|9 Months Ended|
Sep. 30, 2018
|SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]|
|Mortgage Loans on Real Estate, by Loan Disclosure [Text Block]||
The Company offers secured non-banking loans to real estate investors to fund their acquisition and construction of properties located mainly in Connecticut. The loans are principally secured by first mortgages on real estate and, generally, are also personally guaranteed by the borrower or its principals. The loans are generally for a term of one to three years. The loans are initially recorded and carried thereafter, in the financial statements, at cost. Most of the loans provide for monthly payments of interest only (in arrears) during the term of the loan and a “balloon” payment of the principal on the maturity date.
For the nine-month periods ended September 30, 2018 and 2017, the aggregate amounts of loans funded by the Company were $37,278,346 and $33,792,878, respectively offset by principal repayments of $22,743,996 and $14,849,831 respectively.
At September 30, 2018, the Company’s portfolio included closed loans ranging in size from $6,000 to $2,019,000 with stated interest rates ranging from 5.0% to 12.5% and a default interest rate for non-payment of 18%.
At September 30, 2018, no single borrower had loans outstanding representing more than 10% of the total balance of the loans outstanding.
The Company generally grants loans for a term of one to three years. In some cases, the Company has agreed to extend the term of the loans. A loan that is extended is treated as a new loan. However, prior to granting an extension, the loan underwriting process is repeated.
Credit risk profile based on loan activity as of September 30, 2018 and December 31, 2017:
The following is the maturities of mortgages receivable as of September 30, 2018:
At September 30, 2018, of the 395 mortgage loans in the Company’s portfolio, ten (10) were designated by the Company as “non-performing” because the borrower is more than 90 days in arrears on its interest payment obligations or because the borrower has failed to make timely payments of real estate taxes or insurance premiums. The aggregate outstanding principal balance of these non-performing loans and the accrued but unpaid interest as of September 30, 2018 was approximately $5.2 million. At September 30, 2018, all non-performing loans have been referred to counsel to commence foreclosure proceedings or to negotiate settlement terms. In the case of each non-performing loan, based on the assessed values of the properties and other independent data, the Company has determined the value of the collateral exceeds the outstanding balance on the loan.
The entire disclosure for investment in mortgage loan on real estate by entity with substantial portion of business acquiring and holding investment real estate or interest in real estate. Includes, but is not limited to, information for each mortgage loan receivable equaling or exceeding three percent of carrying amount of mortgage.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef