Concentrations of Credit Risk

9 Months Ended

Sep. 30, 2017

26.	Concentrations of Credit Risk

The lending activities of the Company create credit risk in the event that counterparties do not fulfill their contractual payment obligations. In particular, the Company is exposed to credit risk related to the Fannie Mae DUS and Freddie Mac TAH loans. As of September 30, 2017, 27% of $5.2 billion of the maximum loss was for properties located in California. As of December 31, 2016, 29% of $4.7 billion of the maximum loss was for properties located in California. See Note 25—“Financial Guarantee Liability” for additional information.