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Document and entity information - shares	3 Months Ended
Document and entity information - shares	Mar. 31, 2015	Apr. 30, 2015
Document Information [Abstract]
Entity registrant name	Altisource Asset Management Corporation
Entity central index key	0001555074
Current fiscal year end date	--12-31
Entity filer category	Accelerated Filer
Document type	10-Q
Document period end date	Mar. 31, 2015
Document fiscal year focus	2015
Document fiscal period focus	Q1
Amendment flag	false
Entity common stock, shares outstanding		2,228,823

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014
Real estate held for use:
Land (from consolidated VIE)	$ 21,267	$ 14,424
Rental residential properties (net of accumulated depreciation of $2,046 and $1,062, respectively - from consolidated VIE)	86,206	60,908
Real estate owned (from consolidated VIE)	456,479	457,045
Total real estate held for use, net	563,952	532,377
Real estate assets held for sale (from consolidated VIE)	150,807	92,230
Mortgage loans at fair value (from consolidated VIE)	1,853,495	1,959,044
Mortgage loans held for sale (from consolidated VIE)	12,485	12,535
Cash and cash equivalents (including from consolidated VIE $53,246 and $66,166, respectively)	98,386	116,782
Restricted cash (from consolidated VIE)	14,766	13,282
Accounts receivable (including from consolidated VIE $10,398 and $10,313, respectively)	10,399	11,068
Related party receivables (from consolidated VIE)	22,530	17,491
Deferred leasing and financing costs, net (from consolidated VIE)	5,384	4,251
Prepaid expenses and other assets (including from consolidated VIE $672 and $373, respectively)	2,261	1,638
Total assets	2,734,465	2,760,698
Liabilities:
Repurchase agreements (from consolidated VIE)	929,287	1,015,000
Other secured borrowings (from consolidated VIE)	364,849	324,082
Accounts payable and accrued liabilities (including from consolidated VIE $42,686 and $11,678, respectively)	48,314	16,726
Related party payables (including from consolidated VIE $5,782 and $4,879, respectively)	9,092	6,169
Total liabilities	1,351,542	1,361,977
Commitments and contingencies (Note 6)
Redeemable preferred stock:
Preferred stock, $0.01 par value, 250,000 shares issued and outstanding as of March 31, 2015 and December 31, 2014; redemption value $250,000	248,979	248,927
Equity:
Common stock, $.01 par value, 5,000,000 authorized shares; 2,470,783 and 2,206,652 shares issued and outstanding, respectively as of March 31, 2015 and 2,452,101 and 2,188,136 shares issued and outstanding, respectively, as of December 31, 2014	25	25
Additional paid-in capital	15,048	14,152
Retained earnings	61,009	54,174
Treasury stock, at cost, 264,131 shares as of March 31, 2015 and 263,965 shares as of December 31, 2014	(245,519)	(245,468)
Total stockholders' equity	(169,437)	(177,117)
Noncontrolling interest in consolidated affiliate	1,303,381	1,326,911
Total equity	1,133,944	1,149,794
Total liabilities and equity	$ 2,734,465	$ 2,760,698

Consolidated Balance Sheets (Parentheticals) - USD ($)	3 Months Ended	12 Months Ended
Consolidated Balance Sheets (Parentheticals) - USD ($)	Mar. 31, 2015	Dec. 31, 2014
Real Estate Investment Property, Accumulated Depreciation	$ 2,046,000	$ 1,062,000
Assets:
Cash and cash equivalents	98,386,000	116,782,000
Accounts receivable	10,399,000	11,068,000
Related party receivables	22,530,000	17,491,000
Prepaid expenses and other assets	2,261,000	1,638,000
Liabilities:
Accounts payable and accrued liabilities	48,314,000	16,726,000
Related party payables	$ 9,092,000	$ 6,169,000
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Issued	250,000	250,000
Preferred Stock, Shares Outstanding	250,000	250,000
Preferred Stock, Redemption Amount	$ 250,000,000	$ 25,000,000
Equity:
Common stock, par value per share, in USD	$ 0.01	$ 0.01
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	2,470,783	2,452,101
Common stock, shares outstanding	2,206,652	2,188,136
Treasury Stock, Shares, Acquired	264,131	263,965
Variable Interest Entity, Primary Beneficiary
Assets:
Cash and cash equivalents	$ 53,246,000	$ 66,166,000
Accounts receivable	10,398,000	10,313,000
Prepaid expenses and other assets	672,000	373,000
Liabilities:
Accounts payable and accrued liabilities	42,686,000	11,678,000
Related party payables	$ 5,782,000	$ 4,879,000

Consolidated Statement of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues:
Rental revenues	$ 1,400	$ 69
Net unrealized gain on mortgage loans	61,134	65,130
Net realized gain on mortgage loans	15,382	9,321
Net realized gain on re-performing mortgage loans	151	0
Net realized gain on real estate	10,608	0
Interest income	240	108
Total revenues	88,915	74,628
Expenses:
Residential property operating expenses	12,459	1,050
Real estate depreciation and amortization	998	48
Real estate selling costs and impairment	14,691	354
Mortgage loan servicing costs	18,266	11,437
Interest expense	11,483	5,708
General and administrative	10,790	5,601
Related party general and administrative	773	923
Total expenses	69,460	25,121
Income before income taxes	19,455	49,507
Income tax expense	143	766
Net income	19,312	48,741
Net income attributable to noncontrolling interest in consolidated affiliate	(12,424)	(41,913)
Net income (loss) attributable to common stockholders	$ 6,888	$ 6,828
Earnings (loss) per share of common stock – basic:
Earnings (loss) per basic share	$ 3.10	$ 2.88
Weighted average common stock outstanding – basic	2,203,699	2,367,202
Earnings (loss) per share of common stock – diluted:
Earnings (loss) per diluted share	$ 2.50	$ 2.39
Weighted average common stock outstanding – diluted	2,757,206	2,856,079

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Treasury stock	Noncontrolling interest in consolidated affiliate
Beginning balance, Shares at Dec. 31, 2013		2,354,774
Beginning balance at Dec. 31, 2013	$ 792,967	$ 24	$ 12,855	$ (5,339)		$ 785,427
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, including option exercises, shares		41,429
Issuance of common stock, including option exercises	18	$ 0	18
Treasury shares repurchased	(44,565)				$ (44,565)
Capital contribution from noncontrolling interest	468,491					468,491
Distribution from noncontrolling interest	(27,398)					(27,398)
Amortization of preferred stock issuance costs	0
Share-based compensation	3,316		3,316
Net income	48,741			6,828		41,913
Ending balance, Shares at Mar. 31, 2014		2,396,203
Ending balance at Mar. 31, 2014	$ 1,241,570	$ 24	16,189	1,489	(44,565)	1,268,433
Beginning balance, Shares at Dec. 31, 2014	2,188,136	2,452,101
Beginning balance at Dec. 31, 2014	$ 1,149,794	$ 25	14,152	54,174	(245,468)	1,326,911
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, including option exercises, shares		18,682
Issuance of common stock, including option exercises	7	$ 0	7
Treasury shares repurchased	(51)				(51)
Capital contribution from noncontrolling interest	27					27
Distribution from noncontrolling interest	(36,038)					(36,038)
Amortization of preferred stock issuance costs	(53)			(53)
Share-based compensation	946		889			57
Net income	$ 19,312			6,888		12,424
Ending balance, Shares at Mar. 31, 2015	2,206,652	2,470,783
Ending balance at Mar. 31, 2015	$ 1,133,944	$ 25	$ 15,048	$ 61,009	$ (245,519)	$ 1,303,381

Consolidated Statements of Equity Parentheticals - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Treasury Stock, Shares, Acquired	264,131	263,965

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities:
Net income	$ 19,312	$ 48,741
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized gain on mortgage loans	(61,134)	(65,130)
Net realized gain on mortgage loans	(15,382)	(9,321)
Net realized gain on sale of re-performing mortgage loans	(151)	0
Net realized gain on sale of real estate	(10,608)	(55)
Real estate depreciation and amortization	998	48
Real estate selling costs and impairment	14,691	355
Accretion of interest on re-performing mortgage loans	(232)	0
Share-based compensation	946	3,316
Amortization of deferred financing costs	531	608
Changes in operating assets and liabilities:
Accounts receivable	1,750	502
Related party receivables	(2,535)	(53)
Prepaid expenses and other assets	(623)	(530)
Accounts payable and accrued liabilities	1,613	1,118
Related party payables	2,923	871
Net cash used in operating activities	(47,901)	(19,530)
Investing activities:
Investment in mortgage loans	0	(611,357)
Investment in renovations	(5,534)	(447)
Real estate tax advances	(6,556)	(6,259)
Mortgage loan dispositions	56,337	32,775
Mortgage loan payments	5,816	3,129
Disposition of real estate	32,139	734
Change in restricted cash	(1,484)	(1,456)
Net cash provided by (used in) investing activities	80,718	(582,881)
Financing activities:
Proceeds from issuance of preferred stock	0	250,000
Cost of issuance of preferred stock	0	(1,114)
Issuance of common stock, including stock option exercises	411	2,732
Repurchase of common stock	(51)	(44,565)
Payment of tax withholdings on exercise of stock options	(404)	(2,714)
Capital contribution from noncontrolling interest	27	468,491
Distribution to noncontrolling interest	(4,576)	(27,398)
Proceeds from issuance of other secured debt	50,690	0
Repayments of secured notes	(9,256)	0
Proceeds from repurchase agreement	33,877	127,664
Repayments of repurchase agreement	(119,590)	(30,096)
Payment of deferred financing costs	(2,341)	(123)
Net cash (used in) provided by financing activities	(51,213)	742,877
Net (decrease) increase in cash and cash equivalents	(18,396)	140,466
Cash and cash equivalents as of beginning of the period	116,782	140,000
Cash and cash equivalents as of end of the period	98,386	280,466
Supplemental disclosure of cash flow information
Cash paid for interest	10,429	4,736
Transfer of mortgage loans to real estate owned	136,182	96,528
Transfer of real estate owned to mortgage loans	1,356	0
Change in accrued capital expenditures	(1,430)	0
Change in accrued equity issuance costs	0	183
Changes in receivables from mortgage loan dispositions, payments and real estate tax advances, net	2,848	1,247
Changes in receivables from real estate owned disposition	$ 630	$ 0

Detials Statement $ in Millions	Mar. 31, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency Accrual	$ 3.0

Organization and basis of presentation

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and basis of presentation

We were incorporated in the United States Virgin Islands on March 15, 2012, which we refer to as “inception.” Subsequent to our separation from Altisource Portfolio Solutions S.A. ("Altisource") on December 21, 2012, we immediately commenced operations. In October 2013, we applied for and were granted registration by the SEC as a registered investment adviser under section 203(c) of the Investment Advisers Act of 1940. Our primary business is to provide asset management and certain corporate governance services to Altisource Residential Corporation, which we refer to as “Residential.” Residential is a Maryland corporation that acquires and manages single-family rental properties by acquiring sub-performing and non-performing mortgages throughout the United States.

Residential is currently our primary source of revenue and will drive our results. On March 31, 2015, we entered into a new asset management agreement with Residential (the “AMA”) with an effective date of April 1, 2015. Prior to the AMA, we were party to an asset management agreement with Residential (the “Original AMA”) pursuant to which we received incentive fees, which we refer to as our “incentive management fees,” that gave us a share of Residential’s cash flow available for distribution to its stockholders as well as reimbursement for certain overhead and operating expenses. Although the new AMA provides for a new fee structure in which we are entitled to a base management fee, an incentive management fee and a conversion fee for properties that become rental properties during each quarter, our operating results are highly dependent on Residential's ability to achieve positive operating results. For additional details on the new AMA, please see “Note 7. Related Party Transactions.”

We have concluded that Residential is a variable interest entity (“VIE”) because Residential’s equity holders lack the ability through voting rights to make decisions about Residential’s activities that have a significant effect on the success of Residential. We have also concluded that we are the primary beneficiary of Residential because under the Residential AMA we have the power to direct the activities of Residential that most significantly impact Residential’s economic performance including establishing Residential’s investment and business strategy. As a result, we consolidate Residential in our consolidated financial statements.

Additionally, we provide management services to NewSource Reinsurance Company Ltd., which we refer to as “NewSource,” a title insurance and reinsurance company in Bermuda. In October 2013, we invested $2.0 million in 100% of the common stock of NewSource and Residential invested $18.0 million in the non-voting preferred stock of NewSource. On December 2, 2013, NewSource became registered as a licensed reinsurer with the Bermuda Monetary Authority (“BMA”). Because we own 100% of voting common stock of NewSource and there are no substantive kick-out rights granted to other equity owners, we consolidate NewSource in our consolidated financial statements. NewSource commenced reinsurance activities during the second quarter of 2014. In December 2014, NewSource determined that the economics of the initial business did not warrant the continuation of its initial reinsurance quota share agreement with an unrelated third party. NewSource therefore transferred all of the risk of claims and future losses underwritten to an unrelated third party.

Since Residential commenced operations, it has completed three public equity offerings with aggregate net proceeds of approximately $1.1 billion. Residential also entered into three separate repurchase agreements to finance the acquisition and ownership of residential mortgage loans and REO properties. The maximum aggregate funding available under these repurchase agreements at December 31, 2014 was $1.2 billion. Following the amendments described below, the maximum aggregate funding available to Residential under these repurchase agreements as of March 31, 2015 was $970.5 million, subject to certain sublimits, eligibility requirements and conditions precedent to each funding. As of March 31, 2015, an aggregate of $929.3 million was outstanding under Residential's repurchase agreements. All obligations of Residential’s subsidiaries under the repurchase agreements are fully guaranteed by Residential.

Each of Residential's repurchase agreements is described below:

•

Credit Suisse (“CS”) is the lender on the repurchase agreement entered into on March 22, 2013 (the “CS repurchase agreement”) with an initial aggregate maximum borrowing capacity of $100.0 million. During 2014 the CS repurchase agreement was amended on several occasions, ultimately increasing the aggregate maximum borrowing capacity to $225.0 million on December 31, 2014 with a maturity date of April 20, 2015, subject to an additional one-year extension with the approval of the lender. On April 20, 2015, Residential entered into an amended and restated repurchase agreement with CS that increased the aggregate borrowing capacity from $225.0 million to $275.0 million, increased the REO sublimit under the facility and extended the maturity date to April 18, 2016. Please see “Note 12. Subsequent Events” for additional information.

•

Deutsche Bank (“DB”) is the lender on the repurchase agreement entered into on September 12, 2013 (the “DB repurchase agreement”). The DB repurchase agreement was amended on December 18, 2013, has an aggregate funding capacity of $250.0 million and matures on March 11, 2016. The DB repurchase agreement includes a provision that, beginning in April 2015, Residential will not be able to finance mortgage loans in excess of amounts outstanding under the facility at the end of March 2015. Therefore, Residential's aggregate funding capacity under the DB repurchase agreement was reduced to $219.7 million in April 2015, which was the amount outstanding under the facility at the time.

•

Wells Fargo (“Wells”) is the lender on the repurchase agreement entered into on September 23, 2013 (the “Wells repurchase agreement”) with an initial aggregate maximum borrowing capacity of $200.0 million. Throughout 2013 and 2014 the Wells repurchase agreement was amended several times increasing the aggregate maximum borrowing capacity to a high of $1.0 billion, and on December 31, 2014 was reduced to $750.0 million, subject to certain sublimits, to reflect the securitization of a significant portion of Residential's non-performing loans that previously had been financed under the Wells repurchase agreement. The maturity date of the Wells repurchase agreement was March 23, 2015. However, on February 20, 2015, Residential exercised its option to extend the termination date of this facility to March 23, 2016 without any additional funding, thereby reducing Residential's aggregate funding capacity under the Wells repurchase agreement to $525.8 million which was the amount outstanding under the facility on the extension date. Residential is in discussions with Wells to further extend the repurchase agreement with an ability to obtain additional funding. No assurance can be provided that Residential will be able to renew this facility on reasonable terms, on a timely basis or at all. In the event Residential cannot extend the agreement with an ability to obtain additional funding, the advance rate will be reduced by 10% after the first 90 days of the extension term and Residential will not be entitled to draw additional funds under the facility.

On November 25, 2014, Residential completed a securitization transaction in which ARLP Securitization Trust, Series 2014-2 ("ARLP 2014-2") issued $270.8 million in Class A Notes (the “Class A Notes”) with a weighted coupon of approximately 3.85% and $234.0 million in Class M Notes (the “Class M Notes”). Residential initially retained $95.8 million of the Class A Notes and all of the Class M Notes in its taxable REIT subsidiary (“TRS”). On February 9, 2015, Residential sold $50.7 million of the retained Class A Notes to an unrelated third party. No interest will be paid on any Class M Notes while any Class A Notes remain outstanding. The Class A Notes and the Class M Notes are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-2 and not by any of Residential's other assets. The assets of ARLP 2014-2 are the only source of repayment and interest on the Class A Notes and the Class M Notes. The Class A Notes and the Class M Notes mature on January 26, 2054, and Residential does not guaranty any of the obligations of ARLP 2014-2 under the terms of the Indenture governing the notes or otherwise. As of March 31, 2015, the book value of the underlying securitized assets held by ARLP 2014-2 was $332.5 million.

On September 25, 2014, Residential completed a securitization transaction in which ARLP Securitization Trust, Series 2014-1 (“ARLP 2014-1”) issued $150.0 million in Class A Notes (the “Class A Notes”) with a weighted coupon of approximately 3.47% and $32.0 million in Class M Notes (the “Class M Notes”) with a weighted coupon of 4.25%. The Class A Notes and the Class M Notes are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-1 and not by any of Residential's other assets. The assets of ARLP 2014-1 are the only source of repayment and interest on the Class A Notes and the Class M Notes. The Class A Notes and the Class M Notes mature on September 25, 2044, and Residential does not guaranty any of the obligations of ARLP 2014-1 under the terms of the Indenture governing the notes or otherwise. As of March 31, 2015, the book value of the underlying securitized assets held by ARLP 2014-1 was $213.8 million.

Residential retained all of the Class M Notes issued by ARLP 2014-1 in its TRS. On September 30, 2014, pursuant to a master repurchase agreement, the TRS sold $15.0 million of the Class M Notes to NewSource Reinsurance Company Ltd, ("NewSource"), an entity in which Residential owns 100% of the outstanding preferred stock and in which we own 100% of the outstanding common stock, for a purchase price of $15.0 million. The master repurchase agreement initially required the TRS to repurchase the Class M Notes from NewSource at a 5.0% yield on December 28, 2014, with the parties having the option to extend the master repurchase agreement for additional 89-day periods. In no event can the master repurchase agreement be extended beyond September 29, 2015. The agreement is currently due to expire on June 25, 2015.

On March 18, 2014, we closed a private placement for the issuance and sale of 250,000 shares of our Series A Convertible Preferred Stock to Luxor Capital Group, LP, a New York based investment manager, and other institutional investors for proceeds of $250.0 million. In connection with the foregoing, the Company's Board of Directors has approved a share repurchase program that authorizes us to repurchase up to $300.0 million of our common stock. We used substantially all of the proceeds from this transaction to repurchase shares of our common stock and for other corporate purposes. We have an aggregate of $59.4 million remaining for repurchases under our Board-approved repurchase plan.

Basis of presentation and use of estimates

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States which we refer to as “U.S. GAAP.” All wholly owned subsidiaries are included and all intercompany accounts and transactions have been eliminated. The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates.

The unaudited consolidated financial statements and accompanying unaudited consolidated financial information, in our opinion, contain all adjustments that are of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. The interim results are not necessarily indicative of results for a full year. We have omitted certain notes and other information from the interim consolidated financial statements presented in this Quarterly Report as permitted by SEC rules and regulations. These consolidated financial statements should be read in conjunction with our 2014 annual report on Form 10-K.

Preferred stock

During the first quarter of 2014, we issued $250.0 million of convertible preferred stock. All of the outstanding shares of preferred stock are redeemable by us in March 2020, the sixth anniversary of the date of issuance, and every five years thereafter. On these same redemption dates, each holder of preferred stock may cause us to redeem all the shares of preferred stock held by such holder at a redemption price equal to $1,000 per share. Accordingly, we classify these shares as mezzanine equity, outside of permanent stockholders' equity.

The holders of shares of Series A Preferred Stock will not be entitled to receive dividends with respect to the Series A Preferred Stock. The shares of Series A Preferred Stock are convertible into shares of our common stock at a conversion price of $1,250 per share, subject to certain anti-dilution adjustments.

Upon a change of control or upon a liquidation, dissolution or winding up of the Company, holders of the Series A Preferred Stock will be entitled to receive an amount in cash per Series A Preferred Stock equal to the greater of:

(i) $1,000 plus the aggregate amount of cash dividends paid on the number of shares of Common Stock into which such share of Series A Preferred Stock was convertible on each ex-dividend date for such dividends; and

(ii) the number of shares of Common Stock into which the Series A Preferred Stock is then convertible multiplied by the then current market price of the Common Stock.

The Series A Preferred Stock confers no voting rights to holders, except with respect to matters that materially and adversely affect the voting powers, rights or preferences of the Series A Preferred Stock or as otherwise required by applicable law.

With respect to the distribution of assets upon the liquidation, dissolution or winding up of the Company, the Series A Preferred Stock ranks senior to our common stock and on parity with all other classes of preferred stock that may be issued by us in the future.

Treasury Stock

We account for repurchased common stock under the cost method and include such treasury stock as a component of total shareholders’ equity. We have repurchased shares of our common stock (i) under our Board approval to repurchase up to $300.0 million in shares of our common stock and (ii) upon our withholding of shares of our common stock to satisfy tax withholding obligations in connection with the vesting of our restricted stock.

Recently issued accounting standards

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires that debt issuance costs are presented on the balance sheet as a deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The standard requires retrospective application and represents a change in accounting principle. The standard is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We do not expect the impact of adopting this standard to have a material impact on our financial position, results of operations, or cash flows.

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis. ASU 2015-02 makes targeted amendments to the current consolidation guidance that change the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance addresses concerns that current accounting might require a reporting entity to consolidate another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. The standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early application is permitted. We are evaluating the impact of ASU 2015-02 on our consolidated financial statements, which could result in the deconsolidation of Residential's financial information in our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 may be applied using either a full retrospective or a modified retrospective approach and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. We do not expect this amendment to have a significant effect on our financial position or results of operations.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755

+ Details

Mortgage loans

3 Months Ended

Mar. 31, 2015

Mortgage Loans on Real Estate [Abstract]

Mortgage loans

Acquisitions of non-performing residential mortgage loans

During the first quarter of 2015, Residential did not acquire any portfolios of residential mortgage loans. During the three months ended March 31, 2014, Residential acquired an aggregate of 4,207 residential mortgage loans, substantially all of which were non-performing, having an aggregate UPB of approximately $1.1 billion and an aggregate market value of underlying properties of $901 million. The aggregate purchase price for these acquisitions was approximately $611 million.

During the three months ended March 31, 2015, Residential expensed $0.1 million for due diligence costs related to a potential purchase of a portfolio that was not ultimately acquired. During the three months ended March 31, 2014, Residential recognized $0.5 million for due diligence costs related to transactions in both general and administrative expense and related party general and administrative expense.

Generally, we expect that Residential's mortgage loan and REO portfolios may grow at an uneven pace, as opportunities to acquire distressed residential mortgage loans may be irregularly timed and may involve large portfolios of loans, and the timing and extent of Residential's success in acquiring such loans cannot be predicted. In addition, for any given portfolio of loans that Residential agrees to acquire, it typically acquires fewer loans than originally expected, as certain loans may be resolved prior to the closing date or may fail to meet Residential's diligence standards. The number of loans excluded from an acquisition typically constitutes a relatively small portion of a particular portfolio. In some cases, the number of loans Residential does not acquire could be significant. In any case where Residential does not acquire the full portfolio, appropriate adjustments are made to the applicable purchase price.

Throughout this report, all unpaid principal balance and market value amounts for the portfolios Residential has acquired are provided as of “cut-off date” for each transaction unless otherwise indicated. The “cut-off date” for each acquisition is a date shortly before the closing used to identify the final loans being purchased and the related unpaid principal balance, market value of underlying properties and other characteristics of the loans.

Transfer of mortgage loans to real estate owned

During the three months ended March 31, 2015 and 2014, Residential transferred 724 and 636 mortgage loans, respectively, to REO at an aggregate fair value based on BPOs, of $134.8 million and $96.5 million respectively. Such transfers occur when the foreclosure sale is complete. In connection with these transfers to REO, Residential recorded $18.4 million and $23.6 million, respectively, in net unrealized gains on mortgage loans. At March 31, 2015 Residential had 7,021 loans with a carrying value of $1.4 billion that were in the foreclosure process compared to 7,841 loans with a carrying value of $1.5 billion at March 31, 2014.

Dispositions

During the three months ended March 31, 2015 and 2014, Residential disposed of 150 and 116 mortgage loans, respectively, primarily through short sales, refinancing and foreclosure sales. In connection with these dispositions, Residential recorded $15.4 million and $9.3 million, respectively, of net realized gains on mortgage loans.

Acquisition of re-performing residential mortgage loans

On June 27, 2014, Residential acquired 879 re-performing mortgage loans with an aggregate market value of underlying properties of $271.1 million for an aggregate purchase price of $144.6 million. Under ASC 310-30, acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. These 879 re-performing residential mortgage loans were determined to have common risk characteristics and have been accounted for as a single loan pool. During October 2014, Residential sold an aggregate of 934 re-performing loans to an unrelated third party for an aggregate purchase price of $164 million. The sale included 770 loans from the re-performing mortgage loans purchased in June 2014, and 164 loans that had transitioned to re-performing status from prior non-performing loan acquisitions.

Under ASC 310-30, Residential estimates cash flows expected to be collected, adjusted for expected prepayments and defaults expected to be incurred over the life of the loan pool. Residential determines the excess of the loan pool's contractually required principal and interest payments over the expected cash flows as an amount that should not be accreted, the nonaccretable yield. The difference between expected cash flows and the present value of the expected cash flows is referred to as the accretable yield, which represents the amount that is expected to be recorded as interest income over the remaining life of the loan pool. For the three months ended March 31, 2015, Residential recognized no provision for loan loss and no adjustments to the amount of the accretable yield. For the three months ended March 31, 2015, Residential accreted $0.2 million into interest income with respect to these re-performing loans. As of March 31, 2015, these re-performing loans, having a UPB of $17.5 million and a carrying value of $12.5 million, were held for sale.

The following tables present information regarding the estimates of the contractually required payments and the cash flows expected to be collected as of the date of the acquisition and changes in the balance of the accretable yield ($ in thousands):



	Three months ended March 31, 2015
	Accretable Yield			Carrying Amount of Loans
Balance at the beginning of the period	$	7,640		$	12,535
Additions	—			37
Payments and other reductions, net	(201		)	(319		)
Accretion	(232		)	232
Balance at the end of the period	$	7,207		$	12,485

Real estate assets, net	3 Months Ended
Real estate assets, net	Mar. 31, 2015
Real Estate [Abstract]
Real estate assets, net	Real estate assets, net Real estate held for use As of March 31, 2015, Residential had 3,464 REO properties held for use. Of these properties, 587 had been rented, 151 were being listed for rent and 116 were in varying stages of renovation. With respect to the remaining 2,610 REO properties, we will make a final determination whether each property meets Residential’s rental profile after (a) applicable state redemption periods have expired, (b) the foreclosure sale has been ratified (c) Residential has recorded the deed for the property, (d) utilities have been activated and (e) Residential has secured access for interior inspection. A majority of the REO properties are subject to state regulations which require Residential to await the expiration of a redemption period before a foreclosure can be finalized. Residential includes these redemption periods in its portfolio pricing which generally reduces the price Residential pays for the mortgage loans. Once the redemption period expires, Residential immediately proceeds to record the new deed, take possession of the property, activate utilities, and start the inspection process in order to make its final determination. As of December 31, 2014, Residential had 3,349 REO properties held for use. Of these properties, 336 had been rented, 197 were being listed for rent and 254 were in various stages of renovation. With respect to the remaining 2,562 REO properties, we were in the process of determining whether these properties would meet Residential's rental profile. As of March 31, 2014, Residential had 852 REO properties held for use. Of these properties, 35 had been rented, 17 were being listed for rent and 48 were in various stages of renovation. With respect to the remaining 752 REO properties, we were in the process of determining whether these properties would meet Residential's rental profile. If a REO property meets Residential's rental profile, we determine the extent of renovations that are needed to generate an optimal rent and maintain consistency of renovation specifications for future branding. If we determine that the REO property will not meet Residential's rental profile, we list the property for sale, in certain instances after renovations are made to optimize the sale proceeds. Real estate held for sale As of March 31, 2015, Residential classified 966 properties having an aggregate carrying value of $150.8 million as real estate held for sale as they do not meet its residential rental property investment criteria. As of December 31, 2014, Residential had 611 REO properties having an aggregate carrying value of $92.2 million held for sale, and as of March 31, 2014, Residential had 44 REO properties having an aggregate carrying value of $4.2 million held for sale. None of these REO properties have any operations; therefore, we are not presenting discontinued operations related to these properties. Residential records residential properties held for sale at the lower of either the carrying amount of REO or its estimated fair value less estimated selling costs. If the carrying amount exceeds the estimated fair value, as adjusted, Residential records impairment equal to the amount of such excess. If an increase in fair value is noted at a subsequent measurement date, a gain is recognized to the extent of any previous impairment recognized. As of March 31, 2015 Residential had $9.0 million of impairment on the 966 REO properties having a fair value of $168.9 million. As of December 31, 2014 Residential had $4.9 million of impairment on the 611 REO properties having a fair value of $96.0 million. There was no impairment on the 44 REO properties held at March 31, 2014. Dispositions During the three months ended March 31, 2015, Residential disposed of 254 residential properties and recorded $10.6 million of net realized gains on real estate. During the three months ended March 31, 2014, Residential disposed of two residential properties. There were no significant gain or losses on the dispositions in 2014.

Fair value of financial instruments

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair value of financial instruments

The following table sets forth the fair value of financial assets and liabilities by level within the fair value hierarchy as of March 31, 2015 and December 31, 2014 ($ in thousands):



	Level 1		Level 2		Level 3
	Quoted prices in active markets		Observable inputs other than Level 1 prices		Unobservable inputs
March 31, 2015
Recurring basis (assets)
Mortgage loans	$	—	$	—	$	1,853,495
Nonrecurring basis (assets)
Real estate assets held for sale	$	—	$	—	$	168,942
Transfer of real estate owned to mortgage loans	$	—	$	—	$	1,356
Transfer of mortgage loans to real estate owned	$	—	$	—	$	136,182
Not recognized on consolidated balance sheets at fair value (assets)
Mortgage loans held for sale	$	—	$	—	$	12,485
Not recognized on consolidated balance sheets at fair value (liabilities)
Repurchase agreements at fair value	$	—	$	929,287	$	—
Other secured borrowings	$	—	$	362,429	$	—

December 31, 2014
Recurring basis (assets)
Mortgage loans	$	—	$	—	$	1,959,044
Nonrecurring basis (assets)
Real estate assets held for sale	$	—	$	—	$	96,041
Transfer of real estate owned to mortgage loans	$	—	$	—	$	8,400
Transfer of mortgage loans to real estate owned	$	—	$	—	$	595,668
Not recognized on consolidated balance sheets at fair value (assets)
Mortgage loans held for sale	$	—	$	—	$	12,535
Not recognized on consolidated balance sheets at fair value (liabilities)
Repurchase agreements at fair value	$	—	$	1,015,000	$	—
Other secured borrowings	$	—	$	336,409	$	—

Residential has not transferred any assets from one level to another level during the three months ended March 31, 2015 or during the year ended December 31, 2014.

The carrying values of Residential's and our cash and cash equivalents, restricted cash, related party receivables, accounts payable and accrued liabilities, related party payables, preferred stock, and investment in NewSource are equal to or approximate fair value. The fair value of mortgage loans is estimated using our proprietary pricing model. The fair value of transfers of mortgage loans to real estate owned is estimated using BPOs. The fair value of re-performing mortgage loans held for sale is estimated using the present value of the future estimated principal and interest payments of the loan, with the discount rate used in the present value calculation representing the estimated effective yield of the loan. The fair value of the repurchase agreements is estimated using the income approach based on credit spreads available currently in the market for similar floating rate debt. The fair value of other secured borrowings is estimated using observable market data.

The following table sets forth the changes in Residential's level 3 assets that are measured at fair value on a recurring basis ($ in thousands):



	Three months ended March 31, 2015			Three months ended March 31, 2014
Mortgage loans
Beginning balance	$	1,959,044		$	1,207,163
Investment in mortgage loans	—			612,508
Net unrealized gain on mortgage loans	61,134			65,130
Net realized gain on mortgage loans	15,382			9,321
Mortgage loan dispositions and payments	(65,168		)	(39,458		)
Real estate tax advances to borrowers	7,127			8,006
Reclassification of realized gains on real estate sold from unrealized gains	10,802			—
Transfer of real estate owned to mortgage loans	1,356			—
Transfer of mortgage loans to real estate owned	(136,182		)	(96,528		)
Ending balance at March 31	$	1,853,495		$	1,766,142

Net unrealized gain on mortgage loans held at the end of the period	$	51,068		$	38,197

The following table sets forth the fair value of Residential's mortgage loans, the related unpaid principal balance and market value of underlying properties by delinquency status as of March 31, 2015 and December 31, 2014 ($ in thousands):



	Number of loans	Carrying Value		Unpaid principal balance		Market value of underlying properties
March 31, 2015
Current	794	$	127,984	$	183,091	$	188,031
30	95	13,653		20,233		20,694
60	41	6,423		8,986		10,288
90	2,138	332,892		531,217		502,562
Foreclosure	7,021	1,372,543		1,964,595		1,801,433
Mortgage loans	10,089	$	1,853,495	$	2,708,122	$	2,523,008
December 31, 2014
Current	670	$	107,467	$	159,731	$	160,654
30	109	15,424		22,629		24,046
60	57	7,921		11,624		12,510
90	2,286	361,434		569,930		544,709
Foreclosure	7,841	1,466,798		2,172,047		1,951,606
Mortgage Loans	10,963	$	1,959,044	$	2,935,961	$	2,693,525

The following table sets forth the carrying value of Residential's re-performing mortgage loans held for sale, the related unpaid principal balance and market value of underlying properties by delinquency status as of March 31, 2015.



	Number of loans	Carrying value		Unpaid principal balance		Market value of underlying properties
March 31, 2015
Current	69	$	8,597	$	12,004	$	15,102
30	6	498		1,018		1,074
60	—	—		—		—
90	24	3,390		4,498		5,931
Mortgage loans held for sale	99	$	12,485	$	17,520	$	22,107
December 31, 2014
Current	68	$	8,317	$	11,938	$	15,154
30	6	1,118		1,667		2,004
60	4	359		644		670
90	24	2,741		4,149		4,624
Mortgage loans held for sale	102	$	12,535	$	18,398	$	22,452

The significant unobservable inputs used in the fair value measurement of Residential's mortgage loans are discount rates, forecasts of future home prices, alternate loan resolution probabilities, resolution timelines and the value of underlying properties. Significant changes in any of these inputs in isolation could result in a significant change to the fair value measurement. A decline in the discount rate in isolation would increase the fair value. A decrease in the housing pricing index in isolation would decrease the fair value. Individual loan characteristics such as location and value of underlying collateral affect the loan resolution probabilities and timelines. An increase in the loan resolution timeline in isolation would decrease the fair value. A decrease in the value of underlying properties in isolation would decrease the fair value. The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of Residential's mortgage loans as of March 31, 2015 and December 31, 2014:



Input	March 31, 2015	December 31, 2014
Equity discount rate	15.0%	15.0%
Debt to asset ratio	65.0%	65.0%
Cost of funds	3.5% over 1 month LIBOR	3.5% over 1 month LIBOR
Annual change in home pricing index	0% to 7.6%	-0.1% to 7.6%
Loan resolution probabilities — modification	0% to 44.7%	0% to 44.7%
Loan resolution probabilities — rental	0% to 100.0%	0% to 100.0%
Loan resolution probabilities — liquidation	0% to 100.0%	0% to 100.0%
Loan resolution timelines (in years)	0.1 to 5.3	0.1 to 5.3
Value of underlying properties	$500 - $5,500,000	$3,000 - $5,300,000

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Borrowings

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Borrowings

Repurchase Agreements

Residential's operating partnership and certain of its Delaware Statutory Trust subsidiaries, as applicable, have entered into master repurchase agreements with major financial institutions. The purpose of these repurchase agreements is to finance the acquisition and ownership of mortgage loans, rental properties and REO properties in its portfolio. Residential has effective control of the assets associated with these agreements and therefore it has concluded these are financing arrangements. As of March 31, 2015, the weighted average annualized interest rate on borrowing under Residential's repurchase agreements was 3.06%, excluding amortization of deferred financing costs. The following table sets forth data with respect to Residential's repurchase agreements as of March 31, 2015 and December 31, 2014 ($ in thousands):



	Maximum borrowing capacity		Book value of collateral		Amount outstanding
March 31, 2015
CS repurchase agreement due April 20, 2015	$	225,000	$	331,633	$	183,806
Wells repurchase agreement due March 23, 2016	525,780		986,572		525,780
DB repurchase agreement due March 11, 2016	219,701		457,553		219,701
	$	970,481	$	1,775,758	$	929,287
December 31, 2014
CS repurchase agreement due April 20, 2015	$	225,000	$	332,618	$	222,044
Wells repurchase agreement due March 23, 2015	750,000		1,036,409		569,509
DB repurchase agreement due March 11, 2016	250,000		450,532		223,447
	$	1,225,000	$	1,819,559	$	1,015,000

Under the terms of each repurchase agreement, as collateral for the funds Residential draws thereunder, subject to certain conditions, Residential's operating partnership will sell to the applicable lender equity interests in its Delaware statutory trust subsidiaries that owns the applicable underlying assets on its behalf, or the trust will directly sell such underlying mortgage assets. In the event the lender determines the value of the collateral has decreased, the lender has the right to initiate a margin call and require Residential, or the applicable trust subsidiary, to post additional collateral or to repay a portion of the outstanding borrowings. The price paid by the lender for each mortgage asset Residential finances under the repurchase agreements is based on a percentage of the market value of the mortgage asset and may depend on its delinquency status. With respect to funds drawn under the repurchase agreements, Residential's operating partnership is required to pay the lender interest based on LIBOR or at the lender's cost of funds plus a spread calculated based on the type of applicable mortgage assets collateralizing the funding, as well as certain other customary fees, administrative costs and expenses to maintain and administer the repurchase agreements. Residential does not collateralize any of its repurchase facilities with cash. Pursuant to the CS Repurchase Agreement, Residential is entitled to collateralize a portion of the facility with securities. As of March 31, 2015, approximately $10.6 million of the amounts outstanding under the CS Repurchase Agreement was collateralized by $17.0 million of the Class M Notes issued and retained by Residential in connection with the securitization completed in September 2014 by ARLP 2014-1, and approximately $29.4 million of the amounts outstanding under the CS Repurchase Agreement was collateralized by $45.1 million of the Class A2 Notes issued and retained by Residential in connection with the securitization completed in November 2014 by ARLP 2014-2.

The repurchase agreements require Residential to maintain various financial and other covenants, including maintaining a minimum adjusted tangible net worth, a maximum ratio of indebtedness to adjusted tangible net worth and specified levels of unrestricted cash. In addition, the repurchase agreements contain customary events of default. Residential is restricted by the terms of its repurchase agreements from paying dividends greater than its REIT taxable income in a calendar year.

Residential is currently in compliance with the covenants and other requirements with respect to its repurchase agreements. We monitor Residential's banking partners' ability to perform under the repurchase agreements and have concluded there is currently no reason to doubt that they will continue to perform under the repurchase agreements as contractually obligated.

Other Secured Debt

On November 25, 2014, Residential completed a securitization transaction in which ARLP 2014-2 issued $270.8 million in Class A Notes with a weighted coupon of approximately 3.85% and $234.0 million in Class M Notes. Residential initially retained $95.8 million of the Class A Notes and all of the Class M Notes in its TRS. On February 9, 2015, Residential sold $50.7 million of the retained Class A Notes to an unrelated third party. No interest will be paid on any Class M Notes while any Class A Notes remain outstanding. The Class A Notes and Class M Notes are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-2 and not by any of Residential's other assets. The assets of ARLP 2014-2 are the only source of repayment and interest on the Class A Notes and the Class M Notes. The Class A Notes and the Class M Notes mature on January 26, 2054, and Residential does not guaranty any of the obligations of ARLP 2014-2 under the terms of the Indenture governing the notes or otherwise. As of March 31, 2015, the book value of the underlying securitized assets held by ARLP 2014-2 was $332.5 million.

On September 25, 2014, Residential completed a securitization transaction in which ARLP 2014-1 issued $150.0 million in Class A Notes with a weighted coupon of approximately 3.5% and $32.0 million in Class M Notes with a weighted coupon of 4.25%. The Class A Notes and the Class M Notes are secured solely by the non-performing mortgage loans of ARLP 2014-1 and not by any of Residential's other assets. The assets of ARLP 2014-1 are the only source of repayment and interest on the Class A Notes and the Class M Notes. The Class A Notes and the Class M Notes mature on September 25, 2044, and Residential does not guaranty any of the obligations of ARLP 2014-1 under the terms of the Indenture governing the notes or otherwise. As of March 31, 2015, the book value of the underlying securitized assets held by ARLP 2014-1 was $213.8 million.

Residential retained all of the Class M Notes in its TRS. On September 30, 2014, pursuant to a master repurchase agreement, the TRS sold $15.0 million of the Class M Notes to NewSource for a purchase price of $15.0 million. The master repurchase agreement initially required the TRS to repurchase the Class M Notes from NewSource at a 5.0% yield on December 28, 2014, with the parties having the option to extend the master repurchase agreement for additional 89-day periods. In no event can the master repurchase agreement be extended beyond September 29, 2015. The agreement is currently due to expire on June 25, 2015.

The following table sets forth data with respect to these notes as of March 31, 2015 ($ in thousands):



	Interest Rate		Amount outstanding
March 31, 2015
ARLP Securitization Trust, Series 2014-1
ARLP 2014-1 Class A Notes due September 25, 2044⁽¹⁾	3.47	%	$	145,953
ARLP 2014-1 Class M Notes due September 25, 2044⁽²⁾	4.25	%	32,000
ARLP Securitization Trust, Series 2014-2
ARLP 2014-2 Class A Notes due January 26, 2054⁽³⁾	3.85	%	264,034
ARLP 2014-2 Class M Notes due January 26, 2054	—	%	234,010
ARNS, Inc.
Securities sold under agreement to repurchase due June 25, 2015	5.00	%	14,991
Intercompany eliminations
Elimination of ARLP 2014-1 Class A Notes due to ARNS, Inc.			(14,991		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(32,000		)
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc.			(45,138		)
Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc.			(234,010		)
			$	364,849
December 31, 2014
ARLP Securitization Trust, Series 2014-1
ARLP 2014-1 Class A Notes due September 25, 2044⁽¹⁾	3.47	%	$	150,000
ARLP 2014-1 Class M Notes due September 25, 2044⁽²⁾	4.25	%	32,000
ARLP Securitization Trust, Series 2014-2
ARLP 2014-2 Class A Notes due January 26, 2054⁽³⁾	3.85	%	269,820
ARLP 2014-2 Class M Notes due January 26, 2054	—	%	234,010
ARNS, Inc.
Securities sold under agreement to repurchase due March 27, 2015	5.00	%	14,991
Intercompany eliminations
Elimination of ARLP 2014-1 Class A Notes due to ARNS, Inc.			(15,000		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(32,000		)
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc.			(95,729		)
Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc.			(234,010		)
			$	324,082

_____________


(1)	The expected redemption date for the Class A Notes is September 25, 2017.


(2)	The expected redemption date for the Class M Notes is September 25, 2018.


(3)	The expected redemption date for the Class A Notes is November 27, 2017.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation, claims and assessments There have been no material new developments in our legal proceedings since the March 2, 2015 filing of our annual report on Form 10-K for the year ended December 31, 2014, except as follows: The Police Retirement System of Saint Louis v. Erbey, et al. On April 2, 2015, The Police Retirement System of Saint Louis and the defendants entered into a Memorandum of Understanding (“MOU”) reflecting an agreement in principle to settle the action with the settlement consideration being the new AMA. The MOU contemplates the negotiation and execution of a stipulation of settlement. The stipulation of settlement will be subject to customary conditions, including court approval. If the settlement is finally approved by the court, it will resolve and release all claims in the action that were, or could have been brought by or on behalf of Residential challenging any aspect of the Original AMA and the negotiation of, the terms and provisions of, or the approval of the new AMA. In addition, in connection with the settlement, the parties agreed that plaintiff’s counsel will apply to the court for an award of fees and expenses. There can be no assurances that the parties will ultimately enter into a stipulation of settlement or that the court will approve the settlement. City of Cambridge Retirement System v. Altisource Asset Management Corp., et al. On March 17, 2015, four plaintiffs filed motions to be appointed as Lead Plaintiff, and these motions are currently before the Court. AAMC’s time to answer or otherwise plead has been extended until after a Lead Plaintiff is appointed. Kanga v. Altisource Asset Management Corporation, et al. On March 12, 2015, a shareholder derivative action was filed in the Superior Court of the Virgin Islands, Division of St. Croix by a purported shareholder of AAMC under the caption Nanzeen Kanga v. William Erbey et al., SX-15-CV-105. The action names as defendants William C. Erbey and each of the current and former members of AAMC's Board of Directors and alleges that Mr. Erbey and AAMC’s directors breached fiduciary duties in connection with the disclosures that are the subject of the City of Cambridge Retirement System case described above and certain other matters involving the relationship of Residential and AAMC. At this time, we are not able to predict the ultimate outcome of this matter, nor can we estimate the range of possible loss, if any. For the litigation described above where an estimate is possible, management has established a litigation accrual in the amount of $3.0 million on a consolidated basis. This estimated liability is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. Matters underlying the Company’s litigation accrual may change from time to time, and actual results may vary significantly from the current estimate, including as a result of changes in our ongoing and future legal proceedings. Those matters for which an estimate is not possible are not included within this litigation accrual. Therefore, this estimated liability represents what we believe to be an estimate of liability only for certain liabilities that are estimable and probable, and does not represent our maximum loss exposure.

Related party transactions

3 Months Ended

Mar. 31, 2015

Related party transactions

New Asset Management Agreement with Residential

On March 31, 2015, we entered into a new Asset Management Agreement ("AMA") with Residential.

The AMA, which became effective on April 1, 2015, provides for a new management fee structure which replaces the incentive fee structure under the original asset management agreement (the “Original AMA”) as follows:

•

We are entitled to a quarterly base management fee equal to 1.5% of the product of (i) Residential’s average invested capital for the quarter multiplied by (ii) 0.25, while Residential has fewer than 2,500 single family rental properties actually rented (“Rental Properties”). The base management fee percentage increases to 1.75% of invested capital while Residential has between 2,500 and 4,499 Rental Properties and increases to 2.0% of invested capital while Residential has 4,500 or more Rental Properties;

•

We are entitled to a quarterly incentive management fee equal to 20% of the amount by which Residential's return on invested capital exceeds a hurdle return rate of between 7.0% and 8.25% (depending on the 10-year treasury rate). The incentive management fee increases to 22.5% while Residential has between 2,500 and 4,499 Rental Properties and increases to 25% while Residential has 4,500 or more Rental Properties; and


•	We are entitled to a quarterly conversion fee equal to 1.5% of the market value of the single-family homes leased by Residential for the first time during the quarter.

Residential has the flexibility to pay up to 25% of the incentive management fee to us in shares of Residential common stock.

Under the new AMA, we will continue to be the exclusive asset manager for Residential for an initial term of 15 years from April 1, 2015, with two potential five-year extensions, subject to Residential achieving an average annual return on invested capital of at least 7.0%. Under the AMA, Residential will not be required to reimburse us for the allocable compensation and routine overhead expenses of our employees and staff, all of which will now be covered by the base management fee described above.

Neither party is entitled to terminate the AMA prior to the end of the initial term, or each renewal term, other than termination by (a) Residential and/or us “for cause” for certain events such as a material breach of the AMA and failure to cure such breach, (b) Residential for certain other reasons such as Residential’s failure to achieve a return on invested capital of at least 7.0% for two consecutive fiscal years after the third anniversary of the AMA, and (c) Residential in connection with certain change of control events.

Summary of Related Party Transaction Expenses

Through January 16, 2015, William C. Erbey served as our Chairman as well as the Executive Chairman of Ocwen, Chairman of Altisource, and Chairman of Residential. Effective January 16, 2015, Mr. Erbey stepped down as the Executive Chairman of Ocwen and Chairman of each of Altisource, Residential and AAMC and is no longer a member of the Board of Directors for any of these companies. As of March 31, 2015, Mr. Erbey owned or controlled approximately 28% of our common stock, approximately 4% of the common stock of Residential, approximately 30% of the common stock of Altisource, and approximately 14% of the common stock of Ocwen. As of March 31, 2015, Mr. Erbey also held 857,543 options to purchase Altisource common stock (all of which were exercisable), 3,572,626 options to purchase Ocwen common stock (3,322,626 of which were exercisable) and 85,755 options to purchase our common stock (all of which were exercisable).

As a result of Mr. Erbey’s position as our Chairman and as Chairman of each of Ocwen, Altisource and Residential during the beginning of the first quarter, combined with his share ownership, these companies are considered related parties of Residential for the first quarter of 2015. We will continue to monitor the facts and circumstances with respect to Mr. Erbey, as well as our continuing officers and directors, to determine whether any of Altisource, Ocwen or Residential will be related parties in future periods.

Our Consolidated Statements of Operations included the following significant related party transactions ($ in thousands):



	Three months ended March 31, 2015		Counter-party	Consolidated Statements of Operations location
2015
Residential property operating expenses	$	9,512	Ocwen/Altisource	Residential property operating expenses
Mortgage loan servicing costs	16,985		Ocwen	Mortgage loan servicing costs
Office and occupancy costs	107		Ocwen/Altisource	Related party general and administrative expenses
Salaries and benefits	214		Ocwen/Altisource	Related party general and administrative expenses
Other general and administrative expenses	451		Altisource	Related party general and administrative expenses
Expense reimbursements	960		Residential/NewSource	Net income attributable to noncontrolling interest in consolidated affiliate
Professional fee sharing for negotiation of AMA	2,000		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
Management incentive fee	14,900		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
	Three months ended March 31, 2014		Counter-party	Consolidated Statements of Operations location
2014
Residential property operating expenses	$	1,050	Ocwen/Altisource	Residential property operating expenses
Mortgage loan servicing costs	10,490		Ocwen	Mortgage loan servicing costs
Due diligence and unsuccessful deal costs	111		Altisource	Related party general and administrative expenses
Office and occupancy costs	74		Ocwen	Related party general and administrative expenses
Salaries and benefits	517		Ocwen/Altisource	Related party general and administrative expenses
Other general and administrative expenses	—		Altisource	Related party general and administrative expenses
Expense reimbursements	1,780		Residential/NewSource	Net loss (income) attributable to noncontrolling interest in consolidated affiliate
Management incentive fee	10,911		Residential	Net loss (income) attributable to noncontrolling interest in consolidated affiliate

On September 30, 2014, pursuant to a master repurchase agreement, Residential's TRS sold $15.0 million of the Class M Notes to NewSource for a purchase price of 15.0 million. The master repurchase agreement initially required the TRS to repurchase the Class M Notes from NewSource at a 5.0% yield on December 28, 2014, with the parties having the option to extend the master repurchase agreement for additional 89 day periods. In no event can the master repurchase agreement be extended beyond September 29, 2015. The agreement is currently due to expire on June 25, 2015.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Share-based payments	3 Months Ended
Share-based payments	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based payments	Share-based payments During the three months ended March 31, 2015 and 2014, we granted 44,132 and 8,765 shares, respectively, of market-based restricted stock to certain members of executive management under our 2012 Equity Incentive Plan with a weighted average grant date fair value per share of $181.02 and $791.27, respectively. Our directors each receive annual grants of restricted stock equal to $45,000 based on the market value of our common stock at the time of the annual stockholders meeting. This restricted stock vests and is issued after a one-year service period subject to each director attending at least 75% of the Board and committee meetings. No dividends are paid on the shares until the award is issued. During the three months ended March 31, 2015 and 2014, we granted no share-based payments to directors. We recorded $0.9 million and $3.3 million of compensation expense related to these grants for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015 and 2014, we had an aggregate $25.6 million and $30.0 million, respectively, of total unrecognized share-based compensation cost to be recognized over a weighted average remaining estimated term of 2.0 years and 3.2 years, respectively.

Income taxes	3 Months Ended
Income taxes	Mar. 31, 2015
Income Taxes [Abstract]
Income taxes	Income taxes We are domiciled in the United States Virgin Islands ("USVI") and under current USVI law are obligated to pay taxes in the United States Virgin Islands on income and/or capital gains. We applied for tax benefits from the United States Virgin Islands Economic Development Commission and received our certificate of benefits, effective as of February 1, 2013. Under the certificate of benefits, so long as we comply with the provisions of the certificate, we will receive a 90% exemption on our USVI sourced income taxes until 2043. NewSource is considered a controlled foreign corporation ("CFC") to AAMC. Subpart F income generated by a CFC is taxed currently in the USVI and is not eligible for the reduced tax rate under the certificate of benefits. As of March 31, 2015 and 2014, neither Residential nor we accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense or penalty recognized during the three months ended March 31, 2015 and 2014. Residential recorded nominal state and local tax expense on income and property for the three months ended March 31, 2015. Our subsidiaries and we remain subject to tax examination for the period from inception to December 31, 2014.

Earnings per share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings per share

The following table sets forth the components of diluted earnings per share (in thousands, except share and per share amounts):



	Three months ended March 31, 2015		Three months ended March 31, 2014
Numerator
Net income	$	6,888	6,828
Amortization of preferred stock issuance costs	53		—
Numerator for basic EPS - income available to common stockholders	6,835		6,828
Add back amortization of preferred stock issuance costs	53		—
Numerator for diluted EPS - income available to common stockholders after assumed conversions	$	6,888	$	6,828

Denominator
Weighted average common stock outstanding – basic	2,203,699		2,367,202
Stock options using treasury method	232,712		273,778
Restricted stock	120,795		183,988
Preferred shares if converted	200,000		31,111
Weighted average common stock outstanding – diluted	2,757,206		2,856,079

Earnings per basic share	$	3.10	$	2.88
Earnings per diluted share	$	2.50	$	2.39

As of March 31, 2015, we had 42,198 restricted shares that were excluded from the calculation of diluted earnings per share as they were antidilutive.

Segment information	3 Months Ended
Segment information	Mar. 31, 2015
Segment Reporting [Abstract]
Segment information	Segment information Our primary business is to provide asset management and certain corporate governance services to Residential. Residential's primary business is the acquisition and ownership of single-family rental assets. Residential's primary sourcing strategy is to acquire these assets by purchasing sub-performing and non-performing mortgage loans. As a result, we operate in a single segment focused on the management of Residential's resolution of sub-performing and non-performing mortgages with the intent to modify as many loans as possible to keep borrowers in their homes or own the collateral which is suitable as long-term rental properties.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

Subsequent events	3 Months Ended
Subsequent events	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent events	Subsequent events New Loan and Security Agreement with Nomura On April 10, 2015, Residential entered into a Loan and Security Agreement (the “Loan Agreement”) with Nomura Corporate Funding Americas, LLC (“Nomura”). The purpose of the Loan Agreement is to finance Residential's beneficial ownership of REO properties. These obligations are fully guaranteed pursuant to a guaranty (the “Guaranty”) made by Residential in favor of Nomura. The Loan Agreement terminates on April 8, 2016. Under the terms of the Loan Agreement, subject to certain conditions, Nomura may advance funds to Residential from time to time, with such advances collateralized by REO properties. The maximum aggregate advance for the REO properties under the Loan Agreement is $100.0 million, subject to certain sublimits, eligibility requirements and conditions precedent to each funding. The advances paid by Nomura under the Loan Agreement with respect to the REO properties from time to time will be based on a percentage of the market value of the applicable REO properties. Under the terms of the Loan Agreement, Residential is required to pay to Nomura interest based on the one-month LIBOR plus a spread and certain other customary fees, administrative costs and expenses in connection with Nomura's structuring, management and ongoing administration of the Loan Agreement. The Loan Agreement requires Residential to maintain various standard financial and other covenants. In addition, the Loan Agreement contains events of default (subject to certain materiality thresholds and grace periods), including payment defaults, breaches of covenants and/or certain representations and warranties, cross-defaults, certain material adverse changes, bankruptcy or insolvency proceedings and other events of default customary for this type of transaction. The remedies for such events of default are also customary for this type of transaction and include the acceleration of the principal amount outstanding under the Loan Agreement and the liquidation by Nomura of the REO properties then subject to the Loan Agreement. Amended and Restated Repurchase Agreement with CS On April 20, 2015, Residential entered into an Amended and Restated Master Repurchase Agreement with CS. The CS Repurchase Agreement, as amended and restated, increases the aggregate maximum funding capacity to finance the purchase and beneficial ownership of non-performing, re-performing and performing mortgage loans and REO properties from $225.0 million to $275.0 million, and also increases the sublimit for REO properties that can be financed on the facility. The obligations of Residential's subsidiaries continue to be fully guaranteed by Residential pursuant to an amended and restated guaranty (the “Amended Guaranty”) made in favor of CS. As amended and restated, the Repurchase Agreement has been extended to mature on April 21, 2016. All other material terms and conditions of the Repurchase Agreement remain the same as the original repurchase agreement in all material respects.

Mortgage loans (Tables)

3 Months Ended

Mar. 31, 2015

Mortgage Loans on Real Estate [Abstract]

Schedule of information for estimates of contractually required payments and cash flows expected



	Three months ended March 31, 2015
	Accretable Yield			Carrying Amount of Loans
Balance at the beginning of the period	$	7,640		$	12,535
Additions	—			37
Payments and other reductions, net	(201		)	(319		)
Accretion	(232		)	232
Balance at the end of the period	$	7,207		$	12,485

Fair value of financial instruments (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair value measurements, recurring and nonrecurring

The following table sets forth the fair value of financial assets and liabilities by level within the fair value hierarchy as of March 31, 2015 and December 31, 2014 ($ in thousands):



	Level 1		Level 2		Level 3
	Quoted prices in active markets		Observable inputs other than Level 1 prices		Unobservable inputs
March 31, 2015
Recurring basis (assets)
Mortgage loans	$	—	$	—	$	1,853,495
Nonrecurring basis (assets)
Real estate assets held for sale	$	—	$	—	$	168,942
Transfer of real estate owned to mortgage loans	$	—	$	—	$	1,356
Transfer of mortgage loans to real estate owned	$	—	$	—	$	136,182
Not recognized on consolidated balance sheets at fair value (assets)
Mortgage loans held for sale	$	—	$	—	$	12,485
Not recognized on consolidated balance sheets at fair value (liabilities)
Repurchase agreements at fair value	$	—	$	929,287	$	—
Other secured borrowings	$	—	$	362,429	$	—

December 31, 2014
Recurring basis (assets)
Mortgage loans	$	—	$	—	$	1,959,044
Nonrecurring basis (assets)
Real estate assets held for sale	$	—	$	—	$	96,041
Transfer of real estate owned to mortgage loans	$	—	$	—	$	8,400
Transfer of mortgage loans to real estate owned	$	—	$	—	$	595,668
Not recognized on consolidated balance sheets at fair value (assets)
Mortgage loans held for sale	$	—	$	—	$	12,535
Not recognized on consolidated balance sheets at fair value (liabilities)
Repurchase agreements at fair value	$	—	$	1,015,000	$	—
Other secured borrowings	$	—	$	336,409	$	—

Fair value, assets measured on recurring basis, reconciliation

The following table sets forth the changes in Residential's level 3 assets that are measured at fair value on a recurring basis ($ in thousands):



	Three months ended March 31, 2015			Three months ended March 31, 2014
Mortgage loans
Beginning balance	$	1,959,044		$	1,207,163
Investment in mortgage loans	—			612,508
Net unrealized gain on mortgage loans	61,134			65,130
Net realized gain on mortgage loans	15,382			9,321
Mortgage loan dispositions and payments	(65,168		)	(39,458		)
Real estate tax advances to borrowers	7,127			8,006
Reclassification of realized gains on real estate sold from unrealized gains	10,802			—
Transfer of real estate owned to mortgage loans	1,356			—
Transfer of mortgage loans to real estate owned	(136,182		)	(96,528		)
Ending balance at March 31	$	1,853,495		$	1,766,142

Net unrealized gain on mortgage loans held at the end of the period	$	51,068		$	38,197

Delinquency by unpaid principal balance



	Number of loans	Carrying Value		Unpaid principal balance		Market value of underlying properties
March 31, 2015
Current	794	$	127,984	$	183,091	$	188,031
30	95	13,653		20,233		20,694
60	41	6,423		8,986		10,288
90	2,138	332,892		531,217		502,562
Foreclosure	7,021	1,372,543		1,964,595		1,801,433
Mortgage loans	10,089	$	1,853,495	$	2,708,122	$	2,523,008
December 31, 2014
Current	670	$	107,467	$	159,731	$	160,654
30	109	15,424		22,629		24,046
60	57	7,921		11,624		12,510
90	2,286	361,434		569,930		544,709
Foreclosure	7,841	1,466,798		2,172,047		1,951,606
Mortgage Loans	10,963	$	1,959,044	$	2,935,961	$	2,693,525



	Number of loans	Carrying value		Unpaid principal balance		Market value of underlying properties
March 31, 2015
Current	69	$	8,597	$	12,004	$	15,102
30	6	498		1,018		1,074
60	—	—		—		—
90	24	3,390		4,498		5,931
Mortgage loans held for sale	99	$	12,485	$	17,520	$	22,107
December 31, 2014
Current	68	$	8,317	$	11,938	$	15,154
30	6	1,118		1,667		2,004
60	4	359		644		670
90	24	2,741		4,149		4,624
Mortgage loans held for sale	102	$	12,535	$	18,398	$	22,452

Fair value measurements, recurring and nonrecurring, unobservable inputs

The following table sets forth quantitative information about the significant unobservable inputs used to measure the fair value of Residential's mortgage loans as of March 31, 2015 and December 31, 2014:



Input	March 31, 2015	December 31, 2014
Equity discount rate	15.0%	15.0%
Debt to asset ratio	65.0%	65.0%
Cost of funds	3.5% over 1 month LIBOR	3.5% over 1 month LIBOR
Annual change in home pricing index	0% to 7.6%	-0.1% to 7.6%
Loan resolution probabilities — modification	0% to 44.7%	0% to 44.7%
Loan resolution probabilities — rental	0% to 100.0%	0% to 100.0%
Loan resolution probabilities — liquidation	0% to 100.0%	0% to 100.0%
Loan resolution timelines (in years)	0.1 to 5.3	0.1 to 5.3
Value of underlying properties	$500 - $5,500,000	$3,000 - $5,300,000

Borrowings (Tables)

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Schedule of repurchase agreements

The following table sets forth data with respect to Residential's repurchase agreements as of March 31, 2015 and December 31, 2014 ($ in thousands):



	Maximum borrowing capacity		Book value of collateral		Amount outstanding
March 31, 2015
CS repurchase agreement due April 20, 2015	$	225,000	$	331,633	$	183,806
Wells repurchase agreement due March 23, 2016	525,780		986,572		525,780
DB repurchase agreement due March 11, 2016	219,701		457,553		219,701
	$	970,481	$	1,775,758	$	929,287
December 31, 2014
CS repurchase agreement due April 20, 2015	$	225,000	$	332,618	$	222,044
Wells repurchase agreement due March 23, 2015	750,000		1,036,409		569,509
DB repurchase agreement due March 11, 2016	250,000		450,532		223,447
	$	1,225,000	$	1,819,559	$	1,015,000

Schedule of other secured debt

The following table sets forth data with respect to these notes as of March 31, 2015 ($ in thousands):



	Interest Rate		Amount outstanding
March 31, 2015
ARLP Securitization Trust, Series 2014-1
ARLP 2014-1 Class A Notes due September 25, 2044⁽¹⁾	3.47	%	$	145,953
ARLP 2014-1 Class M Notes due September 25, 2044⁽²⁾	4.25	%	32,000
ARLP Securitization Trust, Series 2014-2
ARLP 2014-2 Class A Notes due January 26, 2054⁽³⁾	3.85	%	264,034
ARLP 2014-2 Class M Notes due January 26, 2054	—	%	234,010
ARNS, Inc.
Securities sold under agreement to repurchase due June 25, 2015	5.00	%	14,991
Intercompany eliminations
Elimination of ARLP 2014-1 Class A Notes due to ARNS, Inc.			(14,991		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(32,000		)
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc.			(45,138		)
Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc.			(234,010		)
			$	364,849
December 31, 2014
ARLP Securitization Trust, Series 2014-1
ARLP 2014-1 Class A Notes due September 25, 2044⁽¹⁾	3.47	%	$	150,000
ARLP 2014-1 Class M Notes due September 25, 2044⁽²⁾	4.25	%	32,000
ARLP Securitization Trust, Series 2014-2
ARLP 2014-2 Class A Notes due January 26, 2054⁽³⁾	3.85	%	269,820
ARLP 2014-2 Class M Notes due January 26, 2054	—	%	234,010
ARNS, Inc.
Securities sold under agreement to repurchase due March 27, 2015	5.00	%	14,991
Intercompany eliminations
Elimination of ARLP 2014-1 Class A Notes due to ARNS, Inc.			(15,000		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(32,000		)
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc.			(95,729		)
Elimination of ARLP 2014-2 Class M Notes due to ARNS, Inc.			(234,010		)
			$	324,082

_____________


(1)	The expected redemption date for the Class A Notes is September 25, 2017.


(2)	The expected redemption date for the Class M Notes is September 25, 2018.


(3)	The expected redemption date for the Class A Notes is November 27, 2017.

Related party transactions (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of related party transactions

Our Consolidated Statements of Operations included the following significant related party transactions ($ in thousands):



	Three months ended March 31, 2015		Counter-party	Consolidated Statements of Operations location
2015
Residential property operating expenses	$	9,512	Ocwen/Altisource	Residential property operating expenses
Mortgage loan servicing costs	16,985		Ocwen	Mortgage loan servicing costs
Office and occupancy costs	107		Ocwen/Altisource	Related party general and administrative expenses
Salaries and benefits	214		Ocwen/Altisource	Related party general and administrative expenses
Other general and administrative expenses	451		Altisource	Related party general and administrative expenses
Expense reimbursements	960		Residential/NewSource	Net income attributable to noncontrolling interest in consolidated affiliate
Professional fee sharing for negotiation of AMA	2,000		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
Management incentive fee	14,900		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
	Three months ended March 31, 2014		Counter-party	Consolidated Statements of Operations location
2014
Residential property operating expenses	$	1,050	Ocwen/Altisource	Residential property operating expenses
Mortgage loan servicing costs	10,490		Ocwen	Mortgage loan servicing costs
Due diligence and unsuccessful deal costs	111		Altisource	Related party general and administrative expenses
Office and occupancy costs	74		Ocwen	Related party general and administrative expenses
Salaries and benefits	517		Ocwen/Altisource	Related party general and administrative expenses
Other general and administrative expenses	—		Altisource	Related party general and administrative expenses
Expense reimbursements	1,780		Residential/NewSource	Net loss (income) attributable to noncontrolling interest in consolidated affiliate
Management incentive fee	10,911		Residential	Net loss (income) attributable to noncontrolling interest in consolidated affiliate

Earnings per share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Schedule of earning per share, basic and diluted

The following table sets forth the components of diluted earnings per share (in thousands, except share and per share amounts):



	Three months ended March 31, 2015		Three months ended March 31, 2014
Numerator
Net income	$	6,888	6,828
Amortization of preferred stock issuance costs	53		—
Numerator for basic EPS - income available to common stockholders	6,835		6,828
Add back amortization of preferred stock issuance costs	53		—
Numerator for diluted EPS - income available to common stockholders after assumed conversions	$	6,888	$	6,828

Denominator
Weighted average common stock outstanding – basic	2,203,699		2,367,202
Stock options using treasury method	232,712		273,778
Restricted stock	120,795		183,988
Preferred shares if converted	200,000		31,111
Weighted average common stock outstanding – diluted	2,757,206		2,856,079

Earnings per basic share	$	3.10	$	2.88
Earnings per diluted share	$	2.50	$	2.39

Organization and basis of presentation (Details)					3 Months Ended		12 Months Ended	24 Months Ended	27 Months Ended
Organization and basis of presentation (Details)	Dec. 28, 2014	Sep. 30, 2014 USD ($)	Mar. 18, 2014 USD ($) $ / shares shares	Oct. 17, 2013 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2014 USD ($)	Mar. 31, 2015 USD ($) offering	Apr. 30, 2015 USD ($)	Apr. 20, 2015 USD ($)	Feb. 20, 2015 USD ($)	Feb. 09, 2015 USD ($)	Dec. 23, 2014 USD ($)	Nov. 25, 2014 USD ($)	Sep. 25, 2014 USD ($)	Dec. 18, 2013 USD ($)	Sep. 23, 2013 USD ($)	Mar. 22, 2013 USD ($)
Organization and Basis of Presentation [Line Items]
Repurchase agreements					$ 929,287,000		$ 1,015,000,000	$ 1,015,000,000	$ 929,287,000
Proceeds from issuance of common stock					411,000	$ 2,732,000
Shares issued of redeemable convertible preferred stock \| shares			250,000
Proceeds from issuance of redeemable convertible preferred stock			$ 250,000,000
Shares authorized for repurchase						$ 300,000,000
Remaining shares authorized for repurchase					59,400,000
Redemption price per share \| $ / shares			$ 1,000
Conversion price per share \| $ / shares			$ 1,250
Other secured borrowings (from consolidated VIE)					364,849,000		324,082,000	324,082,000	364,849,000
Purchase price of securities sold under agreements to repurchase		$ 15,000,000
Number of days master repurchase agreement may be extended	89 days
Securities sold under agreements to repurchase		$ 15,000,000			14,991,000		14,991,000	14,991,000	$ 14,991,000
Variable Interest Entity, Primary Beneficiary [Member]
Organization and Basis of Presentation [Line Items]
Number of public offerings \| offering									3
Proceeds from issuance of common stock									$ 1,100,000,000
Loans \| ARLP 2014-2
Organization and Basis of Presentation [Line Items]
Book value of the underlying securitized assets					332,500,000				332,500,000
Asset-backed securities Class A notes Trust 2
Organization and Basis of Presentation [Line Items]
Other secured borrowings (from consolidated VIE)					264,034,000		269,820,000	269,820,000	264,034,000				$ 50,700,000		$ 270,800,000
Secured debt issued to affiliates					$ 45,138,000		$ 95,729,000	$ 95,729,000	$ 45,138,000						$ 95,800,000
Interest rate on debt					3.85%		3.85%	3.85%	3.85%						3.85%
Asset-backed securities Class M notes Trust 2
Organization and Basis of Presentation [Line Items]
Other secured borrowings (from consolidated VIE)					$ 234,010,000		$ 234,010,000	$ 234,010,000	$ 234,010,000						$ 234,000,000
Secured debt issued to affiliates					$ 234,010,000		$ 234,010,000	$ 234,010,000	$ 234,010,000
Interest rate on debt					0.00%		0.00%	0.00%	0.00%
Asset-backed securities Class A notes
Organization and Basis of Presentation [Line Items]
Other secured borrowings (from consolidated VIE)					$ 145,953,000		$ 150,000,000	$ 150,000,000	$ 145,953,000							$ 150,000,000
Secured debt issued to affiliates					$ 14,991,000		$ 15,000,000	$ 15,000,000	$ 14,991,000
Interest rate on debt					3.47%		3.47%	3.47%	3.47%							3.47%
Asset-backed securities Class M notes
Organization and Basis of Presentation [Line Items]
Other secured borrowings (from consolidated VIE)					$ 32,000,000		$ 32,000,000	$ 32,000,000	$ 32,000,000							$ 32,000,000
Secured debt issued to affiliates					$ 32,000,000		$ 32,000,000	$ 32,000,000	$ 32,000,000
Interest rate on debt					4.25%		4.25%	4.25%	4.25%							4.25%
Repurchase agreement NewSource
Organization and Basis of Presentation [Line Items]
Securities sold under agreement to repurchase, interest rate	5.00%				5.00%		5.00%	5.00%	5.00%
Secured debt
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity							$ 1,225,000,000	$ 1,225,000,000
Secured debt \| Variable Interest Entity, Primary Beneficiary [Member]
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity					$ 970,481,000		1,225,000,000	1,225,000,000	$ 970,481,000
Repurchase agreements					929,287,000		1,015,000,000	1,015,000,000	929,287,000
Secured debt \| CS repurchase agreement
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity							$ 225,000,000	225,000,000
Number of days master repurchase agreement may be extended							1 year
Secured debt \| CS repurchase agreement \| Variable Interest Entity, Primary Beneficiary [Member]
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity					225,000,000		$ 225,000,000	225,000,000	225,000,000					$ 225,000,000					$ 100,000,000
Repurchase agreements					183,806,000		222,044,000	222,044,000	183,806,000
Secured debt \| CS repurchase agreement \| Subsequent event
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity											$ 275,000,000.0
Secured debt \| DB repurchase agreement
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity																	$ 250,000,000
Secured debt \| DB repurchase agreement \| Variable Interest Entity, Primary Beneficiary [Member]
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity					219,701,000		250,000,000	250,000,000	219,701,000
Repurchase agreements					219,701,000		223,447,000	223,447,000	219,701,000
Secured debt \| DB repurchase agreement \| Subsequent event
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity										$ 219,701,000
Secured debt \| WF repurchase agreement \| Variable Interest Entity, Primary Beneficiary [Member]
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity					525,780,000		750,000,000	750,000,000	525,780,000			$ 525,780,000						$ 200,000,000.0
Maximum borrowing capacity during period								1,000,000,000
Repurchase agreements					$ 525,780,000		$ 569,509,000	$ 569,509,000	$ 525,780,000
Advance rate under repurchase agreement							10.00%
Term of nonrenewal restrictions							90 days
NewSource Reinsurance Company Ltd. [Member] \| Common stock
Organization and Basis of Presentation [Line Items]
Payments made for investments				$ 2,000,000
Percent of common stock owned of investments				100.00%
NewSource Reinsurance Company Ltd. [Member] \| Preferred Stock [Member] \| Variable Interest Entity, Primary Beneficiary [Member] \| Residential Corporation
Organization and Basis of Presentation [Line Items]
Payments made for investments				$ 18,000,000

Mortgage loans - Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended
Mortgage loans - Narrative (Details) $ in Thousands	Jun. 27, 2014 USD ($) loan	Oct. 31, 2014 USD ($) loan	Mar. 31, 2015 USD ($) loan	Mar. 31, 2014 USD ($) loan	Dec. 31, 2014 USD ($) loan
Mortgage Loans on Real Estate [Line Items]
Purchase price of loans acquired			$ 0	$ 611,357
Number of real estate properties acquired through foreclosure \| loan			724	636
Transfer of mortgage loans to real estate owned			$ 136,182	$ 96,528
Unrealized gain (loss) on conversion of mortgage loans to real estate			18,400	23,600
Net realized gain on mortgage loans			15,382	9,321
Purchase price of loans held for investment acquired	$ 144,600
Accretion of interest on re-performing mortgage loans			(232)	0
Loans receivable \| Residential mortgage
Mortgage Loans on Real Estate [Line Items]
Due diligence costs			100	500
Transfer of mortgage loans to real estate owned			134,800	96,500
Number of mortgage loans liquidated \| loan		934
Net realized gain on mortgage loans			$ 15,400	$ 9,300
Proceeds from sale of loans		$ 164,000
Nonperforming Financing Receivable [Member] \| Loans receivable \| Residential mortgage
Mortgage Loans on Real Estate [Line Items]
Number of loans acquired \| loan				4,207
Unpaid principal balance of loans and real estate acquired				$ 1,100,000
Market value of underlying properties collateralizing loans acquired				$ 901,000
Number of mortgage loans liquidated \| loan			150	116
Performing Financing Receivable [Member] \| Loans receivable \| Residential mortgage
Mortgage Loans on Real Estate [Line Items]
Number of loans acquired \| loan	879
Market value of underlying properties collateralizing loans held for investment acquired	$ 271,100
Balance of performing loans held for investment			$ 17,520		$ 18,398
Residential portfolio segment \| Nonperforming Financing Receivable [Member] \| Loans receivable \| Residential mortgage
Mortgage Loans on Real Estate [Line Items]
Foreclosure, number of loans in process \| loan			7,021		7,841
Foreclosure, carrying value of loans in process			$ 1,372,543		$ 1,466,798
Balance of performing loans held for investment			$ 2,708,122		$ 2,935,961

Mortgage loans - Certain Loans Acquired Not Accounted For As Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014
Mortgage Loans on Real Estate [Abstract]
Mortgage loans held for sale (from consolidated VIE)			$ 12,485	$ 12,535
Re-performing loans held for sale, additions	$ 37
Re-performing loans held for sale, payments and other reductions, net	(319)
Accretable yield	(7,640)		$ (7,207)	$ (7,640)
Accretable Yield
Accretable yield, beginning balance	7,640
Accretable yield, payments and other reductions, net	(201)
Accretion of interest on re-performing mortgage loans	(232)	$ 0
Accretable yield, ending balance	$ 7,207

Real estate assets, net (Details) $ in Thousands	3 Months Ended
Real estate assets, net (Details) $ in Thousands	Mar. 31, 2015 USD ($) property	Mar. 31, 2014 USD ($) property	Dec. 31, 2014 USD ($) property
Real Estate [Abstract]
Number of real estate properties under evaluation for rental portfolio	2,610	752	2,562
Number of real estate properties listed for rent	151	17	197
Number of real estate properties in various stages of lease preparation	116	48	254
Number of real estate properties held for sale	966	44	611
Real estate assets held for sale fair value \| $	$ 168,942		$ 96,041
Real estate assets held for sale (from consolidated VIE) \| $	150,807	$ 4,200	92,230
Impairment recognized on REO properties \| $	$ 9,000		$ 4,900
Number of real estate properties held for use	3,464	852	3,349
Number of real estate properties rented	587	35	336
Number of real estate properties sold	254	2
Net realized gain on real estate \| $	$ 10,608	$ 0

Fair value of financial instruments - Fair value, assets and liabilities measured on recurring and nonrecurring basis (Details) - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate assets held for sale	$ 168,942	$ 96,041
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans held for sale	0	0
Repurchase agreements at fair value	0	0
Other secured borrowings	0	0
Fair value, inputs, level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans held for sale	0	0
Repurchase agreements at fair value	929,287	1,015,000
Other secured borrowings	362,429	336,409
Fair value, inputs, level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans held for sale	12,485	12,535
Repurchase agreements at fair value	0	0
Other secured borrowings	0	0
Fair value measurements, recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans	0	0
Fair value measurements, recurring [Member] \| Fair value, inputs, level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans	0	0
Fair value measurements, recurring [Member] \| Fair value, inputs, level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans	1,853,495	1,959,044
Fair value measurements, nonrecurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate assets held for sale	0	0
Transfer of real estate owned to mortgage loans	0	0
Transfer of mortgage loans to real estate owned	0	0
Fair value measurements, nonrecurring [Member] \| Fair value, inputs, level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate assets held for sale	0	0
Transfer of real estate owned to mortgage loans	0	0
Transfer of mortgage loans to real estate owned	0	0
Fair value measurements, nonrecurring [Member] \| Fair value, inputs, level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate assets held for sale	168,942	96,041
Transfer of real estate owned to mortgage loans	1,356	8,400
Transfer of mortgage loans to real estate owned	$ 136,182	$ 595,668

Fair value of financial instruments - Fair value, assets measure on recurring basis, unobservable inputs (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfer of real estate owned to mortgage loans	$ 1,356	$ 0
Residential mortgage \| Fair value, inputs, level 3 \| Loans receivable
Fair value, assets measured on recurring basis, unobservable input reconciliation [Line Items]
Net unrealized gain on mortgage loans held at the end of the period	51,068	38,197
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	1,959,044	1,207,163	$ 1,207,163
Investment in mortgage loans	0	612,508
Net unrealized gain on mortgage loans	61,134	65,130
Net realized gain on mortgage loans	15,382	9,321
Mortgage loan dispositions and payments	(65,168)	(39,458)
Real estate tax advances to borrowers	7,127	8,006
Reclassification of realized gains on real estate sold from unrealized gains	10,802		0
Transfer of real estate owned to mortgage loans	1,356	0
Transfer of mortgage loans to real estate owned	(136,182)	(96,528)
Ending balance at March 31	$ 1,853,495	$ 1,766,142	$ 1,959,044

Fair value of financial instruments - Fair value by delinquency (Details) - Loans receivable - Residential mortgage $ in Thousands	Mar. 31, 2015 USD ($) loan	Dec. 31, 2014 USD ($) loan
Performing Financing Receivable [Member]
Unpaid principal balance
Mortgage loans	$ 17,520	$ 18,398
Residential portfolio segment \| Performing Financing Receivable [Member]
Number of loans
Current \| loan	69	68
30 \| loan	6	6
60 \| loan	0	4
90 \| loan	24	24
Mortgage Loans \| loan	99	102
Carrying Value
Current	$ 8,597	$ 8,317
30	498	1,118
60	0	359
90	3,390	2,741
Mortgage loans	12,485	12,535
Unpaid principal balance
Current	12,004	11,938
30	1,018	1,667
60	0	644
90	4,498	4,149
Market value of underlying properties
Current	15,102	15,154
30	1,074	2,004
60	0	670
90	5,931	4,624
Mortgage loans	$ 22,107	$ 22,452
Residential portfolio segment \| Nonperforming Financing Receivable [Member]
Number of loans
Current \| loan	794	670
30 \| loan	95	109
60 \| loan	41	57
90 \| loan	2,138	2,286
Foreclosure \| loan	7,021	7,841
Mortgage Loans \| loan	10,089	10,963
Carrying Value
Current	$ 127,984	$ 107,467
30	13,653	15,424
60	6,423	7,921
90	332,892	361,434
Foreclosure	1,372,543	1,466,798
Mortgage loans	1,853,495	1,959,044
Unpaid principal balance
Current	183,091	159,731
30	20,233	22,629
60	8,986	11,624
90	531,217	569,930
Foreclosure	1,964,595	2,172,047
Mortgage loans	2,708,122	2,935,961
Market value of underlying properties
Current	188,031	160,654
30	20,694	24,046
60	10,288	12,510
90	502,562	544,709
Foreclosure	1,801,433	1,951,606
Mortgage loans	$ 2,523,008	$ 2,693,525

Fair value of financial instruments - Fair value inputs, quantitative information (Details) - Residential mortgage - Loans receivable - Fair value, inputs, level 3 - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Fair value inputs, assets, quantitative information [Line Items]
Equity discount rate	15.00%	15.00%
Debt to asset ratio	65.00%	65.00%
Cost of funds	3.50%	3.50%
LIBOR reference rate	1 month LIBOR	1 month LIBOR
Minimum
Fair value inputs, assets, quantitative information [Line Items]
Annual change in home pricing index	0.00%	(0.30%)
Loan resolution probabilities — modification	0.00%	0.00%
Loan resolution probabilities — rental	0.00%	0.00%
Loan resolution probabilities — liquidation	0.00%	0.00%
Loan resolution timelines (in years)	1 month	1 month
Value of underlying properties	$ 500	$ 3,000
Maximum
Fair value inputs, assets, quantitative information [Line Items]
Annual change in home pricing index	7.60%	7.60%
Loan resolution probabilities — modification	44.70%	44.70%
Loan resolution probabilities — rental	100.00%	100.00%
Loan resolution probabilities — liquidation	100.00%	100.00%
Loan resolution timelines (in years)	5 years 4 months	5 years 4 months
Value of underlying properties	$ 5,500,000	$ 5,300,000

Borrowings - Repurchase Ageements (Details) - USD ($)			12 Months Ended
Borrowings - Repurchase Ageements (Details) - USD ($)	Dec. 28, 2014	Sep. 30, 2014	Dec. 31, 2014	Mar. 31, 2015	Feb. 20, 2015	Feb. 09, 2015	Dec. 23, 2014	Nov. 25, 2014	Sep. 25, 2014	Dec. 18, 2013	Sep. 23, 2013	Mar. 22, 2013
Debt [Line Items]
Repurchase agreements			$ 1,015,000,000	$ 929,287,000
Other secured borrowings (from consolidated VIE)			324,082,000	364,849,000
Securities sold under agreements to repurchase		$ 15,000,000	14,991,000	$ 14,991,000
Purchase price of securities sold under agreements to repurchase		$ 15,000,000
Number of days master repurchase agreement may be extended	89 days
Secured debt
Debt [Line Items]
Interest rate				3.06%
Maximum borrowing capacity			1,225,000,000
CS repurchase agreement due April 20, 2015 \| Secured debt
Debt [Line Items]
Maximum borrowing capacity			$ 225,000,000
Number of days master repurchase agreement may be extended			1 year
DB repurchase agreement due March 11, 2016 \| Secured debt
Debt [Line Items]
Maximum borrowing capacity										$ 250,000,000
Asset-backed securities Class A notes
Debt [Line Items]
Secured debt issued to affiliates			$ 15,000,000	$ 14,991,000
Other secured borrowings (from consolidated VIE)			$ 150,000,000	$ 145,953,000					$ 150,000,000
Interest rate on debt			3.47%	3.47%					3.47%
Asset-backed securities Class M notes
Debt [Line Items]
Secured debt issued to affiliates			$ 32,000,000	$ 32,000,000
Other secured borrowings (from consolidated VIE)			$ 32,000,000	$ 32,000,000					$ 32,000,000
Interest rate on debt			4.25%	4.25%					4.25%
Asset-backed securities Class A notes Trust 2
Debt [Line Items]
Secured debt issued to affiliates			$ 95,729,000	$ 45,138,000				$ 95,800,000
Other secured borrowings (from consolidated VIE)			$ 269,820,000	$ 264,034,000		$ 50,700,000		$ 270,800,000
Interest rate on debt			3.85%	3.85%				3.85%
Asset-backed securities Class M notes Trust 2
Debt [Line Items]
Secured debt issued to affiliates			$ 234,010,000	$ 234,010,000
Other secured borrowings (from consolidated VIE)			$ 234,010,000	$ 234,010,000				$ 234,000,000
Interest rate on debt			0.00%	0.00%
Repurchase agreement NewSource
Debt [Line Items]
Securities sold under agreement to repurchase, interest rate	5.00%		5.00%	5.00%
Variable Interest Entity, Primary Beneficiary [Member] \| Secured debt
Debt [Line Items]
Maximum borrowing capacity			$ 1,225,000,000	$ 970,481,000
Assets pledged as collateral			1,819,559,000	1,775,758,000
Repurchase agreements			1,015,000,000	929,287,000
Variable Interest Entity, Primary Beneficiary [Member] \| CS repurchase agreement due April 20, 2015 \| Secured debt
Debt [Line Items]
Maximum borrowing capacity			225,000,000	225,000,000			$ 225,000,000					$ 100,000,000
Assets pledged as collateral			332,618,000	331,633,000
Repurchase agreements			222,044,000	183,806,000
Variable Interest Entity, Primary Beneficiary [Member] \| Wells repurchase agreement due March 23, 2016 \| Secured debt
Debt [Line Items]
Maximum borrowing capacity			750,000,000	525,780,000	$ 525,780,000						$ 200,000,000.0
Assets pledged as collateral			1,036,409,000	986,572,000
Repurchase agreements			569,509,000	525,780,000
Variable Interest Entity, Primary Beneficiary [Member] \| DB repurchase agreement due March 11, 2016 \| Secured debt
Debt [Line Items]
Maximum borrowing capacity			250,000,000	219,701,000
Assets pledged as collateral			450,532,000	457,553,000
Repurchase agreements			$ 223,447,000	219,701,000
Secured debt \| ARLP 2014-2 \| Asset-backed securities Class A notes
Debt [Line Items]
Assets pledged as collateral				45,100,000
Secured debt \| ARLP 2014-1 \| Asset-backed securities Class M notes
Debt [Line Items]
Assets pledged as collateral				17,000,000
Loans \| ARLP 2014-2
Debt [Line Items]
Book value of the underlying securitized assets				332,500,000
Loans \| ARLP 2014-1
Debt [Line Items]
Book value of the underlying securitized assets				213,800,000
Secured debt, Class A notes Trust 2 \| CS repurchase agreement due April 20, 2015 \| Secured debt
Debt [Line Items]
Repurchase agreements				29,400,000
Secured debt, Class M notes \| CS repurchase agreement due April 20, 2015 \| Secured debt
Debt [Line Items]
Repurchase agreements				$ 10,600,000

Borrowings - Other Secured Debt (Details) - USD ($)	Dec. 28, 2014	Sep. 30, 2014	Mar. 31, 2015	Feb. 09, 2015	Dec. 31, 2014	Nov. 25, 2014	Sep. 25, 2014
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)			$ 364,849,000		$ 324,082,000
Securities sold under agreements to repurchase		$ 15,000,000	14,991,000		14,991,000
Purchase price of securities sold under agreements to repurchase		$ 15,000,000
Number of days master repurchase agreement may be extended	89 days
Asset-backed securities Class A notes Trust 2
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)			264,034,000	$ 50,700,000	269,820,000	$ 270,800,000
Secured debt issued to affiliates			$ 45,138,000		$ 95,729,000	$ 95,800,000
Interest rate on debt			3.85%		3.85%	3.85%
Asset-backed securities Class M notes Trust 2
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)			$ 234,010,000		$ 234,010,000	$ 234,000,000
Secured debt issued to affiliates			$ 234,010,000		$ 234,010,000
Interest rate on debt			0.00%		0.00%
Asset-backed securities Class A notes
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)			$ 145,953,000		$ 150,000,000		$ 150,000,000
Secured debt issued to affiliates			$ 14,991,000		$ 15,000,000
Interest rate on debt			3.47%		3.47%		3.47%
Asset-backed securities Class M notes
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)			$ 32,000,000		$ 32,000,000		$ 32,000,000
Secured debt issued to affiliates			$ 32,000,000		$ 32,000,000
Interest rate on debt			4.25%		4.25%		4.25%
Repurchase agreement NewSource
Debt Instrument [Line Items]
Securities sold under agreement to repurchase, interest rate	5.00%		5.00%		5.00%
Loans \| ARLP 2014-2
Debt Instrument [Line Items]
Book value of the underlying securitized assets			$ 332,500,000

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency Accrual	$ 3.0

Related party transactions (Details)						3 Months Ended
Related party transactions (Details)	Apr. 01, 2015	Mar. 31, 2015 USD ($) property	Dec. 28, 2014	Sep. 30, 2014 USD ($)	Dec. 21, 2012 property	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2014 USD ($)
Related party transaction [Line Items]
Common ownership percentage		28.00%				28.00%
Common ownership, stock options exercisable		85,755				85,755
Securities sold under agreements to repurchase		$ 14,991,000		$ 15,000,000		$ 14,991,000		$ 14,991,000
Purchase price of securities sold under agreements to repurchase				$ 15,000,000
Number of days master repurchase agreement may be extended			89 days
US Treasury rate		10 years
Affiliated entity \| Altisource Residential Corporation \| Net income attributable to noncontrolling interest in consolidated affiliate \| Professional fee sharing for negotiation of AMA
Related party transaction [Line Items]
Professional fee sharing for negotiation of AMA						2,000,000
Affiliated entity \| Altisource Residential Corporation \| Net income attributable to noncontrolling interest in consolidated affiliate \| Management incentive fee
Related party transaction [Line Items]
Related party expenses						14,900,000	$ 10,911,000
Affiliated entity \| Residential and NewSource \| Net income attributable to noncontrolling interest in consolidated affiliate \| Expense reimbursements
Related party transaction [Line Items]
Related party expenses						960,000	1,780,000
Affiliated entity \| Altisource Portfolio Solutions \| Related party general and administrative expenses \| Due diligence and unsuccessful deal costs
Related party transaction [Line Items]
Related party expenses							111,000
Affiliated entity \| Altisource Portfolio Solutions \| Related party general and administrative expenses \| Other general and administrative
Related party transaction [Line Items]
Related party expenses						451,000	0
Affiliated entity \| Altisource and Ocwen \| Residential property operating expenses \| Residential property operating expenses
Related party transaction [Line Items]
Related party expenses						9,512,000	1,050,000
Affiliated entity \| Altisource and Ocwen \| Related party general and administrative expenses \| Office and occupancy costs
Related party transaction [Line Items]
Related party expenses						107,000
Affiliated entity \| Altisource and Ocwen \| Related party general and administrative expenses \| Salaries and benefits
Related party transaction [Line Items]
Related party expenses						214,000	517,000
Affiliated entity \| Ocwen Financial Corporation \| Residential property operating expenses \| Mortgage loan servicing costs
Related party transaction [Line Items]
Related party expenses						$ 16,985,000	10,490,000
Affiliated entity \| Ocwen Financial Corporation \| Related party general and administrative expenses \| Office and occupancy costs
Related party transaction [Line Items]
Related party expenses							$ 74,000
Repurchase agreement NewSource
Related party transaction [Line Items]
Securities sold under agreement to repurchase, interest rate		5.00%	5.00%			5.00%		5.00%
Ocwen Financial Corporation \| Affiliated entity
Related party transaction [Line Items]
Common ownership percentage		14.00%				14.00%
Common ownership, stock options exercisable		3,322,626				3,322,626
Common ownership, stock options outstanding		3,572,626				3,572,626
Altisource Portfolio Solutions \| Affiliated entity
Related party transaction [Line Items]
Common ownership percentage		30.00%				30.00%
Common ownership, stock options exercisable		857,543				857,543
Altisource Residential Corporation \| Affiliated entity
Related party transaction [Line Items]
Common ownership percentage		4.00%				4.00%
Base management fee, percent of qualified average invested capital		1.50%
Incentive management fee, percent of incentive fee payable in common stock		25.00%
Conversion fee, percent of market value of new rental properties		1.50%
Altisource Residential Corporation \| Affiliated entity \| Asset management fee, threshold one
Related party transaction [Line Items]
Base management fee, number of rental properties cap \| property		2,500
Incentive management fee, percent of average invested capital		25.00%
Incentive management fee, percent of invested capital in excess of threshold		20.00%
Altisource Residential Corporation \| Affiliated entity \| Asset management fee, threshold two
Related party transaction [Line Items]
Base management fee, number of rental properties floor \| property					2,500
Incentive management fee, percent of average invested capital		1.75%
Incentive management fee, number of rental properties floor \| property					2,500
Incentive management fee, number of rental properties cap \| property					4,499
Incentive management fee, percent of invested capital in excess of threshold		22.50%
Altisource Residential Corporation \| Affiliated entity \| Asset management fee, threshold three
Related party transaction [Line Items]
Incentive management fee, percent of average invested capital		2.00%
Incentive management fee, number of rental properties floor \| property					4,500
Incentive management fee, percent of invested capital in excess of threshold		25.00%
Altisource Residential Corporation \| Affiliated entity \| Asset Management Agreement
Related party transaction [Line Items]
Contract term		15 years
Automatic renewal term	5 years
Minimum \| Altisource Residential Corporation \| Affiliated entity
Related party transaction [Line Items]
Incentive management fee, return on invested capital		7.00%
Maximum \| Altisource Residential Corporation \| Affiliated entity
Related party transaction [Line Items]
Incentive management fee, return on invested capital		8.25%

Share-based payments (Details) - USD ($)	3 Months Ended		12 Months Ended
Share-based payments (Details) - USD ($)	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Mar. 31, 2013
Share-based compensation arrangement by share-based payment award [Line Items]
Value of restricted stock granted to directors annually			$ 45,000
Required service period for restricted stock	1 year
Share-based compensation expense	$ 900,000	$ 3,300,000
Unamortized stock compensation		$ 25,600,000		$ 30,000,000
Weighted average remaining amortization period of unamortized share based compensation	2 years	3 years 2 months
Market based restricted stock [Member]
Share-based compensation arrangement by share-based payment award [Line Items]
Shares of restricted stock granted	44,132	8,765
Weighted average grant date fair value of market based restricted stock granted	$ 181.02	$ 791.27
Subsequent event
Share-based compensation arrangement by share-based payment award [Line Items]
Director attendance requirement	75.00%

Income taxes (Details)	3 Months Ended
Income taxes (Details)	Mar. 31, 2015
Income Taxes [Abstract]
Income Tax Exemption	90.00%

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Antidilutive securities excluded from earnings per share computation	42,198
Net income	$ 6,888	$ 6,828
Amortization of preferred stock issuance costs	53	0
Income available to common stockholders	6,835	6,828
Income available to common stockholders after assumed conversions	$ 6,888	$ 6,828
Weighted average common stock outstanding – basic	2,203,699	2,367,202
Stock options using treasury method	232,712	273,778
Restricted stock	120,795	183,988
Preferred shares if converted	200,000	31,111
Weighted average common stock outstanding – diluted	2,757,206	2,856,079
Earnings (loss) per basic share	$ 3.10	$ 2.88
Earnings (loss) per diluted share	$ 2.50	$ 2.39

Subsequent events (Details) - Secured debt - USD ($)	Apr. 20, 2015	Apr. 10, 2015	Dec. 31, 2014
Subsequent Event [Line Items]
Maximum borrowing capacity			$ 1,225,000,000
CS repurchase agreement
Subsequent Event [Line Items]
Maximum borrowing capacity			$ 225,000,000
Subsequent event \| Loan agreement
Subsequent Event [Line Items]
Maximum borrowing capacity		$ 100,000,000
Subsequent event \| CS repurchase agreement
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 275,000,000.0