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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables)
 9 Months Ended
Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]
FIVE OAKS INVESTMENT CORP. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
 
  
September 30, 2016
 
  
As previously
reported
  
Restatement
adjustments
  
As restated
 
  
(unaudited)
  
(unaudited)
  
 (unaudited)
 
ASSETS
            
Available-for-sale securities, at fair value (includes pledged securities of $822,403,355 for September 30, 2016) $817,394,805  $-  $817,394,805 
Mortgage loans held-for-sale, at fair value (includes pledged loans of $8,754,039 for September 30, 2016)  9,274,002   -   9,274,002 
Multi-family loans held in securitization trusts, at fair value  1,267,101,902   -   1,267,101,902 
Residential loans held in securitization trusts, at fair value  153,356,678   -   153,356,678 
Mortgage servicing rights, at fair value  3,025,433   -   3,025,433 
Cash and cash equivalents  28,590,557   -   28,590,557 
Restricted cash  14,083,241   -   14,083,241 
Accrued interest receivable  7,650,823   -   7,650,823 
Dividends receivable  123   -   123 
Investment related receivable  4,131,073   -   4,131,073 
FHLB stock  11,300   -   11,300 
Other assets  954,507   -   954,507 
             
Total assets $2,305,574,444  $-  $2,305,574,444 
             
LIABILITIES AND STOCKHOLDERS' EQUITY
            
             
LIABILITIES:
            
Repurchase agreements:            
Available-for-sale securities $739,500,000  $-  $739,500,000 
Mortgage loans held-for-sale  7,125,821   -   7,125,821 
Multi-family securitized debt obligations  1,249,163,769   -   1,249,163,769 
Residential securitized debt obligations  147,407,885   -   147,407,885 
Derivative liabilities, at fair value  4,613,988   -   4,613,988 
Accrued interest payable  5,363,603   -   5,363,603 
Dividends payable  29,349   -   29,349 
Deferred income  6,905   -   6,905 
Fees and expenses payable to Manager  691,187   -   691,187 
Other accounts payable and accrued expenses  2,062,910   -   2,062,910 
             
Total liabilities  2,155,965,417   -   2,155,965,417 
             
STOCKHOLDERS' EQUITY:
            
Preferred Stock: par value $0.01 per share; 50,000,000 shares authorized, 8.75% Series A cumulative redeemable, $25 liquidation preference, 1,610,000 issued and outstanding at September 30, 2016  37,156,972   -   37,156,972 
Common Stock: par value $0.01 per share; 450,000,000 shares authorized, 14,602,394 shares issued and outstanding, at September 30, 2016  145,979   -   145,979 
Additional paid-in capital  188,783,581   -   188,783,581 
Accumulated other comprehensive income (loss)  2,018,361   3,369,190   5,387,551 
Cumulative distributions to stockholders  (66,320,787)  -   (66,320,787)
Accumulated earnings (deficit)  (12,175,079)  (3,369,190)  (15,544,269)
             
Total stockholders' equity  149,609,027   -   149,609,027 
             
Total liabilities and stockholders' equity $2,305,574,444  $-  $2,305,574,444 
 
FIVE OAKS INVESTMENT CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
 
 
  
Three Months Ended September 30, 2016
  
Nine Months Ended September 30, 2016
 
  
As previously
reported
  
Restatement
adjustments
  
As restated
  
As previously
reported
  
Restatement
adjustments
  
As restated
 
  
(unaudited)
  
(unaudited)
  
 (unaudited)
  
(unaudited)
  
(unaudited)
  
 (unaudited)
 
                   
Revenues:
                        
Interest income:
                        
Available-for-sale securities
 
$
6,549,869
  
$
-
  
$
6,549,869
  
$
16,780,701
  
$
-
  
$
16,780,701
 
Mortgage loans held-for-sale
  
121,892
   
-
   
121,892
   
411,199
   
-
   
411,199
 
Multi-family loans held in securitization trusts
  
14,466,946
   
-
   
14,466,946
   
44,597,652
   
-
   
44,597,652
 
Residential loans held in securitization trusts
  
1,582,090
   
-
   
1,582,090
   
9,143,343
   
-
   
9,143,343
 
Cash and cash equivalents
  
11,754
   
-
   
11,754
   
26,409
   
-
   
26,409
 
Interest expense:
                        
Repurchase agreements - available-for-sale securities
  
(1,572,062
)
  
-
   
(1,572,062
)
  
(4,400,290
)
  
-
   
(4,400,290
)
Repurchase agreements - mortgage loans held-for-sale
  
(57,449
)
  
-
   
(57,449
)
  
(227,733
)
  
-
   
(227,733
)
Multi-family securitized debt obligations
  
(13,740,005
)
  
-
   
(13,740,005
)
  
(41,667,457
)
  
-
   
(41,667,457
)
Residential securitized debt obligations
  
(1,210,186
)
  
-
   
(1,210,186
)
  
(6,978,474
)
  
-
   
(6,978,474
)
Net interest income
  
6,152,849
   
-
   
6,152,849
   
17,685,350
   
-
   
17,685,350
 
                         
Other-than-temporary impairments
                        
Increase in credit reserves
  
(374,124
)
  
354,334
   
(19,790
)
  
(541,342
)
  
354,334
   
(187,008
)
Additional other-than-temporary credit impairment losses
  
(183,790
)
  
-
   
(183,790
)
  
(183,790
)
  
-
   
(183,790
)
Total impairment losses recognized in earnings
  
(557,914
)
  
354,334
   
(203,580
)
  
(725,132
)
  
354,334
   
(370,798
)
                         
Other income:
                        
Realized gain (loss) on sale of investments, net
  
(749,604
)
  
-
   
(749,604
)
  
(3,361,609
)
  
-
   
(3,361,609
)
Change in unrealized gain (loss) on fair value option securities
  
(958,995
)
  
-
   
(958,995
)
  
(3,569,744
)
  
(3,723,524
)
  
(7,293,268
)
Realized gain (loss) on derivative contracts, net
  
(820,974
)
  
-
   
(820,974
)
  
(3,167,877
)
  
-
   
(3,167,877
)
Change in unrealized gain (loss) on derivative contracts, net
  
3,340,600
   
-
   
3,340,600
   
(7,172,338
)
  
-
   
(7,172,338
)
Realized gain (loss) on mortgage loans held-for-sale
  
60,427
   
-
   
60,427
   
129,175
   
-
   
129,175
 
Change in unrealized gain (loss) on mortgage loans held-for-sale
  
(138,785
)
  
-
   
(138,785
)
  
(2,885
)
  
-
   
(2,885
)
Change in unrealized gain (loss) on mortgage service rights
  
(204,505
)
  
-
   
(204,505
)
  
(1,243,240
)
  
-
   
(1,243,240
)
Change in unrealized gain (loss) on multi-family loans held in securitization trusts
  
930,312
   
-
   
930,312
   
(5,604,839
)
  
-
   
(5,604,839
)
Change in unrealized gain (loss) on residential loans held in securitization trusts
  
(764,599
)
  
-
   
(764,599
)
  
80,511
   
-
   
80,511
 
Tax interest expense
  
(1,860,000
)
  
-
   
(1,860,000
)
  
(1,860,000
)
  
-
   
(1,860,000
)
Servicing income
  
258,458
   
-
   
258,458
   
726,011
   
-
   
726,011
 
Other income
  
3
   
-
   
3
   
26,811
   
-
   
26,811
 
Total other income (loss)
  
(907,662
)
  
-
   
(907,662
)
  
(25,020,024
)
  
(3,723,524
)
  
(28,743,548
)
                         
Expenses:
                        
Management fee
  
623,525
   
-
   
623,525
   
1,873,486
   
-
   
1,873,486
 
General and administrative expenses
  
1,171,421
   
-
   
1,171,421
   
4,483,064
   
-
   
4,483,064
 
Operating expenses reimbursable to Manager
  
1,184,391
   
-
   
1,184,391
   
3,573,445
   
-
   
3,573,445
 
Other operating expenses
  
161,036
   
-
   
161,036
   
1,393,303
   
-
   
1,393,303
 
Compensation expense
  
50,544
   
-
   
50,544
   
144,431
   
-
   
144,431
 
Total expenses
  
3,190,917
   
-
   
3,190,917
   
11,467,729
   
-
   
11,467,729
 
Net income (loss)
  
1,496,356
   
354,334
   
1,850,690
   
(19,527,535
)
  
(3,369,190
)
  
(22,896,725
)
Dividends to preferred stockholders
  
(880,509
)
  
-
   
(880,509
)
  
(2,631,744
)
  
-
   
(2,631,744
)
Net income (loss) attributable to common stockholders
 
$
615,847
  
$
354,334
  
$
970,181
  
$
(22,159,279
)
 
$
(3,369,190
)
 
$
(25,528,469
)
                         
Earnings (loss) per share:
                        
Net income attributable to common stockholders (basic and diluted)
 
$
615,847
  
$
354,334
  
$
970,181
  
$
(22,159,279
)
 
$
(3,369,190
)
 
$
(25,528,469
)
Weighted average number of shares of common stock outstanding
  
14,600,193
   
14,600,193
   
14,600,193
   
14,601,306
   
14,601,306
   
14,601,306
 
Basic and diluted income per share
 
$
0.04
  
$
0.02
  
$
0.07
  
$
(1.52
)
 
$
(0.23
)
 
$
(1.75
)
Dividends declared per share of common stock
 
$
0.18
  
$
-
  
$
0.18
  
$
0.54
  
$
-
  
$
0.54
 
 
FIVE OAKS INVESTMENT CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Loss)
 
  
Three Months Ended September 30, 2016
  
Nine Months Ended September 30, 2016
 
  
As previously
reported
  
Restatement
adjustments
  
As restated
  
As previously
reported
  
Restatement
adjustments
  
As restated
 
  
(unaudited)
  
(unaudited)
  
(unaudited) 
  
(unaudited)
  
(unaudited)
  
 (unaudited)
 
Net income (loss)
 
$
1,496,356
  
$
354,334
  
$
1,850,690
  
$
(19,527,535
)
 
$
(3,369,190
)
 
$
(22,896,725
)
                         
Other comprehensive income (loss):
                        
Increase (decrease) in net unrealized gain on available-for-sale securities, net
  
(979,421
)
  
-
   
(979,421
)
  
8,396,200
   
3,723,524
   
12,119,724
 
Reclassification adjustment for net gain (loss) included in net income
  
23,914
   
-
   
23,914
   
(6,523,410
)
  
-
   
(6,523,410
)
Reclassification adjustment for other-than-temporary impairments included in net income
  
374,124
   
(354,334
)
  
19,790
   
541,342
   
(354,334
)
  
187,008
 
Total other comprehensive income (loss)
  
(581,383
)
  
(354,334
)
  
(935,717
)
  
2,414,132
   
3,369,190
   
5,783,322
 
Less: Dividends to preferred stockholders
  
(880,509
)
  
-
   
(880,509
)
  
(2,631,744
)
  
-
   
(2,631,744
)
Comprehensive income (loss) attributable to common stockholders
 
$
34,464
  
$
-
  
$
34,464
  
$
(19,745,147
)
 
$
-
  
$
(19,745,147
)
 
FIVE OAKS INVESTMENT CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
 
  
September 30, 2016
 
  
As previously
reported
  
Restatement
adjustments
  
As restated
 
  
(unaudited)
  
(unaudited)
  
 (unaudited)
 
Cash flows from operating activities:
            
Net income (loss) $(19,527,535) $(3,369,190) $(22,896,725)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:            
Other-than-temporary impairment charges  725,132   (354,334)  370,798 
Amortization/accretion of available-for-sale securities premiums and discounts, net  (5,257,442)  -   (5,257,442)
Realized (gain) loss on sale of investments, net  3,361,609   -   3,361,609 
Realized (gain) loss on derivative contracts  3,167,877   -   3,167,877 
Realized (gain) loss on mortgage loans held-for-sale  (129,175)  -   (129,175)
Unrealized (gain) loss on fair value option securities  3,569,744   3,723,524   7,293,268 
Unrealized (gain) loss on derivative contracts  7,172,338   -   7,172,338 
Unrealized (gain) loss on mortgage loans held-for-sale  2,885   -   2,885 
Unrealized gain (loss) on mortgage service rights  1,243,240   -   1,243,240 
Unrealized (gain) loss on multi-family loans held in securitization trusts  5,604,839   -   5,604,839 
Unrealized (gain) loss on residential loans held in securitization trusts  (80,511)  -   (80,511)
Restricted stock compensation expense  29,014   -   29,014 
Net change in:            
Accrued interest receivable  (672,852)  -   (672,852)
Dividends receivable  25,899   -   25,899 
Other assets  (424,039)  -   (424,039)
Accrued interest payable  (43,909)  -   (43,909)
Deferred income  6,905   -   6,905 
Fees and expenses payable to Manager  (151,716)  -   (151,716)
Other accounts payable and accrued expenses  1,795,403   -   1,795,403 
Net cash provided by operating activities  417,706   -   417,706 
             
Cash flows from investing activities:
            
Purchase of available-for-sale securities  (454,443,440)  -   (454,443,440)
Purchase of mortgage loans held-for-sale  (14,772,535)  -   (14,772,535)
Proceeds from sales of available-for-sale securities  230,557,084   -   230,557,084 
Proceeds from mortgage loans held-for-sale  16,289,603   -   16,289,603 
Proceeds from FHLBI stock  2,391,700   -   2,391,700 
Net proceeds from (payments for) derivative contracts  (3,167,877)  -   (3,167,877)
Principal payments from available-for-sale securities  66,007,840   -   66,007,840 
Principal payments from mortgage loans held-for-sale  235,622   -   235,622 
Investment related receivable  (2,539,730)  -   (2,539,730)
Restricted cash  (5,908,603)  -   (5,908,603)
Net cash used in investing activities  (165,350,336)  -   (165,350,336)
             
Cash flows from financing activities:
            
Net proceeds from issuance of common stock  (283,565)  -   (283,565)
Dividends paid on common stock  (7,885,803)  -   (7,885,803)
Dividends paid on preferred stock  (2,641,527)  -   (2,641,527)
Proceeds from repurchase agreements - available-for-sale securities  5,603,428,000   -   5,603,428,000 
Proceeds from repurchase agreements - mortgage loans held-for-sale  16,405,081   -   16,405,081 
Payments for FHLBI advances  (49,697,000)  -   (49,697,000)
Principal repayments of repurchase agreements - available-for-sale securities  (5,373,159,000)  -   (5,373,159,000)
Principal repayments of repurchase agreements - mortgage loans held-for-sale  (18,783,717)  -   (18,783,717)
Net cash provided by financing activities  167,382,469   -   167,382,469 
Net increase (decrease) in cash and cash equivalents  2,449,839   -   2,449,839 
Cash and cash equivalents, beginning of period  26,140,718   -   26,140,718 
Cash and cash equivalents, end of period $28,590,557  $-  $28,590,557 
             
Supplemental disclosure of cash flow information
            
Cash paid for interest $4,671,932  $-  $4,671,932 
             
Non-cash investing and financing activities information
            
Restricted stock compensation expense $29,014  $-  $29,014 
Dividends declared but not paid at end of period $29,349  $-  $29,349 
Net change in unrealized gain (loss) on available-for-sale securities $2,414,131  $3,369,190  $5,783,321 
Consolidation of multi-family loans held in securitization trusts $1,271,754,540  $-  $1,271,754,540 
Consolidation of residential loans held in securitization trusts $153,858,101  $-  $153,858,101 
Consolidation of multi-family securitized debt obligations $1,253,797,808  $-  $1,253,797,808 
Consolidation of residential securitized debt obligations $147,807,489  $-  $147,807,489