Residential Mortgage Loans, At Fair Value

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

The Company’s distressed and other residential mortgage loans at fair value consist of the following as of December 31, 2018 and December 31, 2017, respectively (dollar amounts in thousands):



	Principal		Premium/(Discount)			Unrealized Gains/(Losses)			Carrying Value
December 31, 2018	$	788,372	$	(54,905	)	$	4,056		$	737,523
December 31, 2017	$	92,105	$	(4,911	)	$	(41	)	$	87,153

As of December 31, 2018, the company is committed to purchase $0.9 million of second mortgages from originators.

The following table presents the components of net gain on distressed and other residential mortgage loans at fair value for the years ended December 31, 2018 and 2017, respectively (dollar amounts in thousands):



	December 31, 2018		December 31, 2017
Net realized gain on payoff and sale of loans	$	4,606	$	1,719
Net unrealized gains/(losses)	4,096		(41		)

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of distressed and other residential mortgage loans at fair value as of December 31, 2018 and December 31, 2017, respectively, are as follows:



	December 31, 2018		December 31, 2017
California	27.9	%	35.9	%
Florida	9.0	%	6.6	%
Maryland	5.2	%	1.9	%
New York	5.1	%	3.8	%

The following table presents the fair value and aggregate unpaid principal balance of the Company's distressed and other residential mortgage loans at fair value greater than 90 days past due and in non-accrual status as of December 31, 2018 and December 31, 2017, respectively (dollar amounts in thousands):



	Fair Value		Unpaid Principal Balance
December 31, 2018	$	60,117	$	75,167
December 31, 2017	$	1,048	$	1,214

Distressed and other residential mortgage loans with a fair value of approximately $626.2 million and $44.2 million at December 31, 2018 and December 31, 2017, respectively, are pledged as collateral for master repurchase agreements. (see Note 14).