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Document and entity information - shares	9 Months Ended
Document and entity information - shares	Sep. 30, 2015	Oct. 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	Large Accelerated Filer
Document type	10-Q
Document period end date	Sep. 30, 2015
Document fiscal year focus	2015
Document fiscal period focus	Q3
Amendment flag	false
Entity common stock, shares outstanding		2,213,222

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Real estate held for use:
Land (from consolidated VIE)	$ 49,518	$ 14,424
Rental residential properties (net of accumulated depreciation of $5,048 and $1,062, respectively - from consolidated VIE)	200,136	60,908
Real estate owned (from consolidated VIE)	567,228	457,045
Total real estate held for use, net	816,882	532,377
Real estate assets held for sale (from consolidated VIE)	133,154	92,230
Mortgage loans at fair value (from consolidated VIE)	1,380,575	1,959,044
Loans Receivable Held-for-sale, Amount	254,835	12,535
Cash and cash equivalents (including from consolidated VIE $83,881 and $66,166, respectively)	152,634	116,782
Restricted cash (from consolidated VIE)	25,511	13,282
Accounts receivable (including from consolidated VIE $35,507 and $10,313, respectively)	35,514	11,068
Related party receivables (from consolidated VIE)	0	17,491
Deferred leasing and financing costs, net (from consolidated VIE)	9,806	4,251
Prepaid expenses and other assets (including from consolidated VIE $395 and $373, respectively)	1,790	1,638
Total assets	2,810,701	2,760,698
Liabilities:
Repurchase and loan and security agreements (from consolidated VIE)	929,478	1,015,000
Other secured borrowings (from consolidated VIE)	513,049	324,082
Accounts payable and accrued liabilities (including from consolidated VIE $63,871 and $11,678, respectively)	68,585	16,726
Related party payables (including from consolidated VIE $0 and $4,879, respectively)	0	6,169
Total liabilities	1,511,112	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 September 30, 2015 and December 31, 2014; redemption value $250,000	249,082	248,927
Equity:
Common stock, $.01 par value, 5,000,000 authorized shares; 2,515,697 and 2,213,222 shares issued and outstanding, respectively, as of September 30, 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	20,977	14,152
Retained earnings	59,670	54,174
Treasury stock, at cost, 302,475 shares as of September 30, 2015 and 263,965 shares as of December 31, 2014	(252,072)	(245,468)
Total stockholders' equity (deficit)	(171,400)	(177,117)
Noncontrolling interest in consolidated affiliate	1,221,907	1,326,911
Total equity	1,050,507	1,149,794
Total liabilities and equity	$ 2,810,701	$ 2,760,698

Consolidated Balance Sheets (Parentheticals) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Rental Residential properties - accumulated depreciation	$ 5,048,000	$ 1,062,000
Assets:
Cash and cash equivalents	152,634,000	116,782,000
Accounts receivable	35,514,000	11,068,000
Prepaid expenses and other assets	1,790,000	1,638,000
Liabilities:
Accounts payable and accrued liabilities	68,585,000	16,726,000
Related party payables	$ 0	$ 6,169,000
Preferred stock, par value per share, in USD	$ 0.01	$ 0.01
Preferred stock, shares issued	250,000	250,000
Preferred stock, shares outstanding	250,000	250,000
Preferred stock, redemption value	$ 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	2,515,697	2,452,101
Common stock, shares outstanding	2,213,222	2,188,136
Treasury stock, shares	302,475	263,965
Residential
Assets:
Cash and cash equivalents	$ 83,881,000	$ 66,166,000
Accounts receivable	35,507,000	10,313,000
Prepaid expenses and other assets	395,000	373,000
Liabilities:
Accounts payable and accrued liabilities	63,871,000	11,678,000
Related party payables	$ 0	$ 4,879,000

Consolidated Statement of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Rental revenues	$ 4,021	$ 469	$ 7,561	$ 719
Net unrealized gain on mortgage loans	27,499	88,726	130,842	258,898
Net realized gain on mortgage loans	12,874	13,727	47,528	33,867
Net realized gain on mortgage loans held for sale	100	302	505	302
Net realized gain on real estate	13,914	3,310	36,926	4,544
Interest income	115	2,568	595	2,757
Total revenues	58,523	109,102	223,957	301,087
Expenses:
Residential property operating expenses	16,574	9,247	45,890	13,550
Real estate depreciation and amortization	2,050	313	4,392	464
Real estate and mortgage loan selling costs and impairment	10,705	5,542	34,235	8,775
Mortgage loan servicing costs	13,477	21,226	47,989	49,588
Interest expense	14,194	11,699	38,914	24,352
General and administrative	8,935	5,435	26,465	15,578
Related party general and administrative	0	999	0	4,597
Total expenses	65,935	54,461	197,885	116,904
Other income	0	1,586	0	2,372
(Loss) income before income taxes	(7,412)	56,227	26,072	186,555
Income tax (benefit) expense	(97)	853	240	1,428
Net (loss) income	(7,315)	55,374	25,832	185,127
Net loss (income) attributable to noncontrolling interest in consolidated affiliate	5,335	(37,676)	(20,181)	(147,371)
Net (loss) income attributable to common stockholders	$ (1,980)	$ 17,698	$ 5,651	$ 37,756
(Loss) earnings per share of common stock – basic:
Earnings per basic share (usd per share)	$ (0.92)	$ 7.91	$ 2.49	$ 16.51
Weighted average common stock outstanding – basic (usd per share)	2,208,658	2,238,225	2,210,448	2,286,451
(Loss) earnings per share of common stock – diluted:
Earnings per diluted share (usd per share)	$ (0.92)	$ 6.25	$ 2.07	$ 13.23
Weighted average common stock outstanding – diluted (usd per share)	2,208,658	2,831,617	2,733,747	2,853,751

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)	$ 0	$ 785,427
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, including option exercises, shares		96,066
Issuance of common stock, including option exercises	45	$ 1	44
Treasury shares repurchased	(236,751)				(236,751)
Capital contribution from noncontrolling interest	468,416					468,416
Distribution from noncontrolling interest	(84,570)					(84,570)
Amortization of preferred stock issuance costs	(114)			(114)
Share-based compensation, net of tax	4,517		4,347			170
Net income	185,127			37,756		147,371
Ending balance, Shares at Sep. 30, 2014		2,450,840
Ending balance at Sep. 30, 2014	$ 1,129,637	$ 25	17,246	32,303	(236,751)	1,316,814
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		63,596
Issuance of common stock, including option exercises	20	$ 0	20
Treasury shares repurchased	(6,604)				(6,604)
Capital contribution from noncontrolling interest	103					103
Distribution from noncontrolling interest	(98,123)					(98,123)
Repurchase of noncontrolling interest in subsidiaries by affiliate	(19,983)					(19,983)
Change in subsidiary shares from noncontrolling interest	(5,007)		2,314			(7,321)
Amortization of preferred stock issuance costs	(155)			(155)
Share-based compensation, net of tax	4,630		4,491			139
Net income	$ 25,832			5,651		20,181
Ending balance, Shares at Sep. 30, 2015	2,213,222	2,515,697
Ending balance at Sep. 30, 2015	$ 1,050,507	$ 25	$ 20,977	$ 59,670	$ (252,072)	$ 1,221,907

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net income	$ 25,832	$ 185,127
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized gain on mortgage loans	(130,842)	(258,898)
Net realized gain on mortgage loans	(47,528)	(33,867)
Net realized gain on sale of mortgage loans held for sale	(505)	(302)
Net realized gain on sale of real estate	(36,926)	(4,544)
Real estate depreciation and amortization	4,392	464
Real estate and mortgage loan selling costs and impairment	34,235	8,775
Accretion of interest on re-performing mortgage loans	(581)	(2,475)
Share-based compensation	4,461	4,517
Amortization of deferred financing costs	4,271	2,127
Loss on retirement of leasehold improvements	212	0
Changes in operating assets and liabilities:
Accounts receivable	(998)	(1,137)
Related party receivables	0	6,421
Prepaid expenses and other assets	(355)	(6,315)
Deferred leasing costs	(1,287)	0
Accounts payable and accrued liabilities	15,071	1,786
Related party payables	0	4,024
Net cash used in operating activities	(130,548)	(94,297)
Investing activities:
Investment in mortgage loans	0	(1,241,083)
Investment in real estate	(111,423)	(27,463)
Investment in renovations	(15,936)	(5,957)
Real estate tax advances	(18,438)	(20,244)
Mortgage loan dispositions	190,146	122,023
Mortgage loan payments	19,268	14,903
Disposition of real estate	119,368	11,771
Change in restricted cash	(12,229)	(6,155)
Net cash provided by (used in) investing activities	165,749	(1,152,205)
Financing activities:
Proceeds from issuance of preferred stock	0	250,000
Cost of issuance of preferred stock	0	(1,125)
Issuance of common stock, including stock option exercises	584	12,186
Repurchase of common stock	(6,604)	(236,751)
Payment of tax withholdings on exercise of stock options	(564)	(12,141)
Capital contribution from noncontrolling interest	103	468,416
Distribution to noncontrolling interest	(67,506)	(84,570)
Repurchase of noncontrolling interest in subsidiaries by affiliate	(19,983)	0
Acquisition of noncontrolling interest in subsidiaries	(5,007)	0
Proceeds from issuance of other secured debt	221,691	150,000
Repayments of secured notes	(32,298)	0
Proceeds from repurchase agreement	285,967	952,264
Repayments of repurchase agreement	(371,489)	(296,317)
Payment of deferred financing costs	(9,250)	(3,636)
Net cash (used in) provided by financing activities	651	1,198,326
Net increase in cash and cash equivalents	35,852	(48,176)
Cash and cash equivalents as of beginning of the period	116,782	140,000
Cash and cash equivalents as of end of the period	152,634	91,824
Supplemental disclosure of cash flow information
Cash paid for interest	34,152	20,212
Transfer of mortgage loans to real estate owned	367,653	410,913
Transfer of mortgage loans at fair value to mortgage loans held for sale	250,346	0
Transfer of real estate owned to mortgage loans	8,275	5,367
Change in accrued capital expenditures	164	7,712
Changes in receivables from mortgage loan dispositions, payments and real estate tax advances, net	2,550	13,081
Changes in receivables from real estate owned dispositions	$ 1,949	$ 3,097

Organization and basis of presentation

9 Months Ended

Sep. 30, 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 quality, affordable single-family rental properties 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 “New AMA”) with an effective date of April 1, 2015. Our previous asset management agreement with Residential (the “Original AMA”) had a different incentive fee structure, 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 loans and real estate owned (“REO”) properties that become rental properties during each quarter, our operating results are highly dependent on Residential's 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.

For entities that are consolidated, but not 100% owned, a portion of the income or loss and corresponding equity is allocated to noncontrolling interests. Historically, amounts recognized as noncontrolling interest in our consolidated financial statements were equivalent to Residential's net income and equity because we had no ownership interest in Residential. In the third quarter of 2015, we acquired 324,465, or approximately 0.58%, of Residential's outstanding shares. Subsequent to our acquisition of these shares, the noncontrolling interest in consolidated affiliate represents the remaining 99.42% ownership interest held by non-affiliated shareholders of Residential's common stock.

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. In September 2015, we contributed an additional $5.0 million to NewSource. In September 2015, Residential's taxable REIT subsidiary (“TRS”) repurchased the $15.0 million of ARLP 2014-1 Class M notes held by NewSource under a master repurchase agreement. These proceeds, along with existing cash balances, were used by NewSource to repurchase, at par value, the $18.0 million preferred stock held by Residential on September 14, 2015. In connection with the repurchase of its preferred stock, NewSource also paid to Residential the accrued but unpaid dividend on the preferred stock from January 1, 2015 through September 10, 2015, or $1.5 million.

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 financed its business through a combination of equity offerings and repurchase agreements, warehouse lines and securitizations. Since inception, 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 its 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. On April 10, 2015, Residential also entered into a loan and security agreement (the “Nomura loan agreement”) with Nomura Corporate Funding Americas, LLC (“Nomura”). The purpose of the Nomura loan agreement is to finance Residential's beneficial ownership of REO properties. The maximum aggregate funding available to Residential under the repurchase agreements and the Nomura loan agreement as of September 30, 2015 was $1.3 billion, subject to certain sublimits, eligibility requirements and conditions precedent to each funding. As of September 30, 2015, an aggregate of $929.5 million was outstanding under Residential's repurchase agreements and the Nomura loan agreement. All obligations of Residential’s subsidiaries under the repurchase agreements and the Nomura loan agreement are fully guaranteed by Residential.

Each of Residential's repurchase agreements and the Nomura loan agreement 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.

•

Deutsche Bank (“DB”) is the lender on the repurchase agreement entered into on September 12, 2013 (the “DB repurchase agreement”). The DB repurchase agreement matures on March 11, 2016 and includes a provision that after March 2015, Residential is not eligible for additional funding under the facility, thereby reducing Residential's aggregate funding capacity under the DB repurchase agreement to $91.2 million, which was the amount outstanding under the facility on September 30, 2015.

•

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. On February 20, 2015, Residential exercised its option to extend the termination date of this facility to March 23, 2016 without any additional funding than the $536.0 million that was outstanding at the time of the extension. On September 30, 2015, the Wells repurchase agreement was amended to extend the termination date of the facility to September 27, 2017, to re-increase the aggregate amount of available funding to $750.0 million and to further increase sublimits of REO properties that may collateralize the facility from 10% of the aggregate funding capacity to 40% of the aggregate funding capacity, or $300.0 million of the $750.0 million.

•

Nomura is the lender on the Nomura loan agreement entered into on April 10, 2015 with an initial aggregate maximum funding capacity of $100.0 million. On May 12, 2015, Residential amended the terms of the Nomura loan agreement to increase the aggregate maximum funding capacity to $200.0 million, subject to certain sublimits, eligibility requirements and conditions precedent to each funding. The Nomura loan agreement terminates on April 8, 2016.

Since September 2014, Residential has also completed three securitization transactions, each of which is summarized below:

•

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 “ARLP 2014-1 Class A Notes”) with a weighted coupon of approximately 3.47% and $32.0 million in Class M Notes (the “ARLP 2014-1 Class M Notes”) with a weighted coupon of 4.25%. The ARLP 2014-1 Class A Notes and the ARLP 2014-1 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 ARLP 2014-1 Class A Notes and the ARLP 2014-1 Class M Notes. The ARLP 2014-1 Class A Notes and the ARLP 2014-1 Class M Notes mature on September 25, 2044, and Residential does not guarantee any of the obligations of ARLP 2014-1 under the terms of the indenture governing the notes or otherwise. As of September 30, 2015, the book value of the underlying securitized assets held by ARLP 2014-1 was $203.1 million.

•

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 “ARLP 2014-2 Class A Notes”) with a weighted coupon of approximately 3.85% and $234.0 million in Class M Notes (the “ARLP 2014-2 Class M Notes”). Residential initially retained $95.8 million of the ARLP 2014-2 Class A Notes and all of the ARLP 2014-2 Class M Notes. On February 9, 2015, Residential sold $50.7 million of the retained ARLP 2014-2 Class A Notes to an unrelated third party. No interest will be paid on any ARLP 2014-2 Class M Notes while any ARLP 2014-2 Class A Notes remain outstanding. The ARLP 2014-2 Class A Notes and the ARLP 2014-2 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 ARLP 2014-2 Class A Notes and the ARLP 2014-2 Class M Notes. The ARLP 2014-2 Class A Notes and the ARLP 2014-2 Class M Notes mature on January 26, 2054, and Residential does not guarantee any of the obligations of ARLP 2014-2 under the terms of the indenture governing the notes or otherwise. As of September 30, 2015, the book value of the underlying securitized assets held by ARLP 2014-2 was $325.0 million.

•

On June 29, 2015, Residential completed a securitization transaction in which ARLP Securitization Trust, Series 2015-1 ("ARLP 2015-1") issued $205.0 million in Class A Notes (the “ARLP 2015-1 Class A Notes”) with a weighted coupon of approximately 4.01% and $60.0 million in Class M Notes (the “ARLP 2015-1 Class M Notes”). Residential retained $34.0 million of the ARLP 2015-1 Class A Notes and all of the ARLP 2015-1 Class M Notes. No interest will be paid on any ARLP 2015-1 Class M Notes while any ARLP 2015-1 Class A Notes remain outstanding. The ARLP 2015-1 Class A Notes and ARLP 2015-1 Class M Notes are secured solely by the non-performing mortgage loans and REO properties of ARLP 2015-1 and not by any of Residential's other assets. The assets of ARLP 2015-1 are the only source of repayment and interest on the ARLP 2015-1 Class A Notes and the ARLP 2015-1 Class M Notes. The ARLP 2015-1 Class A Notes and the ARLP 2015-1 Class M Notes mature on May 25, 2055, and Residential does not guarantee any of the obligations of ARLP 205-1 under the terms of the indenture governing the notes or otherwise. As of September 30, 2015, the book value of the underlying securitized assets held by ARLP 2015-1 was $284.5 million.

Residential retained all of the ARLP 2014-1 Class M Notes issued by ARLP 2014-1 in its taxable REIT subsidiary (“TRS”). On September 30, 2014, pursuant to a master repurchase agreement, the TRS sold $15.0 million of the ARLP 2014-1 Class M Notes to NewSource. On September 14, 2015, the TRS completed its repurchase of the ARLP 2014-1 Class M notes from NewSource at a 5.0% yield.

For a more complete description of Residential's repurchase agreements, loan and security agreement and securitization transactions, please see “Note 5. Borrowings.”

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.

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.

Residential properties

Purchases of real estate properties are evaluated by Residential to determine whether they meet the definition of an asset acquisition or of a business combination under U.S. GAAP. For asset acquisitions, Residential capitalizes pre-acquisition costs to the extent such costs would have been capitalized had Residential owned the asset when the cost was incurred and capitalizes closing and other direct acquisition costs. Residential then allocates the total cost of the property, including the acquisition costs, between land, building and any identified intangible assets and liabilities (including in-place leases and above and below-market leases). For acquisitions that qualify as business combinations, Residential expenses the acquisition costs in the period in which the costs were incurred and allocates the cost of the property among land, building and any identified intangible assets and liabilities. Lease intangibles are recorded at the estimated fair value, which is the estimated costs that would have been incurred to lease the property net of any above or below-market lease concessions, and are amortized on a straight-line basis over the remaining life of the related lease or, in the case of acquisitions of real estate pools, over the weighted average remaining life of the related pool of leases.

Upon the acquisition of real estate through the completion of foreclosure, Residential records the assets at fair value as of the acquisition date as a component of real estate owned based on information obtained from a broker's price opinion(“BPO”), a full appraisal or the price given in a current contract of sale of the property. Fair value measurements for assets where there exists limited or no observable market data and, therefore, are based primarily upon management's or other third-party estimates, are often calculated based on the characteristics of the asset, the economic environment and other such factors. Based on professional judgment and knowledge of the particular situation, management determines the appropriate fair value to be utilized for such property. Residential engages third party vendors, including Altisource, to obtain and evaluate BPOs prepared by other third party brokers for its ultimate use. BPOs are subject to judgments of a particular broker formed by visiting a property, assessing general home values in an area, reviewing comparable listings and reviewing comparable completed sales. These judgments may vary among brokers and may fluctuate over time based on housing market activities and the influx of additional comparable listings and sales. Our results could be materially and adversely affected if the judgments used by a broker prove to be incorrect or inaccurate. Residential has established validation procedures to confirm the values it receives from third party vendors are consistent with its observations of market values.

These validation procedures include establishing thresholds to identify changes in value that require further analysis. Residential’s current policies require that it updates the fair value estimate of each financed REO property at least every 180 days by obtaining a new BPO, which is subject to the review processes of its third party vendors. We generally perform further analysis for Residential when the value of the property per the new BPO varies from the old BPO by 25%, or $75,000 per property. If a newly obtained BPO varies from the old BPO by this established threshold, we perform additional procedures to ensure the BPO accurately reflects the current fair value of the property. These procedures include engaging additional third party vendors to compare the old BPOs to the new BPOs and to assist us in evaluating the appropriateness of comparable properties and property-specific characteristics used in Residential’s valuation process. As part of this evaluation, Residential’s third party vendors often discuss the differing BPOs with the providing brokers to ensure that proper comparable properties have been identified. These third party vendors also compare the BPOs to past appraisals, if any, of the property to ensure the BPOs are in line with those appraisals. Following the consideration and reconciliation of the BPOs, the third party provider may provide Residential with a new property value reflecting the analysis they performed or confirm the BPO value received by Residential, in which case Residential uses the new property value or the validated BPO, respectively, for its fair value estimate of the property.

After an evaluation period, Residential may perform property renovations to those properties that meet its rental investment criteria in order to optimize its rental proceeds. In some instances, Residential may also perform renovations on REO properties that do not meet its rental investment criteria in order to optimize sale proceeds. Such expenditures are part of Residential's initial investment in a property and, therefore, are classified as investing activities in our consolidated statement of cash flows. Subsequently, residential rental properties, including any renovations that improve or extend the life of the asset, are accounted for at cost. REO properties that do not meet Residential's rental investment criteria and that are held for sale are accounted for at the lower of the carrying value or estimated fair value less cost to sell. The cost basis of residential rental properties is depreciated using the straight-line method over an estimated useful life of three years to 27.5 years based on the nature of the components. Interest and other carrying costs incurred during the renovation period are capitalized until the property is ready for its intended use. Expenditures for ordinary maintenance and repairs are charged to expense as incurred.

Expenditures directly related to successful leasing efforts, such as lease commissions, are included in deferred leasing and financing costs, net and are stated at amortized cost. Such expenditures are part of Residential's operations and, therefore, are classified as operating activities in our consolidated statement of cash flows. Capitalized leasing costs are amortized on a straight-line basis over the lease term of the respective leases, which generally are from one year to two years.

Residential properties are classified either as held for use or held for sale. Residential properties are classified as real estate assets held for sale when sale of the assets has been formally approved and is expected to occur in the next twelve months. We record residential properties held for sale at the lower of the carrying amount or estimated fair value less costs to sell. The impairment loss, if any, is the amount by which the carrying amount exceeds the estimated fair value less costs to sell.

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. We have an aggregate of $53.6 million remaining for repurchases under our Board-approved repurchase plan.

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. In August 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest (Subtopic 835-30) - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 provides additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. These standards require retrospective application and represent 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 these standards to have a material impact on our consolidated financial statements.

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. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which effectively delayed the adoption date of ASU 2014-09 by one year. ASU 2014-09 is therefore effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2016. We do not expect this amendment to have a significant effect on our consolidated financial statements.

Mortgage loans

9 Months Ended

Sep. 30, 2015

Mortgage Loans on Real Estate [Abstract]

Mortgage loans

Acquisitions of non-performing residential mortgage loans

During the nine months ended September 30, 2015, Residential did not acquire any portfolios of residential mortgage loans. During the nine months ended September 30, 2014, Residential acquired an aggregate of 7,086 residential mortgage loans, substantially all of which were non-performing, and 190 REO properties having an aggregate UPB of approximately $1.9 billion and an aggregate market value of underlying properties of $1.7 billion. The aggregate purchase price for these acquisitions was approximately $1.1 billion.

During the three and nine months ended September 30, 2015, Residential recognized a nominal amount and $0.4 million, respectively for due diligence costs related to a potential purchase of a portfolio of non-performing loans on which Residential bid but did not ultimately acquired. During the three and nine months ended September 30, 2014, Residential recognized a nominal amount and $2.9 million, respectively, 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 and REO portfolios may be irregularly timed and may involve large portfolios of loans or REO, and the timing and extent of Residential's success in acquiring such assets 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 or REO excluded from an acquisition typically constitutes a relatively small portion of a particular portfolio. In some cases, the number of loans or REO that Residential does not acquire could be significant. In any case where Residential does not acquire the full portfolio, appropriate reductions 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.

Transfers of non-performing mortgage loans to real estate owned

During the three months ended September 30, 2015 and 2014, Residential transferred a net of 507 and 1,104 mortgage loans, respectively, to REO at an aggregate fair value based on broker price opinions ("BPOs"), of $90.7 million and $188.2 million respectively. Such transfers occur when the foreclosure sale is complete. In connection with these transfers to REO, Residential recorded an aggregate of $17.0 million and $41.0 million, respectively, in unrealized gains on mortgage loans.

During the nine months ended September 30, 2015 and 2014, Residential transferred a net of 1,918 and 2,634 mortgage loans, respectively, to REO at an aggregate fair value based on BPOs, of $359.4 million and $405.5 million respectively. Such transfers occur when the foreclosure sale is complete. In connection with these transfers to REO, Residential recorded $68.4 million and $93.6 million, respectively, in unrealized gains on mortgage loans. At September 30, 2015, Residential had 5,348 loans with a carrying value of $1.0 billion that were in the foreclosure process compared to 7,841 loans with a carrying value of $1.5 billion at December 31, 2014.

Dispositions of non-performing residential mortgage loans

During the three months ended September 30, 2015 and 2014, Residential disposed of 145 and 165 non-performing mortgage loans, respectively, primarily through short sales, refinancing, foreclosure sales, and sale of loans that had transitioned to re-performing loans from prior non-performing loan acquisitions. In connection with these dispositions, Residential recorded $12.9 million and $13.7 million, respectively, of net realized gains on mortgage loans.

During the nine months ended September 30, 2015 and 2014, Residential disposed of 565 and 416 non-performing mortgage loans, respectively, primarily through short sales, refinancing, foreclosure sales, and sale of loans that had transitioned to re-performing loans from prior non-performing loan acquisitions. In connection with these dispositions, Residential recorded $47.5 million and $33.9 million, respectively, of net realized gains on mortgage loans.

During the third quarter of 2015, 871 non-performing mortgage loans with a carrying value of $250.3 million were transferred to mortgage loans held for sale in connection with Residential's agreement in principle to sell such non-performing loans to an unrelated third party. Subject to confirmatory due diligence and negotiation of a definitive purchase agreement, Residential expects this disposition to occur in the fourth quarter of 2015. No assurance can be given that we will consummate this sale on a timely basis or at all.

Acquisitions and dispositions 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.

During June 2015, Residential sold an aggregate of 189 re-performing loans to an unrelated third party for an aggregate purchase price of $34.6 million. The sale included 52 loans from the re-performing mortgage loans purchased in June 2014, and 137 loans that had transitioned to re-performing status from prior non-performing loan acquisitions. Approximately $2.0 million of the proceeds from the June 2015 re-performing loan sale were used to purchase the loans out of Residential's ARLP 2014-1 and ARLP 2014-2 securitizations and approximately $16.4 million of the proceeds were used to purchase the loans out of Residential's Wells repurchase facility. Therefore, Residential's net proceeds from the June 2015 re-performing loan sale were approximately $16.2 million.

Additionally, Residential disposed of 12 re-performing mortgage loans acquired in June 2014 through short sale, refinancing or other liquidation events, and two re-performing mortgage loans acquired in June 2014 were converted into REO properties.

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 and nine months ended September 30, 2015, Residential recognized no provision for loan loss and no adjustments to the amount of the accretable yield. For the three and nine months ended September 30, 2015, Residential accreted $0.1 million and $0.6 million, respectively, into interest income with respect to these re-performing loans. As of September 30, 2015, these re-performing loans, having a UPB of $8.3 million and a carrying value of $5.7 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):



	Nine months ended September 30, 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	(3,285		)	(7,453		)
Accretion	(581		)	581
Balance at the end of the period	$	3,774		$	5,700

Real estate assets, net	9 Months Ended
Real estate assets, net	Sep. 30, 2015
Real Estate [Abstract]
Real estate assets, net	Real estate assets, net Acquisitions On August 18, 2015, Residential completed its acquisition of 1,314 single-family rental properties in the Atlanta, Georgia market, of which 94% were leased as of the acquisition date, from certain subsidiaries of Invitation Homes (“Invitation Homes”), for an aggregate purchase price of approximately $111.4 million. Acquisition costs related to this portfolio acquisition of $0.6 million were recognized in general and administrative expenses. The value of in-place leases was estimated at $1.6 million based upon the costs Residential would have incurred to lease the properties and is being amortized over the weighted-average remaining life of the leases of 7 months. During the third quarter of 2015, Residential initiated a program to purchase REO properties on a one-by-one basis, sourcing listed properties from the Multiple Listing Service and alternative listing sources. Residential acquired 10 REO properties under this program in the third quarter of 2015. During the nine months ended September 30, 2014, Residential acquired 190 REO properties for an aggregate purchase price of $27.5 million. Residential acquired no REO properties during the three months ended September 30, 2014. Real estate held for use As of September 30, 2015, Residential had 5,523 REO properties held for use. Of these properties, 2,105 had been leased, 156 were being listed for rent, 255 were in varying stages of renovation and unit turn status. With respect to the remaining 3,007 REO properties, we will make a final determination whether each property meets Residential’s rental profile after (a) applicable state foreclosure 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 leased, 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 September 30, 2014, Residential had 2,660 REO properties held for use. Of these properties, 216 had been leased, 90 were being listed for rent and 270 were in various stages of renovation. With respect to the remaining 2,084 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 September 30, 2015, Residential classified 747 properties having an aggregate carrying value of $133.2 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 September 30, 2014, Residential had 324 REO properties having an aggregate carrying value of $41.0 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 September 30, 2015 Residential had recognized $11.3 million of impairment on the 747 REO properties having a fair value of $146.6 million. As of December 31, 2014 Residential had recognized $4.9 million of impairment on the 611 REO properties having a fair value of $96.0 million. As of September 30, 2014 Residential had recognized $2.7 million of impairment on the 324 REO properties having a fair value of $44.2 million. Dispositions During the three and nine months ended September 30, 2015, Residential sold 357 and 932 REO properties, respectively, through its TRS and recorded $13.9 million and $36.9 million of net realized gains on real estate, respectively. During the three and nine months ended September 30, 2014, Residential sold 78 and 102 REO properties, respectively, through its TRS and recorded $3.3 million and $4.5 million of net realized gains on real estate, respectively.

Fair value of financial instruments

9 Months Ended

Sep. 30, 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 September 30, 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
September 30, 2015
Recurring basis (assets)
Mortgage loans	$	—	$	—	$	1,380,575
Nonrecurring basis (assets)
Real estate assets held for sale	$	—	$	—	$	146,646
Transfer of real estate owned to mortgage loans	$	—	$	—	$	8,275
Transfer of mortgage loans to real estate owned	$	—	$	—	$	367,653
Not recognized on consolidated balance sheets at fair value (assets)
Mortgage loans held for sale	$	—	$	—	$	254,835
Not recognized on consolidated balance sheets at fair value (liabilities)
Repurchase and loan and security agreements at fair value	$	—	$	929,478	$	—
Other secured borrowings	$	—	$	510,608	$	—

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 nine months ended September 30, 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, accrued liabilities, related party payables and preferred stock are equal to or approximate fair value. The fair value of mortgage loans is estimated using our proprietary pricing model. The fair value of real estate assets held for sale is estimated using BPOs, estimated sales prices from pending contracts, and discounted cash flow models. The fair value of transfers of mortgage loans to real estate owned is estimated using BPOs. The fair value of mortgage loans held for sale is based on the pricing in a pending sale. 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, considering a market participant view. 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 September 30, 2015			Three months ended September 30, 2014			Nine months ended September 30, 2015			Nine months ended September 30, 2014
Mortgage loans
Beginning balance	$	1,716,489		$	2,024,028		$	1,959,044		$	1,207,163
Investment in mortgage loans	—			184,590			—			1,097,601
Net unrealized gain on mortgage loans	27,499			88,726			130,842			258,898
Net realized gain on mortgage loans	12,874			13,727			47,528			33,867
Transfer of mortgage loans to mortgage loans held for sale	(250,346		)	—			(250,346		)	—
Mortgage loan dispositions and payments	(57,882		)	(60,062		)	(205,120		)	(143,834		)
Real estate tax advances to borrowers	6,611			6,397			18,002			19,119
Reclassification of realized gains on real estate sold from unrealized gains	16,026			3,322			40,003			4,237
Transfer of real estate owned to mortgage loans	5,410			719			8,275			5,367
Transfer of mortgage loans to real estate owned	(96,106		)	(189,942		)	(367,653		)	(410,913		)
Ending balance at September 30	$	1,380,575		$	2,071,505		$	1,380,575		$	2,071,505

Net unrealized gain on mortgage loans held at the end of the period	$	13,022		$	55,558		$	93,874		$	164,378

The following table sets forth the fair value of Residential's mortgage loans at fair value, the related unpaid principal balance and market value of underlying properties by delinquency status as of September 30, 2015 and December 31, 2014 ($ in thousands):



	Number of loans	Carrying Value		Unpaid principal balance		Market value of underlying properties⁽¹⁾
September 30, 2015
Current	808	$	134,747	$	184,084	$	196,088
30	97	15,506		21,999		25,575
60	50	8,340		12,937		12,292
90	1,308	195,160		311,326		287,174
Foreclosure	5,348	1,026,822		1,415,239		1,338,722
Mortgage loans	7,611	$	1,380,575	$	1,945,585	$	1,859,851
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

_____________


(1)	Market value is based on the most recent BPO provided to us by the applicable seller for each property in the respective portfolio as of its cut-off date or an updated BPO received since the acquisition was completed.

The following table sets forth the carrying value of Residential's mortgage loans held for sale, the related unpaid principal balance and market value of underlying properties by delinquency status as of September 30, 2015 and December 31, 2014 ($ in thousands):



	Number of loans	Carrying value		Unpaid principal balance		Market value of underlying properties⁽¹⁾
September 30, 2015
Current	19	$	4,152	$	5,502	$	10,235
30	2	291		384		467
60	2	322		458		418
90	229	70,432		94,907		109,879
Foreclosure	662	179,638		253,970		273,012
Mortgage loans held for sale	914	$	254,835	$	355,221	$	394,011
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

_____________


(1)	Market value is based on the most recent BPO provided to us by the applicable seller for each property in the respective portfolio as of its cut-off date or an updated BPO received since the acquisition was completed.

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 September 30, 2015 and December 31, 2014:



Input	September 30, 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 7.5%	-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	$300 - $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

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Borrowings

Repurchase agreements and the Nomura loan agreement

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 unrented REO properties in its portfolio. On April 10, 2015, Residential entered into the Nomura loan agreement for the purpose of financing its beneficial ownership of REO properties. Residential has effective control of the assets associated with these agreements, and therefore it has concluded these are financing arrangements. As of September 30, 2015, the weighted average annualized interest rate on borrowing under Residential's repurchase agreements and the Nomura loan agreement was 3.39%, excluding amortization of deferred financing costs.

The following table sets forth data with respect to Residential's repurchase agreements and the Nomura loan agreement as of September 30, 2015 and December 31, 2014 ($ in thousands):



	Maximum borrowing capacity		Book value of collateral		Amount outstanding		Amount of available funding
September 30, 2015
CS repurchase agreement due April 18, 2016	$	275,000	$	413,395	$	229,734	$	45,266
Wells repurchase agreement due September 27, 2017	750,000		901,432		480,752		269,248
DB repurchase agreement due March 11, 2016	91,177		201,638		91,177		—
Nomura loan agreement due April 8, 2016	200,000		193,522		127,815		72,185
	$	1,316,177	$	1,709,987	$	929,478	$	386,699
December 31, 2014
CS repurchase agreement due April 20, 2015	$	225,000	$	332,618	$	222,044	$	2,956
Wells repurchase agreement due March 23, 2015	750,000		1,036,409		569,509		180,491
DB repurchase agreement due March 11, 2016	250,000		450,532		223,447		26,553
	$	1,225,000	$	1,819,559	$	1,015,000	$	210,000

Under the terms of each of its repurchase agreements, as collateral for the funds Residential draws thereunder, subject to certain conditions, Residential's operating partnership and/or an intervening limited liability company subsidiary 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 September 30, 2015, approximately $19.9 million of the amounts outstanding under the CS repurchase agreement was collateralized by $32.0 million of the Class M Notes issued and retained by Residential in connection with the securitization completed in September 2014 by ARLP 2014-1, approximately $29.3 million of the amounts outstanding under the CS repurchase agreement was collateralized by $45.1 million of the Class A-2 Notes issued and retained by Residential in connection with the securitization completed in November 2014 by ARLP 2014-2, and approximately $21.0 million of the amounts outstanding under the CS repurchase agreement was collateralized by $34.0 million of the Class A-2 Notes issued and retained by Residential in connection with the securitization completed in July 2015 by ARLP 2015-1.

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 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. For additional information on the repurchase agreements, please see "Note 1. Organization and basis of presentation."

Under the terms of the Nomura loan agreement, subject to certain conditions, Nomura may advance funds to Residential from time to time, with such advances collateralized by REO properties. The advances paid under the Nomura 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 Nomura loan agreement, Residential is required to pay 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 facility.

The Nomura loan agreement requires Residential to maintain various financial and other covenants, including 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 Nomura 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 Nomura loan agreement and the liquidation by Nomura of the REO properties then subject thereto.

Other Secured Debt - Securitizations

On September 25, 2014, Residential completed a securitization transaction in which ARLP 2014-1 issued $150.0 million in ARLP 2014-1 Class A Notes with a weighted coupon of approximately 3.5% and $32.0 million in ARLP 2014-1 Class M Notes with a weighted coupon of 4.25%. ARLP 2014-1 is a Delaware statutory trust that is wholly-owned by Residential’s operating partnership with a federally-chartered bank as its trustee. The ARLP 2014-1 Class A Notes and the ARLP 2014-1 Class M Notes are non-recourse to Residential and are secured solely by the non-performing mortgage loans of ARLP 2014-1 but not by any of Residential's other assets. The assets of ARLP 2014-1 are the only source of repayment and interest on the ARLP 2014-1 Class A Notes and the ARLP 2014-1 Class M Notes, thereby making the cash proceeds received by ARLP 2014-1 of loan payments, loan liquidations, loan sales and sales of converted REO properties the sole sources of the payment of interest and principal by ARLP 2014-1 to the bond holders. The ARLP 2014-1 Class A Notes and the ARLP 2014-1 Class M Notes mature on September 25, 2044, and Residential does not guarantee any of the obligations of ARLP 2014-1 under the terms of the indenture governing the notes or otherwise. As of September 30, 2015, the book value of the underlying securitized assets held by ARLP 2014-1 was $203.1 million.

Residential retained all of the ARLP 2014-1 Class M Notes in its TRS. On September 30, 2014, pursuant to a master repurchase agreement, the TRS sold $15.0 million of the ARLP 2014-1 Class M Notes to NewSource. On September 14, 2015, the TRS completed its repurchase of the ARLP 2014-1 Class M notes from NewSource at a 5.0% yield.

On November 25, 2014, Residential completed a securitization transaction in which ARLP 2014-2 issued $270.8 million in ARLP 2014-2 Class A Notes with a weighted coupon of approximately 3.85% and $234.0 million in ARLP 2014-2 Class M Notes. ARLP 2014-2 is a Delaware statutory trust that is wholly-owned by Residential’s operating partnership with a federally-chartered bank as its trustee. Residential initially retained $95.8 million of the ARLP 2014-2 Class A Notes and all of the ARLP 2014-2 Class M Notes. On February 9, 2015, Residential sold $50.7 million of the retained ARLP 2014-2 Class A Notes to an unrelated third party. No interest will be paid on any ARLP 2014-2 Class M Notes while any ARLP 2014-2 Class A Notes remain outstanding. The ARLP 2014-2 Class A Notes and ARLP 2014-2 Class M Notes are non-recourse to Residential and are secured solely by the non-performing mortgage loans and REO properties of ARLP 2014-2 but not by any of Residential's other assets. The assets of ARLP 2014-2 are the only source of repayment and interest on the ARLP 2014-2 Class A Notes and the ARLP 2014-2 Class M Notes, thereby making the cash proceeds received by ARLP 2014-2 of loan payments, loan liquidations, loan sales and sales of converted REO properties the sole sources of the payment of interest and principal by ARLP 2014-2 to the bond holders. The ARLP 2014-2 Class A Notes and the ARLP 2014-2 Class M Notes mature on January 26, 2054, and Residential does not guarantee any of the obligations of ARLP 2014-2 under the terms of the indenture governing the notes or otherwise. As of September 30, 2015, the book value of the underlying securitized assets held by ARLP 2014-2 was $325.0 million.

On June 29, 2015, Residential completed a securitization transaction in which ARLP 2015-1 issued $205.0 million in ARLP 2015-1 Class A Notes with a weighted coupon of approximately 4.01% and $60.0 million in ARLP 2015-1 Class M Notes. ARLP 2015-1 is a Delaware statutory trust that is wholly-owned by Residential's operating partnership with a federally-chartered bank as its trustee. Residential retained $34.0 million of the ARLP 2015-1 Class A Notes and all of the ARLP 2015-1 Class M Notes. No interest will be paid on any ARLP 2015-1 Class M Notes while any ARLP 2015-1 Class A Notes remain outstanding. The ARLP 2015-1 Class A Notes and ARLP 2015-1 Class M Notes are non-recourse to Residential and are secured solely by the non-performing mortgage loans and REO properties of ARLP 2015-1 but not by any of Residential's other assets. The assets of ARLP 2015-1 are the only source of repayment and interest on the ARLP 2015-1 Class A Notes and the ARLP 2015-1 Class M Notes, thereby making the cash proceeds received by ARLP 2015-1 of loan payments, loan liquidations, loan sales and sales of converted REO properties the sole sources of the payment of interest and principal by ARLP 2015-1 to the bond holders. The ARLP 2015-1 Class A Notes and the ARLP 2015-1 Class M Notes mature on May 25, 2055, and Residential does not guarantee any of the obligations of ARLP 205-1 under the terms of the indenture governing the notes or otherwise. As of September 30, 2015, the book value of the underlying securitized assets held by ARLP 2015-1 was $284.5 million.

The following table sets forth data with respect to these notes as of September 30, 2015 and December 31, 2014 ($ in thousands):



	Interest Rate		Amount outstanding
September 30, 2015
ARLP Securitization Trust, Series 2015-1
ARLP 2015-1 Class A Notes due May 25, 2055⁽¹⁾	4.01	%	$	203,937
ARLP 2015-1 Class M Notes due May 25, 2044	—	%	60,000
ARLP Securitization Trust, Series 2014-2
ARLP 2014-2 Class A Notes due January 26, 2054⁽²⁾	3.87	%	249,535
ARLP 2014-2 Class M Notes due January 26, 2054	—	%	234,010
ARLP Securitization Trust, Series 2014-1
ARLP 2014-1 Class A Notes due September 25, 2044⁽³⁾	3.47	%	138,715
ARLP 2014-1 Class M Notes due September 25, 2044⁽⁴⁾	4.25	%	32,000
Intercompany eliminations
Elimination of ARLP 2015-1 Class A Notes due to ARNS, Inc.			(34,000		)
Elimination of ARLP 2015-1 Class M Notes due to ARLP			(60,000		)
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc.			(45,138		)
Elimination of ARLP 2014-2 Class M Notes due to ARLP			(234,010		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(32,000		)
			$	513,049
December 31, 2014
ARLP Securitization Trust, Series 2014-2
ARLP 2014-2 Class A Notes due January 26, 2054⁽²⁾	3.85	%	$	269,820
ARLP 2014-2 Class M Notes due January 26, 2054	—	%	234,010
ARLP Securitization Trust, Series 2014-1
ARLP 2014-1 Class A Notes due September 25, 2044⁽³⁾	3.47	%	150,000
ARLP 2014-1 Class M Notes due September 25, 2044⁽⁴⁾	4.25	%	32,000
ARNS, Inc.
Securities sold under agreement to repurchase due March 27, 2015	5.00	%	14,991
Intercompany eliminations
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc.			(95,729		)
Elimination of ARLP 2014-2 Class M Notes due to ARLP			(234,010		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(15,000		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(32,000		)
			$	324,082

_____________


(1)	The expected redemption date for the Class A Notes ranges from June 25, 2018 to June 25, 2019.


(2)	The expected redemption date for the Class A Notes ranges from November 27, 2017 to November 27, 2018.


(3)	The expected redemption date for the Class A Notes ranges from September 25, 2017 to September 25, 2018.


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

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation, claims and assessments Set forth below are certain 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, the May 7, 2015 filing of our quarterly report on Form 10-Q for the three months ended March 31, 2015 and the August 10, 2015 filing of our quarterly report on Form 10-Q for the three months ended June 30, 2015: The Police Retirement System of Saint Louis v. Erbey, et al. On June 30, 2015, The Police Retirement System of Saint Louis and the defendants entered into a Stipulation and Agreement of Compromise, Settlement and Release (the “Settlement Stipulation”) for the settlement of this derivative action (the “Settlement”), and the parties filed the Settlement Stipulation with the Circuit Court for Baltimore City, Maryland (the “Court") on the same day. By Order dated August 3, 2015, the Court preliminarily approved the Settlement, scheduled a hearing on November 9, 2015 to consider final approval of the Settlement and authorized Residential to provide notice of the proposed Settlement to stockholders. We have been informed by our insurers that the Settlement will be a covered claim under our insurance policy. City of Cambridge Retirement System v. Altisource Asset Management Corp., et al. On May 12, 2015, the court entered an order granting the motion of Denver Employees Retirement Plan to be lead plaintiff and denying the three other motions to be lead plaintiff. On May 15, 2015, the court entered a scheduling order requiring plaintiff to file an amended complaint on or before June 19, 2015, defendants to file their motions to dismiss on or before July 20, 2015, plaintiff to file a response to any such motion on or before August 19, 2015 and defendants to file any reply briefs on or before September 3, 2015. Briefing on the motion to dismiss the complaint is complete, and we are awaiting a decision from the court on the motion. We believe the amended complaint is without merit. 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. Sokolowski v. Erbey, et al. On July 16, 2015, we filed a motion to dismiss all claims against us in the action, based upon, among other arguments, lack of personal jurisdiction and failure to state a claim. Co-defendant Residential has filed a similar motion to dismiss the complaint as to all claims asserted against it. Briefing on our and Residential's motions to dismiss the complaint is complete, and we are awaiting a decision from the court on the motions. Briefing on the remaining defendants' motions to dismiss is ongoing. Management does not believe that we have incurred an estimable, probable or material loss by reason of any of the above new or updated actions.

Related party transactions

9 Months Ended

Sep. 30, 2015

Related party transactions

New Asset Management Agreement with Residential

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

•

Base Management Fee. 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;

•

Incentive Management Fee. We are entitled to a quarterly incentive management fee equal to 20% of the amount by which Residential's return on invested capital (based on AFFO as defined in the New AMA) exceeds an annual 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


•	Conversion Fee. 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 New 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 New 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 New 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 New AMA, and (c) Residential in connection with certain change of control events.

Under the amended fee structure of the New AMA, the fees due from Residential declined from $21.1 million in the third quarter of 2014 to $5.0 million in the third quarter of 2015. The $5.0 million fees due from Residential in the third quarter of 2015 consists of a $4.7 million Base Management Fee and a $0.3 million Conversion Fee. No Incentive Management Fee was due from Residential for the third quarter of 2015 because Residential's return on invested capital (as defined in the New AMA) for the quarter was below the required hurdle rate by a return of approximately 2.0%. Under the New AMA, to the extent Residential has an aggregate shortfall in its return rate over the previous seven quarters, that aggregate return rate shortfall gets added to the normal quarterly 1.75% return hurdle for the next quarter before we are entitled to an Incentive Management Fee. As of September 30, 2015, Residential's aggregate return shortfall from the prior two quarters under the New AMA was approximately 2.6% of invested capital. Therefore, Residential must achieve a 4.35% return on invested capital in the fourth quarter before any Incentive Management Fee will be due from Residential for the fourth quarter. In future quarters, return on invested capital must exceed the required hurdle for the current quarter plus any carried-forward cumulative additional hurdle shortfall from the prior seven quarters before any Incentive Management Fee will be due from Residential.

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 Financial Corporation (“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. Accordingly, at that point, Ocwen and Altisource are no longer considered related parties of Residential or AAMC as defined by FASB Accounting Standards Codification (“ASC”) Topic 850, Related Party Disclosures. Transactions under our agreements with Ocwen and Altisource for the current year through January 16, 2015 were not material to our consolidated results of operations.

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



	Three months ended September 30, 2015		Nine months ended September 30, 2015		Counter-party	Consolidated Statements of Operations location
2015
Expense reimbursements	—		750		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
Conversion fee	329		728		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
Base management fee	4,869		10,041		Residential/NewSource	Net income attributable to noncontrolling interest in consolidated affiliate
Management incentive fee	—		14,900		Residential	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

	Three months ended September 30, 2014		Nine months ended September 30, 2014		Counter-party	Consolidated Statements of Operations location
2014
Residential property operating expenses ⁽¹⁾	$	7,038	$	11,238	Ocwen/Altisource	Residential property operating expenses
Mortgage loan servicing costs	22,173		47,605		Ocwen	Mortgage loan servicing costs
Due diligence and unsuccessful deal costs	4		1,770		Altisource	Related party general and administrative expenses
Office and occupancy costs	91		234		Ocwen	Related party general and administrative expenses
Salaries and benefits	485		1,614		Ocwen/Altisource	Related party general and administrative expenses
Base management fee	210		731		NewSource	Net income attributable to noncontrolling interest in consolidated affiliate
Expense reimbursements	1,591		4,849		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
Management incentive fee	19,503		44,129		Residential	Net income attributable to noncontrolling interest in consolidated affiliate

_____________

(1) Residential property operating expenses include costs associated with Residential's ownership and operation of rental properties including valuation services. Residential engages third party vendors, including Altisource, to obtain and evaluate BPOs prepared by other third party brokers for its ultimate use.

On September 30, 2014, pursuant to a master repurchase agreement, Residential's TRS sold $15.0 million of the ARLP 2014-1 Class M Notes to NewSource. On September 10, 2015, the TRS repurchased the ARLP 2014-1 Class M notes from NewSource at a 5.0% yield.

Effective October 1, 2015, we suspended further charges to NewSource for services under the related management agreement.

In the third quarter of 2015, we acquired 324,465, or approximately 0.58%, of Residential's outstanding common stock in open market transactions.

- 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	9 Months Ended
Share-based payments	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based payments	Share-based payments During the nine months ended September 30, 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 received annual grants of restricted stock equal to $60 thousand and $45 thousand based on the market value of our common stock at the time of the annual stockholders meeting for 2015 and 2014, respectively. 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 nine months ended September 30, 2015 and 2014 , we granted 1,122 and 205 shares of stock, respectively, pursuant to our 2013 Director Equity Plan with a weighted average grant date fair value per share of $162.66 and $1,090.26, respectively. We recorded $1.6 million and $4.5 million of compensation expense related to these grants for the three and nine months ended September 30, 2015, respectively, and recorded $1.6 million and $4.3 million of compensation expense for the three and nine months ended September 30, 2014, respectively. As of September 30, 2015 and 2014, we had an aggregate $21.2 million and $19.6 million, respectively, of total unrecognized share-based compensation cost to be recognized over a weighted average remaining estimated term of 2.7 years and 2.8 years, respectively.

Income taxes	9 Months Ended
Income taxes	Sep. 30, 2015
Income Tax Disclosure [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 September 30, 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 nine months ended September 30, 2015 and 2014. Residential recorded nominal state and local tax expense on income and property for the three and nine months ended September 30, 2015. Our subsidiaries and we remain subject to tax examination for the period from inception to December 31, 2014.

Earnings per share

9 Months Ended

Sep. 30, 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 September 30, 2015			Three months ended September 30, 2014		Nine months ended September 30, 2015		Nine months ended September 30, 2014
Numerator
Net (loss) income	$	(1,980	)	$	17,698	$	5,651	37,756
Amortization of preferred stock issuance costs	52			—		155		—
Numerator for basic EPS – (loss) income available to common stockholders	(2,032		)	17,698		5,496		37,756
Add back amortization of preferred stock issuance costs	—			—		155		—
Numerator for diluted EPS – (loss) income available to common stockholders after assumed conversions	$	(2,032	)	$	17,698	$	5,651	$	37,756

Denominator
Weighted average common stock outstanding – basic	2,208,658			2,238,225		2,210,448		2,286,451
Stock options using treasury method	—			244,543		229,383		256,203
Restricted stock	—			148,849		93,916		167,393
Preferred stock if converted	—			200,000		200,000		143,704
Weighted average common stock outstanding – diluted	2,208,658			2,831,617		2,733,747		2,853,751

(Loss) earnings per basic share	$	(0.92	)	$	7.91	$	2.49	$	16.51
(Loss) earnings per diluted share	$	(0.92	)	$	6.25	$	2.07	$	13.23

We excluded the items presented below from the calculation of diluted earnings per share as they were antidilutive for the periods indicated:



	Three months ended September 30, 2015		Three months ended September 30, 2014		Nine months ended September 30, 2015		Nine months ended September 30, 2014
Numerator (in dollars)
Amortization of preferred stock issuance costs	$	52	$	—	$	—	$	—

Denominator (in weighted-average shares)
Stock options	222,310		—		—		—
Restricted stock	15,730		—		25,026		—
Preferred stock if converted	200,000		—		—		—

Segment information	9 Months Ended
Segment information	Sep. 30, 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 and single-family rental properties, both individually and in pools. As a result, we operate in a single segment focused on the acquisition and management of Residential's resolution of sub-performing and non-performing mortgages and acquisition and ownership of rental residential 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=51669610&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=51669610&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=51669610&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=51669610&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=51669610&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=51669610&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=51669610&loc=d3e8906-108599

+ Details

Mortgage loans (Tables)

9 Months Ended

Sep. 30, 2015

Mortgage Loans on Real Estate [Abstract]

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



	Nine months ended September 30, 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	(3,285		)	(7,453		)
Accretion	(581		)	581
Balance at the end of the period	$	3,774		$	5,700

Fair value of financial instruments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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
September 30, 2015
Recurring basis (assets)
Mortgage loans	$	—	$	—	$	1,380,575
Nonrecurring basis (assets)
Real estate assets held for sale	$	—	$	—	$	146,646
Transfer of real estate owned to mortgage loans	$	—	$	—	$	8,275
Transfer of mortgage loans to real estate owned	$	—	$	—	$	367,653
Not recognized on consolidated balance sheets at fair value (assets)
Mortgage loans held for sale	$	—	$	—	$	254,835
Not recognized on consolidated balance sheets at fair value (liabilities)
Repurchase and loan and security agreements at fair value	$	—	$	929,478	$	—
Other secured borrowings	$	—	$	510,608	$	—

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 September 30, 2015			Three months ended September 30, 2014			Nine months ended September 30, 2015			Nine months ended September 30, 2014
Mortgage loans
Beginning balance	$	1,716,489		$	2,024,028		$	1,959,044		$	1,207,163
Investment in mortgage loans	—			184,590			—			1,097,601
Net unrealized gain on mortgage loans	27,499			88,726			130,842			258,898
Net realized gain on mortgage loans	12,874			13,727			47,528			33,867
Transfer of mortgage loans to mortgage loans held for sale	(250,346		)	—			(250,346		)	—
Mortgage loan dispositions and payments	(57,882		)	(60,062		)	(205,120		)	(143,834		)
Real estate tax advances to borrowers	6,611			6,397			18,002			19,119
Reclassification of realized gains on real estate sold from unrealized gains	16,026			3,322			40,003			4,237
Transfer of real estate owned to mortgage loans	5,410			719			8,275			5,367
Transfer of mortgage loans to real estate owned	(96,106		)	(189,942		)	(367,653		)	(410,913		)
Ending balance at September 30	$	1,380,575		$	2,071,505		$	1,380,575		$	2,071,505

Net unrealized gain on mortgage loans held at the end of the period	$	13,022		$	55,558		$	93,874		$	164,378

Delinquency by unpaid principal balance



	Number of loans	Carrying Value		Unpaid principal balance		Market value of underlying properties⁽¹⁾
September 30, 2015
Current	808	$	134,747	$	184,084	$	196,088
30	97	15,506		21,999		25,575
60	50	8,340		12,937		12,292
90	1,308	195,160		311,326		287,174
Foreclosure	5,348	1,026,822		1,415,239		1,338,722
Mortgage loans	7,611	$	1,380,575	$	1,945,585	$	1,859,851
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

_____________


(1)	Market value is based on the most recent BPO provided to us by the applicable seller for each property in the respective portfolio as of its cut-off date or an updated BPO received since the acquisition was completed.



	Number of loans	Carrying value		Unpaid principal balance		Market value of underlying properties⁽¹⁾
September 30, 2015
Current	19	$	4,152	$	5,502	$	10,235
30	2	291		384		467
60	2	322		458		418
90	229	70,432		94,907		109,879
Foreclosure	662	179,638		253,970		273,012
Mortgage loans held for sale	914	$	254,835	$	355,221	$	394,011
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

_____________


(1)	Market value is based on the most recent BPO provided to us by the applicable seller for each property in the respective portfolio as of its cut-off date or an updated BPO received since the acquisition was completed.

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 September 30, 2015 and December 31, 2014:



Input	September 30, 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 7.5%	-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	$300 - $5,500,000	$3,000 - $5,300,000

Borrowings (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Schedule of repurchase agreements

The following table sets forth data with respect to Residential's repurchase agreements and the Nomura loan agreement as of September 30, 2015 and December 31, 2014 ($ in thousands):



	Maximum borrowing capacity		Book value of collateral		Amount outstanding		Amount of available funding
September 30, 2015
CS repurchase agreement due April 18, 2016	$	275,000	$	413,395	$	229,734	$	45,266
Wells repurchase agreement due September 27, 2017	750,000		901,432		480,752		269,248
DB repurchase agreement due March 11, 2016	91,177		201,638		91,177		—
Nomura loan agreement due April 8, 2016	200,000		193,522		127,815		72,185
	$	1,316,177	$	1,709,987	$	929,478	$	386,699
December 31, 2014
CS repurchase agreement due April 20, 2015	$	225,000	$	332,618	$	222,044	$	2,956
Wells repurchase agreement due March 23, 2015	750,000		1,036,409		569,509		180,491
DB repurchase agreement due March 11, 2016	250,000		450,532		223,447		26,553
	$	1,225,000	$	1,819,559	$	1,015,000	$	210,000

Schedule of other secured debt

The following table sets forth data with respect to these notes as of September 30, 2015 and December 31, 2014 ($ in thousands):



	Interest Rate		Amount outstanding
September 30, 2015
ARLP Securitization Trust, Series 2015-1
ARLP 2015-1 Class A Notes due May 25, 2055⁽¹⁾	4.01	%	$	203,937
ARLP 2015-1 Class M Notes due May 25, 2044	—	%	60,000
ARLP Securitization Trust, Series 2014-2
ARLP 2014-2 Class A Notes due January 26, 2054⁽²⁾	3.87	%	249,535
ARLP 2014-2 Class M Notes due January 26, 2054	—	%	234,010
ARLP Securitization Trust, Series 2014-1
ARLP 2014-1 Class A Notes due September 25, 2044⁽³⁾	3.47	%	138,715
ARLP 2014-1 Class M Notes due September 25, 2044⁽⁴⁾	4.25	%	32,000
Intercompany eliminations
Elimination of ARLP 2015-1 Class A Notes due to ARNS, Inc.			(34,000		)
Elimination of ARLP 2015-1 Class M Notes due to ARLP			(60,000		)
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc.			(45,138		)
Elimination of ARLP 2014-2 Class M Notes due to ARLP			(234,010		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(32,000		)
			$	513,049
December 31, 2014
ARLP Securitization Trust, Series 2014-2
ARLP 2014-2 Class A Notes due January 26, 2054⁽²⁾	3.85	%	$	269,820
ARLP 2014-2 Class M Notes due January 26, 2054	—	%	234,010
ARLP Securitization Trust, Series 2014-1
ARLP 2014-1 Class A Notes due September 25, 2044⁽³⁾	3.47	%	150,000
ARLP 2014-1 Class M Notes due September 25, 2044⁽⁴⁾	4.25	%	32,000
ARNS, Inc.
Securities sold under agreement to repurchase due March 27, 2015	5.00	%	14,991
Intercompany eliminations
Elimination of ARLP 2014-2 Class A Notes due to ARNS, Inc.			(95,729		)
Elimination of ARLP 2014-2 Class M Notes due to ARLP			(234,010		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(15,000		)
Elimination of ARLP 2014-1 Class M Notes due to ARNS, Inc.			(32,000		)
			$	324,082

_____________


(1)	The expected redemption date for the Class A Notes ranges from June 25, 2018 to June 25, 2019.


(2)	The expected redemption date for the Class A Notes ranges from November 27, 2017 to November 27, 2018.


(3)	The expected redemption date for the Class A Notes ranges from September 25, 2017 to September 25, 2018.


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

Related party transactions (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of related party transactions

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



	Three months ended September 30, 2015		Nine months ended September 30, 2015		Counter-party	Consolidated Statements of Operations location
2015
Expense reimbursements	—		750		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
Conversion fee	329		728		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
Base management fee	4,869		10,041		Residential/NewSource	Net income attributable to noncontrolling interest in consolidated affiliate
Management incentive fee	—		14,900		Residential	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

	Three months ended September 30, 2014		Nine months ended September 30, 2014		Counter-party	Consolidated Statements of Operations location
2014
Residential property operating expenses ⁽¹⁾	$	7,038	$	11,238	Ocwen/Altisource	Residential property operating expenses
Mortgage loan servicing costs	22,173		47,605		Ocwen	Mortgage loan servicing costs
Due diligence and unsuccessful deal costs	4		1,770		Altisource	Related party general and administrative expenses
Office and occupancy costs	91		234		Ocwen	Related party general and administrative expenses
Salaries and benefits	485		1,614		Ocwen/Altisource	Related party general and administrative expenses
Base management fee	210		731		NewSource	Net income attributable to noncontrolling interest in consolidated affiliate
Expense reimbursements	1,591		4,849		Residential	Net income attributable to noncontrolling interest in consolidated affiliate
Management incentive fee	19,503		44,129		Residential	Net income attributable to noncontrolling interest in consolidated affiliate

_____________

Earnings per share (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2015			Three months ended September 30, 2014		Nine months ended September 30, 2015		Nine months ended September 30, 2014
Numerator
Net (loss) income	$	(1,980	)	$	17,698	$	5,651	37,756
Amortization of preferred stock issuance costs	52			—		155		—
Numerator for basic EPS – (loss) income available to common stockholders	(2,032		)	17,698		5,496		37,756
Add back amortization of preferred stock issuance costs	—			—		155		—
Numerator for diluted EPS – (loss) income available to common stockholders after assumed conversions	$	(2,032	)	$	17,698	$	5,651	$	37,756

Denominator
Weighted average common stock outstanding – basic	2,208,658			2,238,225		2,210,448		2,286,451
Stock options using treasury method	—			244,543		229,383		256,203
Restricted stock	—			148,849		93,916		167,393
Preferred stock if converted	—			200,000		200,000		143,704
Weighted average common stock outstanding – diluted	2,208,658			2,831,617		2,733,747		2,853,751

(Loss) earnings per basic share	$	(0.92	)	$	7.91	$	2.49	$	16.51
(Loss) earnings per diluted share	$	(0.92	)	$	6.25	$	2.07	$	13.23

Schedule of antidilutive securities excluded from computation of earnings per share

We excluded the items presented below from the calculation of diluted earnings per share as they were antidilutive for the periods indicated:



	Three months ended September 30, 2015		Three months ended September 30, 2014		Nine months ended September 30, 2015		Nine months ended September 30, 2014
Numerator (in dollars)
Amortization of preferred stock issuance costs	$	52	$	—	$	—	$	—

Denominator (in weighted-average shares)
Stock options	222,310		—		—		—
Restricted stock	15,730		—		25,026		—
Preferred stock if converted	200,000		—		—		—

Organization and basis of presentation (Details)			1 Months Ended		3 Months Ended	8 Months Ended	9 Months Ended		12 Months Ended	24 Months Ended	30 Months Ended
Organization and basis of presentation (Details)	Sep. 30, 2015 USD ($) shares	Mar. 18, 2014 shares	Sep. 30, 2015 USD ($) shares	Oct. 31, 2013 USD ($)	Mar. 31, 2014 USD ($) $ / shares	Sep. 10, 2015 USD ($)	Sep. 30, 2015 USD ($) shares	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2014 USD ($)	Jun. 30, 2015 USD ($) offering	Jun. 29, 2015 USD ($)	Apr. 20, 2015 USD ($)	Apr. 10, 2015 USD ($)	Feb. 20, 2015 USD ($)	Feb. 09, 2015 USD ($)	Nov. 25, 2014 USD ($)	Sep. 25, 2014 USD ($)	Sep. 23, 2013 USD ($)	Mar. 22, 2013 USD ($)
Organization and Basis of Presentation [Line Items]
Shares acquired in Residential \| shares	324,465		324,465				324,465
Noncontrolling interest, ownership percentage	0.58%		0.58%				0.58%
Noncontrolling interest, percentage owned by noncontrolling owners	99.42%		99.42%				99.42%
Securities sold under agreements to repurchase								$ 15,000,000
Proceeds from issuance of common stock							$ 584,000	$ 12,186,000
Other secured borrowings (from consolidated VIE)	$ 513,049,000		$ 513,049,000				513,049,000		$ 324,082,000	$ 324,082,000
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		300,000,000				$ 300,000,000
Fair Value Estimate, Term to Update							180 days
Stock repurchase program, remaining authorized amount	53,600,000		53,600,000				$ 53,600,000
Redemption price per share \| $ / shares					$ 1,000
Conversion price per share \| $ / shares					$ 1,250
Threshold Percentage of Change in Value Subject to Analysis							25.00%
Threshold Amount of Change in Value Subject to Analysis							$ 75,000
Residential
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 2015-1
Organization and Basis of Presentation [Line Items]
Book value of the underlying securitized assets	284,500,000		284,500,000				284,500,000
Loans \| ARLP 2014-2
Organization and Basis of Presentation [Line Items]
Book value of the underlying securitized assets	325,000,000		325,000,000				325,000,000
Loans \| ARLP 2014-1
Organization and Basis of Presentation [Line Items]
Book value of the underlying securitized assets	203,100,000		203,100,000				203,100,000
Asset-backed securities Class A notes Trust 2
Organization and Basis of Presentation [Line Items]
Other secured borrowings (from consolidated VIE)	$ 249,535,000		$ 249,535,000				$ 249,535,000		$ 269,820,000	$ 269,820,000						$ 50,700,000	$ 270,800,000
Interest rate on debt	3.87%		3.87%				3.87%		3.85%	3.85%							3.85%
Secured debt issued to affiliates	$ 45,138,000		$ 45,138,000				$ 45,138,000		$ 95,729,000	$ 95,729,000							$ 95,800,000
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	$ 234,010,000							$ 234,000,000
Interest rate on debt	0.00%		0.00%				0.00%		0.00%	0.00%
Secured debt issued to affiliates	$ 234,010,000		$ 234,010,000				$ 234,010,000		$ 234,010,000	$ 234,010,000
Asset-backed securities Class A notes
Organization and Basis of Presentation [Line Items]
Other secured borrowings (from consolidated VIE)	$ 138,715,000		$ 138,715,000				$ 138,715,000		$ 150,000,000	$ 150,000,000								$ 150,000,000
Interest rate on debt	3.47%		3.47%				3.47%		3.47%	3.47%								3.47%
Secured debt issued to affiliates									$ 15,000,000	$ 15,000,000
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								$ 32,000,000
Interest rate on debt	4.25%		4.25%				4.25%		4.25%	4.25%								4.25%
Secured debt issued to affiliates	$ 32,000,000		$ 32,000,000				$ 32,000,000		$ 32,000,000	$ 32,000,000
Repurchase agreement NewSource
Organization and Basis of Presentation [Line Items]
Securities sold under agreements to repurchase									$ 14,991,000	$ 14,991,000
Securities sold under agreement to repurchase, interest rate						5.00%			5.00%	5.00%
Asset-backed Securities Class A Notes 2015-1
Organization and Basis of Presentation [Line Items]
Other secured borrowings (from consolidated VIE)	$ 203,937,000		$ 203,937,000				$ 203,937,000					$ 205,000,000
Interest rate on debt	4.01%		4.01%				4.01%					4.01%
Secured debt issued to affiliates	$ 34,000,000		$ 34,000,000				$ 34,000,000					$ 34,000,000
Asset-backed Securities Class M Notes 2015-1
Organization and Basis of Presentation [Line Items]
Other secured borrowings (from consolidated VIE)	$ 60,000,000		$ 60,000,000				$ 60,000,000					$ 60,000,000
Interest rate on debt	0.00%		0.00%				0.00%
Secured debt issued to affiliates	$ 60,000,000		$ 60,000,000				$ 60,000,000
Secured debt
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity									$ 1,200,000,000	$ 1,200,000,000
Secured debt \| Residential
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity	1,316,177,000		1,316,177,000				1,316,177,000		1,225,000,000	1,225,000,000
Secured debt	929,478,000		929,478,000				929,478,000		$ 1,015,000,000	1,015,000,000
Secured debt \| CS repurchase agreement
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity													$ 275,000,000.0
Number of days master repurchase agreement may be extended									1 year
Secured debt \| CS repurchase agreement \| ARLP 2015-1
Organization and Basis of Presentation [Line Items]
Secured debt	21,000,000		21,000,000				21,000,000
Secured debt \| CS repurchase agreement \| ARLP 2014-2
Organization and Basis of Presentation [Line Items]
Secured debt	29,300,000		29,300,000				29,300,000
Secured debt \| CS repurchase agreement \| ARLP 2014-1
Organization and Basis of Presentation [Line Items]
Secured debt	19,900,000		19,900,000				19,900,000
Secured debt \| CS repurchase agreement \| Residential
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity	275,000,000		275,000,000				275,000,000		$ 225,000,000	225,000,000										$ 100,000,000
Secured debt	229,734,000		229,734,000				229,734,000		222,044,000	222,044,000
Secured debt \| DB repurchase agreement \| Residential
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity	91,177,000		91,177,000				91,177,000		250,000,000	250,000,000
Secured debt	91,177,000		91,177,000				91,177,000		223,447,000	223,447,000
Secured debt \| WF repurchase agreement \| Residential
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity	750,000,000		750,000,000				750,000,000		750,000,000	750,000,000					$ 536,000,000.0				$ 200,000,000.0
Secured debt	480,752,000		480,752,000				480,752,000		$ 569,509,000	569,509,000
Maximum borrowing capacity during period										$ 1,000,000,000
Secured debt \| Nomura loan and security agreement \| Residential
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity	200,000,000		200,000,000				200,000,000							$ 100,000,000.0
Secured debt	127,815,000		127,815,000				127,815,000
Preferred stock
Organization and Basis of Presentation [Line Items]
Payments made for investments				$ 18,000,000
Dividend income						$ 1,500,000
NewSource Reinsurance Company Ltd. \| Common stock
Organization and Basis of Presentation [Line Items]
Payments made for investments			5,000,000	$ 2,000,000
Percent of common stock owned of investments				100.00%
Real Estate [Member] \| Secured debt \| WF repurchase agreement \| Residential
Organization and Basis of Presentation [Line Items]
Maximum borrowing capacity	$ 300,000,000		$ 300,000,000				$ 300,000,000
Maximum borrowing capacity sublimit percentage	40.00%								10.00%
Maximum [Member]
Organization and Basis of Presentation [Line Items]
Property, Plant and Equipment, Useful Life							27 years 6 months
Amortization Period of Deferred Leasing Costs							2 years
Minimum [Member]
Organization and Basis of Presentation [Line Items]
Property, Plant and Equipment, Useful Life							3 years
Amortization Period of Deferred Leasing Costs							1 year

Mortgage loans - Narrative (Details)			1 Months Ended		3 Months Ended		9 Months Ended		15 Months Ended
Mortgage loans - Narrative (Details)	Aug. 18, 2015 loan	Jun. 27, 2014 USD ($) loan	Jun. 30, 2015 USD ($) loan	Oct. 31, 2014 USD ($) loan	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan	Sep. 30, 2015 USD ($) loan	Dec. 31, 2014 USD ($) loan
Mortgage Loans on Real Estate [Line Items]
Number of real estate properties directly acquired \| loan	1,314				10			190
Purchase price of loans acquired								$ 1,100,000,000
Number of real estate properties acquired through foreclosure \| loan					507	1,104	1,918	2,634
Transfer of mortgage loans to real estate owned							$ 367,653,000	$ 410,913,000
Unrealized gain (loss) on conversion of mortgage loans to real estate					$ 17,000,000	$ 41,000,000	68,400,000	93,600,000
Net realized gain on mortgage loans					$ 12,874,000	13,727,000	47,528,000	33,867,000
Transfer of portfolio loans and leases to held for sale, number \| loan					871
Transfer of mortgage loans at fair value to mortgage loans held for sale					$ 250,300,000		250,346,000	0
Purchase price of loans held for investment acquired		$ 144,600,000
Net proceeds from loans sold			$ 16,200,000
Accretion of interest on re-performing mortgage loans					100,000		581,000	2,475,000
Loans receivable \| Residential mortgage
Mortgage Loans on Real Estate [Line Items]
Due diligence costs					400,000	2,900,000	400,000	2,900,000
Transfer of mortgage loans to real estate owned					90,700,000	188,200,000	359,400,000	405,500,000
Number of mortgage loans liquidated \| loan			189	934
Net realized gain on mortgage loans					12,900,000	$ 13,700,000	47,500,000	$ 33,900,000
Proceeds from sale of loans			$ 34,600,000	$ 164,000,000
Balance of performing loans held for investment					355,221,000		355,221,000		$ 355,221,000	$ 18,398,000
Mortgage loans held for sale (from consolidated VIE)					$ 5,700,000		$ 5,700,000		$ 5,700,000	$ 12,535,000
Nonperforming Financing Receivable \| Loans receivable \| Residential mortgage
Mortgage Loans on Real Estate [Line Items]
Number of loans acquired \| loan								7,086
Unpaid principal balance of loans and real estate acquired								$ 1,900,000,000
Market value of underlying properties collateralizing loans acquired								$ 1,700,000,000
Number of mortgage loans liquidated \| loan			137	164	145	165	565	416
Performing Financing Receivable \| Loans receivable \| Residential mortgage
Mortgage Loans on Real Estate [Line Items]
Number of loans acquired \| loan		879
Number of real estate properties acquired through foreclosure \| loan							2
Number of mortgage loans liquidated \| loan			52	770					12
Market value of underlying properties collateralizing loans held for investment acquired		$ 271,100,000
Balance of performing loans held for investment					$ 8,300,000		$ 8,300,000		$ 8,300,000
Residential portfolio segment \| Nonperforming Financing Receivable \| Loans receivable \| Residential mortgage
Mortgage Loans on Real Estate [Line Items]
Foreclosure, number of loans in process \| loan					5,348		5,348		5,348	7,841
Foreclosure, carrying value of loans in process					$ 1,026,822,000		$ 1,026,822,000		$ 1,026,822,000	$ 1,466,798,000
Balance of performing loans held for investment					$ 1,945,585,000		1,945,585,000		$ 1,945,585,000	$ 2,935,961,000
Asset-backed Securities Trust 2014-1 and 2014-2 \| Secured debt
Mortgage Loans on Real Estate [Line Items]
Repayment of loans collateralizing secured debt			$ 2,000,000
Wells Fargo Repurchase Agreement \| Secured debt
Mortgage Loans on Real Estate [Line Items]
Purchase price of securities sold under agreements to repurchase							$ 16,400,000.0

Mortgage loans - Certain Loans Acquired Not Accounted For As Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Balance at the beginning of the period		$ 7,640
Additions		0
Payments and other reductions, net		(3,285)
Accretion	$ (100)	(581)	$ (2,475)
Balance at the end of the period	3,774	3,774
Additions		37
Payments and other reductions, net		(7,453)
Accretion		581
Loans receivable \| Residential mortgage
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Balance at the beginning of the period		12,535
Balance at the end of the period	$ 5,700	$ 5,700

Real estate assets, net (Details) $ in Thousands		3 Months Ended		9 Months Ended
Real estate assets, net (Details) $ in Thousands	Aug. 18, 2015 USD ($) loan	Sep. 30, 2015 USD ($) loan property	Sep. 30, 2014 USD ($) property	Sep. 30, 2015 USD ($) property	Sep. 30, 2014 USD ($) loan property	Dec. 31, 2014 USD ($) property
Real Estate [Abstract]
Number of real estate properties directly acquired \| loan	1,314	10			190
Percentage of rental properties leased	94.00%
Investment in real estate \| $	$ 111,400			$ 111,423	$ 27,463
Acquisition related costs \| $		$ 600
Acquired-in-place leases \| $	$ 1,600
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	7 months
Number of real estate properties held for use \| property		5,523	2,660	5,523	2,660	3,349
Number of real estate properties rented \| property		2,105	216	2,105	216	336
Number of real estate properties listed for rent \| property		156	90	156	90	197
Number of real estate properties in renovation or unit turn status \| property		255	270	255	270	254
Number of real estate properties under evaluation for rental portfolio \| property		3,007	2,084	3,007	2,084	2,562
Number of real estate properties held for sale \| property		747	324	747	324	611
Real estate assets held for sale (from consolidated VIE) \| $		$ 133,154	$ 41,000	$ 133,154	$ 41,000	$ 92,230
Impairment recognized on REO properties \| $		11,300	2,700	11,300	2,700	4,900
Real estate assets held for sale fair value \| $		$ 146,600	$ 44,200	$ 146,600	$ 44,200	$ 96,000
Number of real estate properties sold \| property		357	78	932	102
Net realized gain on real estate \| $		$ 13,914	$ 3,310	$ 36,926	$ 4,544

Fair value of financial instruments - Fair value, assets and liabilities measured on recurring and nonrecurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate assets held for sale	$ 146,600	$ 96,000	$ 44,200
Level 1, Quoted prices in active markets
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
Level 2, Observable inputs other than Level 1 prices
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	929,478	1,015,000
Other secured borrowings	510,608	336,409
Level 3, Unobservable inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans held for sale	254,835	12,535
Repurchase agreements at fair value	0	0
Other secured borrowings	0	0
Fair value measurements, recurring \| Level 1, Quoted prices in active markets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans	0	0
Fair value measurements, recurring \| Level 2, Observable inputs other than Level 1 prices
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans	0	0
Fair value measurements, recurring \| Level 3, Unobservable inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans	1,380,575	1,959,044
Fair value measurements, nonrecurring \| Level 1, Quoted prices in active markets
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 \| Level 2, Observable inputs other than Level 1 prices
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 \| Level 3, Unobservable inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate assets held for sale	146,646	96,041
Transfer of real estate owned to mortgage loans	8,275	8,400
Transfer of mortgage loans to real estate owned	$ 367,653	$ 595,668

Fair value of financial instruments - Fair value, assets measure on recurring basis, unobservable inputs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfer of mortgage loans at fair value to mortgage loans held for sale	$ (250,300)		$ (250,346)	$ 0
Transfer of real estate owned to mortgage loans			8,275	5,367
Residential mortgage \| Fair value, inputs, level 3 \| Loans receivable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	1,716,489	$ 2,024,028	1,959,044	1,207,163
Investment in mortgage loans	0	184,590	0	1,097,601
Net unrealized gain on mortgage loans	27,499	88,726	130,842	258,898
Net realized gain on mortgage loans	12,874	13,727	47,528	33,867
Transfer of mortgage loans at fair value to mortgage loans held for sale	(250,346)	0	(250,346)	0
Mortgage loan dispositions and payments	(57,882)	(60,062)	(205,120)	(143,834)
Real estate tax advances to borrowers	6,611	6,397	18,002	19,119
Reclassification of realized gains on real estate sold from unrealized gains	16,026	3,322	40,003	4,237
Transfer of real estate owned to mortgage loans	5,410	719	8,275	5,367
Transfer of mortgage loans to real estate owned	(96,106)	(189,942)	(367,653)	(410,913)
Ending balance at September 30	1,380,575	2,071,505	1,380,575	2,071,505
Net unrealized gain on mortgage loans held at the end of the period	$ 13,022	$ 55,558	$ 93,874	$ 164,378

Fair value of financial instruments - Fair value by delinquency (Details) - Loans receivable - Residential mortgage $ in Thousands	Sep. 30, 2015 USD ($) loan	Dec. 31, 2014 USD ($) loan
Unpaid principal balance
Mortgage loans	$ 355,221	$ 18,398
Residential portfolio segment
Number of loans
Current \| loan	19	68
Mortgage Loans \| loan	914	102
Carrying Value
Current	$ 4,152	$ 8,317
Mortgage loans	254,835	12,535
Unpaid principal balance
Current	5,502	11,938
Market value of underlying properties(1)
Current	10,235	15,154
Mortgage loans	$ 394,011	$ 22,452
Residential portfolio segment \| 30 to 59 Days Past Due
Number of loans
Past Due \| loan	2	6
Carrying Value
Past Due	$ 291	$ 1,118
Unpaid principal balance
Past Due	384	1,667
Market value of underlying properties(1)
Past Due	$ 467	$ 2,004
Residential portfolio segment \| 60 to 89 Days Past Due
Number of loans
Past Due \| loan	2	4
Carrying Value
Past Due	$ 322	$ 359
Unpaid principal balance
Past Due	458	644
Market value of underlying properties(1)
Past Due	$ 418	$ 670
Residential portfolio segment \| Equal to Greater than 90 Days Past Due
Number of loans
Past Due \| loan	229	24
Foreclosure \| loan	662
Carrying Value
Past Due	$ 70,432	$ 2,741
Foreclosure	179,638
Unpaid principal balance
Past Due	94,907	4,149
Foreclosure	253,970
Market value of underlying properties(1)
Past Due	109,879	$ 4,624
Foreclosure	$ 273,012
Residential portfolio segment \| Nonperforming Financing Receivable
Number of loans
Current \| loan	808	670
Foreclosure \| loan	5,348	7,841
Mortgage Loans \| loan	7,611	10,963
Carrying Value
Current	$ 134,747	$ 107,467
Foreclosure	1,026,822	1,466,798
Mortgage loans	1,380,575	1,959,044
Unpaid principal balance
Current	184,084	159,731
Foreclosure	1,415,239	2,172,047
Mortgage loans	1,945,585	2,935,961
Market value of underlying properties(1)
Current	196,088	160,654
Foreclosure	1,338,722	1,951,606
Mortgage loans	$ 1,859,851	$ 2,693,525
Residential portfolio segment \| Nonperforming Financing Receivable \| 30 to 59 Days Past Due
Number of loans
Past Due \| loan	97	109
Carrying Value
Past Due	$ 15,506	$ 15,424
Unpaid principal balance
Past Due	21,999	22,629
Market value of underlying properties(1)
Past Due	$ 25,575	$ 24,046
Residential portfolio segment \| Nonperforming Financing Receivable \| 60 to 89 Days Past Due
Number of loans
Past Due \| loan	50	57
Carrying Value
Past Due	$ 8,340	$ 7,921
Unpaid principal balance
Past Due	12,937	11,624
Market value of underlying properties(1)
Past Due	$ 12,292	$ 12,510
Residential portfolio segment \| Nonperforming Financing Receivable \| Equal to Greater than 90 Days Past Due
Number of loans
Past Due \| loan	1,308	2,286
Carrying Value
Past Due	$ 195,160	$ 361,434
Unpaid principal balance
Past Due	311,326	569,930
Market value of underlying properties(1)
Past Due	$ 287,174	$ 544,709

Fair value of financial instruments - Fair value inputs, quantitative information (Details) - Residential mortgage - Loans receivable - Fair value, inputs, level 3 - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 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 [Member]
Fair value inputs, assets, quantitative information [Line Items]
Annual change in home pricing index	0.00%	(0.10%)
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	$ 300	$ 3,000
Maximum [Member]
Fair value inputs, assets, quantitative information [Line Items]
Annual change in home pricing index	7.50%	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 Agreements (Details) - Secured debt - USD ($)	Sep. 30, 2015	Apr. 20, 2015	Apr. 10, 2015	Feb. 20, 2015	Dec. 31, 2014	Sep. 23, 2013	Mar. 22, 2013
Debt [Line Items]
Interest rate	3.39%
Maximum borrowing capacity					$ 1,200,000,000
CS repurchase agreement due April 18, 2016
Debt [Line Items]
Maximum borrowing capacity		$ 275,000,000.0
Residential
Debt [Line Items]
Maximum borrowing capacity	$ 1,316,177,000				1,225,000,000
Book value of collateral	1,709,987,000				1,819,559,000
Amount outstanding	929,478,000				1,015,000,000
Amount of available funding	386,699,000				210,000,000
Residential \| CS repurchase agreement due April 18, 2016
Debt [Line Items]
Maximum borrowing capacity	275,000,000				225,000,000		$ 100,000,000
Book value of collateral	413,395,000				332,618,000
Amount outstanding	229,734,000				222,044,000
Amount of available funding	45,266,000				2,956,000
Residential \| Wells repurchase agreement due September 27, 2017
Debt [Line Items]
Maximum borrowing capacity	750,000,000			$ 536,000,000.0	750,000,000	$ 200,000,000.0
Book value of collateral	901,432,000				1,036,409,000
Amount outstanding	480,752,000				569,509,000
Amount of available funding	269,248,000				180,491,000
Residential \| DB repurchase agreement due March 11, 2016
Debt [Line Items]
Maximum borrowing capacity	91,177,000				250,000,000
Book value of collateral	201,638,000				450,532,000
Amount outstanding	91,177,000				223,447,000
Amount of available funding	0				$ 26,553,000
Residential \| Nomura loan agreement
Debt [Line Items]
Maximum borrowing capacity	200,000,000		$ 100,000,000.0
Book value of collateral	193,522,000
Amount outstanding	127,815,000
Amount of available funding	72,185,000
ARLP 2014-1 \| Asset-backed securities
Debt [Line Items]
Book value of collateral	32,000,000
ARLP 2014-1 \| CS repurchase agreement due April 18, 2016
Debt [Line Items]
Amount outstanding	19,900,000
ARLP 2014-2 \| Asset-backed securities
Debt [Line Items]
Book value of collateral	45,100,000
ARLP 2014-2 \| CS repurchase agreement due April 18, 2016
Debt [Line Items]
Amount outstanding	29,300,000
ARLP 2015-1 \| Asset-backed securities
Debt [Line Items]
Book value of collateral	34,000,000
ARLP 2015-1 \| CS repurchase agreement due April 18, 2016
Debt [Line Items]
Amount outstanding	$ 21,000,000

Borrowings - Other Secured Debt (Details) - USD ($)	Sep. 30, 2015	Sep. 10, 2015	Jun. 29, 2015	Feb. 09, 2015	Dec. 31, 2014	Nov. 25, 2014	Sep. 30, 2014	Sep. 25, 2014
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)	$ 513,049,000				$ 324,082,000
Securities sold under agreements to repurchase							$ 15,000,000
Loans \| ARLP 2014-1
Debt Instrument [Line Items]
Book value of the underlying securitized assets	203,100,000
Loans \| ARLP 2014-2
Debt Instrument [Line Items]
Book value of the underlying securitized assets	325,000,000
Loans \| ARLP 2015-1
Debt Instrument [Line Items]
Book value of the underlying securitized assets	284,500,000
Asset-backed securities Class A notes
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)	$ 138,715,000				$ 150,000,000			$ 150,000,000
Interest rate on debt	3.47%				3.47%			3.47%
Secured debt issued to affiliates					$ (15,000,000)
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
Interest rate on debt	4.25%				4.25%			4.25%
Secured debt issued to affiliates	$ (32,000,000)				$ (32,000,000)
Repurchase agreement NewSource
Debt Instrument [Line Items]
Securities sold under agreements to repurchase					$ 14,991,000
Securities sold under agreement to repurchase, interest rate		5.00%			5.00%
Asset-backed securities Class A notes Trust 2
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)	$ 249,535,000			$ 50,700,000	$ 269,820,000	$ 270,800,000
Interest rate on debt	3.87%				3.85%	3.85%
Secured debt issued to affiliates	$ (45,138,000)				$ (95,729,000)	$ (95,800,000)
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
Interest rate on debt	0.00%				0.00%
Secured debt issued to affiliates	$ (234,010,000)				$ (234,010,000)
Asset-backed Securities Class A Notes 2015-1
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)	$ 203,937,000		$ 205,000,000
Interest rate on debt	4.01%		4.01%
Secured debt issued to affiliates	$ (34,000,000)		$ (34,000,000)
Asset-backed Securities Class M Notes 2015-1
Debt Instrument [Line Items]
Other secured borrowings (from consolidated VIE)	$ 60,000,000		$ 60,000,000
Interest rate on debt	0.00%
Secured debt issued to affiliates	$ (60,000,000)

Related party transactions (Details)			3 Months Ended		6 Months Ended	9 Months Ended
Related party transactions (Details)	Apr. 01, 2015	Mar. 31, 2015 property	Sep. 30, 2015 USD ($) shares	Sep. 30, 2014 USD ($)	Sep. 30, 2015 shares	Sep. 30, 2015 USD ($) shares	Sep. 30, 2014 USD ($)	Sep. 10, 2015	Dec. 31, 2014 USD ($)
Related party transaction [Line Items]
US Treasury rate term		10 years
Related party general and administrative			$ 0	$ 999,000		$ 0	$ 4,597,000
Securities sold under agreements to repurchase				15,000,000			15,000,000
Shares acquired in Residential \| shares			324,465		324,465	324,465
Noncontrolling interest, ownership percentage			0.58%		0.58%	0.58%
Repurchase agreement NewSource
Related party transaction [Line Items]
Securities sold under agreements to repurchase									$ 14,991,000
Securities sold under agreement to repurchase, interest rate								5.00%	5.00%
Altisource Residential Corporation \| Affiliated entity
Related party transaction [Line Items]
Base management fee, percent of qualified average invested capital		1.50%
Conversion fee, percent of market value of new rental properties		1.50%
Incentive management fee, percent of incentive fee payable in common stock		25.00%
Related party general and administrative				21,100,000
Altisource Residential Corporation \| Affiliated entity \| Asset management fee, threshold one
Related party transaction [Line Items]
Incentive management fee, percent of average invested capital		25.00%
Base management fee, number of rental properties cap \| property		2,500
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]
Incentive management fee, percent of average invested capital		1.75%
Base management fee, number of rental properties floor \| property		2,500
Incentive management fee, number of rental properties cap \| property		4,499
Incentive management fee, number of rental properties floor \| property		2,500
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 (AMA)
Related party transaction [Line Items]
Contract term		15 years
Automatic renewal term	5 years
Altisource Residential Corporation \| Affiliated entity \| Related party general and administrative expenses
Related party transaction [Line Items]
Related party general and administrative			$ 5,000,000
Altisource Residential Corporation \| Affiliated entity \| Related party general and administrative expenses \| Base management fee
Related party transaction [Line Items]
Related party expenses			4,700,000
Altisource Residential Corporation \| Affiliated entity \| Net income attributable to noncontrolling interest in consolidated affiliate \| Expense reimbursements
Related party transaction [Line Items]
Related party expenses			0	1,591,000		$ 750,000	4,849,000
Altisource Residential Corporation \| Affiliated entity \| Net income attributable to noncontrolling interest in consolidated affiliate \| Conversion fee
Related party transaction [Line Items]
Related party expenses			329,000			728,000
Altisource Residential Corporation \| Affiliated entity \| Net income attributable to noncontrolling interest in consolidated affiliate \| Professional fee sharing for negotiation of AMA
Related party transaction [Line Items]
Related party expenses			0			2,000,000
Altisource Residential Corporation \| Affiliated entity \| Net income attributable to noncontrolling interest in consolidated affiliate \| Management incentive fee
Related party transaction [Line Items]
Related party expenses			$ 0	19,503,000		$ 14,900,000	44,129,000
Residential Corporation \| Affiliated entity
Related party transaction [Line Items]
Incentive management fee, return on invested capital			1.75%
Deficit of return on invested capital			2.00%		2.60%
Cumulative deficit of return on invested capital			4.35%		4.35%	4.35%
Residential and NewSource \| Affiliated entity \| Net income attributable to noncontrolling interest in consolidated affiliate \| Base management fee
Related party transaction [Line Items]
Related party expenses			$ 4,869,000			$ 10,041,000
Altisource and Ocwen \| Affiliated entity \| Related party general and administrative expenses \| Salaries and benefits [Member]
Related party transaction [Line Items]
Related party expenses				485,000			1,614,000
Altisource and Ocwen \| Affiliated entity \| Operating expense \| Residential rental property operating expenses [Member]
Related party transaction [Line Items]
Related party expenses				7,038,000			11,238,000
Ocwen Financial Corporation \| Affiliated entity \| Related party general and administrative expenses \| Sublease and Related Occupancy Costs [Member]
Related party transaction [Line Items]
Related party expenses				91,000			234,000
Ocwen Financial Corporation \| Affiliated entity \| Operating expense \| Loan servicing costs
Related party transaction [Line Items]
Related party expenses				22,173,000			47,605,000
Altisource Portfolio Solutions \| Affiliated entity \| Related party general and administrative expenses \| Due diligence costs
Related party transaction [Line Items]
Related party expenses				4,000			1,770,000
NewSource Reinsurance Company Ltd. \| Affiliated entity \| Net income attributable to noncontrolling interest in consolidated affiliate \| Base management fee
Related party transaction [Line Items]
Related party expenses				$ 210,000			$ 731,000
Minimum [Member] \| Altisource Residential Corporation \| Affiliated entity
Related party transaction [Line Items]
Incentive management fee, return on invested capital		7.00%
Maximum [Member] \| Altisource Residential Corporation \| Affiliated entity
Related party transaction [Line Items]
Incentive management fee, return on invested capital		8.25%

Share-based payments (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Share-based payments (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Share-based compensation arrangement by share-based payment award [Line Items]
Value of restricted stock granted to directors annually			$ 60,000		$ 45,000
Required service period for restricted stock			1 year
Director attendance requirement			75.00%
Share-based compensation expense	$ 1,600,000	$ 1,600,000	$ 4,500,000	$ 4,300,000
Unamortized stock compensation	$ 21,200,000	$ 19,600,000	$ 21,200,000	$ 19,600,000
Weighted average remaining amortization period of unamortized share based compensation			2 years 8 months	2 years 10 months
Market based restricted stock
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
Restricted stock
Share-based compensation arrangement by share-based payment award [Line Items]
Shares of restricted stock granted			1,122	205
Weighted average grant date fair value of market based restricted stock granted			$ 162.66	$ 1,090.26

Income taxes (Details)	9 Months Ended
Income taxes (Details)	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income tax exemption, percentage	90.00%

Earnings per share (Details) - USD ($)	3 Months Ended		9 Months Ended
Earnings per share (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net (loss) income	$ (1,980,000)	$ 17,698,000	$ 5,651,000	$ 37,756,000
Amortization of preferred stock issuance costs	52,000	0	155,000	0
Numerator for basic EPS – (loss) income available to common stockholders	(2,032,000)	17,698,000	5,496,000	37,756,000
Add back amortization of preferred stock issuance costs	0	0	155,000	0
Numerator for diluted EPS – (loss) income available to common stockholders after assumed conversions	$ (2,032,000)	$ 17,698,000	$ 5,651,000	$ 37,756,000
Weighted average common stock outstanding – basic (usd per share)	2,208,658	2,238,225	2,210,448	2,286,451
Stock options using treasury method	0	244,543	229,383	256,203
Restricted stock	0	148,849	93,916	167,393
Preferred stock if converted	0	200,000	200,000	143,704
Weighted average common stock outstanding – diluted (usd per share)	2,208,658	2,831,617	2,733,747	2,853,751
Earnings per basic share (usd per share)	$ (0.92)	$ 7.91	$ 2.49	$ 16.51
Earnings per diluted share (usd per share)	$ (0.92)	$ 6.25	$ 2.07	$ 13.23
Amortization of preferred stock issuance costs	$ 52	$ 0	$ 0	$ 0
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation	222,310	0	0	0
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation	15,730	0	25,026	0
Preferred stock if converted
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share computation	200,000	0	0	0