Thank you. Good morning, everyone, and thank you for joining us today.

My name is Ken Najour, and I'm the Chief Financial Officer of both Altisource Residential Corporation, which we refer to as RESI; and Altisource Asset Management Corporation, which we refer to as AAMC. Before we begin, I want to remind you that a slide presentation is available to accompany our remarks.

To access the slides, please log on to either www.altisourceresi.com or www.altisourceamc.com under the Shareholders section of the site. These slides provide additional information investors may find useful.

As indicated on Slide 1, our presentation may contain certain forward-looking statements pursuant to the Safe Harbor provision of the federal securities laws. These forward-looking statements may be identified by reference to future period or by use of forward-looking terminology.

They may involve risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward-looking statements. For an elaboration of these factors that may cause such a difference, please refer to the risk disclosure statement in today's earnings release, as well as RESI's and AAMC's filings with the Securities and Exchange Commission, including each company's 2013 Form 10-Ks and the respective first quarter Form 10-Qs that will be filed today.

If you'd like to receive our news releases, SEC filings and other materials via email, please register on the Shareholder's page of each company's website using the Email Alerts button.

As indicated on Slide 2, joining me for today's presentations are Bill Erbey, Chairman of RESI and AAMC; and Ashish Pandey, Chief Executive Officer of RESI and AAMC.

I would now like to turn the call over to Bill Erbey. Bill?

Thank you, Ken. Good morning, everyone, and thank you for joining us today.

We decided this quarter to combine the earnings calls for RESI and AAMC.

I would like to begin with RESI's performance. As shown on Slide 3, during the quarter, RESI had estimated taxable income of $25.8 million and paid a cash dividend of $0.40 per share or $22.8 million.

Including the catch-up dividend we distributed in March 2014, with respect to RESI's 2013 taxable income, RESI distributed an aggregate of $27.4 million to RESI's stockholders in the quarter, representing an annualized return on equity of 10.7%. It's important to keep in mind that the 10.7% return on equity is net of incentive fees payable to AAMC.

As you know, RESI pays AAMC a quarterly incentive management fee based on RESI's level of distributable cash per share.

Turning to AAMC's first quarter performance, AAMC achieved its first quarter of positive net income. For the quarter, AAMC reported net income of $6.8 million or $2.39 per share.

AAMC's results reflect the strong operating performance of RESI and the increased in quarterly dividend and payable to RESI's shareholders.

In March, AAMC issued 250,000 shares of its new Series A Convertible Preferred Stock to institutional investors for aggregate net proceeds of $248.9 million. The preferred stock is convertible into AAMC's common stock at a conversion price of $1,250 per share, and does not entitle the holders to dividend.

Concurrently, AAMC's Board of Directors also approved the share repurchase program that authorizes AAMC to repurchase up to $300 million in shares of AAMC's common stock.

As of March 31, 2014, we'd acquired approximately 42,240 shares of our common stock. We expect the share repurchase program to be accretive to AAMC's shareholders.

And when the program is completed, the number of AAMC's outstanding shares to decrease even assuming that all of the preferred stock is converted into common stock.

One, acquire single-family properties that provide attractive returns in rental markets with good balance between supply and demand; two, manage properties in this rental portfolio effectively at a cost significantly below the industry; and three, raise capital at accretive pricing.

During the first quarter of 2014, we successfully delivered on all 3 of these fronts. As shown on Slide 4, during the first quarter, we completed the acquisition of approximately 4,207 mortgage loans.

Substantially all of which were not performing, which we refer to as NPLs, with $900 million of underlying property value. For these loans, we paid an average of 68% of the underlying property value and deployed an aggregate of $613 million of capital.

For the balance of 2014, we believe that there will be a large supply of NPLs available for purchase, which should allow us to grow RESI's portfolio.

As for our operating performance, resolutions increased 185% quarter-over-quarter. At the end of the quarter, 35 properties were rented, 17 properties were listed for rent and renovations were in progress on 48 properties.

Ashish will provide more detail on our progress during the quarter.

Additionally, in January 2014, RESI completed a $468 million equity offering. RESI's ability to raise additional equity capital in the future will be more streamlined as it has attained ‘Well Known Seasoned Issuer’, or WKSI status.

We continue to see the securitization market develop. In April 2014, a second securitization of single-family rental properties was successfully completed by Colony American Homes.

We're excited about these developments as we believe securitization financing will have a material positive impact on the returns from RESI's business model. We expect to be in a position to tap the securitization market by the first quarter of 2015.

Ashish will now provide more detail on RESI's operations and investment activities during the quarter, and then Ken will provide detail on RESI's and AAMC's financial performance.

I'll now turn the call over to Ashish. Ashish?

Thank you, Bill. Let me begin by saying that we are very pleased with our NPL resolution performance in the first quarter.

As shown on Slide 5, during the quarter, we successfully resolved 822 loans with $191 million in unpaid principal balance, representing the 185% increase over the 288 loans that we resolved in the fourth quarter of 2013. This compares to a 73% increase in diverse portfolio balance for the same period.

In fact, the number of loans resolved in the first quarter of 2014 is greater than the aggregate number of loans resolved by RESI in all of 2013.

Slide 6 provides details of loan resolution. 637 loans were converted to REO, either through foreclosure or deed in lieu.

The increased pace of REO conversions is a stepping stone in our goal of becoming a leading player in the single-family rental business. As Bill mentioned earlier, we are targeting a critical mark of 1,000 rented properties required for securitization financing by the first quarter of 2015.

58 loans were resolved via short sales and third-party sales, resulting in proceeds of approximately $19.3 million, which represents 95% of the updated BPO value at the time of resolution, or 102% of diverse BPO value provided by the seller at the time of acquisition. 81 loans were modified and rendered current.

RESI's average current deal on these loans based on the purchase price is 9.5%.

12 loans were refinanced at 97% of the updated BPO value at the time of resolution, or 107% of the BPO value at the time of acquisition, generating approximately $2.8 million in net proceeds. 19 loans were reinstated by the borrower made all delinquent payments, and 15 loans were repaid in full by the respective borrowers, generating approximately $5.8 million in net proceeds.

On the loans liquidated during the quarter, RESI realized a gain of 40% over the purchase price that it paid for these loans. In addition, 28 loans were subject to loss mitigation activities initiated by the seller at the time of the acquisition, and were subsequently resolved via short sales or third-party sales.

On these loans, we realized proceeds of approximately $7 million, representing 85% of average BPO value at the time of acquisition. Our total gain over purchase price for these 28 loans was 17%.

Now I wanted spend a few minutes discussing the performance of loans that we modified in the first half of 2013. Of the 18 modifications we completed in the first and second quarters of 2013, our recidivism rate of 6% is well below industry average.

We expect to sell reperforming loans after establishing 9 months of performance history. We have reestablished status on loans that were modified in the first and second quarter of 2013, and expect to sell these loans shortly.

In addition, we'll begin sharing our resolution analysis by acquisition vintage at the end of next quarter. The very first analysis will cover loans purchased in the first and second quarter of 2013.

RESI's rental portfolio is growing in line with our expectations. As shown on Slide 7, at the end of the first quarter, 35 properties owned by us were leased.

Average gross rent per property were 12.7% of the property value at the time of acquisition. On average, these 35 properties were leased within 27 days of being placed on market.

17 additional properties were renovated and listed for rent. For the 52 properties, the renovation was completed.

Our average renovation expense per property was $13,660. And renovations were in progress on 48 additional properties.

We are encouraged by the early trends in our rental portfolio and we expect to have 100 rental properties by the end of second quarter and 1,000 rental properties by the end of 2014. While resolution activity was the highlight of this quarter, we continue to remain focused on growing our NPL portfolio.

Please turn to Slide 8 for an update on the first quarter NPL acquisition activity. In March 2014, RESI agreed to acquire a pool of 915 assets consisting of 668 mortgage loans with $131 million in market value and 247 REOs with $49 million in property value from a large money center commercial bank.

The purchase price was $132 million. Assuming a purchase price of 83% of property value for the REOs, the purchase price for the nonperforming loans was 69% of the market value of underlying properties.

The transaction is expected to close in the month of April.

In February 2014, we also completed the second closing of the previously announced HUD transaction consisting of 70 loans with $8 million in UPB and $8.2 million in market value of underlying properties. In aggregate, we purchased a total of 4,207 loans with $1.1 billion in UPB and $900 million in market value of underlying properties in the first quarter of 2014.

To date, we have agreed or -- we have acquired or agreed to acquire loans with an aggregate underlying property value of approximately $2.9 billion. Using our 17% acquisition discount estimate, we believe we added approximately $7.60 of value per share that is not currently reflected in our book value.

We are witnessing much higher NPL sales activity in April than any month in the first quarter. We also have HUD auctions scheduled for June 4 and June 20th, where we expect HUD to auction approximately $5 billion of UPB under its national sale and NSL program.

We expect to be able to close up on multiple transactions in the second quarter. In addition, we are in active discussions on 2 large pools from 2 different sellers on an exclusive basis.

If successful, we expect these acquisitions to take place in the third quarter.

As shown on Slide 9, RESI's estimated taxable income for the quarter was $25.8 million versus a taxable income of $11.3 million in the fourth quarter of 2013, representing 128% sequential increase. Strong taxable earnings for the quarter reflect our substantial progress in resolving nonperforming loans.

During the quarter, we disposed off 116 loans and 2 REOs and realized an average gain of $78,000. On these 118 resolutions, our aggregate proceeds were approximately $35.4 million.

During the quarter, we converted 637 loans to REO and completed 81 loan modifications, with an average gain of $55,000. On the 637 conversions to REO, the increase in funding capacity available to us was $22.2 million due to the change in the borrowing base from NPL purchase price to market value of the property.

I will now turn the call over to Ken. Ken?

Thank you, Ashish. Today, I'll provide more detail on AAMC and RESI's GAAP and taxable financial performance for the first quarter 2014 and discuss RESI's liquidity and funding position.

Beginning with RESI. You can see on Slide 10 that we reported net income of $41.9 million or $0.77 per share for the first quarter of 2014, versus a net loss of $984,000 or $0.13 per share for the first quarter of 2013.

RESI's net income also increased 94% from the fourth quarter of 2014. RESI's book value per share at the end of the quarter was $22.21 per share.

Turning to AAMC, you can see on Slide 11 that AAMC reported net income of $6.8 million or $2.39 for the quarter, versus a loss of $840,000 or $0.36 a share in the first quarter of 2013. On Slide 11, also shows the revenues of AAMC as a standalone entity, which consists of management incentive fees of $10.9 million and expense reimbursement of $1.8 million.

We also show operating expense of $5.2 million, which represents the cost of operating AAMC on a standalone basis and includes $3.3 million of noncash stock compensation expense.

Additionally, AAMC's balance sheet under GAAP includes the equity of RESI, which is then reflected in AAMC's book value per share. This reporting does not reflect the true economics to AAMC shareholders.

On Slide 12, we show the standalone balance sheet of RESI, NewSource and AAMC.

1 leverage on the existing unencumbered NPL in future purchases.

1 leverage on existing unencumbered collateral and future purchases, we can purchase up to $2.2 billion of UPB. Even then, our overall leverage would still be conservative 1.5:1.

Our underlevered balance sheet provides us with adequate flexibility to fund future purchases.

At this time, we would like to open the call up for questions. Operator?

I'm just trying to understand the supply a little bit deeper and it sounded like you talked about, going forward, there's kind of 3 buckets that are in play right now. There's this very large HUD portfolio, that's like $5 billion of UPB that's coming June 4 and June 20; and then there was the money center banks that were bringing some volume or stepped-up volume to the market in April.

Could you comment the size of that volume? And then, third, I think you mentioned, if you could repeat the 2 separate large pools that you're negotiating with the seller on and those would be 3Q transactions.

Approximately, how large are those pools?

Mike, Ashish here. Sales activity picked up significantly in April from large money center commercial banks.

We are seeing much more volume than what we have seen in any month during the first quarter. We expect that trend to continue.

I think large money center commercial banks were expecting HUD to sell loans in March as we did. And probably we're holding back supply, so that's encouraging.

On the second question regarding exclusive transactions, we will not comment on the exact price which we are talking about, but these are significant opportunities.

Would significant be over 1,000 to 2,000 NPLs?

Yes, this would be something which would be a transaction in billions of UPB. It's not going to be hundreds of millions.

Okay. Okay.

And secondly, could -- Ken, could you just verify the liquidity you have today? And maybe instead of how much UPB you can purchase, what sort of a range at the values you've been purchasing on, just in terms of number of NPLs?

So Mike, if we assume then that we have purchasing to buy the $725 million of UPB, and with sort of 1:1 leverage, that would mean that the purchase price would be in the $360 million range. Our UPB that we are buying around $0.50 on the dollar, our purchase price will be around $360 million.

And if we use an average purchase price, let's say 150,000 per share -- 130,000 per property.

Yes?

And that's giving us around 2,400 loans.

Okay. And then I guess I want to clarify,, too, is did you say you could purchase -- that was the lower end of the bracket, and the higher end of the range was 3x that amount if you took the leverage up?

Did I hear that correctly?

That's correct. It should be like 7,500 loans at the high end of the range, Mike.

And that's -- I mean, I guess what we're saying is that's without raising new equity, that's just taking your leverage up to sort of, overall, 1.5:1?

That's correct. That's just trying to avail securitization financing on what we purchase.

If we were to use NPL securitization financing, you can fiscally get that 3:1 leverage, which will still keep portfolio leverage just that 1.5:1.

Last call, I think you gave some disclosure on cash flow generation. Would you be able to provide the same updated cash flow from operations number, the amount of mortgage loan dispositions as well as working capital to get to net cash flow generation?

Sure, Jade. It would be there actually if you go through the Q that we intend to file later today, you will be able to back up to that number.

We generated $39 million out of dispositions and then there was another $22 million of additional funding. But you should be able to back up that number from the Q that we will be filing later today.

Okay. With respect to the slides -- the slide on expected rental portfolio, the 1,000 properties by year end, does this refer to total properties available for rent by year end?

Or total rental -- yes, total rented properties?

Total leased properties. Properties, which are leased by us.

Okay. Do you have a rough estimate of how many REOs you'd expect to have by year end?

I do not have that number at top of my mind.

Okay. And just with respect to capital and leverage, is the company's overall target leverage ratio still 1x?

And do you expect to announce additional borrowing capacity to achieve that leverage target before considering other forms of capital issuance?

Yes, and we would be announcing additional financing facility as we inch up to that leverage.

Okay. And with respect to NPL securitization, just to clarify, that would be in the form of a liquidating trust, so there wouldn't be REOs held for use that would come out of such a structure?

No, you can transfer REOs at the market value, so there won't be any -- it won't be that REOs need to be liquidated. There are variations of liquidating trust structure where you can buy back REO from the trust at the appraisal at the time of resolution.

Okay. Are you actively looking into securitization options on any NPLs that you've acquired?

It remains one of the options. We have enough of collateral, if we want to do securitization, we can always use collateral that we have on hand.

So we always look at the options. We'll take a call as we are closer to some of the acquisition opportunities.

I was wondering if you can just talk a little bit more in terms of -- you're talking about 1,000 leased out in a year. Isn't it the quarter here we saw sort of increased activity in terms of the resolutions.

I wonder if you can talk about geographically sort of how you're expecting in terms of the timing, in terms of resolution renovation to leasing, is there anything you should clearly, depending on the market, then can take some time with it to get to that renovation stage? Are you confident with everything being consistent with prior expectations for that?

And should we expect to see a high level of resolution also in the second quarter?

Dan, we converted 800 plus -- we have 800-plus properties in REO at the end of this quarter. And we think this number will continue to grow, which provides us visibility into how many properties we'll be able to take into rental portfolio.

I do not think that we have concentration in certain geography, and therefore, we will not get into a situation where we have a lot of properties coming into one single market at the same point of time, and therefore, we'll have difficulty to rent. In fact, that's the benefit of our diversified portfolio.

We have been able to lease properties on an average within 27 days and haven't compromised on the rent that we want from these properties.

Just on the rental pipeline. Can you -- is the 1,000 properties that you're talking about now, is that -- or you're just changing it to sort of rental count versus the $200 million that you talked about on the last call?

Well, you can approximate that. Yes, if we were to approximate that.

But $200 million was the amount which we thought where we can get the first securitization deal done. And it was in a different context, but both of the numbers should be similar.

If you have 1,000 properties, you should have roughly $200 million there.

Okay, got it. And in terms of the number of overall properties you need, do you need more than 1,000 properties leased before you can look at securitization?

Or I mean, what sort of a relative number? I'm assuming you don't want to initially go to market with the first thousand things you get rented, but maybe that's wrong.

No, we'll go with the first 1,000 things which we have rented. We are not going to look -- we think that every property that we are renting, we are renting it on merit and it generates attractive yield.

Keep in mind that we will end up generating more cash flows or at least we expect to generate more cash flow into the securitization structure than anybody else, so we are very confident on our ability to execute securitization.

Okay, got it. And then you talked a little bit about the beginning about -- at the beginning of the comments, your comments, Ashish, about the performance of modified loans and selling those -- selling some of those loans in the first half.

Can you maybe just say what number of loans was there again and talk a little bit about that market? Who the buyers are?

Where you'll be selling those?

Sure. So these are 18 loans, which we modified in the first and second quarter of last year, and 17 of them have performed for a period of more than 9 months.

We expect some more of those loans to come in this quarter. We will be selling it typically to a slow buyer at this point of time, and slow buyer ends up selling those loans to small regional bank.

There is a good demand for those loans with a small regional bank. Also some of the slow buyers jut aggregate and try to get to a reperforming loan securitization, but those are the 2 exceptions.

Okay, and that market's really -- how active is that market in terms of just what sort of -- can you give a sense of how active that market is on a quarterly basis?

Sure. It's very vibrant.

You can do -- you can do $3 billion, $4 billion without moving the needle in terms in pricing there. It's a very vibrant and active market.

Got it. And what's sort of the current bid for the type of reperforming loan that you'd be selling?

It should be somewhere around 95% to 96% after BPO.

Ashish, is there anything, as half of these NPLs are moving through towards rental, what's maybe the biggest challenge you've noticed over the last year now? And do you see any other big challenges at this point?

Mike, there has been nothing which is a big challenge, but obviously, this is an operational business. We have something going every day on every loan.

I think that's the model that the way we thought model will work is working. We are pleased with the performance on the foreclosure conversion site and the results in this quarter validate that performance.

We think that we should be able to reach 2,000 properties by end of the year. We feel confident about that.

Okay, great. And, hey, next quarter we look forward to seeing some of that vintage analysis, too.

That will be helpful.

We'll be sharing that.

Most of my questions have been answered actually. I just have 2 quick ones.

The first one is I know you disclosed that you acquired 247 REOs or you plan to acquire them. Is that related to an NPL pool?

Or is that -- you guys going out there and purchasing them through a different channel? And if so, out of those properties, how many do you expect to retain for rental and how many would you expect to maybe sell?

Yes, this was part of an NPL trade, where NPL and REOs were trading together. That was a single trade.

Okay, got you. All right.

That makes sense. My second question is, could you maybe just walk through the incentive fee calculation for us on the $10.8 million?

Just maybe talking about the numbers involved and how are you calculating it through the waterfall?

Ken, you want to that or would you like me to do that?

Yes, sure, Ashish. So The way we calculate the management incentive fee is we do an estimate of the retaxable income before any incentive fees paid to AAMC.

If you sort of use the numbers that are probably available today, it would be the $10.9 million of incentive fee plus approximately about $23 million of distributed earnings of the $0.40 to get us to around $33 million or $34 million. And that's what we pushed into the waterfall to give you the distribution amount to shareholder and then the incentive fee to AAMC.

Thank you very much for joining us today, and have a great day. Goodbye.