Segment Information

12 Months Ended

Dec. 31, 2014

Segment Information [Abstract]

Segment Information

25. Segment Information

In 2013 and 2012 the Company operated as one operating segment. Subsequent to the acquisition of GMFS, the Company operates in two operating segments: residential mortgage loan investments and residential mortgage banking. These business segments have been identified based on the Company's organizational and management structure. These segments are based on an internally-aligned segment structure, which is how the Company's results are monitored and performance is assessed.

The residential mortgage loan investment segment includes a portfolio of mortgage loans which were either distressed, re-performing or newly originated. The residential mortgage loan investment segment's financial items consist primarily of net interest income from whole loans and RMBS, changes in unrealized gains and losses from the valuation of the portfolio and realized gains and losses recognized upon the paydowns of mortgage loans and sales of RMBS.

The residential mortgage banking segment relates to the operations of the Company's GMFS subsidiary which originates mortgage loans for subsequent sale as whole loans either servicing retained or released.

Each segment includes the operating and other expenses associated with the respective activities.

Segment contribution represents the measure of profit that management uses to assess the performance of its business segments and make resource allocation and operating decisions. Certain expenses not directly assigned or allocated to one of the two primary segments are included in the Corporate/Other column as reconciling items to the Company's consolidated financial statements. These unallocated expenses primarily include interest expense on the Company's Exchangeable Senior Notes and corporate operating expenses such as insurance, public company expenses, advisory fees, transaction costs and general and administrative expenses. 

	Mortgage Loans Held for Investments			Mortgage Banking			Corporate/Other			Total
Interest income	$	40,998,530		$	594,217		$	—		$	41,592,747
Interest expense		11,451,687			121,194			5,686,664			17,259,545
Net interest income (expense)		29,546,843			473,023			(5,686,664	)		24,333,202
Non-interest income		—			4,730,212			—			4,730,212
Change in unrealized gain or loss		19,090,520			—			—			19,090,520
Realized gain		5,762,254			—			—			5,762,254
Gain or (loss) on derivative instruments		(5,921,725	)		—			—			(5,921,725	)
Advisory fee – related party		3,835			143,674			2,706,387			2,853,896
Salaries, commissions and benefits		—			3,765,784			—			3,765,784
Operating expenses		251,305			1,089,640			6,521,363			7,862,308
Other expenses:
Expenses		2,180,113			—			—			2,180,113
Transaction costs relating to acquisition of GMFS		—			2,177,617			—			2,177,617
Depreciation and amortization		—			154,011			—			154,011
Total other expenses		2,180,113			2,331,628			—			4,511,741
Net income/(loss) before income taxes		46,042,639			(2,127,491	)		(14,914,414	)		29,000,734
Income tax benefit		—			850,996			—			850,996
Segment contribution / net income	$	46,042,639		$	(1,276,495	)	$	(14,914,414	)	$	29,851,730
Supplemental Disclosures:
Mortgage loans held for investment, at fair value	$	415,959,838		$	—		$	—		$	415,959,838
Mortgage loans held for investment, at cost		—			1,338,935			—			1,338,935
Mortgage loans held for sale		—			97,690,960			—			97,690,960
Real estate securities		148,585,733			—			—			148,585,733
Other investment securities		2,040,532			—			—			2,040,532
Mortgage servicing rights		—			33,378,978			—			33,378,978
Goodwill		—			16,512,680			—			16,512,680
Intangible assets		—			5,668,611			—			5,668,611
Total assets		596,553,227			194,700,643			1,144,735			792,398,605