4. Mortgage Loans

On March 22, 2013, the Company purchased a residential mortgage loan portfolio with an aggregate unpaid principal balance of approximately $17.7 million.

On May 30, 2013, the Company entered into the Loan Repurchase Facility and utilized approximately $10.6 million of the Loan Repurchase Facility to finance its then existing residential mortgage loan portfolio.

On May 31, 2013, the Company utilized approximately $78.5 million of the Loan Repurchase Facility to fund a portion of the purchase price of its acquisition of a residential mortgage loan portfolio with an unpaid principal balance of approximately $134.5 million.

On July 25, 2013, the Company utilized approximately $98.7 million of its Loan Repurchase Facility to fund a portion of the purchase price of its acquisition of a residential mortgage loan portfolio with an unpaid principal balance of approximately $162.4 million.

On August 28, 2013, the Company utilized approximately $54.8 million of its Loan Repurchase Facility to fund a portion of the purchase price of its acquisition of a residential mortgage loan portfolio with an unpaid principal balance of approximately $98.2 million.

On March 27, 2014, the Company utilized approximately $60.6 million of the Loan Repurchase Facility to fund a portion of the purchase price of its acquisition of a residential mortgage loan portfolio with an unpaid principal balance of approximately $100.4 million.

The following table sets forth certain information regarding the Company's mortgage loan portfolio at March 31, 2014:

	Unpaid							Gross Unrealized⁽¹⁾							Weighted Average
	Principal		Premium			Amortized
	Balance		(Discount)			Cost		Gains		Losses			Fair Value		Coupon		Yield⁽²⁾
Mortgage Loans
Performing
Fixed	$	251,746,179	$	(47,755,347	)	$	203,990,832	$	9,565,952	$	(2,750,993	)	$	210,805,791	4.73	%	7.07	%
ARM		218,006,277		(33,133,709	)		184,872,568		4,853,505		(2,269,336	)		187,456,737	3.64		6.73
Total performing		469,752,456		(80,889,056	)		388,863,400		14,419,457		(5,020,329	)		398,262,528	4.22		6.91
Non-performing⁽³⁾		26,234,674		(7,310,449	)		18,924,225		544,555		(2,117,597	)		17,351,183	5.00		7.58
Total Mortgage Loans	$	495,987,130	$	(88,199,505	)	$	407,787,625	$	14,964,012	$	(7,137,926	)	$	415,613,711	4.26	%	6.94	%

____________________

(1)		The Company has elected the fair value option pursuant to ASC 825 for its mortgage loans. The Company recorded a gain of $0.7 million and a loss of $0.03 million for the three months ended March 31, 2014 and March 31, 2013, respectively, as change in unrealized gain or loss on mortgage loans in the consolidated statements of operations.
(2)		Unleveraged yield.
(3)		Loans that are delinquent for 60 days or more are considered non-performing.

The following table sets forth certain information regarding the Company's mortgage loan portfolio at December 31, 2013:

	Unpaid							Gross Unrealized⁽¹⁾							Weighted Average
	Principal		Premium			Amortized
	Balance		(Discount)			Cost		Gains		Losses			Fair Value		Coupon		Yield⁽²⁾
Mortgage Loans
Performing
Fixed	$	212,701,494	$	(43,530,581	)	$	169,170,913	$	7,842,598	$	(3,558,171	)	$	173,455,340	4.56	%	7.05	%
ARM		170,178,466		(25,617,563	)		144,560,903		5,088,302		(1,556,430	)		148,092,775	3.76		6.67
Total performing		382,879,960		(69,148,144	)		313,731,816		12,930,900		(5,114,601	)		321,548,115	4.20		6.88
Non-performing⁽³⁾		15,948,537		(5,031,293	)		10,917,244		456,024		(1,135,841	)		10,237,427	5.06		8.03
Total Mortgage Loans	$	398,828,497	$	(74,179,437	)	$	324,649,060	$	13,386,924	$	(6,250,442	)	$	331,785,542	4.24	%	6.91	%

____________________

(1)		The Company has elected the fair value option pursuant to ASC 825 for its mortgage loans.
(2)		Unleveraged yield.
(3)		Loans that are delinquent for 60 days or more are considered non-performing.

The following table presents the difference between the fair value and the aggregate unpaid principal balance of the Company's mortgage loan portfolio:

	March 31, 2014							December 31, 2013
			Unpaid							Unpaid
			Principal							Principal
	Fair Value		Balance		Difference			Fair Value		Balance		Difference
Loan Type
Performing loans:
Fixed	$	210,805,791	$	251,746,179	$	(40,940,388	)	$	173,455,340	$	212,701,494	$	(39,246,154	)
ARM		187,456,737		218,006,277		(30,549,540	)		148,092,775		170,178,466		(22,085,691	)
Total performing
loans		398,262,528		469,752,456		(71,489,928	)		321,548,115		382,879,960		(61,331,845	)
Non-performing
loans		17,351,183		26,234,674		(8,883,491	)		10,237,427		15,948,537		(5,711,110	)
Total	$	415,613,711	$	495,987,130	$	(80,373,419	)	$	331,785,542	$	398,828,497	$	(67,042,955	)

As of March 31, 2014 and December 31, 2013, the Company's mortgage loan portfolio consisted of mortgage loans on residential real estate located throughout the U.S. The following is a summary of certain concentrations of credit risk in the mortgage loan portfolio:

	March 31, 2014		December 31, 2013
Concentration
Percentage of fair value of mortgage loans with unpaid-principal-balance-to current-property-
value in excess of 100%	65.9	%	73.6	%
Percentage of fair value of mortgage loans secured by properties in the following states:
Each representing 10% or more of fair value:
California	25.2	%	25.6	%
Florida	16.4	%	17.8	%
Additional state representing more than 5% of fair value:
Georgia	6.3	%	6.8	%

At March 31, 2014 the interest rates on the Company's mortgage loan portfolio ranged from 1.75% - 12.20% and the contractual maturities ranged from 1 - 46 years.

The following table presents the change in accretable yield for the three months ended March 31, 2014:

Accretable yield, January 1, 2014	$	223,401,697
Acquisitions		55,532,098
Accretion		(5,649,553	)
Reclassifications to nonaccretable difference		4,326,116
Accretable yield, March 31, 2014	$	277,610,358