NOTE 5 – MORTGAGE LOANS HELD-FOR-SALE, at FAIR VALUE

Mortgage loans held-for-sale consists of residential mortgage loans carried at fair value as a result of the fair value option. The following table presents the carrying value of the Company’s mortgage loans held-for-sale as of December 31, 2015 and December 31, 2014:

	December 31, 2015		December 31, 2014
Unpaid principal balance	$	10,767,856	$	54,348,654
Fair value adjustment		132,546		329,728
Carrying value	$	10,900,402	$	54,678,382

At December 31, 2015 and December 31, 2014, the Company pledged mortgage loans with a fair value of $10.9 million and $54.7 million, respectively, as collateral for repurchase or warehouse agreements. See Note 10 - Borrowings.

The geographic concentrations of credit risk exceeding 5% of the total loan balances related to the mortgage loans held-for-sale as of December 31, 2015 are as follows:

	December 31, 2015
	Fair Value		% of Loan Portfolio
Texas	$	2,258,505		20.7	%
Arizona		1,830,083		16.8	%
Massachusetts		1,397,178		12.8	%
California		1,298,820		11.9	%
Minnesota		1,083,024		9.9	%
New York		719,707		6.6	%
Pennsylvania		649,290		5.9	%
North Carolina		602,630		5.5	%
Illinois		551,925		5.1	%