Mortgage loans at fair value (Notes)

3 Months Ended

Mar. 31, 2013

Mortgage loans at fair value [Text Block]

Mortgage loans at fair value

Acquisitions

During the three months ended March 31, 2013, we acquired the following pools of non-performing residential mortgage loans:


•	A portfolio of substantially all non-performing first lien residential mortgage loans having aggregate collateral market value of $94.2 million as of the February 1, 2013 cut-off date for the transaction.


•	A portfolio of substantially all non-performing first lien residential mortgage loans having aggregate collateral market value of $38.7 million as of the March 18, 2013 cut-off date for the transaction.

The acquisition of these portfolios was funded with available cash contributed to us by Altisource in connection with our separation from Altisource and the repurchase agreement. During the three months ended March 31, 2013, we expensed $0.4 million of due diligence costs related to these and other transactions as a component of general and administrative expense.

Transfer of mortgage loans to real estate owned

During the three months ended March 31, 2013, we transferred a mortgage loan at fair value of $156,000 to real estate owned.

Dispositions

During the three months ended March 31, 2013, we were owed $1.6 million of net proceeds from the disposition of mortgage loans primarily from short sales and foreclosure sales. As a result, we recorded $0.4 million of net realized gains on mortgage loans at fair value.