we believe that msrs are being sold at a discount to historical pricing levels , although increased competition for these assets has driven prices higher recently . there can be no assurance that any future investment in excess msrs will generate returns similar to the returns on our current investments in excess msrs . as of the fourth quarter of 2013 , approximately $ 7 trillion of the $ 10 trillion of residential mortgages outstanding has been securitized , according to inside mortgage finance . approximately $ 6 trillion are agency rmbs according to inside mortgage finance , which are securities issued or guaranteed by a u.s. government agency , such as ginnie mae , or by a gse , such as fannie mae or freddie mac . the balance has been securitized by either public trusts or pls , and are referred to as non-agency rmbs . since the financial crisis , there has been significant volatility in the prices for non-agency rmbs , which resulted from a widespread contraction in capital available for this asset class , deteriorating housing fundamentals , and an increase in forced selling by institutional investors ( often in response to rating agency downgrades ) . while the prices of these assets have started to recover from their lows , we believe a meaningful gap still exists between current prices and the recovery value of many non-agency rmbs . accordingly , we believe there are opportunities to acquire non-agency rmbs at attractive risk-adjusted yields , with the potential for meaningful upside if the u.s. economy and housing market continue to strengthen . we believe the value of existing non-agency rmbs may also rise if the number of buyers returns to pre-2007 levels . the primary causes of mark-to-market changes in our rmbs portfolio are changes in interest rates and credit spreads . interest rates have risen significantly in recent months and may continue to increase , although the timing of any further increases is uncertain . in periods of rising interest rates , the rates of prepayments and delinquencies with respect to mortgage loans generally decline . generally , the value of our excess msrs is expected to increase when interest rates rise or delinquencies decline , and the value is expected to decrease when interest rates decline or delinquencies increase , due to the effect of changes in interest rates on prepayment speeds and delinquencies . however , prepayment speeds and delinquencies could increase even in the current interest rate environment , as a result of , among other things , a general economic recovery , government programs intended to foster refinancing activity or other reasons , which could reduce the value of our investments . moreover , the value of our excess msrs is subject to a variety of factors , as described under risk factors. in the fourth quarter of 2013 , the fair value of our investments in excess msrs ( directly and through equity method investees ) increased by approximately $ 8.2 million and the weighted average discount rate of the portfolio remained relatively unchanged at 12.5 % . we do not expect changes in interest rates to have a meaningful impact on the net interest spread of our agency arm and non-agency portfolios . our rmbs are primarily floating rate or hybrid ( i.e . , fixed to floating rate ) securities , which we generally finance with floating rate debt . therefore , while rising interest rates will generally result in a higher cost of financing , they will also result in a higher coupon payable on the securities . the net interest spread on our agency arm rmbs portfolio as of december 31 , 2013 was 0.94 % , which was the same as the net interest spread as of september 30 , 2013. the net interest spread on our non-agency rmbs portfolio as of december 31 , 2013 was 2.83 % , compared to 2.85 % as of september 30 , 2013 . 63 credit performance also affects the value of our portfolio . higher rates of delinquency and or defaults can reduce the value of our excess msrs , non-agency rmbs , agency rmbs and consumer loan portfolios . for our excess msrs on agency portfolios and our agency rmbs , delinquency and default rates have an effect similar to prepayment rates . our excess msrs on non-agency rmbs are not affected by delinquency rates because the servicer continues to advance the excess msr until a default occurs on the applicable loan ; defaults have an effect similar to prepayments . for the non-agency rmbs and consumer loans , higher default rates can lead to greater loss of principal . credit spreads continued to decrease , or tighten ,  in the fourth quarter of 2013 relative to the first three quarters of 2013 , which has had a favorable impact on the value of our securities and loan portfolio . credit spreads measure the yield relative to a specified benchmark that the market demands on securities and loans based on such assets ' credit risk . for a discussion of the way in which interest rates , credit spreads and other market factors affect us , see quantitative and qualitative disclosures about market risk. the value of our consumer loan portfolio is influenced by , among other factors , the u.s. macroeconomic environment , and unemployment rates in particular . we believe that losses are highly correlated to unemployment ; therefore , we expect that an improvement in unemployment rates would support the value of our investment , while deterioration in unemployment rates would result in a decline in its value . our portfolio our portfolio is currently composed of servicing related assets , residential securities and loans and other investments , as described in more detail below . story_separator_special_tag net cost of funds excludes facility fees . ( c ) the following types of advances comprise the investment in servicer advances : 72 december 31 , 2013 principal and interest advances $ 1,516,715 escrow advances ( taxes and insurance advances ) 934,525 foreclosure advances 209,890 total $ 2,661,130 replace_table_token_19_th ( a ) story_separator_special_tag valign= `` bottom `` > $ 1,392,612 $ 3,434 $ ( 3,885 ) $ 1,392,161 $ 1,332,954 ( a ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( b ) fair value , which is equal to carrying value for all securities . the following table summarizes the reset dates of our agency arm rmbs portfolio as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_20_th ( a ) of these investments , 90.6 % reset based on 12 month libor index , 1.8 % reset based on 6 month libor index , 0.4 % reset based on 1 month libor , and 7.3 % reset based on the 1 year treasury constant maturity rate . after the initial fixed period , 97.8 % of these securities will reset annually and 2.2 % will reset semi-annually . ( b ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( c ) represents the maximum change in the coupon at the end of the fixed rate period . ( d ) represents the maximum change in the coupon at each reset date subsequent to the first coupon adjustment . ( e ) represents the maximum coupon on the underlying security over its life . ( f ) represents recurrent weighted average months to the next interest rate reset . ( g ) not applicable as 57 of the securities ( 72 % of the current face of this category ) are past the first coupon adjustment period . the remaining 16 securities ( 28 % of the current face of this category ) have a maximum change in the coupon of 5.0 % at the end of the fixed rate period . the following table summarizes the characteristics of our agency arm rmbs portfolio and of the collateral underlying our agency arm rmbs as of december 31 , 2013 ( dollars in thousands ) : 75 replace_table_token_21_th ( a ) the year in which the securities were issued . ( b ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( c ) three month average constant prepayment rate . the following table summarizes the net interest spread of our agency arm rmbs portfolio as of december 31 , 2013 : net interest spread ( a ) weighted average asset yield 1.33 % weighted average funding cost 0.39 % net interest spread 0.94 % ( a ) the entire agency arm rmbs portfolio consists of floating rate securities . see table above for details on rate resets . non-agency rmbs the following table summarizes our non-agency rmbs portfolio as of december 31 , 2013 ( dollars in thousands ) : gross unrealized asset type outstanding face amount amortized cost basis gains losses carrying value ( a ) outstanding repurchase agreements non-agency rmbs $ 872,866 $ 566,760 $ 7,618 $ ( 3,953 ) $ 570,425 $ 287,757 ( a ) fair value , which is equal to carrying value for all securities . the following tables summarize the characteristics of our non-agency rmbs portfolio and of the collateral underlying our non-agency rmbs as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_22_th 76 replace_table_token_23_th ( a ) the year in which the securities were issued . ( b ) ratings provided above were determined by third party rating agencies , represent the most recent credit ratings available as of the reporting date and may not be current . this excludes the ratings of the collateral underlying two bonds with a face amount of $ 6.3 million for which we were unable to obtain rating information . we had no assets that were on negative watch for possible downgrade by at least one rating agency as of december 31 , 2013 . ( c ) the percentage of the outstanding face amount of securities and residual interests that is subordinate to our investments . ( d ) the current amount of interest received on the underlying loans in excess of the interest paid on the securities , as a percentage of the outstanding collateral balance for the quarter ended december 31 , 2013 . ( e ) the weighted average loan size of the underlying collateral is $ 223.7 thousand . this excludes the collateral underlying one bond , due to unavailable information , with a face amount of $ 42.9 million . ( f ) the ratio of original upb of loans still outstanding . ( g ) three month average constant prepayment rate and default rates . ( h ) the percentage of underlying loans that are 90+ days delinquent , or in foreclosure or considered reo . the following table sets forth the geographic diversification of the loans underlying our non-agency rmbs as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_24_th ( a ) represents collateral for which we were unable to obtain geographical information . the following table summarizes the net interest spread of our non-agency rmbs portfolio as of december 31 , 2013 : net interest spread ( a ) weighted average asset yield 4.68 % weighted average funding cost 1.85 % net interest spread 2.83 % ( a ) the non-agency rmbs portfolio consists of 99.2 % floating rate securities and 0.8 % fixed rate securities . real estate loans residential mortgage loans as of december 31 , 2013 , we had approximately $ 57.6 million outstanding face amount of residential mortgage loans . in february

outstanding debt net of restricted cash ( b ) includes working capital ( c ) based on cash basis equity call right in transaction 1 , the buyer also acquired the right , but not the obligation ( the call right ) , to purchase additional servicer advances , including the basic fee component of the related msrs , on terms substantially similar to the terms of transaction 1. as in transaction 1 , ( i ) the purchase price for the servicer advances , including the basic fee , will be the outstanding balance of the advances at the time of purchase and ( ii ) the buyer will be obligated to purchase future servicer advances on the related loans . as of december 31 , 2013 , the outstanding balance of the advances subject to the call right was approximately $ 3.1 billion and the upb of the related loans was approximately $ 71.5 billion . we previously acquired an interest in the excess msrs related to these loans , which are in pools 5 , 10 and 12. see above our portfolioservicing related assetsexcess msrs. the call right expires on june 30 , 2014. the buyer exercised the call right , in part , in transaction 2. the outstanding balance of the servicer advances subject to the portion of the call right that was exercised was approximately $ 1.1 billion as of the exercise dates , february 28 , 2014 and march 5 , 2014. if the buyer exercises the call right in full , it expects to fund the total purchase price with approximately $ 2.5 billion of debt and $ 0.3 billion of equity , excluding working capital . as of the date hereof , the buyer has settled $ 1.1 billion of advances related to transaction 2 , which was financed with approximately $ 0.9 billion of debt . the remaining balance of the call right is expected to be settled in the second quarter of 2014. there can be no assurance that the remainder of the call right will be settled .


 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.
     ```outstanding debt net of restricted cash ( b ) includes working capital ( c ) based on cash basis equity call right in transaction 1 , the buyer also acquired the right , but not the obligation ( the call right ) , to purchase additional servicer advances , including the basic fee component of the related msrs , on terms substantially similar to the terms of transaction 1. as in transaction 1 , ( i ) the purchase price for the servicer advances , including the basic fee , will be the outstanding balance of the advances at the time of purchase and ( ii ) the buyer will be obligated to purchase future servicer advances on the related loans . as of december 31 , 2013 , the outstanding balance of the advances subject to the call right was approximately $ 3.1 billion and the upb of the related loans was approximately $ 71.5 billion . we previously acquired an interest in the excess msrs related to these loans , which are in pools 5 , 10 and 12. see above our portfolioservicing related assetsexcess msrs. the call right expires on june 30 , 2014. the buyer exercised the call right , in part , in transaction 2. the outstanding balance of the servicer advances subject to the portion of the call right that was exercised was approximately $ 1.1 billion as of the exercise dates , february 28 , 2014 and march 5 , 2014. if the buyer exercises the call right in full , it expects to fund the total purchase price with approximately $ 2.5 billion of debt and $ 0.3 billion of equity , excluding working capital . as of the date hereof , the buyer has settled $ 1.1 billion of advances related to transaction 2 , which was financed with approximately $ 0.9 billion of debt . the remaining balance of the call right is expected to be settled in the second quarter of 2014. there can be no assurance that the remainder of the call right will be settled .
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 Suspicious Activity Report : we believe that msrs are being sold at a discount to historical pricing levels , although increased competition for these assets has driven prices higher recently . there can be no assurance that any future investment in excess msrs will generate returns similar to the returns on our current investments in excess msrs . as of the fourth quarter of 2013 , approximately $ 7 trillion of the $ 10 trillion of residential mortgages outstanding has been securitized , according to inside mortgage finance . approximately $ 6 trillion are agency rmbs according to inside mortgage finance , which are securities issued or guaranteed by a u.s. government agency , such as ginnie mae , or by a gse , such as fannie mae or freddie mac . the balance has been securitized by either public trusts or pls , and are referred to as non-agency rmbs . since the financial crisis , there has been significant volatility in the prices for non-agency rmbs , which resulted from a widespread contraction in capital available for this asset class , deteriorating housing fundamentals , and an increase in forced selling by institutional investors ( often in response to rating agency downgrades ) . while the prices of these assets have started to recover from their lows , we believe a meaningful gap still exists between current prices and the recovery value of many non-agency rmbs . accordingly , we believe there are opportunities to acquire non-agency rmbs at attractive risk-adjusted yields , with the potential for meaningful upside if the u.s. economy and housing market continue to strengthen . we believe the value of existing non-agency rmbs may also rise if the number of buyers returns to pre-2007 levels . the primary causes of mark-to-market changes in our rmbs portfolio are changes in interest rates and credit spreads . interest rates have risen significantly in recent months and may continue to increase , although the timing of any further increases is uncertain . in periods of rising interest rates , the rates of prepayments and delinquencies with respect to mortgage loans generally decline . generally , the value of our excess msrs is expected to increase when interest rates rise or delinquencies decline , and the value is expected to decrease when interest rates decline or delinquencies increase , due to the effect of changes in interest rates on prepayment speeds and delinquencies . however , prepayment speeds and delinquencies could increase even in the current interest rate environment , as a result of , among other things , a general economic recovery , government programs intended to foster refinancing activity or other reasons , which could reduce the value of our investments . moreover , the value of our excess msrs is subject to a variety of factors , as described under risk factors. in the fourth quarter of 2013 , the fair value of our investments in excess msrs ( directly and through equity method investees ) increased by approximately $ 8.2 million and the weighted average discount rate of the portfolio remained relatively unchanged at 12.5 % . we do not expect changes in interest rates to have a meaningful impact on the net interest spread of our agency arm and non-agency portfolios . our rmbs are primarily floating rate or hybrid ( i.e . , fixed to floating rate ) securities , which we generally finance with floating rate debt . therefore , while rising interest rates will generally result in a higher cost of financing , they will also result in a higher coupon payable on the securities . the net interest spread on our agency arm rmbs portfolio as of december 31 , 2013 was 0.94 % , which was the same as the net interest spread as of september 30 , 2013. the net interest spread on our non-agency rmbs portfolio as of december 31 , 2013 was 2.83 % , compared to 2.85 % as of september 30 , 2013 . 63 credit performance also affects the value of our portfolio . higher rates of delinquency and or defaults can reduce the value of our excess msrs , non-agency rmbs , agency rmbs and consumer loan portfolios . for our excess msrs on agency portfolios and our agency rmbs , delinquency and default rates have an effect similar to prepayment rates . our excess msrs on non-agency rmbs are not affected by delinquency rates because the servicer continues to advance the excess msr until a default occurs on the applicable loan ; defaults have an effect similar to prepayments . for the non-agency rmbs and consumer loans , higher default rates can lead to greater loss of principal . credit spreads continued to decrease , or tighten ,  in the fourth quarter of 2013 relative to the first three quarters of 2013 , which has had a favorable impact on the value of our securities and loan portfolio . credit spreads measure the yield relative to a specified benchmark that the market demands on securities and loans based on such assets ' credit risk . for a discussion of the way in which interest rates , credit spreads and other market factors affect us , see quantitative and qualitative disclosures about market risk. the value of our consumer loan portfolio is influenced by , among other factors , the u.s. macroeconomic environment , and unemployment rates in particular . we believe that losses are highly correlated to unemployment ; therefore , we expect that an improvement in unemployment rates would support the value of our investment , while deterioration in unemployment rates would result in a decline in its value . our portfolio our portfolio is currently composed of servicing related assets , residential securities and loans and other investments , as described in more detail below . story_separator_special_tag net cost of funds excludes facility fees . ( c ) the following types of advances comprise the investment in servicer advances : 72 december 31 , 2013 principal and interest advances $ 1,516,715 escrow advances ( taxes and insurance advances ) 934,525 foreclosure advances 209,890 total $ 2,661,130 replace_table_token_19_th ( a ) story_separator_special_tag valign= `` bottom `` > $ 1,392,612 $ 3,434 $ ( 3,885 ) $ 1,392,161 $ 1,332,954 ( a ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( b ) fair value , which is equal to carrying value for all securities . the following table summarizes the reset dates of our agency arm rmbs portfolio as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_20_th ( a ) of these investments , 90.6 % reset based on 12 month libor index , 1.8 % reset based on 6 month libor index , 0.4 % reset based on 1 month libor , and 7.3 % reset based on the 1 year treasury constant maturity rate . after the initial fixed period , 97.8 % of these securities will reset annually and 2.2 % will reset semi-annually . ( b ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( c ) represents the maximum change in the coupon at the end of the fixed rate period . ( d ) represents the maximum change in the coupon at each reset date subsequent to the first coupon adjustment . ( e ) represents the maximum coupon on the underlying security over its life . ( f ) represents recurrent weighted average months to the next interest rate reset . ( g ) not applicable as 57 of the securities ( 72 % of the current face of this category ) are past the first coupon adjustment period . the remaining 16 securities ( 28 % of the current face of this category ) have a maximum change in the coupon of 5.0 % at the end of the fixed rate period . the following table summarizes the characteristics of our agency arm rmbs portfolio and of the collateral underlying our agency arm rmbs as of december 31 , 2013 ( dollars in thousands ) : 75 replace_table_token_21_th ( a ) the year in which the securities were issued . ( b ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( c ) three month average constant prepayment rate . the following table summarizes the net interest spread of our agency arm rmbs portfolio as of december 31 , 2013 : net interest spread ( a ) weighted average asset yield 1.33 % weighted average funding cost 0.39 % net interest spread 0.94 % ( a ) the entire agency arm rmbs portfolio consists of floating rate securities . see table above for details on rate resets . non-agency rmbs the following table summarizes our non-agency rmbs portfolio as of december 31 , 2013 ( dollars in thousands ) : gross unrealized asset type outstanding face amount amortized cost basis gains losses carrying value ( a ) outstanding repurchase agreements non-agency rmbs $ 872,866 $ 566,760 $ 7,618 $ ( 3,953 ) $ 570,425 $ 287,757 ( a ) fair value , which is equal to carrying value for all securities . the following tables summarize the characteristics of our non-agency rmbs portfolio and of the collateral underlying our non-agency rmbs as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_22_th 76 replace_table_token_23_th ( a ) the year in which the securities were issued . ( b ) ratings provided above were determined by third party rating agencies , represent the most recent credit ratings available as of the reporting date and may not be current . this excludes the ratings of the collateral underlying two bonds with a face amount of $ 6.3 million for which we were unable to obtain rating information . we had no assets that were on negative watch for possible downgrade by at least one rating agency as of december 31 , 2013 . ( c ) the percentage of the outstanding face amount of securities and residual interests that is subordinate to our investments . ( d ) the current amount of interest received on the underlying loans in excess of the interest paid on the securities , as a percentage of the outstanding collateral balance for the quarter ended december 31 , 2013 . ( e ) the weighted average loan size of the underlying collateral is $ 223.7 thousand . this excludes the collateral underlying one bond , due to unavailable information , with a face amount of $ 42.9 million . ( f ) the ratio of original upb of loans still outstanding . ( g ) three month average constant prepayment rate and default rates . ( h ) the percentage of underlying loans that are 90+ days delinquent , or in foreclosure or considered reo . the following table sets forth the geographic diversification of the loans underlying our non-agency rmbs as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_24_th ( a ) represents collateral for which we were unable to obtain geographical information . the following table summarizes the net interest spread of our non-agency rmbs portfolio as of december 31 , 2013 : net interest spread ( a ) weighted average asset yield 4.68 % weighted average funding cost 1.85 % net interest spread 2.83 % ( a ) the non-agency rmbs portfolio consists of 99.2 % floating rate securities and 0.8 % fixed rate securities . real estate loans residential mortgage loans as of december 31 , 2013 , we had approximately $ 57.6 million outstanding face amount of residential mortgage loans . in february

