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MSRs
 12 Months Ended
Dec. 31, 2016
Mortgage Servicing Rights MSR Disclosure [Abstract]  
Mortgage Servicing Rights MSR Disclosure [Text Block]
NOTE 12 - MSRs
 
During the year ended December 31, 2016, the Company retained the servicing rights associated with an aggregate principal balance of $397,925,409 of residential mortgage loans that the Company had previously transferred to four residential mortgage loan securitization trusts. The Company’s MSRs are held and managed at the Company’s TRS, and the Company employs one or more licensed sub-servicers to perform the related servicing activities. To the extent that the Company determines it is the primary beneficiary of a residential mortgage loan securitization trust into which it has sold loans, any associated MSRs are eliminated on the consolidation of the trust. The trust is contractually obligated to pay a portion of the interest payments from the associated residential mortgage loans for the direct servicing of the loans, and after deduction of sub-servicing fees payable to contracted sub-servicers, the net amount, excess servicing rights, represents a liability of the trust. Upon consolidation of the trust, the fair value of the excess servicing rights is equal to the related MSRs held at the Company’s TRS. As a result of the Company’s determination that it is not the primary beneficiary of OAKS Mortgage Trust 2015-1 and OAKS Mortgage Trust 2015-2, it does not consolidate these trusts, and as a consequence, MSRs associated with these trusts are recorded on the Company’s consolidated balance sheet at December 31, 2016. In addition, the Company previously consolidated the assets and liabilities of the JPMMT 2014-OAK4 Trust, but based on the sale of subordinated and first loss securities during the second quarter of 2016, has determined that it is no longer the primary beneficiary of the trust, and accordingly no longer consolidates its assets and liabilities. As a consequence, MSRs associated with this trust are now recorded on the Company’s consolidated balance sheet at December 31, 2016.
 
The following table presents the Company’s MSR activity as of December 31, 2016 and the year ended December 31, 2015:
 
 
 
December 31, 2016
 
 
December 31, 2015
 
Balance at beginning of year
 
$
4,268,673
 
 
$
-
 
MSRs retained from sales to securitizations
 
 
-
 
 
 
4,940,630
 
MSRs related to deconsolidation of securitization trust
 
 
364,163
 
 
 
-
 
Changes in fair value due to:
 
 
 
 
 
 
 
 
Changes in valuation inputs or assumptions used in valuation model
 
 
(102,855
)
 
 
(217,663
)
Other changes to fair value
(1)
 
 
(1,089,172
)
 
 
(454,294
)
Balance at end of period
 
$
3,440,809
 
 
$
4,268,673
 
 
 
 
 
 
 
 
 
 
Loans associated with MSRs
(2)
 
$
397,925,409
 
 
$
472,886,810
 
MSR values as percent of loans
(3)
 
 
0.86
%
 
 
0.90
%
 
(1)
Amounts represent changes due to realization of expected cash flows
(2)
Amounts represent the principal balance of loans associated with MSRs outstanding at December 31, 2016 and December 31, 2015, respectively
(3)
Amounts represent the carrying value of MSRs at December 31, 2016 and December 31, 2015, respectively divided by the outstanding balance of the loans associated with these MSRs
 
The following table presents the components of servicing income recorded on the Company’s statements of operations for the years ended December 31, 2016, December 31, 2015 and December 31, 2014:
 
 
 
Year Ended
 
 
Year Ended
 
 
Year Ended
 
 
 
December 31, 2016
 
 
December 31, 2015
 
 
December 31, 2014
 
Servicing income, net
 
$
932,425
 
 
$
211,878
 
 
$
-
 
Income from MSRs, net
 
$
932,425
 
 
$
211,878
 
 
$
-