of each arrangement's term, typically 30 to 90 days. The Company maintains the beneficial interest in the specific securities pledged during the term of the repurchase arrangement and receives the related principal and interest payments. Interest rates on these borrowings are fixed based on prevailing rates corresponding to the terms of the borrowings, and interest is paid at the termination of the repurchase arrangement at which time the Company may enter into a new repurchase arrangement at prevailing market rates with the same counterparty or repay that counterparty and negotiate financing with a different counterparty. In response to declines in fair value of pledged securities due to changes in market conditions or the publishing of monthly security paydown factors, the lender requires the Company to post additional securities as collateral, pay down borrowings or establish cash margin accounts with the counterparty in order to re-establish the agreed-upon collateral requirements, referred to as margin calls. Under the terms of the Company's master repurchase agreements related to real estate securities, the counterparty may sell or re-hypothecate the pledged collateral.

	The following table presents certain information regarding the Company's real estate securities repurchase agreements as of June 30, 2013 by remaining maturity and collateral type:

	Agency RMBS				Non-Agency RMBS
			Weighted				Weighted
	Balance		Average Rate		Balance		Average Rate
Repurchase agreements maturing
within
30 days or less	$	147,472,330	0.39	%	$	161,025,085	2.03	%
31-60 days		-	-			-	-
61-90 days		-	-			-	-
Greater than 90 days		-	-			-	-
Total / weighted average	$	147,472,330	0.39	%	$	161,025,085	2.03	%

The following table presents certain information regarding the Company's real estate securities repurchase agreements as of December 31, 2012 by remaining maturity and collateral type:

	Agency RMBS				Non-Agency RMBS
			Weighted				Weighted
	Balance		Average Rate		Balance		Average Rate
Repurchase agreements maturing
within
30 days or less	$	44,174,600	0.49	%	$	49,441,377	2.15	%
31-60 days		10,866,170	0.49			-	-
61-90 days		11,598,320	0.47			-	-
Greater than 90 days		-	-			-	-
Total / weighted average	$	66,639,090	0.49	%	$	49,441,377	2.15	%

Although real estate securities repurchase agreements are committed borrowings until maturity, the lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets would require the Company to provide additional collateral or cash to fund margin calls.

The following table presents information with respect to the Company's posting of RMBS collateral at June 30, 2013:

Repurchase agreements secured by Agency RMBS	$	147,472,330
Fair value of Agency RMBS pledged as collateral under repurchase agreements		150,498,206
Fair value of Agency RMBS not pledged as collateral under repurchase agreements		24,003,900
Repurchase agreements secured by non-Agency RMBS		161,025,085
Fair value of non-Agency RMBS pledged as collateral under repurchase agreements		213,888,493
Fair value of non-Agency RMBS not pledged as collateral under repurchase agreements		56,146,097
Cash pledged under repurchase agreements		6,400,451

The following table presents information with respect to the Company's posting of RMBS collateral at December 31, 2012:

Repurchase agreements secured by Agency RMBS	$	66,639,090
Fair value of Agency RMBS pledged as collateral under repurchase agreements		63,535,780
Fair value of Agency RMBS not pledged as collateral under repurchase agreements		6,224,252
Repurchase agreements secured by non-Agency RMBS		49,441,377
Fair value of non-Agency RMBS pledged as collateral under repurchase agreements		70,003,218
Fair value of non-Agency RMBS not pledged as collateral under repurchase agreements		30,908,433
Cash pledged under repurchase agreements		1,335,305