Residential Mortgage Loans, At Fair Value

Certain of the Company’s residential mortgage loans, including distressed residential mortgage loans and second mortgages, are presented at fair value on its consolidated balance sheets as a result of a fair value election made at time of acquisition. Subsequent changes in fair value are reported in current period earnings and presented in net gain on residential mortgage loans at fair value on the Company’s consolidated statements of operations.

The Company’s residential mortgage loans at fair value consist of the following as of December 31, 2017 and December 31, 2016, respectively (dollar amounts in thousands):



	Principal		Premium/(Discount)			Unrealized Gains/(Losses)			Carrying Value
December 31, 2017	$	92,105	$	(4,911	)	$	(41	)	$	87,153
December 31, 2016	$	17,540	$	229		$	—		$	17,769

As of December 31, 2017, the company is committed to purchase $6.8 million of second mortgage loans from originators.

The following table presents the components of net gain on residential mortgage loans at fair value for the years ended December 31, 2017 and 2016, respectively (dollar amounts in thousands):



	December 31, 2017		December 31, 2016
Net realized gain on payoff and sale of loans	$	1,719	$	—
Net unrealized losses	41		—

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential mortgage loans at fair value as of December 31, 2017 and December 31, 2016, respectively, are as follows:



	December 31, 2017		December 31, 2016
California	35.9	%	63.3	%
New Jersey	7.7	%	2.5	%
Florida	6.6	%	5.6	%

As of December 31, 2017, we had loans greater than 90 days past due and in nonaccrual status with an aggregate principal amount of $1.2 million and an aggregate fair value of $1.0 million categorized as Residential mortgage loans, at fair value.