Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash Flows From Operating Activities:    
Net income (loss) $ 11,875 $ 281,504
Adjustments to reconcile net income to net cash used in operating activities:    
Amortization of premiums and discounts on investment securities and commercial real estate assets, net 29,469 32,556
Other-than-temporary impairment losses 1,822 535
Realized and unrealized gains on investment securities, net (66,095) (263,512)
Gain on residential mortgage loans held-for-sale (17,648) (18,300)
Loss on residential mortgage loans held-for-investment and collateralized borrowings in securitization trusts 5,173 19,441
Loss on servicing asset 211,426 96,317
Loss on termination and option expiration of interest rate swaps and swaptions 119,548 124,984
Unrealized (gain) loss on interest rate swaps and swaptions (5,080) 55,079
Unrealized loss (gain) on other derivative instruments 2,025 (15,563)
Equity based compensation 11,223 7,366
Depreciation of fixed assets 981 1,002
Purchases of residential mortgage loans held-for-sale (1,159,782) (2,166,494)
Proceeds from sales of residential mortgage loans held-for-sale 95,331 137,612
Proceeds from repayment of residential mortgage loans held-for-sale 117,092 80,152
Net change in assets and liabilities:    
(Increase) decrease in accrued interest receivable (17,119) 9,279
Increase in deferred income taxes, net (24,581) (19,592)
Decrease (increase) in income taxes receivable 3,667 (6,854)
Increase in prepaid and fixed assets (62) (221)
Decrease in other receivables 5,721 8,563
Increase in servicing advances (8,965) (3,465)
Increase (decrease) in accrued interest payable 11,084 (4,780)
Decrease in income taxes payable (70) (1,215)
(Decrease) increase in accrued expenses and other liabilities (2,923) 6,324
Net cash used in operating activities (675,888) (1,639,282)
Cash Flows From Investing Activities:    
Purchases of available-for-sale securities (13,734,884) (1,732,979)
Proceeds from sales of available-for-sale securities 6,567,992 3,666,974
Principal payments on available-for-sale securities 910,386 918,798
(Purchases) short sales of derivative instruments, net (13,953) (93,352)
Proceeds from sales (payments for termination) of derivative instruments, net 3,209 3,592
Proceeds from sales of trading securities 0 2,004,375
Proceeds from repayment of residential mortgage loans held-for-investment in securitization trusts 649,134 435,967
Originations and purchases of commercial real estate assets, net of deferred fees (463,680) (290,683)
Proceeds from repayment of commercial real estate assets 15,296 0
Purchases of mortgage servicing rights, net of purchase price adjustments (208,474) (75,011)
Proceeds from sales of mortgage servicing rights 41,844 0
Purchases of Federal Home Loan Bank stock (11,206) (53,640)
Increase (decrease) in due to counterparties, net 4,996 (57,265)
Increase in restricted cash (2,310) (47,258)
Net cash (used in) provided by investing activities (6,241,650) 4,679,518
Cash Flows From Financing Activities:    
Proceeds from repurchase agreements 70,805,165 37,275,034
Principal payments on repurchase agreements (65,176,066) (42,224,569)
Proceeds from issuance of collateralized borrowings in securitization trusts 1,875,371 1,104,093
Principal payments on collateralized borrowings in securitization trusts (568,485) (309,341)
Proceeds from Federal Home Loan Bank advances 215,000 1,415,000
Principal payments on Federal Home Loan Bank advances 0 205,000
Proceeds from revolving credit facilities 30,000 0
Proceeds from issuance of common stock, net of offering costs 356 404
Repurchase of common stock (61,307) (3,683)
Dividends paid on common stock (251,909) (286,127)
Net cash provided by (used in) financing activities 6,868,125 (3,234,189)
Net decrease in cash and cash equivalents (49,413) (193,953)
Cash and cash equivalents at beginning of period 737,831 1,005,792
Cash and cash equivalents at end of period 688,418 811,839
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 77,142 73,187
Cash (received) paid for taxes (5,154) 2,389
Noncash Activities:    
Transfers of residential mortgage loans held-for-sale to residential mortgage loans held-for-investment in securitization trusts 1,031,707 1,705,885
Transfers of residential mortgage loans held-for-sale to other receivables for foreclosed government-guaranteed loans 14,200 12,764
Transfer of fair value of mortgage servicing rights to fair value of Ginnie Mae residential mortgage loans held-for-sale upon buyout 5,973 15,077
Additions to mortgage servicing rights due to sale of residential mortgage loans held-for-sale 764 1,568
Cumulative-effect adjustment to equity for adoption of new accounting principle 0 (2,991)
Shares repurchase payable at end of period 0 8,793
Dividends declared but not paid at end of period 79,956 95,459
Reconciliation of residential mortgage loans held-for-sale:    
Residential mortgage loans held-for-sale at beginning of period 811,431 535,712
Purchases of residential mortgage loans held-for-sale 1,159,782 2,166,494
Transfers to residential mortgage loans held-for-investment in securitization trusts (1,031,707) (1,705,885)
Transfers to other receivables for foreclosed government-guaranteed loans (14,200) (12,764)
Transfer of fair value of mortgage servicing rights to fair value of Ginnie Mae residential mortgage loans held-for-sale upon buyout (5,973) (15,077)
Proceeds from sales of residential mortgage loans held-for-sale (95,331) (137,612)
Proceeds from repayment of residential mortgage loans held-for-sale (117,092) (80,152)
Realized and unrealized gains on residential mortgage loans held-for-sale 16,264 17,292
Residential mortgage loans held-for-sale at end of period $ 723,174 $ 768,008