residential 's business objective is to provide attractive returns to its shareholders primarily through dividends . as residential 's asset manager , we believe we can accomplish this on residential 's behalf with the following strategy : we expect to acquire single-family rental assets for residential primarily through the acquisition of non-performing loan portfolios . we believe that the non-performing loan acquisition channel will give residential a cost advantage over other acquisition channels such as foreclosure auctions and other real-estate owned , or “ reo , ” acquisitions because : ◦ we believe residential will be able to purchase single-family assets at a lower price because there are fewer participants in the non-performing loan marketplace leading to a higher discount rate and ◦ we believe residential will be able to purchase non-performing loans at a lower price because the seller does not have to pay the broker commissions and closing costs of up to 10 % of gross proceeds that typically are incurred when selling reo after foreclosure . we expect to generate near-term cash-flow for residential through the modification of non-performing loans and subsequently refinance them at or near the value of the underlying property without waiting for entire loan portfolios to reach stabilized rental state . we expect to operate and manage single-family rental properties for residential at a predictable and attractive cost structure after converting non-performing loans to rental properties due to the competitive property management fees offered to residential under its services agreement with altisource . ◦ residential 's management of single-family rental properties using altisource 's nationwide vendor network is not dependent upon scale . unlike many of residential 's competitors , residential will not require a critical size of single-family rental assets in a geographic area to attain operating efficiencies and ◦ non-performing loan pools typically contain properties that are geographically dispersed requiring a cost-effective nationwide property management system . because of residential 's arrangement with altisource , it is 19 ( ) positioned to acquire properties throughout the united states allowing it to bid on large distributed portfolios that geographically constrained competitors can not . we expect to generate a stable cash flow stream for residential through our management of its preferred investment in a title insurance and reinsurance business that is positioned to perform the title search and insurance services for residential 's network of single-family assets . we believe that our management of these strategies for residential will translate into earnings potential for us and our shareholders through the incentive management fees we earn under the residential asset management agreement . as further described in “ item 1. business , ” we believe that ocwen 's mortgage servicing experience will enable residential to shorten non-performing loan resolution timelines by ( 1 ) converting a portion of the non-performing loan portfolio to performing status and ( 2 ) managing the foreclosure process and timelines with respect to the remainder of the portfolio . we also expect that residential 's 15-year master services agreement with altisource for construction management , leasing and property management services will allow it to operate single-family rental assets at a lower cost than its competitors due to altisource 's established real property management experience and centralized vendor management model . further , because of altisource 's widely-distributed established vendor model , residential can acquire assets nationwide . we believe that this will enable residential to competitively bid on large sub-performing or non-performing mortgage portfolios with assets dispersed throughout the united states . our operating results depend heavily on residential 's operating results . we expect residential 's operating results to be affected by various factors , many of which are beyond its control . generally , we expect that residential 's mortgage loan portfolio may grow at an uneven pace , as opportunities to acquire distressed mortgage loans may be irregularly timed and may involve large portfolios of loans , and the timing and extent of residential 's success in acquiring such loans can not be predicted . residential 's operating results will depend heavily on sourcing sub-performing and non-performing loans . as a result of the economic crisis in 2008 that continues through today , we believe that there is currently a large supply of sub-performing and non-performing loans available to residential for acquisition . a recent study estimates that the average pre-reo delinquency levels that are in excess of levels typically experienced in a balanced market , known as shadow inventory , were approximately 5.1 million units over the past four years . the available amount of shadow inventory provides for a steady acquisition pipeline of assets since residential plans on targeting just a small percentage of the population . because we believe that the majority of acquired loans will be converted into rental property , the key components that will af fect residential 's rental and other revenues over the long-term will be average occupancy and rental rates . we believe that demand for single-family rental assets will either increase or at least remain relatively constant in the future . in response to the economic crisis , the origination of subprime mortgage loans has dramatically declined . in addition , lenders have increased their credit standards for originating new loans . furthermore , a significant number of families can not obtain a new mortgage due to impairment of credit history caused by foreclosure on past loans or the lack of savings to make a down payment . all of the above factors and the shift in demographics point towards a continued robust demand for single family rentals in the future . story_separator_special_tag should residential be successful in acquiring sub-performing and non-performing loans at attractive prices and converting the majority of the collateral to single-family homes , the key components that will affect residential 's rental and other revenues will be average occupancy and rental rates . average occupancy generally increases during times of improving economic growth , as residential 's ability to lease outpaces vacancies that occur upon the expirations of existing leases . average occupancy generally declines during times of slower economic growth , when new vacancies tend to outpace our ability to lease . our expenses will primarily consist of general and administrative expenses , the majority of which will be reimbursed by residential . residential 's expenses will primarily consist of loan servicing fees , rental property expenses , depreciation and amortization , general and administrative expenses fees and interest expense . from time to time , residential 's expenses also will include impairments of assets held for use . loan servicing fees are those expenses residential pays to ocwen to service its acquired loans . rental property operating expenses are expenses associated with residential 's ownership and operation of rental properties and include expenses that are either impacted by occupancy levels such as utilities and turnover costs and expenses that do not vary based on occupancy such as property taxes , insurance and hoa dues . depreciation and amortization is a non-cash expense associated with the ownership of real estate and generally remains relatively consistent each year at an asset level , unless residential makes capital improvements , since residential depreciates its properties on a straight-line basis over a fixed life . general and administrative expenses consist of those costs related to the general operation and overall administration of the business . interest expense consists of the costs to borrow money . 20 ( ) other factors influencing our results the avenue through which a non-performing loan is resolved impacts the amount and timing of revenue residential will receive . the avenue will be dependent on a number of factors that are beyond residential 's control including interest rates , conditions in the financial markets and other factors . in addition , we expect that residential 's real estate assets would decline in value in a rising interest rate environment and that its net income could decline in a rising interest rate environment to the extent such real estate assets are financed with floating rate debt and there is no accompanying increase in rental yield . the state of the real estate market/home prices will determine residential 's proceeds from sale of real estate acquired in settlement of loans . while we make extensive efforts at anticipating real estate price trends and estimate the effects of those trends on the valuations of residential 's portfolios of mortgage loans , future real estate values are subject to influences beyond residential 's control . generally , rising home prices are expected to positively affect residential 's results of real estate acquired in settlement of loans . conversely , declining home prices are expected to negatively affect residential 's results of real estate acquired in settlement of loans . the size of residential 's investment portfolio will also be a key revenue driver for both residential and us . generally , as the size of residential 's investment portfolio grows , the amount of revenue residential expects to generate will increase which thereby would increase our revenues . the larger investment portfolio , however , will drive increased expenses including servicing fees to ocwen and property management fees to altisource . residential may also incur additional interest expense to finance the purchase of its assets which would affect the incentive management fees payable to us . completion of spin-off as of the close of business on december 21 , 2012 , we completed our spin-off from altisource . our shares began “ regular way ” trading on the otcqx market tier operated by otc markets group , inc under the ticker symbol “ aamc ” on december 24 , 2012. the spin-off was treated as a taxable pro rata distribution by altisource of all of our outstanding shares of common stock to the shareholders of record of altisource as of the record date of december 17 , 2012. the shareholders of altisource received one share of our common stock for every 10 shares of altisource common stock held and cash in lieu of fractional shares . results of operations the following sets forth discussion of our results of operations from inception on march 15 , 2012 through december 31 , 2012. because the results of residential are consolidated into our financial statements , the results of operations disclosures set forth below include the results of residential . rental revenues residential has generated no rental revenues for the period from inception to december 31 , 2012. we expect residential to generate rental revenues in 2013 upon acquisition of non-performing loans and conversion to single-family rental properties . gains on acquisition of property residential has generated no gains on acquisition of property for the period from inception to december 31 , 2012. we expect residential to generate gains from acquisition of property in 2013 upon acquisition of non-performing loans and conversion to single-family rental properties . gains on repayment of non-performing loans residential has generated no gains on repayment of non-performing loans for the period from inception to december 31 , 2012. we expect residential to generate gains on repayment of non-performing loans in 2013 through short sales or through modification and refinancing . gains on disposition of property residential generated no gains on disposition of property for the period from inception to december 31 , 2012. we expect residential to generate gains on disposition of property in 2013 through liquidation of the underlying collateral of non-performing loans . 21 ( ) loan servicing fees residential has incurred no loan servicing fees for the period from inception to december 31 , 2012. we

liquidity and capital resources in conjunction with the separation , we received a capital contribution from altisource of $ 5 million and residential received a capital contribution from altisource of $ 100 million which is unrestricted for each entity 's use . we intend to use the proceeds from this capital contribution to fund operating costs and fund our investment in newsource . residential intends to use the proceeds from its capital contribution to invest in sub-performing and non-performing loans , renovate acquired real estate , fund operating costs and fund its preferred investment in newsource . as a reit , residential generally will need to distribute at least 90 % of its taxable income each year ( subject to certain adjustments ) to its shareholders to qualify as a reit under the code . this distribution requirement limits residential 's ability to retain earnings and thereby replenish or increase capital to support its activities . as a result , in the event residential decides to grow its business , it will evaluate a number of potential capital raising alternatives including the issuance of equity securities , the issuance and sale of debt securities and entering into credit facilities with banks or other lending institutions . because residential 's decision to issue equity through accessing the capital markets or debt through entering into credit agreements will depend on our advice with respect to market conditions and other factors beyond our control , we can not predict or estimate residential 's future capital structure . cash flows our primary cash flow to date has been the capital contributions we and residential received from altisource in conjunction with the separation . 22 ( ) capitalization the following table sets forth our capitalization ( in thousands , except per share amounts ) : december 31 , 2012 common stock outstanding 2,343,213 per share stock price $ 82.00 total capitalization $ 192,143 recent financing activity on december 21 , 2012 , we issued 2.3 million shares of common stock in connection with our separation from altisource . altisource contributed total cash to us of $ 5 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources in conjunction with the separation , we received a capital contribution from altisource of $ 5 million and residential received a capital contribution from altisource of $ 100 million which is unrestricted for each entity 's use . we intend to use the proceeds from this capital contribution to fund operating costs and fund our investment in newsource . residential intends to use the proceeds from its capital contribution to invest in sub-performing and non-performing loans , renovate acquired real estate , fund operating costs and fund its preferred investment in newsource . as a reit , residential generally will need to distribute at least 90 % of its taxable income each year ( subject to certain adjustments ) to its shareholders to qualify as a reit under the code . this distribution requirement limits residential 's ability to retain earnings and thereby replenish or increase capital to support its activities . as a result , in the event residential decides to grow its business , it will evaluate a number of potential capital raising alternatives including the issuance of equity securities , the issuance and sale of debt securities and entering into credit facilities with banks or other lending institutions . because residential 's decision to issue equity through accessing the capital markets or debt through entering into credit agreements will depend on our advice with respect to market conditions and other factors beyond our control , we can not predict or estimate residential 's future capital structure . cash flows our primary cash flow to date has been the capital contributions we and residential received from altisource in conjunction with the separation . 22 ( ) capitalization the following table sets forth our capitalization ( in thousands , except per share amounts ) : december 31 , 2012 common stock outstanding 2,343,213 per share stock price $ 82.00 total capitalization $ 192,143 recent financing activity on december 21 , 2012 , we issued 2.3 million shares of common stock in connection with our separation from altisource . altisource contributed total cash to us of $ 5 million .
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 Suspicious Activity Report : residential 's business objective is to provide attractive returns to its shareholders primarily through dividends . as residential 's asset manager , we believe we can accomplish this on residential 's behalf with the following strategy : we expect to acquire single-family rental assets for residential primarily through the acquisition of non-performing loan portfolios . we believe that the non-performing loan acquisition channel will give residential a cost advantage over other acquisition channels such as foreclosure auctions and other real-estate owned , or “ reo , ” acquisitions because : ◦ we believe residential will be able to purchase single-family assets at a lower price because there are fewer participants in the non-performing loan marketplace leading to a higher discount rate and ◦ we believe residential will be able to purchase non-performing loans at a lower price because the seller does not have to pay the broker commissions and closing costs of up to 10 % of gross proceeds that typically are incurred when selling reo after foreclosure . we expect to generate near-term cash-flow for residential through the modification of non-performing loans and subsequently refinance them at or near the value of the underlying property without waiting for entire loan portfolios to reach stabilized rental state . we expect to operate and manage single-family rental properties for residential at a predictable and attractive cost structure after converting non-performing loans to rental properties due to the competitive property management fees offered to residential under its services agreement with altisource . ◦ residential 's management of single-family rental properties using altisource 's nationwide vendor network is not dependent upon scale . unlike many of residential 's competitors , residential will not require a critical size of single-family rental assets in a geographic area to attain operating efficiencies and ◦ non-performing loan pools typically contain properties that are geographically dispersed requiring a cost-effective nationwide property management system . because of residential 's arrangement with altisource , it is 19 ( ) positioned to acquire properties throughout the united states allowing it to bid on large distributed portfolios that geographically constrained competitors can not . we expect to generate a stable cash flow stream for residential through our management of its preferred investment in a title insurance and reinsurance business that is positioned to perform the title search and insurance services for residential 's network of single-family assets . we believe that our management of these strategies for residential will translate into earnings potential for us and our shareholders through the incentive management fees we earn under the residential asset management agreement . as further described in “ item 1. business , ” we believe that ocwen 's mortgage servicing experience will enable residential to shorten non-performing loan resolution timelines by ( 1 ) converting a portion of the non-performing loan portfolio to performing status and ( 2 ) managing the foreclosure process and timelines with respect to the remainder of the portfolio . we also expect that residential 's 15-year master services agreement with altisource for construction management , leasing and property management services will allow it to operate single-family rental assets at a lower cost than its competitors due to altisource 's established real property management experience and centralized vendor management model . further , because of altisource 's widely-distributed established vendor model , residential can acquire assets nationwide . we believe that this will enable residential to competitively bid on large sub-performing or non-performing mortgage portfolios with assets dispersed throughout the united states . our operating results depend heavily on residential 's operating results . we expect residential 's operating results to be affected by various factors , many of which are beyond its control . generally , we expect that residential 's mortgage loan portfolio may grow at an uneven pace , as opportunities to acquire distressed mortgage loans may be irregularly timed and may involve large portfolios of loans , and the timing and extent of residential 's success in acquiring such loans can not be predicted . residential 's operating results will depend heavily on sourcing sub-performing and non-performing loans . as a result of the economic crisis in 2008 that continues through today , we believe that there is currently a large supply of sub-performing and non-performing loans available to residential for acquisition . a recent study estimates that the average pre-reo delinquency levels that are in excess of levels typically experienced in a balanced market , known as shadow inventory , were approximately 5.1 million units over the past four years . the available amount of shadow inventory provides for a steady acquisition pipeline of assets since residential plans on targeting just a small percentage of the population . because we believe that the majority of acquired loans will be converted into rental property , the key components that will af fect residential 's rental and other revenues over the long-term will be average occupancy and rental rates . we believe that demand for single-family rental assets will either increase or at least remain relatively constant in the future . in response to the economic crisis , the origination of subprime mortgage loans has dramatically declined . in addition , lenders have increased their credit standards for originating new loans . furthermore , a significant number of families can not obtain a new mortgage due to impairment of credit history caused by foreclosure on past loans or the lack of savings to make a down payment . all of the above factors and the shift in demographics point towards a continued robust demand for single family rentals in the future . story_separator_special_tag should residential be successful in acquiring sub-performing and non-performing loans at attractive prices and converting the majority of the collateral to single-family homes , the key components that will affect residential 's rental and other revenues will be average occupancy and rental rates . average occupancy generally increases during times of improving economic growth , as residential 's ability to lease outpaces vacancies that occur upon the expirations of existing leases . average occupancy generally declines during times of slower economic growth , when new vacancies tend to outpace our ability to lease . our expenses will primarily consist of general and administrative expenses , the majority of which will be reimbursed by residential . residential 's expenses will primarily consist of loan servicing fees , rental property expenses , depreciation and amortization , general and administrative expenses fees and interest expense . from time to time , residential 's expenses also will include impairments of assets held for use . loan servicing fees are those expenses residential pays to ocwen to service its acquired loans . rental property operating expenses are expenses associated with residential 's ownership and operation of rental properties and include expenses that are either impacted by occupancy levels such as utilities and turnover costs and expenses that do not vary based on occupancy such as property taxes , insurance and hoa dues . depreciation and amortization is a non-cash expense associated with the ownership of real estate and generally remains relatively consistent each year at an asset level , unless residential makes capital improvements , since residential depreciates its properties on a straight-line basis over a fixed life . general and administrative expenses consist of those costs related to the general operation and overall administration of the business . interest expense consists of the costs to borrow money . 20 ( ) other factors influencing our results the avenue through which a non-performing loan is resolved impacts the amount and timing of revenue residential will receive . the avenue will be dependent on a number of factors that are beyond residential 's control including interest rates , conditions in the financial markets and other factors . in addition , we expect that residential 's real estate assets would decline in value in a rising interest rate environment and that its net income could decline in a rising interest rate environment to the extent such real estate assets are financed with floating rate debt and there is no accompanying increase in rental yield . the state of the real estate market/home prices will determine residential 's proceeds from sale of real estate acquired in settlement of loans . while we make extensive efforts at anticipating real estate price trends and estimate the effects of those trends on the valuations of residential 's portfolios of mortgage loans , future real estate values are subject to influences beyond residential 's control . generally , rising home prices are expected to positively affect residential 's results of real estate acquired in settlement of loans . conversely , declining home prices are expected to negatively affect residential 's results of real estate acquired in settlement of loans . the size of residential 's investment portfolio will also be a key revenue driver for both residential and us . generally , as the size of residential 's investment portfolio grows , the amount of revenue residential expects to generate will increase which thereby would increase our revenues . the larger investment portfolio , however , will drive increased expenses including servicing fees to ocwen and property management fees to altisource . residential may also incur additional interest expense to finance the purchase of its assets which would affect the incentive management fees payable to us . completion of spin-off as of the close of business on december 21 , 2012 , we completed our spin-off from altisource . our shares began “ regular way ” trading on the otcqx market tier operated by otc markets group , inc under the ticker symbol “ aamc ” on december 24 , 2012. the spin-off was treated as a taxable pro rata distribution by altisource of all of our outstanding shares of common stock to the shareholders of record of altisource as of the record date of december 17 , 2012. the shareholders of altisource received one share of our common stock for every 10 shares of altisource common stock held and cash in lieu of fractional shares . results of operations the following sets forth discussion of our results of operations from inception on march 15 , 2012 through december 31 , 2012. because the results of residential are consolidated into our financial statements , the results of operations disclosures set forth below include the results of residential . rental revenues residential has generated no rental revenues for the period from inception to december 31 , 2012. we expect residential to generate rental revenues in 2013 upon acquisition of non-performing loans and conversion to single-family rental properties . gains on acquisition of property residential has generated no gains on acquisition of property for the period from inception to december 31 , 2012. we expect residential to generate gains from acquisition of property in 2013 upon acquisition of non-performing loans and conversion to single-family rental properties . gains on repayment of non-performing loans residential has generated no gains on repayment of non-performing loans for the period from inception to december 31 , 2012. we expect residential to generate gains on repayment of non-performing loans in 2013 through short sales or through modification and refinancing . gains on disposition of property residential generated no gains on disposition of property for the period from inception to december 31 , 2012. we expect residential to generate gains on disposition of property in 2013 through liquidation of the underlying collateral of non-performing loans . 21 ( ) loan servicing fees residential has incurred no loan servicing fees for the period from inception to december 31 , 2012. we

