RESIDENTIAL MORTGAGE LOAN SECURITIZATION TRUSTS

3 Months Ended

Mar. 31, 2016

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 $28,860,029 at March 31, 2016.

 

The condensed consolidated balance sheet of the residential mortgage loan securitization trusts at March 31, 2016 and December 31, 2015 is set out below:

Balance Sheets	March 31, 2016		December 31, 2015
Assets
Residential mortgage loans held in securitization trusts	$	396,542,860	$	411,881,097
Receivables		1,360,176		1,446,120
Total assets	$	397,903,036	$	413,327,217
Liabilities and Equity
Residential securitized debt obligations	$	367,958,982	$	380,638,423
Payables		1,084,025		1,153,053
	$	369,043,007	$	381,791,476
Equity		28,860,029		31,535,741
Total liabilities and equity	$	397,903,036	$	413,327,217

The residential mortgage loans held in securitization trusts had an unpaid principal balance of $387,412,787 at March 31, 2016 and $411,650,562 at December 31, 2015. The residential mortgage loan securitized debt obligations had an unpaid principal balance of $387,412,787 at March 31, 2016 and $411,650,562 at December 31, 2015.

 

The condensed consolidated statements of operations of the residential mortgage loan securitization trusts at March 31, 2016 and December 31, 2015 are as follows:

Statements of Operation	Three Months Ended March 31, 2016		Three Months Ended March 31, 2015
Interest income	$	4,152,406	$	5,891,779
Interest expense		3,178,442		3,655,469
Net interest income	$	973,964	$	2,236,310
General and administrative fees		(132,418)		(241,195)
Unrealized gain (loss) on multi-family loans held in securitization trusts		(2,554,077)		(3,356,407)
Net Income	$	(1,712,531)	$	(1,361,292)

The geographic concentrations of credit risk exceeding 5% of the total loan balances related to the residential mortgage loan securitization trusts as of March 31, 2016 are as follows:

	March 31, 2016
California		47.9	%
Washington		12.7	%
Massachusetts		5.4	%