Real Estate Owned

12 Months Ended

Dec. 31, 2014

Real Estate [Abstract]

Real Estate Owned

Real Estate Owned

At December 31, 2014, the Company had 46 REO properties with an aggregate carrying value of $5.5 million.

During the year ended December 31, 2014, the Company acquired 24 residential properties in connection with the acquisition of residential whole loans. At December 31, 2014, the aggregate carrying value based on management’s estimate of fair value less estimated selling costs of these assets was $2.6 million.

During the year ended December 31, 2014 the Company transferred 22 mortgage loans to REO. At December 31, 2014 the aggregate carrying value of these assets based on management’s estimate of fair value less estimated selling costs is $2.9 million. In connection with these transfers, the Company recorded approximately $331,000 in gains on residential whole loans held at fair value on the Company’s consolidated statements of operations.

The following table presents the activity in the Company’s REO for the year ended December 31, 2014. The Company did not have REO prior to 2014.

(In Thousands)	For the Year Ended December 31, 2014
Balance at beginning of period	$	—
Transfer from residential whole loans (1)	2,904
Purchases	2,588
Balance at end of period	$	5,492

(1)  Includes gain recorded on transfer of approximately $331,000.

Real estate owned is included in Prepaid and other assets in the Company’s consolidated balance sheets.