during the second half of 2015 , we also used advances from the fhlbi to finance our agency rmbs . we have also invested in agency cmos consisting of interest-only securities as well as risk-sharing securities issued by fannie mae and freddie mac . in january 2016 , the fhfa released a final rule that amends regulations governing membership in the federal home loan bank ( fhlb ) system . the final rule , which largely adopts the provisions included in the proposed rule issued by the fhfa in september 2014 , prevents captive insurance companies from obtaining and maintaining membership in the fhlb system and , consequently , accessing low-cost funding through the fhlb system . the final rule became effective on february 19 , 2016. as a result of this rule , chmi insurance , our captive insurance subsidiary , terminated its membership in the fhlbi in november and was dissolved in december 2016 . 32 subject to maintaining our qualification as a reit , we utilize derivative financial instruments ( or hedging instruments ) to hedge our exposure to potential interest rate mismatches between the interest we earn on our assets and our borrowing costs caused by fluctuations in short-term interest rates . in utilizing leverage and interest rate hedges , our objectives include , where desirable , locking in , on a long-term basis , a spread between the yield on our assets and the cost of our financing in an effort to improve returns to our stockholders . we also operate our business in a manner that permits us to maintain our exclusion from registration as an investment company under the investment company act . factors impacting our operating results our income is generated primarily by the net spread between the income we earn on our assets and the cost of our financing and hedging activities as well as the amortization of any purchase premiums or the accretion of discounts . our net income includes the actual interest payments we receive on our excess msrs , if any , and rmbs , the net servicing fee we receive on our msrs and the accretion/amortization of any purchase discounts/premiums . changes in various factors such as market interest rates , prepayment speeds , estimated future cash flows , servicing costs and credit quality could affect the amount of premium to be amortized or discount to be accreted into interest income for a given period . market interest rates and prepayment rates vary according to the type of investment , conditions in the financial markets , competition and other factors , none of which can be predicted with any certainty . our operating results may also be affected by credit losses in excess of initial anticipations or unanticipated credit events experienced by borrowers whose mortgage loans underlay the msrs held by aurora . set forth below is the positive gross spread between the yield on rmbs and our costs of funding those assets at the end of each of the quarters indicated below : average net yield spread at period end replace_table_token_6_th the average net interest spread has fluctuated but risen over the past two years . during that time , we have strategically taken the opportunity to reduce our average cost of funds by restructuring our swaps portfolio as interest rates declined . the new positioning helped to partially offset increased repurchase rates charged by our counterparties in anticipation of increases in the federal funds rate . changes in the market value of our assets we hold our servicing related assets as long-term investments . our excess msrs were , and our msrs are , carried at their fair value with changes in their fair value recorded in other income or loss in our consolidated statements of operations . those values may be affected by events or headlines that are outside of our control , such as brexit , other events impacting the u.s. or global economy generally or the u.s. residential market specifically , and events or headlines impacting the parties with which we do business . see item 1a . risk factors – risks related to our business. our rmbs are carried at their fair value , as available-for-sale in accordance with asc 320 , accounting for certain investments in debt or equity securities , with changes in fair value recorded through accumulated other 33 comprehensive income ( loss ) , a component of stockholders ' equity . as a result , we do not expect that changes in the market value of our rmbs will normally impact our operating results , but such changes will affect our book value . however , at least on a quarterly basis , we assess both our ability and intent to continue to hold our rmbs as long-term investments . as part of this process , we monitor our rmbs for other-than-temporary impairment . a change in our ability and or intent to continue to hold any of our rmbs could result in our recognizing an impairment charge or realizing losses while holding these assets . impact of changes in market interest rates on our assets the value of our assets may be affected by prepayment rates on mortgage loans prepayment speed is the measurement of how quickly borrowers pay down the upb of their loans or how quickly loans are otherwise liquidated or charged off . generally , in a declining interest rate environment , prepayment speeds tend to increase . conversely , in an increasing interest rate environment , prepayment speeds tend to decrease . when we acquire servicing related assets or rmbs , we anticipate that the underlying mortgage loans will prepay at a projected rate generating an expected cash flow ( in the case of servicing related assets ) and yield . story_separator_special_tag for additional information on our fair value methodology , see item 8. consolidated financial statements and supplementary data—note 9. fair value. revenue recognition on investments in excess msrs investments in excess msrs are aggregated into pools as applicable and each pool of excess msrs is accounted for in the aggregate . income for excess msrs is accreted into income on an effective yield or interest method , based upon the expected excess servicing amount through the expected life of the underlying mortgages . changes to expected cash flows result in a cumulative retrospective adjustment , which will be recorded in the period in which the change in expected cash flows occurs . under the retrospective method , the income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period , plus any cash received during the period . the amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield , which is the yield that equates all past actual and current estimated future cash flows to the initial investment . the difference between the fair value of excess msrs and their amortized cost basis are recorded as unrealized gain ( loss ) on investments in excess mortgage servicing rights. fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the excess msrs , and therefore may differ from their effective yields . 37 investments in msrs the company has elected the fair value option to record its investments in msrs in order to provide users of the consolidated financial statements with better information regarding the effects of prepayment risk and other market factors on the msrs . under this election , the company records a valuation adjustment on its investments in msrs on a quarterly basis to recognize the changes in fair value in net income as described below . the company 's msrs represent the right to service mortgage loans . as an owner and manager of msrs , the company may be obligated to fund advances of principal and interest payments due to third-party owners of the loans , but not yet received from the individual borrowers . these advances are reported as servicing advances within the receivables and other assets line item on the consolidated balance sheets . msrs are reported at fair value on the consolidated balance sheets . although transactions in msrs are observable in the marketplace , the valuation includes unobservable market data inputs ( prepayment speeds , delinquency levels , costs to service and discount rates ) . changes in the fair value of msrs as well as servicing fee income and servicing expenses are reported on the consolidated statements of income . in determining the valuation of msrs , management used internally developed models that are primarily based on observable market-based inputs but which also include unobservable market data inputs . see item 8. consolidated financial statements - note 9—fair value. . revenue recognition on investments in msrs mortgage servicing fee income represents revenue earned for servicing mortgage loans . the servicing fees are based on a contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected . corresponding costs to service are charged to expense as incurred . approximately $ 1.5 million and $ 800,000 in reimbursable servicing advances were receivable at december 31 , 2016 and 2015 , respectively , and have been classified within receivables and other assets on the consolidated balance sheets . servicing fee income received and servicing expenses incurred are reported on the consolidated statements of comprehensive income ( loss ) . the difference between the fair value of msrs and their amortized cost basis is recorded on the consolidated statements of income as unrealized gain ( loss ) on investments in msrs. fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the msrs and , therefore , may differ from their effective yields . revenue recognition on securities interest income from coupon payments is accrued based on the outstanding principal amount of the rmbs and their contractual terms . premiums and discounts associated with the purchase of the rmbs are amortized into interest income over the projected lives of the securities using the interest method . our policy for estimating prepayment speeds for calculating the effective yield is to evaluate historical performance , consensus prepayment speeds , and current market conditions . adjustments are made for actual prepayment activity . repurchase transactions we finance the acquisition of our rmbs for our portfolio through repurchase transactions under master repurchase agreements . repurchase transactions are treated as collateralized financing transactions and are carried at their contractual amounts as specified in the respective transactions . accrued interest payable is included in accrued expense and other liabilities on the consolidated balance sheets . 38 securities financed through repurchase transactions remain on our consolidated balance sheets as an asset and cash received from the purchaser is recorded on our consolidated balance sheets as a liability . interest paid in accordance with repurchase transactions is recorded in interest expense . income taxes the company elected to be taxed as a reit under the code commencing with its short taxable year ended december 31 , 2013. the company expects to continue to qualify to be treated as a reit . as long as the company qualifies as a reit , the company generally will not be subject to u.s. federal income taxes on its taxable income to the extent it annually distributes at least 90 % of its reit taxable income to stockholders and does not engage in prohibited transactions . the company 's taxable reit subsidiaries ( trss ) , solutions and

cash flows operating and investing activities our operating activities provided cash of approximately $ 34.5 million and our investing activities used cash of approximately $ 146.1 million for the year ended december 31 , 2016. the cash provided by operating activities and the cash used in investing activities is a result of the execution of our ongoing investment strategy . dividends we conduct our operations in a manner intended to satisfy the requirements for qualification as a reit for u.s. federal income tax purposes . u.s. federal income tax law generally requires that a reit distribute annually at least 90 % of its reit taxable income , without regard to the deduction for dividends paid and excluding net capital gains , and that it pay tax at regular corporate rates to the extent that it annually distributes less than 100 % of its taxable income . we intend to make regular quarterly distributions of all or substantially all of our reit taxable income to holders of our common stock out of assets legally available for this purpose , if and to the extent authorized by our board of directors . before we pay any dividend , whether for u.s. federal income tax purposes or otherwise , we must first meet both our operating requirements and debt service on our repurchase agreements and other debt payable . if our cash available for distribution is less than our reit taxable income , we could be required to sell assets or borrow funds to make cash distributions , or we may make a portion of the required distribution in the form of a taxable stock distribution or distribution of debt securities . we will make distributions only upon the authorization of our board of directors .


 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.
     ```cash flows operating and investing activities our operating activities provided cash of approximately $ 34.5 million and our investing activities used cash of approximately $ 146.1 million for the year ended december 31 , 2016. the cash provided by operating activities and the cash used in investing activities is a result of the execution of our ongoing investment strategy . dividends we conduct our operations in a manner intended to satisfy the requirements for qualification as a reit for u.s. federal income tax purposes . u.s. federal income tax law generally requires that a reit distribute annually at least 90 % of its reit taxable income , without regard to the deduction for dividends paid and excluding net capital gains , and that it pay tax at regular corporate rates to the extent that it annually distributes less than 100 % of its taxable income . we intend to make regular quarterly distributions of all or substantially all of our reit taxable income to holders of our common stock out of assets legally available for this purpose , if and to the extent authorized by our board of directors . before we pay any dividend , whether for u.s. federal income tax purposes or otherwise , we must first meet both our operating requirements and debt service on our repurchase agreements and other debt payable . if our cash available for distribution is less than our reit taxable income , we could be required to sell assets or borrow funds to make cash distributions , or we may make a portion of the required distribution in the form of a taxable stock distribution or distribution of debt securities . we will make distributions only upon the authorization of our board of directors .
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 Suspicious Activity Report : during the second half of 2015 , we also used advances from the fhlbi to finance our agency rmbs . we have also invested in agency cmos consisting of interest-only securities as well as risk-sharing securities issued by fannie mae and freddie mac . in january 2016 , the fhfa released a final rule that amends regulations governing membership in the federal home loan bank ( fhlb ) system . the final rule , which largely adopts the provisions included in the proposed rule issued by the fhfa in september 2014 , prevents captive insurance companies from obtaining and maintaining membership in the fhlb system and , consequently , accessing low-cost funding through the fhlb system . the final rule became effective on february 19 , 2016. as a result of this rule , chmi insurance , our captive insurance subsidiary , terminated its membership in the fhlbi in november and was dissolved in december 2016 . 32 subject to maintaining our qualification as a reit , we utilize derivative financial instruments ( or hedging instruments ) to hedge our exposure to potential interest rate mismatches between the interest we earn on our assets and our borrowing costs caused by fluctuations in short-term interest rates . in utilizing leverage and interest rate hedges , our objectives include , where desirable , locking in , on a long-term basis , a spread between the yield on our assets and the cost of our financing in an effort to improve returns to our stockholders . we also operate our business in a manner that permits us to maintain our exclusion from registration as an investment company under the investment company act . factors impacting our operating results our income is generated primarily by the net spread between the income we earn on our assets and the cost of our financing and hedging activities as well as the amortization of any purchase premiums or the accretion of discounts . our net income includes the actual interest payments we receive on our excess msrs , if any , and rmbs , the net servicing fee we receive on our msrs and the accretion/amortization of any purchase discounts/premiums . changes in various factors such as market interest rates , prepayment speeds , estimated future cash flows , servicing costs and credit quality could affect the amount of premium to be amortized or discount to be accreted into interest income for a given period . market interest rates and prepayment rates vary according to the type of investment , conditions in the financial markets , competition and other factors , none of which can be predicted with any certainty . our operating results may also be affected by credit losses in excess of initial anticipations or unanticipated credit events experienced by borrowers whose mortgage loans underlay the msrs held by aurora . set forth below is the positive gross spread between the yield on rmbs and our costs of funding those assets at the end of each of the quarters indicated below : average net yield spread at period end replace_table_token_6_th the average net interest spread has fluctuated but risen over the past two years . during that time , we have strategically taken the opportunity to reduce our average cost of funds by restructuring our swaps portfolio as interest rates declined . the new positioning helped to partially offset increased repurchase rates charged by our counterparties in anticipation of increases in the federal funds rate . changes in the market value of our assets we hold our servicing related assets as long-term investments . our excess msrs were , and our msrs are , carried at their fair value with changes in their fair value recorded in other income or loss in our consolidated statements of operations . those values may be affected by events or headlines that are outside of our control , such as brexit , other events impacting the u.s. or global economy generally or the u.s. residential market specifically , and events or headlines impacting the parties with which we do business . see item 1a . risk factors – risks related to our business. our rmbs are carried at their fair value , as available-for-sale in accordance with asc 320 , accounting for certain investments in debt or equity securities , with changes in fair value recorded through accumulated other 33 comprehensive income ( loss ) , a component of stockholders ' equity . as a result , we do not expect that changes in the market value of our rmbs will normally impact our operating results , but such changes will affect our book value . however , at least on a quarterly basis , we assess both our ability and intent to continue to hold our rmbs as long-term investments . as part of this process , we monitor our rmbs for other-than-temporary impairment . a change in our ability and or intent to continue to hold any of our rmbs could result in our recognizing an impairment charge or realizing losses while holding these assets . impact of changes in market interest rates on our assets the value of our assets may be affected by prepayment rates on mortgage loans prepayment speed is the measurement of how quickly borrowers pay down the upb of their loans or how quickly loans are otherwise liquidated or charged off . generally , in a declining interest rate environment , prepayment speeds tend to increase . conversely , in an increasing interest rate environment , prepayment speeds tend to decrease . when we acquire servicing related assets or rmbs , we anticipate that the underlying mortgage loans will prepay at a projected rate generating an expected cash flow ( in the case of servicing related assets ) and yield . story_separator_special_tag for additional information on our fair value methodology , see item 8. consolidated financial statements and supplementary data—note 9. fair value. revenue recognition on investments in excess msrs investments in excess msrs are aggregated into pools as applicable and each pool of excess msrs is accounted for in the aggregate . income for excess msrs is accreted into income on an effective yield or interest method , based upon the expected excess servicing amount through the expected life of the underlying mortgages . changes to expected cash flows result in a cumulative retrospective adjustment , which will be recorded in the period in which the change in expected cash flows occurs . under the retrospective method , the income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period , plus any cash received during the period . the amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield , which is the yield that equates all past actual and current estimated future cash flows to the initial investment . the difference between the fair value of excess msrs and their amortized cost basis are recorded as unrealized gain ( loss ) on investments in excess mortgage servicing rights. fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the excess msrs , and therefore may differ from their effective yields . 37 investments in msrs the company has elected the fair value option to record its investments in msrs in order to provide users of the consolidated financial statements with better information regarding the effects of prepayment risk and other market factors on the msrs . under this election , the company records a valuation adjustment on its investments in msrs on a quarterly basis to recognize the changes in fair value in net income as described below . the company 's msrs represent the right to service mortgage loans . as an owner and manager of msrs , the company may be obligated to fund advances of principal and interest payments due to third-party owners of the loans , but not yet received from the individual borrowers . these advances are reported as servicing advances within the receivables and other assets line item on the consolidated balance sheets . msrs are reported at fair value on the consolidated balance sheets . although transactions in msrs are observable in the marketplace , the valuation includes unobservable market data inputs ( prepayment speeds , delinquency levels , costs to service and discount rates ) . changes in the fair value of msrs as well as servicing fee income and servicing expenses are reported on the consolidated statements of income . in determining the valuation of msrs , management used internally developed models that are primarily based on observable market-based inputs but which also include unobservable market data inputs . see item 8. consolidated financial statements - note 9—fair value. . revenue recognition on investments in msrs mortgage servicing fee income represents revenue earned for servicing mortgage loans . the servicing fees are based on a contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected . corresponding costs to service are charged to expense as incurred . approximately $ 1.5 million and $ 800,000 in reimbursable servicing advances were receivable at december 31 , 2016 and 2015 , respectively , and have been classified within receivables and other assets on the consolidated balance sheets . servicing fee income received and servicing expenses incurred are reported on the consolidated statements of comprehensive income ( loss ) . the difference between the fair value of msrs and their amortized cost basis is recorded on the consolidated statements of income as unrealized gain ( loss ) on investments in msrs. fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the msrs and , therefore , may differ from their effective yields . revenue recognition on securities interest income from coupon payments is accrued based on the outstanding principal amount of the rmbs and their contractual terms . premiums and discounts associated with the purchase of the rmbs are amortized into interest income over the projected lives of the securities using the interest method . our policy for estimating prepayment speeds for calculating the effective yield is to evaluate historical performance , consensus prepayment speeds , and current market conditions . adjustments are made for actual prepayment activity . repurchase transactions we finance the acquisition of our rmbs for our portfolio through repurchase transactions under master repurchase agreements . repurchase transactions are treated as collateralized financing transactions and are carried at their contractual amounts as specified in the respective transactions . accrued interest payable is included in accrued expense and other liabilities on the consolidated balance sheets . 38 securities financed through repurchase transactions remain on our consolidated balance sheets as an asset and cash received from the purchaser is recorded on our consolidated balance sheets as a liability . interest paid in accordance with repurchase transactions is recorded in interest expense . income taxes the company elected to be taxed as a reit under the code commencing with its short taxable year ended december 31 , 2013. the company expects to continue to qualify to be treated as a reit . as long as the company qualifies as a reit , the company generally will not be subject to u.s. federal income taxes on its taxable income to the extent it annually distributes at least 90 % of its reit taxable income to stockholders and does not engage in prohibited transactions . the company 's taxable reit subsidiaries ( trss ) , solutions and

