XML 15 R1.htm IDEA: XBRL DOCUMENT v3.10.0.1
Document And Entity Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2016
Mar. 15, 2017
Jun. 30, 2016
Document Information [Line Items]      
Document Type 10-K    
Amendment Description As used in this Amendment No. 2 on Form 10-K/A for the fiscal year ended December 31, 2016 (the "Form 10-K/A"), the terms "Company", "our" or "we" refer to Hunt Companies Finance Trust, Inc. (formerly known as Five Oaks Investment Corp.), a Maryland Corporation. This Form 10-K/A amends the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as originally filed with the Securities and Exchange Commission ("SEC") on March 16, 2017 (the "Original Filing"), as well as Amendment No. 1 on Form 10-K/A to the Original Filing, as filed with the SEC on June 14, 2017. This Form 10-K/A is being filed to restate our audited consolidated financial statements for the fiscal year ended December 31, 2016 and to make related revisions to certain other disclosures in the Original Filing. As previously disclosed in our Current Report on Form 8-K filed November 6, 2018, the restatement of our financial statements in this Form 10-K/A reflects the correction of certain identified errors relating to incorrectly reported unrealized losses on Residential Mortgage Back Securities ("RMBS") Interest Only Certificates ("RMBS IOs") upon our deconsolidation of the JPMMT 2014-OAK4 Trust and an incorrectly reported release of credit reserves relating to certain RMBS upon their sale in 2016. The unrealized losses on the RMBS IOs were incorrectly reported through other comprehensive income (loss) instead of through unrealized gain (loss) on fair value options securities for the fiscal year ended December 31, 2016. The release of credit reserves was incorrectly reported through other comprehensive income (loss) instead of through our consolidated statement of operations for the fiscal year ended December 31, 2016. While having no impact on total stockholders' equity, as a result of these errors, accumulated other comprehensive income (loss) and accumulated earnings (deficit) were incorrectly stated by equal and offsetting amounts in our consolidated balance sheet as of December 31, 2016. Further explanation regarding the restatement is set forth in Note 21 to the audited consolidated financial statements included in this Form 10-K/A. The following sections in the Original Filing (and in Amendment No. 1 in the case of Part IV – Item 15) are revised in this Form 10-K/A to reflect the restatement: • Part I – Item 1A – Risk Factors • Part II – Item 6 – Selected Financial Data • Part II – Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations • Part II – Item 8 – Financial Statements and Supplementary Data • Part II – Item 9A – Controls and Procedures • Part IV – Item 15 – Exhibits, Financial Statements and Schedules Our principal executive officer and principal financial officer have also provided new certifications as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. The certifications are included in this Form 10-K/A as Exhibits 31.1, 31.2, 32.1 and 32.2. For the convenience of the reader, this Form 10-K/A sets forth the information in the Original Filing in its entirety; as such information, as well as the information in Amendment No. 1, are modified and superseded where necessary to reflect the restatement and other revisions. Except as provided above, this Amendment No. 2 does not reflect events occurring after the filing of the Original Filing and does not amend or otherwise update any information in the Original Filing. Accordingly, this Form 10-K/A should be read in conjunction with our filings with the SEC subsequent to the date on which we filed the Original Filing with the SEC. Unless the context otherwise indicates or requires, as used in this Annual Report on Form 10-K, references to: • "Agency" means each of Federal National Mortgage Association, or Fannie Mae, Federal Home Loan Mortgage Corporation, or Freddie Mac, and the Government National Mortgage Association, a wholly owned corporate instrumentality of the United States of America within the U.S. Department of Housing and Urban Development, or Ginnie Mae. • "Agency RMBS" means mortgage-backed securities that are collateralized by residential mortgages, or RMBS, whose principal and interest payments are guaranteed by Ginnie Mae or a U.S. Government-sponsored entity, or GSE, such as Freddie Mac or Fannie Mae. These securities may be either "pass through" securities, where cash flows from the underlying mortgage loan pool are paid to holders of the securities on a pro rata basis, or securities structured from "pass through" securities, as to which cash flows are redirected in various priorities, which we refer to as a collateralized mortgage obligation. • "ARMs" means adjustable-rate residential mortgage loans. • "Company," "we," "us," or "our" refers to Five Oaks Investment Corp., together with its wholly owned, subsidiaries, Five Oaks Acquisition Corp., Five Oaks Insurance LLC, Oaks Funding LLC, Oaks Funding II LLC and Oaks Holding I LLC unless we specifically state otherwise or the context indicates otherwise. • "credit enhancement" means techniques to improve the credit ratings of securities, including overcollateralization, creating retained spread, creating subordinated tranches and insurance. • "FHFA" means the Federal Housing Finance Agency. • "hybrid ARMs" means residential mortgage loans that have interest rates that are fixed for a specified period of time (typically three, five, seven or ten years) and, thereafter, adjust to an increment over a specified interest rate index. • "K-Series" means multi-family mortgage loan securitizations sponsored by Freddie Mac. • "Linked Transaction" means the initial purchase of RMBS securities and contemporaneous financing with a repurchase agreement with the same counterparty from which the securities were purchased. • "mortgage loans" means loans secured by real estate with a right to receive the payment of principal and interest on the loan (including servicing fees). • "Multi-Family MBS" means a mortgage-backed securities, or MBS, investment in a securitization backed by multi-family mortgage loans. Such Multi-Family MBS may be sponsored by Fannie Mae, Freddie Mac or Ginnie Mae, or may not be sponsored by Ginnie Mae or a U.S. Government-sponsored entity such as Freddie Mac or Fannie Mae. • "Non-Agency RMBS" means RMBS that are not issued or guaranteed by Ginnie Mae or a U.S. Government-sponsored entity such as Freddie Mac or Fannie Mae, including investment grade classes (rated AAA through BBB), non-investment grade classes (rated BB or lower) and unrated classes. • "Oak Circle" or "our Manager" means Oak Circle Capital Partners LLC. • "swaption" means an option in which the buyer has the right to enter into an interest rate swap. • "TBAs" means to-be-announced forward contracts. In a TBA, a buyer will agree to purchase, for future delivery, Agency mortgage investments with certain principal and interest terms and certain types of underlying collateral, but the particular Agency mortgage investments to be delivered are not identified until shortly before the TBA settlement date. • "VIE" means a variable interest entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. We consolidate a VIE when we are the primary beneficiary of such VIE. As primary beneficiary, we have both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. We are required to reconsider our evaluation of whether to consolidate a VIE each reporting period, based upon changes in the facts and circumstances pertaining to the VIE. • "whole pool" means MBS issued with respect to an underlying pool of mortgage loans in which a buyer holds all of the certificates issued by a pool.    
Amendment Flag true    
Document Period End Date Dec. 31, 2016    
Document Fiscal Year Focus 2016    
Document Fiscal Period Focus FY    
Entity Registrant Name Hunt Companies Finance Trust, Inc.    
Entity Central Index Key 0001547546    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Accelerated Filer    
Entity Public Float     $ 61.5
Trading Symbol HCFT    
Entity Common Stock, Shares Outstanding   17,539,258  
Entity Shell Company false    
Entity Emerging Growth Company false    
Entity Small Business false