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Discontinued Operations (Notes)
 12 Months Ended
Dec. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
3.    Discontinued operations
OMHHF historically was engaged in the business of originating and servicing FHA-insured multifamily and healthcare facility loans and securitizing these loans into GNMA mortgage backed securities. OMHHF offered mortgage services to developers of commercial properties including apartments, elderly housing and nursing homes that satisfy FHA criteria. OMHHF maintained a mortgage servicing portfolio for which it provided a full array of services, including the collection of mortgage payments from mortgagors which were passed on to the mortgage holders, construction loan management and asset management.
The Company owns an 83.68% controlling interest in OMHHF. The 16.32% noncontrolling interest belongs to one related party who was the President and Chief Executive Officer of OMHHF.
On June 2, 2016, OMHHF entered into a definitive agreement to sell OMHHF's entire portfolio of permanent mortgage loans (consisting of over 480 permanent loans insured by the U.S. Department of Housing and Urban Development), including the associated mortgage servicing rights. On June 20, 2016, OMHHF completed the transaction for cash consideration of approximately $45.0 million. An amount equal to $1.4 million was withheld from the purchase price until such time as one loan in the mortgage loan portfolio became current or was modified. The Company recorded a net gain of $14.9 million related to this transaction which was included in discontinued operations in the consolidated statement of operations during the second quarter of 2016. During the second quarter of 2016, OMHHF also sold its business pipeline of mortgage loans for approximately $1.5 million. During the third quarter of 2016, the Company recognized the $1.4 million that was withheld from the purchase price of the permanent mortgage loans as a result of the loan being modified as a gain. Also, OMHHF sold its construction loan portfolio and the associated mortgage servicing rights for approximately $3.8 million.
OMHHF made dividend distributions to the noncontrolling interest in the amounts of $2.4 million and $5.7 million in the years ended December 31, 2017 and 2016, respectively.
The Company determined that the sale of the assets of OMHHF met the criteria to be classified within discontinued operations, and the results of OMHHF are reported as discontinued operations in the consolidated statements of operations.
The following is a summary of revenue and expenses of OMHHF for the years ended December 31, 2017, 2016 and 2015:
(Expressed in thousands)
 
 
 
 
 
 
For the Years Ended December 31,
 
2017
 
2016
 
2015
REVENUE
 
 
 
 
 
Interest
$
8

 
$
943

 
$
1,999

Principal transactions, net
—

 
(9,022
)
 
5,323

Gain on sale of assets
—

 
16,475

 
—

Other (1)
2,165

 
16,917

 
23,262

Total revenue
2,173

 
25,313

 
30,584

EXPENSES
 
 
 
 
 
Compensation and related expenses
18

 
4,311

 
12,406

Communications and technology
27

 
221

 
361

Occupancy and equipment costs
—

 
415

 
302

Interest
12

 
408

 
994

Other
45

 
2,619

 
7,382

Total expenses
102

 
7,974

 
21,445

Income before income taxes
$
2,071

 
$
17,339

 
$
9,139

Income attributable to noncontrolling interest before income taxes
$
338

 
$
2,830

 
$
1,491

(1)
Other revenue for the year ended December 31, 2017 was primarily due to an earn-out from the sale of OMHHF's pipeline business in 2016.
The following is a summary of cash flows of OMHHF for the years ended December 31, 2017, 2016 and 2015:
(Expressed in thousands)
 
 
 
 
 
 
For the Years Ended December 31,
 
2017
 
2016
 
2015
Cash provided by (used in) operating activities
$
5,721

 
$
(14,097
)
 
$
3,322

Cash provided by investing activities
—

 
45,448

 
—

Cash used in financing activities (1) (2)
(20,035
)
 
(35,421
)
 
(249
)
Net (decrease) increase in cash and cash equivalents
$
(14,314
)
 
$
(4,070
)
 
$
3,073

(1)
Includes cash dividends paid to OMHHF's parent (E.A. Viner International Co.) and noncontrolling interest of $12.6 million and $2.4 million, respectively, for the year ended December 31, 2017 ($29.4 million and $5.7 million, respectively, for the year ended December 31, 2016.)
(2)
Includes $5.0 million paid to OMHHF's parent due to redemption of the parent's outstanding preferred stock for the year ended December 31, 2017.