Commitments and Contingencies
|9 Months Ended|
Sep. 30, 2018
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments and Contingencies Disclosure [Text Block]||
Loan Brokerage Commissions/Origination Fees Paid to JJV
Loan origination fees consist of points, generally 2%-5% of the original loan principal. Pursuant to SCP’s operating agreement, prior to the Exchange JJV was entitled to 75% of loan origination fees. For the nine months ended September 30, 2017, loan origination fees paid to JJV were $52,902, all of which were incurred prior to the Exchange. After the Exchange, JJV is no longer entitled to origination fee payments. These payments are amortized over the life of the loan for financial statement purposes and recognized as a reduction of origination fee income.
Original maturities of deferred revenue are as follows as of:
In instances in which mortgages are repaid before their maturity date, the balance of any unamortized deferred revenue is recognized in full.
Loan Servicing Fees
JJV administered the servicing of SCP’s loan portfolio prior to the Exchange. At JJV’s discretion, the loan servicing fee ranged from one-twelfth (1/12
th) of one-half percent (0.5%) to one percent (1.0%) of the loan portfolio, payable monthly and calculated based on total loans as of the first day of each calendar month. After the Exchange, JJV is no longer entitled to loan servicing fees.
For the nine-month period ended September 30, 2017, loan servicing fees paid to JJV were $32,778, all of which were incurred prior to the Exchange.
At September 30, 2018, the Company is committed to an additional $6,823,587 in construction loans that can be drawn by the borrowers when certain conditions are met.
In the normal course of its business, the Company is named as a party-defendant in foreclosure proceedings because of its position as the first mortgage lien holder. Generally, these foreclosure proceedings are brought by municipalities for it is a mortgagee having interests in real properties that are being foreclosed upon, primarily resulting from unpaid property taxes. The Company actively monitors these actions and, in all cases, believes there is sufficient value in the subject property to assure that no loan impairment exists.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef