TWO Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Variable Interest Entities (Notes)

Variable Interest Entities (Notes)

6 Months Ended

Jun. 30, 2014

Variable Interest Entities [Abstract]

Variable Interest Entities

During 2013, the Company purchased subordinated debt and excess servicing rights from two securitization trusts, one sponsored by a third party and one sponsored by one of the Company’s subsidiaries. Both securitization trusts are considered VIEs for financial reporting purposes and, thus, were reviewed for consolidation under the applicable consolidation guidance. Because the Company has both the power to direct the activities of the securitization trusts that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant, the Company consolidates the trusts. As the Company is required to reassess VIE consolidation guidance each quarter, new facts and circumstances may change the Company’s determination. A change in the Company’s determination could result in a material impact to the Company’s financial statements during subsequent reporting periods.

The following table presents a summary of the assets and liabilities of the consolidated securitization trusts as reported on the condensed consolidated balance sheets:



(in thousands)	June 30, 2014		December 31, 2013
Mortgage loans held-for-investment in securitization trusts	$	804,666	$	792,390
Accrued interest receivable	4,331		4,506
Total Assets	$	808,997	$	796,896
Collateralized borrowings in securitization trusts	$	561,921	$	639,731
Accrued interest payable	1,765		1,596
Accrued expenses	2,610		2,724
Total Liabilities	$	566,296	$	644,051