FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2018

Following is a table summarizing the methods used by management in estimating fair value as of December 31, 2018 and 2017:



	December 31, 2018
	% of Carrying Value
	Mortgage Loans, Net			Real Estate Held for Sale			Other REO
Basis for valuation	#	Percent		#	Percent		#	Percent
Third party valuations	1	16.7	%	1	12.5	%	0	—	%
Third party offers	0	—	%	3	37.5	%	1	12.5	%
Management analysis	5	83.3	%	4	50.0	%	7	87.5	%
Total portfolio	6	100.0	%	8	100.0	%	8	100.0	%



	December 31, 2017
	% of Carrying Value
	Mortgage Loans, Net			Real Estate Held for Sale			Other REO
Basis for valuation	#	Percent		#	Percent		#	Percent
Third party valuations	2	50.0	%	1	50.0	%	0	—	%
Third party offers	0	—	%	1	50.0	%	4	26.7	%
Management analysis	2	50.0	%	0	—	%	11	73.3	%
Total portfolio	4	100.0	%	2	100.0	%	15	100.0	%

Schedule Of Fair Value Valuation Methodology

A summary of the valuation approaches taken and key assumptions that we utilized to derive fair value, is as follows:



	December 31, 2018
	% of Carrying Value
	Mortgage Loans, Net			Real Estate Held for Sale			Other REO
Valuation methodology	#	Percent		#	Percent		#	Percent
Comparable sales (as-is)	6	100.0	%	5	62.5	%	7	87.5	%
Development approach	—	—	%	—	—	%	—	—	%
Income capitalization approach	—	—	%	—	—	%	—	—	%
Third party offers	—	—	%	3	37.5	%	1	12.5	%
Total portfolio	6	100.0	%	8	100.0	%	8	100.0	%



	December 31, 2017
	% of Carrying Value
	Mortgage Loans, Net			Real Estate Held for Sale			Other REO
Valuation methodology	#	Percent		#	Percent		#	Percent
Comparable sales (as-is)	4	100.0	%	1	50.0	%	11	73.3	%
Development approach	—	—	%	—	—	%	—	—	%
Income capitalization approach	—	—	%	—	—	%	—	—	%
Third party offers	—	—	%	1	50.0	%	4	26.7	%
Total portfolio	4	100.0	%	2	100.0	%	15	100.0	%

Schedule of Fair Value Measurements of Equity Securities

Based on this valuation assessment, management estimated the fair value of the equity securities issued or granted in connection with the transaction completed February 9, 2018 for the Series B-3 Preferred Stock and May 31, 2018 for the Series A Preferred Stock as follows:



Subject securities	Estimated Fair Value per Share
Series B-3 Preferred Stock	$	4.12
Series A Preferred Stock	$	1,000.00
Chase Warrant	$	1.52

Schedule of Fair Value Measurements of Equity Securities Factors

A summary of these applicable factors used in the valuation follows:



Expected stock price volatility	40	%
Risk-free interest rate	2	%
Expected life of warrants (in years)	3
Expected dividend yield	N/A
Common Stock value discount for lack of marketability	25	%

Fair Value, by Balance Sheet Grouping

A summary of our assets measured at fair value on a nonrecurring basis as of December 31, 2018 for which losses were recorded during the year ended December 31, 2018 follows (in thousands):



Description	December 31, 2018		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Impairment Charges
REO held for sale	$	—	$	2,760	$	—	$	581
Derivatives	$	—	$	329	$	—	$	218