Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash Flows From Operating Activities    
Net income $ 120,980 $ 377,131
Adjustments to reconcile net income to net cash provided by (used in) operating activities (inclusive of amounts related to discontinued operations):    
Depreciation and amortization 15,881 2,701
Accretion of discount and other amortization (27,851) (38,923)
Interest income in CDOs redirected for reinvestment or CDO bond paydown (1,068) (2,944)
Interest income on investments accrued to principal balance (19,495) (16,759)
Interest expense on debt accrued to principal balance 330 328
Non-cash director's compensation 275 220
Valuation allowance (reversal) on loans (11,473) (8,160)
Other-than-temporary impairment on securities 4,449 14,593
Change in fair value of investments in excess mortgage servicing rights (3,894) (6,513)
Change in investments in equity method investments in mortgage servicing rights (19,170)   
Equity in earnings from equity method investments (587)   
Distributions of earnings from equity method investees 1,069   
(Gain)/loss on settlement of investments (net) (6,451) (232,885)
Unrealized (gain)/loss on non-hedge derivatives and hedge ineffectiveness (7,302) 501
Gain on extinguishment of debt (4,565) (23,127)
Change in:    
Restricted cash 3,786 1,741
Receivables and other assets (983) 1,088
Due to affiliates 1,291 1,692
Accrued expenses and other liabilities 7,263 1,618
Payment of deferred interest (648) (568)
Deferred interest received 5,125   
Net cash provided by (used in) operating activities 56,962 71,734
Cash Flows From Investing Activities    
Principal repayments from repurchased CDO debt 80,817 21,347
Principal repayments from CDO securities 2,792 1,446
Principal repayments from non-Agency RMBS 25,178 12,440
Return of investments in excess mortgage servicing rights 15,803 13,327
Principal repayments from loans and non-CDO securities (excluding non-Agency RMBS) 186,999 70,398
Purchase of real estate securities (1,113,528) (597,769)
Purchase of securities accounted for as linked transactions (103,140)   
Purchase of real estate related and other loans (207,125) (9,216)
Proceeds from sale of investments 43,916 127,000
Acquisition of investments in excess mortgage servicing rights    (218,642)
Acquisition of investments in real estate (224,760) (141,576)
Additions to investments in real estate (1,899) (26)
Contributions to equity method investees (442,655)   
Distributions of capital from equity method investees 12,134   
Deposit paid on investments (5,248) (25,857)
Net cash provided by (used in) investing activities (1,730,716) (747,128)
Cash Flows From Financing Activities    
Repurchases of CDO bonds payable (31,285) (35,695)
Repayments of other bonds and notes payable (30,300) (33,177)
Borrowings under repurchase agreements 2,094,395 407,878
Borrowings under repurchase agreements accounted for as linked transactions 59,968   
Repayments of repurchase agreements (1,326,584) (42,291)
Margin deposits under repurchase agreements (176,414) (43,960)
Return of margin deposits under repurchase agreements 143,914 43,447
Borrowings under mortgage notes payable 165,696 88,400
Repayment of mortgage notes payable (143)   
Issuance of common stock 962,827 435,821
Costs related to issuance of common stock (1,699) (840)
Contribution of cash to New Residential upon spin-off (181,582)   
Common stock dividends paid (136,640) (66,249)
Preferred stock dividends paid (4,185) (4,185)
Payment of financing costs (4,195) (1,831)
Purchase of derivative instruments    (244)
Proceeds from settlement of derivative instruments 217   
Net cash provided by (used in) financing activities 1,533,990 747,074
Net Increase (Decrease) in Cash and Cash Equivalents (139,764) 71,680
Cash and Cash Equivalents of Continuing Operations, Beginning of Period 231,898 157,347
Cash and Cash Equivalents of Discontinued Operations, Beginning of Period    9
Cash and Cash Equivalents, End of Period 92,134 229,036
Supplemental Disclosure of Cash Flow Information    
Cash paid during the period for interest expense 35,649 59,384
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Assumption of mortgage notes payable 41,443   
Issuance of seller financing for acquisition of senior housing facilities 11,432   
Fair value adjustments relating to seller financing 2,000   
Preferred stock dividends declared but not paid 930 930
Common stock dividends declared but not paid 29,349 37,947
Purchase price payable on investments in excess mortgage servicing rights    3,250
Re-issuance of other bonds and notes payable to third parties upon deconsolidation of CDO    29,959
Accrued capitalized acquisition expenses relating to Local Media Group 185   
Reduction of Assets and Liabilities relating to the spin-off of New Residential    
Real estate securities, available for sale 1,647,289   
Residential mortgage loans, held-for-investment, net 35,865   
Investments in excess mortgage servicing rights at fair value 229,936   
Investments in equity method investees 392,469   
Receivables and other assets 37,844   
Repurchase Agreements 1,320,360   
Accrued expenses and other liabilities $ 642