Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.19.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2019
Commitments and Contingencies  
Commitments and Contingencies

8.    Commitments and Contingencies

Origination Fees

Loan origination fees range from 2%‑5% of the original loan principal and, generally, are payable at the time the loan is funded.  These payments are amortized over the life of the loan for financial statement purposes and will be recorded as income as follows:

 

Original maturities of deferred revenue are as follows as of June 30:

 

 

 

 

 

2019

 

$

583,990

2020

 

 

412,733

2021

 

 

86,389

2022

 

 

25,382

Total

 

$

1,108,494

 

If a mortgage loan is paid in full priority to its stated maturity date, the balance of any unamortized deferred revenue is recognized in full.

Unfunded Commitments

At June 30, 2019, the Company is committed to future fundings with respect to existing mortgage loans in an amount equal to $6,368,019 subject to satisfaction by the borrower of the conditions set forth in the note and related mortgage.

Other

In the normal course of its business, the Company is named as a party-defendant in various legal proceedings because it is a mortgagee having an interest in real property that is the subject of a foreclosure proceeding, primarily resulting from unpaid property taxes. The Company actively monitors these actions and, in all cases, believes that the fair market value of the property subject to foreclosure is in excess of the loan amount after taking into account the unpaid taxes.