SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2016

NOTE 19 – SUBSEQUENT EVENTS

On April 25, 2016, the Company completed a re-securitization (via a re-REMIC transaction) of the BAMLL Re-REMIC Trust 2014-FRR7, a security backed by the first-loss Class C tranche of FREMF 2012-KF01, a Multi-Family MBS transaction issued by Freddie Mac. Pursuant to the transaction, the Company sold securities with a certificate principal balance of $32.1 million to Oaks Re-REMIC Trust 2016-FRR7C (the “FRR7C Trust”); the FRR7C Trust, in turn, sold senior Class A securities to one or more third party investors, and junior Class B securities to Oaks Holding I LLC, a wholly owned subsidiary of the Company. By virtue of the purchase of the Class B certificates in the FRR7C Trust, the Company expects to continue consolidating the FREMF 2012-KF01 transaction.

On April 21, 2016, the Company also sold the Class C certificates issued by FREMF 2011-K13 Mortgage Trust, another Multi-Family MBS transaction issued by Freddie Mac, with a certificate principal balance of approximately $79.7 million, and certain interest-only certificates with a notional balance of approximately $922 million. The certificates were contributed to BAMLL Re-REMIC Trust 2016-FRR14, which then issued a series of certificates to investors; Oaks Holding I purchased the junior Class D certificates, and as a consequence, the Company expects to continue consolidating the FREMF 2011-K13 Mortgage Trust.