THE FREMF TRUSTS (FREMF trusts [Member])

3 Months Ended

Mar. 31, 2015

FREMF trusts [Member]

Balance Sheet

Variable Interest Entity Disclosure [Text Block]

NOTE 6 – THE FREMF TRUSTS

The Company has elected the fair value option on the assets and liabilities of the FREMF 2011-K13 Trust and the FREMF 2012-KF01 Trust, which requires that changes in valuations of the trusts be reflected in the Company’s statements of operations. The Company’s net investment in the trusts is limited to the Multi-Family MBS comprised of first loss PO securities and IO securities acquired by the Company in 2014 with an aggregate net carrying value of $81,970,663 at March 31, 2015.

The combined consolidated balance sheet of the FREMF trusts at March 31, 2015:

Balance Sheet	March 31, 2015
Assets
Multi-family mortgage loans held in securitization trusts	$	1,671,260,380
Receivables		5,909,867
Total assets	$	1,677,170,247
Liabilities and Equity Multi-family securitized debt obligations	$	1,589,502,264
Payables		5,697,320
	$	1,595,199,584
Equity		81,970,663
Total liabilities and equity	$	1,677,170,247

The multi-family mortgage loans held in securitization trusts had an unpaid principal balance of $1,547,683,642 at March 31, 2015. The multi-family securitized debt obligations had an unpaid principal balance of $1,547,683,642 at March 31, 2015.

The combined consolidated statements of operations of the FREMF trusts at March 31, 2015 are as follows:

	For the period from January 1, 2015 to
Statement of Operations	March 31, 2015
Interest income	$	17,635,476
Interest expense		16,135,460
Net interest income	$	1,500,016
General and administrative fees		(868,347)
Unrealized gain (loss) on multi-family loans held in securitization trusts		2,037,111
Net Income	$	2,668,780

The geographic concentrations of credit risk exceeding 5% of the total loan balances related to the FREMF trusts as of March 31, 2015:

	March 31, 2015
Texas		19.6	%
California		12.2	%
New York		11.7	%
Washington		6.4	%
Colorado		6.3	%
Georgia		5.3	%