Commitments and Contingencies
|9 Months Ended|
Sep. 30, 2019
|Commitments and Contingencies|
|Commitments and Contingencies||
8. Commitments and Contingencies
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 for financial statement purposes over the life of the loan and will be recorded as income as follows:
Original maturities of deferred revenue are as follows as of September 30:
If a mortgage loan is paid in full prior to its stated maturity date, the balance of any unamortized deferred revenue is recognized in full.
At September 30, 2019, the Company is committed to future fundings with respect to existing mortgage loans in an amount equal to $7,329,025 subject to satisfaction by the borrower of the conditions set forth in the note and related mortgage.
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, usually resulting from unpaid property taxes. The Company actively monitors these actions and, in all cases, the Company believes that the fair market value of the property subject to foreclosure is in excess of the sum of the unpaid balance of the loan, accrued but unpaid interest and unpaid property taxes, if any.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef