SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2017

SUBSEQUENT EVENTS

Subsequent Events

NOTE 13—SUBSEQUENT EVENTS

During the second quarter of 2017, the Company formed a joint venture with an affiliate of one of the world’s largest owners of commercial real estate that will originate, hold, and finance loans that previously met the criteria of the Company’s Interim Program. The Company holds a 15% ownership interest in the joint venture, and will be responsible for underwriting, servicing, and asset-managing the loans originated by the joint venture. The joint venture will fund its operations using a combination of equity contributions from its owners and warehouse credit facilities. The Company does not expect to consolidate the activities of the joint venture. Accordingly, the Company expects to account for the activities associated with its ownership interest using the equity method. It is expected that substantially all loans satisfying the criteria for the Interim Program will be originated by the joint venture going forward; however, the Company may opportunistically originate loans held for investment through the Interim Program in the future.