THE FREMF TRUSTS

6 Months Ended

Jun. 30, 2015

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 $83,774,135 at June 30, 2015.

The condensed consolidated balance sheet of the FREMF trusts at June 30, 2015 and December 31, 2014:

	June 30, 2015		December 31, 2014
Balance Sheet
Assets
Multi-family mortgage loans held in securitization trusts	$	1,620,066,565	1,750,294,430
Receivables		5,634,804	6,012,642

Total assets	$	1,625,701,369	1,756,307,072

Liabilities and Equity
Multi-family securitized debt obligations	$	1,536,502,579	1,670,573,456
Payables		5,424,655	5,800,065
	$	1,541,927,234	1,676,373,521
Equity		83,774,135	79,933,551

Total liabilities and equity	$	1,625,701,369	1,756,307,072

The multi-family mortgage loans held in securitization trusts had an unpaid principal balance of $1,512,710,609 at June 30, 2015 and $1,637,721,473 at December 31, 2014. The multi-family securitized debt obligations had an unpaid principal balance of $1,512,710,609 at June 30, 2015 and $1,637,721,473 at December 31, 2014.

The condensed consolidated statements of operations of the FREMF trusts for the three and six months ended June 30, 2015 and June 30, 2014 are as follows:

	Three Months Ended		Three Months Ended
	June 30, 2015		June 30, 2014
Statement of Operations
Interest income	$	17,249,728	-
Interest expense		15,778,321	-
Net interest income	$	1,471,407	-
General and administrative fees		(838,544)	-
Unrealized gain (loss) on multi-family loans held in securitization trusts		1,803,473	-
Net Income	$	2,436,336	-

	Six Months Ended June 30, 2015		Six Months Ended June 30, 2014
Statement of Operations
Interest income	$	34,885,204		-
Interest expense		31,913,781		-
Net interest income	$	2,971,423		-
General and administrative fees		(1,706,891)		-
Unrealized gain (loss) on multi-family loans held in securitization trusts		3,840,584		-
Net Income	$	5,105,116		-

The geographic concentrations of credit risk exceeding 5% of the total loan balances related to the FREMF trusts as of June 30, 2015:

	June 30, 2015
Texas		20.0	%
New York		12.0	%
California		11.1	%
Washington		6.5	%
Colorado		5.8	%
Georgia		5.4	%