Securitized Mortage Loans, Net

6 Months Ended

Jun. 30, 2011

SECURITIZED MORTGAGE LOANS, NET [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

SECURITIZED MORTGAGE LOANS, NET

All of the Company's securitized mortgage loans are pledged as collateral for its associated securitization financing bonds, which are discussed further in Note 9. Please also refer to Note 6 for disclosures related to impaired securitized mortgage loans and the related allowance for loans losses. The following table summarizes the components of securitized mortgage loans as of June 30, 2011 and December 31, 2010:

	June 30, 2011									December 31, 2010
	Commercial			Single-family			Total			Commercial			Single-family			Total
Principal/par value	$	78,927		$	50,122		$	129,049		$	99,432		$	54,181		$	153,613
FHBT(1)	4,702			—			4,702			3,455			—			3,455
Unamortized premium, net	—			809			809			—			884			884
Unamortized discount, net	(358		)	—			(358		)	(520		)	—			(520		)
Amortized cost	83,271			50,931			134,202			102,367			55,065			157,432
Allowance for loan losses	(3,069		)	(208		)	(3,277		)	(4,200		)	(270		)	(4,470		)
	$	80,202		$	50,723		$	130,925		$	98,167		$	54,795		$	152,962

(1) Funds held by trustees includes $4,553 and $3,306 as of June 30, 2011 and December 31, 2010, respectively, of cash and cash equivalents held by the trust for defeased commercial mortgage loans. These funds were paid by the borrower to the securitization trust pursuant to the contractual terms of the mortgage loan and represent replacement collateral for defeased loans.  In accordance with the underlying agreements, cash payments are made by the securitization trust using these defeased amounts until the funds held for that particular defeased mortgage loan equal the scheduled principal balance of the original loan.  At that point a final distribution is made to the trust as payment in full of the principal amount due on the loan.

The balance of the Company's securitized commercial mortgage loans have decreased since December 31, 2010 primarily due to principal payments, including amounts received on defeased loans, of $17,419.  The Company's securitized commercial mortgage loans were originated principally in 1996 and 1997 and are collateralized by first deeds of trust on income producing properties.  Approximately 76.8% of these securitized commercial mortgage loans are secured by multifamily properties. As of June 30, 2011 and December 31, 2010, the loan-to-value ratio based on original appraisal was 42.7% and 45.0%, respectively. The unpaid principal balance of the securitized commercial mortgage loans identified as seriously delinquent (60 or more days past due) and therefore on nonaccrual status is $20,114 as of June 30, 2011. The increase of $6,025 in the balance of seriously delinquent loans, which was $14,089 as of December 31, 2010, is primarily related to a commercial mortgage loan on a property in Denver, Colorado that became seriously delinquent during the first quarter of 2011.  The estimated value of the property collateralizing the loan appears to be adequate to fully repay the loan, and thus the Company has not provided any reserves specifically for this loan. 

The balance of the Company's securitized single-family mortgage loans have decreased since December 31, 2010 due to principal payments on the loans of $3,998, of which 58% were unscheduled. These single-family mortgage loans are secured by first deeds of trust on residential real estate and were originated principally from 1992 to 1997.   As of June 30, 2011 and December 31, 2010, the loan-to-value ratio based on original appraisal was 47.8% and 48.0%, respectively. The unpaid principal balance of the Company's securitized single-family mortgage loans identified as seriously delinquent as of June 30, 2011 is $5,082. The Company continues accruing interest on any seriously delinquent securitized single-family mortgage loan so long as the primary servicer continues to advance the interest and/or principal due on the loan.