RESIDENTIAL MORTGAGE LOAN SECURITIZATION TRUSTS

6 Months Ended

Jun. 30, 2015

Variable Interest Entity Disclosure [Text Block]

NOTE 7 – RESIDENTIAL MORTGAGE LOAN SECURITIZATION TRUSTS

The Company has elected the fair value option on the assets and liabilities of the CSMC 2014-OAK1 Trust and the JPMMT 2014-OAK4 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 Non-Agency RMBS comprised of subordinated and first loss securities, IO securities and excess servicing rights acquired by the Company in 2014 with an aggregate net fair value of $117,054,614 at June 30, 2015.

The condensed consolidated balance sheet of the residential mortgage loan securitization trusts at June 30, 2015 and December 31, 2014:

	June 30, 2015		December 31, 2014
Balance Sheet
Assets
Residential mortgage loans held in securitization trusts	$	472,629,816		631,446,984
Receivables		1,576,063		2,030,045

Total assets	$	474,205,879		633,477,029

Liabilities and Equity
Residential securitized debt obligations	$	356,104,980		502,900,040
Payables		1,046,285		1,662,660
	$	357,151,265		504,562,700
Equity		117,054,614		128,914,329

Total liabilities and equity	$	474,205,879		633,477,029

The residential mortgage loans held in the securitization trusts had an unpaid principal balance of $460,636,416 at June 30, 2015 and $608,858,758 at December 31, 2014. The residential mortgage loan securitized debt obligations had an unpaid principal balance of $460,636,416 at June 30, 2015 and $608,858,758 at December 31, 2014.

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

	Three Months Ended June 30, 2015		Three Months Ended June 30, 2014
Statement of Operations
Interest income	$	5,039,380	-
Interest expense		3,102,240	-
Net interest income	$	1,937,140	-
General and administrative fees		(107,325)	-
Unrealized gain (loss) on residential loans held in securitization trusts		(2,975,804)	-
Net Income	$	(1,145,989)	-

	Six Months Ended		Six Months Ended
	June 30, 2015		June 30, 2014
Statement of Operations
Interest income	$	10,931,159		-
Interest expense		6,757,709		-
Net interest income	$	4,173,450		-
General and administrative fees		(348,520)		-
Unrealized gain (loss) on residential loans held in securitization trusts		(6,332,205)		-
Net Income	$	(2,507,275)		-

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

	June 30, 2015
California		48.6	%
Washington		13.0	%
Massachussetts		5.5	%