NOTE 10 – REPURCHASE AGREEMENTS

The Company has entered into repurchase agreements (including three residential loan warehouse facilities) to finance its portfolio of investments. The aggregate borrowing limit of the residential loan warehouse facilities was $375 million at December 31, 2014. The repurchase agreements bear interest at a contractually agreed rate. The repurchase obligations mature and typically reinvest every thirty days to one year and have a weighted average aggregate interest rate of 0.99% at December 31, 2014. Repurchase agreements are being accounted for as secured borrowings since the Company maintains effective control of the financed assets. The following table summarizes certain characteristics of the Company’s repurchase agreements at December 31, 2014 and December 31, 2013:

	December 31, 2014					December 31, 2013
			Weighted					Weighted
	Amount		average			Amount		average
	outstanding		interest rate			outstanding		interest rate
Agency	$	298,783,000		0.36	%	$	370,901,000		0.40	%
Non-Agency ⁽¹⁾		200,347,000		1.25	%		41,271,000		2.09	%
Multi-Family ⁽²⁾		45,484,000		1.85	%		-		0.00	%
Mortgage loans		50,263,852		2.86	%		-		0.00	%
Total	$	594,877,852		0.99	%	$	412,172,000		0.57	%

(1)

At December 31, 2014 and December 31, 2013, the Company had repurchase agreements of $85,497,000 and $61,181,000, respectively, that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3).

(2)

At December 31, 2014, the Company had repurchase agreements of $63,796,000 that were linked to Multi-Family MBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3).

At December 31, 2014 and December 31, 2013, the repurchase agreements, including residential loan warehouse facilities, had the following remaining maturities:

	December 31, 2014		December 31, 2013
< 30 days	$	465,817,820	$	373,422,000
31 to 60 days		86,025,327		38,750,000
> 90 days		43,034,705		-
Total	$	594,877,852	$	412,172,000

Under the repurchase agreements (including residential loan warehouse facilities), the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets would require the Company to provide additional collateral or fund margin calls. In addition, the repurchase agreements are subject to certain financial covenants. The Company is in compliance with these covenants as of December 31, 2014.

The following tables summarize certain characteristics of the Company’s repurchase agreements at December 31, 2014 and December 31, 2013:

	December 31, 2014
			Percent of total			Weighted average		Market Value
Repurchase Agreement Counterparties	Amount Outstanding ⁽¹⁾		amount outstanding			days to maturity		of collateral held
North America	$	388,138,820		65.25	%		19	$	463,615,686
Europe ⁽²⁾		93,350,032		15.69	%		21		113,286,452
Asia ⁽²⁾		113,389,000		19.06	%		122		118,519,817
Total	$	594,877,852		100.00	%		36	$	695,421,955

(1) At December 31, 2014, the Company had repurchase agreements of $85,497,000 and $63,796,000 that were linked to Non-Agency RMBS and Multi-Family MBS purchases, respectively, and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3).

(2) Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries.

	December 31, 2013
			Percent of total			Weighted average		Company RMBS
Repurchase Agreement Counterparties	Amount Outstanding ⁽¹⁾		amount outstanding			days to maturity		held as collateral
North America	$	261,289,000		63.39	%		20	$	277,808,885
Asia ⁽²⁾		97,491,000		23.65	%		12		106,949,627
Europe ⁽²⁾		53,392,000		12.96	%		21		60,226,443
Total	$	412,172,000		100.00	%		18	$	444,984,955

(1) At December 31, 2013, the Company had repurchase agreements of $61,181,000 that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3).

(2) Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries.