RESIDENTIAL MORTGAGE LOAN SECURITIZATION TRUSTS

12 Months Ended

Dec. 31, 2014

Residential Mortgage [Member]

Variable Interest Entity [Line Items]

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 carrying value of $128,914,329 at December 31, 2014.

The combined balance sheet of the residential mortgage loan securitization trusts at December 31, 2014:

Balance Sheet	December 31, 2014
Assets
Residential mortgage loans held in securitization trusts	$	631,446,984
Receivables		2,030,045
Total assets	$	633,447,029
Liabilities and Equity
Residential securitized debt obligations	$	502,900,040	(1)
Payables		1,662,660
	$	504,562,700
Equity		128,914,329
Total liabilities and equity	$	633,477,029

(1) Includes $70,864,063 of residential securitized debt obligations sold but not settled as of December 31, 2014.

The residential mortgage loans held in securitization trusts had an unpaid principal balance of $606,835,758 at December 31, 2014. The residential mortgage loan securitized debt obligations had an unpaid principal balance of $606,835,758 at December 31, 2014.

The consolidated statements of operations of the residential mortgage loan securitization trusts at December 31, 2014 are as follows:

	For the period  from
	date of consolidation to
Statements of Operation	December 31,  2014 *
Interest income	$	4,438,633
Interest expense		(3,575,168)
Net interest income	$	863,465
General and administrative fees		(44,267)
Unrealized gain (loss) on residential mortgage loans held in securitization trusts		3,059,647
Net Income	$	3,878,845

* The Company consolidated the first trust in October, 2014, and the second trust in December, 2014.

The geographic concentrations of credit risk exceeding 5% of the total loan balances related to the residential mortgage loan securitization trusts as of December 31, 2014:

	December 31, 2014
California		52.5	%
Washington		10.9	%
Massachusetts		7.3	%