FAIR VALUE (Tables)

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FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2013
Fair Value Tables
Schedule Of Carrying Value and Fair Value Of Assets and Liabilities	The carrying values and fair values of Newcastle’s assets and liabilities at June 30, 2013 were as follows:       Principal                   Weighted     Weighted       Balance or                   Average     Average       Notional     Carrying     Estimated       Yield/Funding     Maturity       Amount     Value     Fair Value   Fair Value Method (A)   Cost     (Years)   Assets                                 Financial instruments:                                 Real estate securities, available-for-sale*   $ 1,011,205     $ 777,102     $ 777,102   Broker quotations, counterparty quotations, pricing services, pricing models     6.22 %     3.3   Real estate related and other loans, held-for-sale, net     1,354,899       837,427       849,562   Broker quotations, counterparty quotations, pricing services, pricing models     11.25 %     1.3   Residential mortgage loans, held-for-investment, net     303,303       273,332       270,596   Pricing models     8.30 %     5.8   Residential mortgage loans, held-for-sale, net     3,345       2,266       2,266   Pricing models     18.89 %     4.6   Subprime mortgage loans subject to call option (B)     406,217       406,217           (B)     9.09 %     (B)   Restricted cash*     7,173       7,173       7,173                     Cash and cash equivalents*     271,052       271,052       271,052                     Non-hedge derivative assets (C)(D)*     140,206       43,470       43,470   Counterparty quotations     N/A       (C)   Other investments             24,907       13,165   Pricing models     N/A        N/A   Investments in real estate and intangibles, net             181,227                             Due from affiliates             1,254                             Receivables and other assets             19,907                                         $ 2,845,334                             Liabilities                                           Financial instruments:                                           CDO bonds payable (F)   $ 843,656     $ 844,484     $ 641,506   Pricing models     1.83 %     2.1   Other bonds and notes payable (F)     167,806       163,718       166,090   Broker quotations, pricing models     5.19 %     3.9   Repurchase agreements     311,276       311,276       311,276   Market comparables     0.39 %     0.1   Mortgage notes payable     120,525       120,525       120,525   Pricing models     3.79 %     5.3   Financing of subprime mortgage loans subject to call option (B)     406,217       406,217           (B)     9.09 %     (B)   Junior subordinated notes payable     51,004       51,240       34,267   Pricing models     7.40 %     21.8   Interest rate swaps, treated as hedges (D)(E)*     105,749       8,523       8,523   Counterparty quotations     N/A       (E)   Non-hedge derivatives (C)(D)*     186,140       11,674       11,674   Counterparty quotations     N/A       (C)   Due to affiliates             3,216                             Dividends payable, accrued expenses and other liabilities             60,835                                         $ 1,981,708                               *Measured at fair value on a recurring basis.   (A) Methods are listed in order of priority. In the case of real estate securities and real estate related and other loans, broker quotations are obtained if available and practicable, otherwise counterparty quotations or pricing service valuations are obtained or, finally, internal pricing models are used. Internal pricing models are only used for (i) securities and loans that are not traded in an active market, and, therefore, have little or no price transparency, and for which significant unobservable inputs must be used in estimating fair value, or (ii) loans or debt obligations which are private and untraded.     (B) These two items result from an option, not an obligation, to repurchase loans from Newcastle’s subprime mortgage loan securitizations (Note 5), are noneconomic until such option is exercised, and are equal and offsetting.     (C) This represents one interest rate swap agreement with a total notional balance of $186.1 million, maturing in March 2015, an interest rate cap agreement with a notional balance of $23.4 million, maturing in August 2019 and linked transactions entered into in June 2013 with $116.8 face amount of underlying financed securities. Newcastle entered into the interest rate swap and cap agreement to reduce its exposure to interest rate changes on the floating rate financings of CDO VI and the senior living assets. These derivative agreements were not designated as hedges for accounting purposes as of June 30, 2013.     (D) Newcastle’s derivatives fall into two categories. As of June 30, 2013, all derivative liabilities, which represent two interest rate swaps, were held within Newcastle’s nonrecourse structures. An aggregate notional balance of $291.9 million is only subject to the credit risks of the respective CDO structures. As they are senior to all the debt obligations of the respective CDOs and the fair value of each of the CDOs’ total investments exceeded the fair value of each of the CDOs’ derivative liabilities, no credit valuation adjustments were recorded. Derivatives with an aggregate notional balance of $140.2 million, which were assets at period end, represent an interest rate cap with a notional of $23.4 million and linked transactions with $116.8 face amount of underlying financed securities. No adjustments have been made to the fair value quotation received on the interest rate cap that relate to credit risk as a result of the counterparty’s “AA” credit rating. Newcastle’s interest rate swap and cap counterparties include Bank of America, Credit Suisse and Wells Fargo.     (E) Represents derivative agreements:       Weighted Average   Aggregate Notional     Weighted Average Fixed     Aggregate Fair Value   Year of Maturity   Month of Maturity   Amount     Pay Rate / Cap Rate     Asset / (Liability)                           Interest rate swap agreements which receive 1-Month LIBOR:   2016   Apr   $ 105,749       5.04 %   $ (8,523 )   (F) Newcastle notes that the unrealized gain on the liabilities within CDOs and other non-recourse financing structures cannot be fully realized. Assets held within CDOs and other non-recourse structures are not available to satisfy obligations outside of such financings, except to the extent Newcastle receives net cash flow distributions from such structures. Furthermore, creditors or beneficial interest holders of these structures have no recourse to the general credit of Newcastle. Therefore, Newcastle’s exposure to the economic losses from such structures is limited to its invested equity in them and economically their book value cannot be less than zero. As a result, the fair value of Newcastle’s net investments in these nonrecourse financing structures is equal to the present value of their expected future net cash flows.
Schedule of Fair Value Of Derivative Assets	Represents derivative agreements:       Weighted Average   Aggregate Notional     Weighted Average Fixed     Aggregate Fair Value   Year of Maturity   Month of Maturity   Amount     Pay Rate / Cap Rate     Asset / (Liability)                           Interest rate swap agreements which receive 1-Month LIBOR:   2016   Apr   $ 105,749       5.04 %   $ (8,523 )
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis	The following table summarizes such financial assets and liabilities measured at fair value on a recurring basis at June 30, 2013:                   Fair Value       Principal Balance or                                     Notional Amount     Carrying Value     Level 2     Level 3A     Level 3B     Total   Assets                                     Real estate securities, available-for-sale:                                     CMBS   $ 352,677     $ 281,468     $ —     $ 255,407     $ 26,061     $ 281,468   REIT debt     29,200       31,059       31,059       —       —       31,059   Non-Agency RMBS     107,869       59,122       —       48,274       10,848       59,122   ABS - other real estate     8,464       199       —       —       199       199   FNMA / FHLMC     311,659       335,814       335,814       —       —       335,814   CDO     201,336       69,440       —       64,000       5,440       69,440   Real estate securities total   $ 1,011,205     $ 777,102     $ 366,873     $ 367,681     $ 42,548     $ 777,102   Derivative assets:                                                 Interest rate caps, not treated as hedges     23,400       298       298       —       —       298   Linked transactions at fair value     116,806       43,172       —       43,172       —       43,172   Derivative assets total   $ 140,206     $ 43,470     $ 298     $ 43,172     $ —     $ 43,470   Liabilities                                                 Derivative Liabilities:                                                 Interest rate swaps, treated as hedges   $ 105,749     $ 8,523     $ 8,523     $ —     $ —     $ 8,523   Interest rate swaps, not treated as hedges     186,140       11,674       11,674       —       —       11,674   Derivative liabilities total   $ 291,889     $ 20,197     $ 20,197     $ —     $ —     $ 20,197
Schedule of Change in Fair Value of Level 3 Investments	Newcastle’s investments in instruments measured at fair value on a recurring basis using Level 3 inputs changed during the six months ended June 30, 2013 as follows:       Level 3A       CMBS     ABS                                     Non-Agency           Equity/Other     Linked             Conduit     Other     RMBS     Other     Securities     Transactions     Total   Balance at December 31, 2012   $ 225,575     $ 104,451     $ 330,021     $ 798     $ 65,027     $ —     $ 725,872   Transfers (A)                                                         Transfers from Level 3B     —       —       11,107       —       —       —       11,107   Transfers into Level 3B     (3,291 )     (8,257 )     —       —       —       —       (11,548 ) Spin-off of New Residential     —       —       (560,783 )     —       —       —       (560,783 ) Total gains (losses) (B)                                                         Included in net income (C)     279       (165 )     (683 )     (87 )     —       —       (656 ) Included in other comprehensive income (loss)     8,585       1,522       26,938       296       (771 )     —       36,570   Amortization included in interest income     4,091       304       9,801       —       2,337       —       16,533   Purchases, sales and repayments                                                         Purchases     —       —       267,160       —       —       43,172       310,332   Proceeds from sales     (51,708 )     (16,902 )     (6,127 )     (934 )     —       —       (75,671 ) Proceeds from repayments     (4,326 )     (4,751 )     (29,160 )     (73 )     (2,593 )     —       (40,903 ) Balance at June 30, 2013   $ 179,205     $ 76,202     $ 48,274     $ —     $ 64,000     $ 43,172     $ 410,853         Level 3B       CMBS     ABS                                     Non-Agency           Equity/Other     Linked             Conduit     Other     RMBS     Other     Securities     Transactions     Total   Balance at December 31, 2012   $ 29,194     $ 17,171     $ 25,954     $ 677     $ 5,998     $ —     $ 78,994   Transfers (A)                                                         Transfers from Level 3A     3,291       8,257       —       —       —       —       11,548   Transfers into Level 3A     —       —       (11,107 )     —       —       —       (11,107 ) Total gains (losses) (B)                                                         Included in net income (C)     69       (159 )     3,055       5       —       —       2,970   Included in other comprehensive income (loss)     3,521       1,135       (2,198 )     (24 )     231       —       2,665   Amortization included in interest income     1,474       240       3,322       283       314       —       5,633   Purchases, sales and repayments                                                         Purchases     —       —       —       —       —       —       —   Proceeds from sales     (21,868 )     (14,841 )     (5,054 )     (425 )     —       —       (42,188 ) Proceeds from repayments     (1,423 )     —       (3,124 )     (317 )     (1,103 )     —       (5,967 ) Balance at June 30, 2013   $ 14,258     $ 11,803     $ 10,848     $ 199     $ 5,440     $ —     $ 42,548     (A) Transfers are assumed to occur at the beginning of the quarter. (B) None of the gains (losses) recorded in earnings during the period is attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date. (C) These gains (losses) are recorded in the following line items in the consolidated statements of income:       Six Months Ended June 30, 2013       Level 3A     Level 3B   Gain (loss) on settlement of investments, net   $ 150     $ 3,586   Other income (loss), net     —       —   OTTI     (806 )     (616 ) Total   $ (656 )   $ 2,970                     Gain (loss) on settlement of investments, net, from investments transferred into Level 3 during the period   $ —     $ —
Schedule of Gains Losses on Fair Value of RE Securities	(C) These gains (losses) are recorded in the following line items in the consolidated statements of income:       Six Months Ended June 30, 2013       Level 3A     Level 3B   Gain (loss) on settlement of investments, net   $ 150     $ 3,586   Other income (loss), net     —       —   OTTI     (806 )     (616 ) Total   $ (656 )   $ 2,970                     Gain (loss) on settlement of investments, net, from investments transferred into Level 3 during the period   $ —     $ —
Schedule of Securities Valuation Methodology And Results	As of June 30, 2013, 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   $ 352,677     $ 227,281     $ 184,461     $ 70,946     $ 26,061     $ 281,468   REIT debt     29,200       28,549       17,199       13,860       —       31,059   Non-Agency RMBS     107,869       42,231       34,842       13,432       10,848       59,122   ABS - other real estate     8,464       —       —       —       199       199   FNMA / FHLMC     311,659       335,164       335,814       —       —       335,814   CDO     201,336       66,493       —       64,000       5,440       69,440   Total   $ 1,011,205     $ 699,718     $ 572,316     $ 162,238     $ 42,548     $ 777,102     (A) Net of incurred losses (B) Net of discounts (or gross of premiums) and after OTTI, including impairment taken during the period ended June 30, 2013. (C) Management generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold us the security). Management selected one of the quotes received as being most representative of fair value and did not use an average of the quotes. Even if Newcastle receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because management believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases there is a wide disparity between the quotes Newcastle receives. Management believes using an average of the quotes in these cases would generally not represent the fair value of the asset. Based on Newcastle’s own fair value analysis using internal models, management selects one of the quotes which are believed to more accurately reflect fair value. Newcastle never adjusts quotes received. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” – meaning that the party giving the quotation is not bound to actually purchase the security at the quoted price. (D) Management was unable to obtain quotations from more than one source on these securities. The one source was generally the seller (the party that sold us the security) or a pricing service. (E) Securities whose fair value was estimated based on internal pricing models are further detailed as follows:                   Impairment     Unrealized Gains     Weighted Average Significant Input       Amortized           Recorded      (Losses) in                  Cumulative             Cost           In Current     Accumulated     Discount     Prepayment     Default     Loss       Basis (B)     Fair Value     Period     OCI     Rate     Speed (F)     Rate     Severity   CMBS - Conduit   $ 2,705     $ 14,258     $ 76     $ 11,553       8.0 %     N/A       23.3 %     42.7 % CMBS - Large loan / single borrower     11,489       11,803       —       314       2.2 %     N/A       50.7 %     50.7 % Non-Agency RMBS     3,074       10,848       1       7,774       8.0 %     2.4 %     19.0 %     45.4 % ABS - other RE     —       199       —       199       8.0 %     0.0 %     45.8 %     100.0 % CDO     3,190       5,440       —       2,250       20.3 %     4.7 %     9.9 %     73.1 % Total     20,458       42,548       77       22,090                                       All of the assumptions listed have some degree of market observability, based on Newcastle’s knowledge of the market, relationships with market participants, and use of common market data sources. Collateral prepayment, default and loss severity projections are in the form of “curves” or “vectors” that vary for each monthly collateral cash flow projection. Methods used to develop these projections vary by asset class (e.g., CMBS projections are developed differently than home equity ABS projections) but conform to industry conventions. Newcastle uses assumptions that generate its best estimate of future cash flows of each respective security.       The prepayment vector specifies the percentage of the collateral balance that is expected to voluntarily pay off at each point in the future. The prepayment vector is based on projections from a widely published investment bank model which considers factors such as collateral FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan level basis. This vector is scaled up or down to match recent collateral-specific prepayment experience, as obtained from remittance reports and market data services.       Loss severities are based on recent collateral-specific experience with additional consideration given to collateral characteristics. Collateral age is taken into consideration because severities tend to initially increase with collateral age before eventually stabilizing. Newcastle typically uses projected severities that are higher than the historic experience for collateral that is relatively new to account for this effect. Collateral characteristics such as loan size, lien position, and location (state) also effect loss severity. Newcastle considers whether a collateral pool has experienced a significant change in its composition with respect to these factors when assigning severity projections.       Default rates are determined from the current “pipeline” of loans that are more than 90 days delinquent, in foreclosure, or are real estate owned (REO). These significantly delinquent loans determine the first 24 months of the default vector. Beyond month 24, the default vector transitions to a steady-state value that is generally equal to or greater than that given by the widely published investment bank model.       The discount rates Newcastle uses are derived from a range of observable pricing on securities backed by similar collateral and offered in a live market. As the markets in which Newcastle transacts have become less liquid, Newcastle has had to rely on fewer data points in this analysis.     (F) Projected annualized average prepayment rate.
Securities valued based on internal pricing models	(E) Securities whose fair value was estimated based on internal pricing models are further detailed as follows:                   Impairment     Unrealized Gains     Weighted Average Significant Input       Amortized           Recorded      (Losses) in                  Cumulative             Cost           In Current     Accumulated     Discount     Prepayment     Default     Loss       Basis (B)     Fair Value     Period     OCI     Rate     Speed (F)     Rate     Severity   CMBS - Conduit   $ 2,705     $ 14,258     $ 76     $ 11,553       8.0 %     N/A       23.3 %     42.7 % CMBS - Large loan / single borrower     11,489       11,803       —       314       2.2 %     N/A       50.7 %     50.7 % Non-Agency RMBS     3,074       10,848       1       7,774       8.0 %     2.4 %     19.0 %     45.4 % ABS - other RE     —       199       —       199       8.0 %     0.0 %     45.8 %     100.0 % CDO     3,190       5,440       —       2,250       20.3 %     4.7 %     9.9 %     73.1 % Total     20,458       42,548       77       22,090
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 and other loans and residential mortgage loans held-for-sale as of June 30, 2013:                          Valuation Allowance/     Significant Input       Outstanding                 (Reversal)     Range     Weighted Average       Face     Carrying     Fair     In Current     Discount     Loss     Discount     Loss   Loan Type   Amount     Value     Value     Year     Rate     Severity     Rate     Severity   Mezzanine   $ 430,584     $ 350,127     $ 357,410     $ (1,112 )     5.0% - 25.0 %     0.0% - 100.0 %     9.1 %     17.5 % Bank Loan     783,448       363,337       366,466       (3,963 )     5.8% - 27.5 %     0.0% - 100.0 %     14.0 %     47.8 % B-Note     110,944       94,040       95,601       7,337       6.0% - 16.2 %     0.0% - 47.0 %     10.6 %     9.7 % Whole Loan     29,923       29,923       30,085       —       4.7% - 6.9 %     0.0% - 15.0 %     4.8 %     14.6 %                                                                   Total Real Estate Related and other Loans Held-for-Sale, Net   $ 1,354,899     $ 837,427     $ 849,562     $ 2,262                                                            Valuation Allowance/                                 Outstanding                 (Reversal)       Significant Input (Weighted Average)         Face     Carrying     Fair     In Current     Discount     Prepayment     Constant     Loss   Loan Type     Amount     Value     Value     Year     Rate     Speed     Default Rate     Severity   Non-securitized Manufactured Housing Loans Portfolio I   $ 565     $ 146     $ 146     $ (6 )     68.5 %     5.0 %     11.6 %     70.0 % Non-securitized Manufactured Housing Loans Portfolio II     2,780       2,120       2,120       18       15.5 %     5.0 %     3.5 %     75.0 % Total Residential Mortgage Loans Held-for-Sale, Net   $ 3,345     $ 2,266     $ 2,266     $ 12
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 June 30, 2013:                        Valuation                               Allowance/      Significant Input (Weighted Average)       Outstanding                 (Reversal)                 Constant             Face     Carrying           In Current     Discount       Prepayment     Default     Loss   Loan Type   Amount     Value   Fair Value     Year     Rate     Speed     Rate     Severity   Securitized Manufactured Housing Loans Portfolio I   $ 110,589     $ 94,909     $ 91,676     $ (1,592 )     9.5 %     5.0 %     4.0 %     70.0 % Securitized Manufactured Housing Loans Portfolio II     140,828       138,895       133,604       1,019       7.7 %     5.0 %     3.5 %     75.0 %                                                                   Residential Loans     51,886       39,528       45,316       (176 )     7.7 %     4.6 %     2.8 %     46.4 % Total Residential Mortgage Loans, Held-for-Investment, Net   $ 303,303     $ 273,332     $ 270,596     $ (749 )
Schedule of Fair Value of Derivatives	Newcastle’s derivatives are recorded on its balance sheet as follows:         Fair Value         June 30,     December 31,     Balance sheet location   2013     2012   Derivative Assets               Linked transactions at fair value Derivative Assets   $ 43,172     $ —   Interest rate caps, not designated as hedges Derivative Assets     298       165                             $ 43,470     $ 165   Derivative Liabilities                   Interest rate swaps, designated as hedges Derivative Liabilities   $ 8,523     $ 12,175   Interest rate swaps, not designated as hedges Derivative Liabilities     11,674       19,401                             $ 20,197     $ 31,576
Schedule of Outstanding Derivatives	The following table summarizes information related to derivatives:       June 30, 2013     December 31, 2012   Cash flow hedges             Notional amount of interest rate swap agreements   $ 105,749     $ 154,450   Amount of (loss) recognized in OCI on effective portion     (8,437 )     (12,050 ) Deferred hedge gain (loss) related to anticipated financings, which have subsequently occurred, net of amortization     204       237   Deferred hedge gain (loss) related to dedesignation, net of amortization     (179 )     (210 ) Expected reclassification of deferred hedges from AOCI into earnings over the next 12 months     6       4   Expected reclassification of current hedges from AOCI into earnings over the next 12 months     (4,537 )     (6,259 )                   Non-hedge Derivatives                 Notional amount of interest rate swap agreements     186,140       294,203   Notional amount of interest rate cap agreements     23,400       23,400   Notional amount of linked transactions (A)     116,806       —     (A) This represents the current face amount of the underlying financed securities comprising linked transactions.
Schedule of Gain Loss on Derivatives	The following table summarizes gains (losses) recorded in relation to derivatives:   Income statement   Three Months Ended June 30,     Six Months Ended June 30,     location   2013     2012     2013     2012   Cash flow hedges                           Gain (loss) on the ineffective portion Other income (loss)   $ —     $ 453     $ —     $ 483   Gain (loss) immediately recognized at dedesignation Gain (loss) on sale of investments; Other income (loss)     —       (6,760 )     —       (7,036 ) Amount of gain (loss) reclassified from AOCI into income, related to effective portion Interest expense     (1,703 )     (10,290 )     (3,568 )     (20,936 ) Deferred hedge gain reclassified from AOCI into income, related to anticipated financings Interest expense     17       15       33       30   Deferred hedge gain (loss) reclassified from AOCI into income, related to effective portion of dedesignated hedges Interest expense     (16 )     456       (32 )     898   Non-hedge derivatives gain (loss)                                   Interest rate swaps Other income (loss)     2,282       2,021       5,408       4,077   Linked transactions Interest expense     (8 )     —       (8 )     —
Schedule of net assets recognized as linked transactions	The following table presents both gross information and net information about linked transactions as of June 30, 2013: Real estate securities-available for sale (A)   $ 103,140   Repurchase agreements (B)     (59,968 ) Net assets recognized as linked transactions   $ 43,172     (A) Represents the fair value of the securities accounted for as part of linked transactions at June 30, 2013. (B) Represents the carrying value, which approximates fair value, of the repurchase agreements accounted for as part of linked transactions at June 30, 2013.