FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2012
Fair Value Of Financial Instruments Tables
Schedule Of Carrying Value and Fair Value Of Assets and Liabilities	The carrying values and estimated fair values of Newcastle's assets and liabilities at December 31, 2012 and 2011 were as follows:       December 31, 2012     December 31, 2011       Principal                   Weighted     Weighted                   Balance or                   Average     Average                   Notional     Carrying     Estimated       Yield/Funding     Maturity     Carrying     Estimated       Amount     Value     Fair Value   Fair Value Method (A)   Cost     (Years)     Value     Fair Value   Assets                                                Financial instruments:                                             Real estate securities, available-for-sale*   $ 2,078,101     $ 1,691,575     $ 1,691,575   Broker quotations, counterparty quotations, pricing services,  pricing models     4.69 %     4.0     $ 1,731,744     $ 1,731,744   Real estate related loans, held-for-sale, net     1,121,085       843,132       853,102   Broker quotations, counterparty quotations, pricing services,  pricing models     12.15 %     2.6       813,580       819,249   Residential mortgage loans, held-for-investment, net     328,070       292,461       297,030   Pricing models     8.19 %     6.1       331,236       330,277   Residential mortgage loans, held-for-sale, net     3,645       2,471       2,471   Pricing models     17.00 %     4.7       2,687       2,687   Investments in excess mortgage servicing rights at fair value* (H)     76,560,751       245,036       245,036   Pricing models     17.59 %     5.4       43,971       43,971   Subprime mortgage loans subject to call option (B)     406,217       405,814       405,814   (B)     9.09 %   (B)       404,723       404,723   Restricted cash*     2,064       2,064       2,064                         105,040       105,040   Cash and cash equivalents*     231,898       231,898       231,898                         157,356       157,356   Derivative assets, treated as hedges (C)(E)*     -       -       -   Counterparty quotations     N/A     (C)       1,092       1,092   Non-hedge derivative assets (D)(E)*     23,400       165       165   Counterparty quotations     N/A     (D)       862       862   Investments in real estate and intangibles, net             188,559       194,878   Broker quotations, recent purchase price               -       -   Operating real estate, held-for-sale             -       -                         7,741       7,741   Other investments             24,907       13,165   Pricing models                     24,907       24,907   Receivables and other assets             17,230       17,230                         26,860       26,860               $ 3,945,312     $ 3,954,428                       $ 3,651,799     $ 3,656,509                                                               Liabilities                                                           Financial instruments:                                                           CDO bonds payable   $ 1,090,915     $ 1,091,354     $ 781,856   Pricing models     2.08 %     2.5     $ 2,403,605     $ 1,500,307   Other bonds and notes payable     187,963       183,390       190,302   Broker quotations, pricing models     5.07 %     4.0       200,377       203,136   Repurchase agreements     929,435       929,435       929,435   Market comparables     0.81 %     0.1       239,740       239,740   Mortgage notes payable     120,525       120,525       120,525   Pricing models     3.79 %     5.8       -       -   Financing of subprime mortgage loans subject to call option (B)     406,217       405,814       405,814   (B)     9.09 %   (B)       404,723       404,723   Junior subordinated notes payable     51,004       51,243       31,545   Pricing models     7.40 %     22.3       51,248       30,145   Interest rate swaps, treated as hedges (C)(E)*     154,450       12,175       12,175   Counterparty quotations     N/A     (C)       90,025       90,025   Non-hedge derivatives (D)(E)*     294,203       19,401       19,401   Counterparty quotations     N/A     (D)       29,295       29,295   Due to affiliates             3,620       3,620                         1,659       1,659   Dividends payable, accrued expenses and other liabilities             55,295       55,295                         39,038       39,038               $ 2,872,252     $ 2,549,968                       $ 3,459,710     $ 2,538,068     *Measured at fair value on a recurring basis.
Schedule of Fair Value Of Derivative Assets and Liabilities	Year of Maturity    Weighted Average Month of Maturity   Aggregate Notional Amount     Weighted Average Fixed Pay Rate / Cap Rate     Aggregate Fair Value  Asset / (Liability)                           Interest rate swap agreements which receive 1-Month LIBOR:               2016   Apr   $ 154,450       5.04 %   $ (12,175 )
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis	The following table summarizes financial assets and liabilities measured at fair value on a recurring basis at December 31, 2012:                   Fair Value       Principal Balance or Notional Amount     Carrying Value     Level 2     Level 3A     Level 3B     Total   Assets:                                     Real estate securities, available for sale:                                     CMBS   $ 474,992     $ 376,391     $ -     $ 330,026     $ 46,365     $ 376,391   REIT debt     62,700       66,174       66,174       -       -       66,174   ABS - subprime     558,215       355,975       -       330,021       25,954       355,975   ABS - other real estate     10,098       1,475       -       798       677       1,475   FNMA / FHLMC     768,619       820,535       820,535       -       -       820,535   CDO     203,477       71,025       -       65,027       5,998       71,025   Real estate securities total   $ 2,078,101       1,691,575       886,709       725,872       78,994       1,691,575                                                     Investments in Excess MSRs (1)   $ 76,560,751     $ 245,036     $ -     $ -     $ 245,036     $ 245,036                                                     Derivative assets:                                                 Interest rate caps, not treated as hedges   $ 23,400     $ 165     $ 165     $ -     $ -     $ 165   Derivative assets total   $ 23,400     $ 165     $ 165     $ -     $ -     $ 165                                                     Liabilities:                                                 Derivative Liabilities:                                                 Interest rate swaps, treated as hedges   $ 154,450     $ 12,175     $ 12,175     $ -     $ -     $ 12,175   Interest rate swaps, not treated as hedges     294,203       19,401       19,401       -       -       19,401   Derivative liabilities total   $ 448,653     $ 31,576     $ 31,576     $ -     $ -     $ 31,576
Schedule of Change in Fair Value of Level 3 Investments	Newcastle’s investments in instruments (excluding the Excess MSRs, see below) measured at fair value on a recurring basis using Level 3 inputs changed as follows:       Level 3A Assets     CMBS     ABS     Equity/Other             Conduit     Other     Subprime     Other     Securities     Total   Balance at December 31, 2010   $ 840,227     $ 331,904     $ 83,582     $ 36,193     $ -     $ 1,291,906   Transfers (A)                                                 Transfers from Level 3B     41,158       25,000       19,950       718       2,641       89,467   Transfers into Level 3B     (88,464 )     (24,826 )     (15,031 )     (7,548 )     (2,475 )     (138,344 ) CDO V Deconsolidation     (59,970 )     (55,838 )     (5,107 )     -       -       (120,915 ) Total gains (losses) (B)                                                 Included in net income (loss) (C)     42,597       579       (23 )     (113 )     -       43,040   Included in other comprehensive income (loss)     (106,500 )     38,583       (9,158 )     (716 )     (11,461 )     (89,252 ) Amortization included in interest income     23,878       5,883       5,210       338       3,376       38,685   Purchases, sales and settlements                                                 Purchases     313,857       27,262       29,359       7,548       69,308       447,334   Proceeds from sales     (139,387 )     (54,885 )     (6,573 )     -       -       (200,845 ) Proceeds from repayments     (51,113 )     (161,227 )     (36,068 )     (5,232 )     (9,342 )     (262,982 ) Balance at December 31, 2011   $ 816,283     $ 132,435     $ 66,141     $ 31,188     $ 52,047     $ 1,098,094         Level 3B Assets       CMBS     ABS     Equity/Other             Conduit     Other     Subprime     Other     Securities     Total                                         Balance at December 31, 2010   $ 107,457     $ 21,146     $ 94,424     $ 8,985     $ 4,282     $ 236,294   Transfers (A)                                                 Transfers from Level 3A     88,464       24,826       15,031       7,548       2,475       138,344   Transfers into Level 3A     (41,158 )     (25,000 )     (19,950 )     (718 )     (2,641 )     (89,467 ) CDO V Deconsolidation     (32,289 )     (1,908 )     (14,568 )     (3,833 )     -       (52,598 ) Total gains (losses) (B)                                                 Included in net income (loss) (C)     7,972       722       (1,332 )     (287 )     2,273       9,348   Included in other comprehensive income (loss)     32,374       1,743       3,766       (3,200 )     (3,346 )     31,337   Amortization included in interest income     17,055       163       8,796       911       617       27,542   Purchases, sales and settlements                                                 Purchases     13,634       25,000       25       -       10,192       48,851   Proceeds from sales     (27,400 )     (721 )     (8,624 )     (348 )     (3,884 )     (40,977 ) Proceeds from repayments     (25,487 )     (6,493 )     (15,087 )     (2,139 )     (6,029 )     (55,235 ) Balance at December 31, 2011   $ 140,622     $ 39,478     $ 62,481     $ 6,919     $ 3,939     $ 253,439         Level 3A Assets       CMBS     ABS     Equity/Other             Conduit     Other     Subprime     Other     Securities     Total   Balance at December 31, 2011   $ 816,283     $ 132,435     $ 66,141     $ 31,188     $ 52,047     $ 1,098,094   Transfers (A)                                                 Transfers from Level 3B     6,056       21,823       28,048       -       -       55,927   Transfers into Level 3B     (28,467 )     (14,105 )     (11,057 )     (5 )     -       (53,634 ) CDO X Deconsolidation     (634,036 )     (40,172 )     (70,607 )     (25,883 )     -       (770,698 ) Total gains (losses) (B)                                                 Included in net income (loss) (C)     1,190       -       (8 )     -       -       1,182   Included in other comprehensive income (loss)     32,373       11,490       26,159       (629 )     12,823       82,216   Amortization included in interest income     24,845       1,410       10,805       (11 )     5,211       42,260   Purchases, sales and settlements                                                 Purchases     71,968       -       315,475       -       -       387,443   Proceeds from sales     (24,551 )     -       -       -       -       (24,551 ) Proceeds from repayments     (40,086 )     (8,430 )     (34,935 )     (3,862 )     (5,054 )     (92,367 ) Balance at December 31, 2012   $ 225,575     $ 104,451     $ 330,021     $ 798     $ 65,027     $ 725,872         Level 3B Assets       CMBS     ABS     Equity/Other             Conduit     Other     Subprime     Other     Securities     Total                                         Balance at December 31, 2011   $ 140,622     $ 39,478     $ 62,481     $ 6,919     $ 3,939     $ 253,439   Transfers (A)                                                 Transfers from Level 3A     28,467       14,105       11,057       5       -       53,634   Transfers into Level 3A     (6,056 )     (21,823 )     (28,048 )     -       -       (55,927 ) CDO X Deconsolidation     (133,624 )     -       (16,097 )     (291 )     -       (150,012 ) Total gains (losses) (B)                                                 Included in net income (loss) (C)     (6,137 )     (396 )     836       (4,092 )     -       (9,789 ) Included in other comprehensive income (loss)     (9,836 )     1,025       2,414       2,368       2,302       (1,727 ) Amortization included in interest income     8,693       367       6,886       299       446       16,691   Purchases, sales and settlements                                                 Purchases     44,119       -       -       -       -       44,119   Proceeds from sales     (18,708 )     -       (3,295 )     (3,743 )     -       (25,746 ) Proceeds from repayments     (18,346 )     (15,585 )     (10,280 )     (788 )     (689 )     (45,688 ) Balance at December 31, 2012   $ 29,194     $ 17,171     $ 25,954     $ 677     $ 5,998     $ 78,994
Schedule of Gains Losses on Fair Value of RE Securities	Year Ended December 31,       2012     2011       Level 3A     Level 3B     Level 3A     Level 3B   Gain (loss) on settlement of investments, net   $ 1,196     $ 9,000     $ 44,560     $ 22,895   Other income (loss), net     -       -       -       -   OTTI     (14 )     (18,789 )     (1,520 )     (13,547 ) Total   $ 1,182     $ (9,789 )   $ 43,040     $ 9,348   Gain (loss) on sale of investments, net, from investments transferred into Level 3 during the period   $ -     $ -     $ -     $ -
Schedule of Securities Valuation Methodology And Results	As of December 31, 2012, Newcastle’s securities valuation methodology and results are further detailed as follows:                   Fair Value             Outstanding     Amortized                 Internal             Face     Cost     Multiple     Single     Pricing         Asset Type   Amount (A)     Basis (B)     Quotes (C)     Quote (D)     Models (E)     Total                                         CMBS   $ 474,992     $ 336,966     $ 255,784     $ 74,242     $ 46,365     $ 376,391   REIT debt     62,700       62,069       34,809       31,365       -       66,174   ABS - subprime     558,215       321,801       290,731       39,290       25,954       355,975   ABS - other real estate     10,098       1,547       -       798       677       1,475   FNMA / FHLMC     768,619       818,866       395,131       425,404       -       820,535   CDO     203,477       67,538       -       65,027       5,998       71,025   Total   $ 2,078,101     $ 1,608,787     $ 976,455     $ 636,126     $ 78,994     $ 1,691,575
Securities valued based on internal pricing models	Unrealized                               Amortized           Impairment     Gains (Losses)     Weighted Average Significant Input       Cost     Fair     Recorded in     in Accumulated     Discount     Prepayment     Cumulative     Loss   Asset Type   Basis (B)     Value     Current Year     OCI     Rate     Speed (F)     Default Rate     Severity                                                     CMBS - conduit   $ 23,648     $ 29,193     $ 4,418     $ 5,545       10 %     N/A       21 %     39 % CMBS - Large loan                                                                    / single borrower     18,326       17,172       -       (1,154 )     6 %     N/A       18 %     40 % ABS - subprime     13,741       25,954       719       12,213       8 %     2 %     60 %     75 % ABS - other real estate     455       677       64       222       8 %     0 %     44 %     100 % CDO     3,979       5,998       -       2,019       18 %     4 %     69 %     93 % Total   $ 60,149     $ 78,994     $ 5,201     $ 18,845
Schedule of fair value for real estate related loans and residential mortgage loans held for sale	The following tables summarize certain information for real estate related loans and residential mortgage loans held-for-sale as of December 31, 2012:                         Valuation     Significant Input       Outstanding                 Allowance/     Range           Weighted Average       Face     Carrying     Fair     (Reversal) In     Discount     Loss     Discount     Loss   Loan Type   Amount     Value     Value     Current Year     Rate     Severity     Rate     Severity   Mezzanine   $ 527,793     $ 442,529     $ 451,812     $ 4,049       6.5% - 25.0 %     0.0% - 100.0 %     10.1 %     10.6 % Bank Loan     391,904       208,863       208,863       (19,123 )     6.3% - 36.3 %     0.0% - 100.0 %     18.9 %     37.6 % B-Note     171,258       161,610       162,285       (13,139 )     8.0% - 15.0 %     0.0 %     10.4 %     0.0 % Whole Loan     30,130       30,130       30,142       -       5.1% - 7.1 %     0.0% - 15.0 %     5.2 %     14.5 % Total Real Estate Related Loans Held for Sale, Net   $ 1,121,085     $ 843,132     $ 853,102     $ (28,213 )                                                         Valuation                               Outstanding                 Allowance/     Significant Input (Weighted Average)       Face     Carrying     Fair     (Reversal) In     Discount     Prepayment     Cumulative     Loss   Loan Type   Amount     Value     Value     Current Year     Rate     Speed     Default Rate     Severity   Non-securitized Manufactured Housing Loans I   $ 573     $ 163     $ 163     $ 3       38.8 %     0.0 %     52.9 %     75.0 % Non-securitized Manufactured Housing Loans II     3,072       2,308       2,308       (496 )     15.5 %     5.0 %     3.5 %     80.0 % Total Residential Mortgage Loans Held for Sale, Net   $ 3,645     $ 2,471     $ 2,471     $ (493 )
Schedule of fair value for residential mortgage loans held for investment	The following table summarizes certain information for residential mortgage loans held-for-investment as of December 31, 2012:                               Significant Input (Weighted Average)   Loan Type   Outstanding Face Amount     Carrying Value     Fair Value     Valuation Allowance/ (Reversal) In Current Year     Discount Rate     Prepayment Speed     Constant Default Rate     Loss Severity   Securitized Manufactured Housing Loans I   $ 118,746     $ 100,124     $ 99,964     $ (49 )     9.5 %     4.0 %     4.0 %     75.0 % Securitized Manufactured Housing Loans II     153,193       150,123       148,441       3,926       7.5 %     5.0 %     3.5 %     80.0 % Residential Loans     56,131       42,214       48,625       242       7.4 %     4.7 %     2.8 %     46.6 % Total Residential Mortgage Loans, Held-for-Investment, Net   $ 328,070     $ 292,461     $ 297,030     $ 4,119
Schedule of Fair Value Inputs in Valuing Excess MSRs	The following table summarizes certain information regarding the inputs used in valuing the Excess MSRs investments as of December 31, 2012:       Significant Input Ranges       Prepayment Speed (A)     Delinquency (B)     Recapture Rate (C)   Excess Mortgage Servicing Amount (D)   Discount Rate   MSR Pool 1     17.1 %     10.0 %     35.0 % 29 bps     18.0 % MSR Pool 1 - Recapture Agreement     8.0 %     10.0 %     35.0 % 21 bps     18.0 % MSR Pool 2     16.7 %     11.0 %     35.0 % 23 bps     17.3 % MSR Pool 2 - Recapture Agreement     8.0 %     10.0 %     35.0 % 21 bps     17.3 % MSR Pool 3     16.9 %     12.1 %     35.0 % 23 bps     17.6 % MSR Pool 3 - Recapture Agreement     8.0 %     10.0 %     35.0 % 21 bps     17.6 % MSR Pool 4     18.6 %     15.9 %     35.0 % 17 bps     17.9 % MSR Pool 4 - Recapture Agreement     8.0 %     10.0 %     35.0 % 21 bps     17.9 % MSR Pool 5     15.0 %     N/A (E)     20.0 % 13 bps     17.5 % MSR Pool 5 - Recapture Agreement     8.0 %     N/A (E)     20.0 % 21 bps     17.5 %
Schedule of MSRs valued on a recurring basis using Level 3B inputs	Newcastle’s MSRs investments measured at fair value on a recurring basis using Level 3B inputs changed as follows:       Level 3B (A)       MSR Pool 1     MSR Pool 2     MSR Pool 3     MSR Pool 4     MSR Pool 5     Total   Balance at December 30, 2010                                     Transfers (B)                                     Transfers from Level 3A     -       -       -       -       -       -   Transfers into Level 3A     -       -       -       -       -       -   Gains (losses) included in net income (C)     -       -       -       -       -       -   Interest income     367       -       -       -       -       367   Purchases, sales and repayments                                                 Purchases     43,742       -       -       -       -       43,742   Purchase adjustments     1,260       -       -       -       -       1,260   Proceeds from sales     -       -       -       -       -       -   Proceeds from repayments     (1,398 )     -       -       -       -       (1,398 ) Balance at December 30, 2011   $ 43,971     $ -     $ -     $ -     $ -     $ 43,971   Transfers (B)                                                 Transfers from Level 3A     -       -       -       -       -       -   Transfers into Level 3A     -       -       -       -       -       -   Gains (losses) included in net income (C)     5,877       1,226       2,780       1,004       (1,864 )     9,023   Interest income     7,955       3,450       3,409       1,381       11,293       27,488   Purchases, sales and repayments                                                 Purchases     -       43,872       36,218       15,439       124,813       220,342   Purchase adjustments     (178 )     (1,522 )     -       -       -       (1,700 ) Proceeds from sales     -       -       -       -       -       -   Proceeds from repayments     (16,715 )     (7,704 )     (6,973 )     (2,788 )     (19,908 )     (54,088 ) Balance at December 31, 2012   $ 40,910     $ 39,322     $ 35,434     $ 15,036     $ 114,334     $ 245,036
Schedule of Fair Value of Derivatives	Newcastle’s derivatives are recorded on its balance sheet as follows:         Fair Value         December 31,     Balance sheet location   2012     2011                   Derivative Assets               Interest rate caps, designated as hedges Derivative Assets   $ -     $ 1,092   Interest rate caps, not designated as hedges Derivative Assets     165       862         $ 165     $ 1,954   Derivative Liabilities                   Interest rate swaps, designated as hedges Derivative Liabilities   $ 12,175     $ 90,025   Interest rate swaps, not designated as hedges Derivative Liabilities     19,401       29,295         $ 31,576     $ 119,320
Schedule of Outstanding Derivatives	The following table summarizes information related to derivatives:       December 31,       2012     2011   Cash flow hedges             Notional amount of interest rate swap agreements   $ 154,450     $ 848,434   Notional amount of interest rate cap agreements     -       104,205   Amount of (loss) recognized in OCI on effective portion     (12,050 )     (69,908 ) Deferred hedge gain (loss) related to anticipated financings, which have subsequently occurred, net of amortization     237       299   Deferred hedge gain (loss) related to dedesignation, net of amortization     (210 )     (893 ) Expected reclassification of deferred hedges from AOCI into earnings over the next 12 months     4       1,688   Expected reclassification of current hedges from AOCI into earnings over the next 12 months     (6,259 )     (35,348 )                   Non-hedge Derivatives                 Notional amount of interest rate swap agreements     294,203       316,600   Notional amount of interest rate cap agreements     23,400       36,428
Schedule of Gain Loss on Derivatives	The following table summarizes gains (losses) recorded in relation to derivatives:     Income Statement   Year Ended December 31,     Location   2012     2011     2010   Cash flow hedges                     Gain (loss) on the ineffective portion  Other Income (Loss)   $ 483     $ (917 )   $ 580   Gain (loss) immediately recognized at dedesignation  Gain (Loss) on Sale of Investments, Other Income (Loss)     (7,036 )     (13,939 )     (39,184 ) Amount of gain (loss) reclassified from AOCI into income, related to effective portion  Interest Expense     (30,631 )     (63,350 )     (83,869 ) Deferred hedge gain reclassified from AOCI into income, related to anticipated financings Interest Expense     61       58       475   Deferred hedge gain (loss) reclassified from AOCI into income, related to effective portion of dedesignated hedges  Interest Expense     1,189       2,259       (5,471 ) Non-hedge derivatives gain (loss)  Other Income (Loss)     9,101       3,284       (1,240 )