LOANS HELD FOR INVESTMENT (“HFI”)

3 Months Ended

Mar. 31, 2020

LOANS HELD FOR INVESTMENT (“HFI”) [Abstract]

Loans Held for Investment (“HFI”)

Note 4—Loans Held for Investment (“HFI”)

We report the carrying value of HFI loans at their UPB, net of unamortized premiums, discounts and other cost basis adjustments and related allowances for loan losses, except in instances where we have elected the fair value option as further discussed below.

The following table provides information about the UPB and fair value adjustments that were recognized in the Company’s Consolidated Balance Sheets related to loans that it classified as HFI:

	At		At
	March 31,		December 31,
(in thousands)	2020		2019
UPB	$	1,280	$	54,100
Fair value adjustments		(9)		─
Loans HFI, net	$	1,271	$	54,100

On January 3, 2020, the entire $53.6 million UPB of the Hunt Note was fully repaid. At March 31, 2020 and December 31, 2019, the Company had one and two HFI loans, respectively, that had a combined UPB and fair value of $1.3 million and $54.1 million, respectively.

The Company elected the fair value option for one of its HFI loans that had a UPB and fair value of $1.3 million and $0.5 million at March 31, 2020 and December 31, 2019, respectively. The fair value option was elected upon its recognition so as to minimize certain operational challenges associated with accounting for this loan.

At March 31, 2020 and December 31, 2019, the Company had no HFI loans that were on nonaccrual status or that were past due in scheduled principal or interest payments and still accruing interest.

Unfunded Loan Commitments

At March 31, 2020 and December 31, 2019, the Company, through its wholly owned subsidiary of REL, had $0.8 million and $1.6 million, respectively, of unfunded loan commitments.