COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)

6 Months Ended

Jun. 30, 2018

The following table summarizes certain characteristics of the Company's investments in commercial mortgage loans as of June 30, 2018; the Company had no such investments as of December 31, 2017:



						Weighted Average
Loan Type	Outstanding Face Amount		Carrying Value		Loan Count	Floating Rate Loan %⁽¹⁾		Coupon⁽¹⁾		Life (Years)⁽²⁾
June 30, 2018
Loans held-for-investment
Senior secured loans⁽³⁾	$	326,883,547	$	326,883,547	22	100.0	%	6.9	%	3.1
	326,883,547		326,883,547		22	100.0	%	6.9	%	3.1

(1) Average weighted by outstanding face amount of loan. Weighted average coupon assumes applicable one-month LIBOR rate as of June 30, 2018

(2) The weighted average life of each loan is based on the expected timing of the receipt of contractual cash flows assuming all extension options are exercised by the borrower

(3) As of June 30, 2018, $320,907,160 of the outstanding senior secured loans are held in VIEs and $5,976,387 of the outstanding senior secured loans are loan participations

Activity: For the six months ended June 30, 2018, the loan portfolio activity was as follows:



	Commercial Mortgage Loans Held-for-Investment			Total
Balance at December 31, 2017	$	—		$	—
Purchases, net	347,288,547			347,288,547
Proceeds from principal repayments	(20,405,000		)	(20,405,000		)
Balance at June 30, 2018	$	326,883,547		$	326,883,547

Summary of Loan Risk Ratings

The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings:



June 30, 2018
Risk Rating	Number of Loans	Outstanding Face Amount		Net Book Value
1	—	$	—	—
2	6	82,883,245		82,883,245
3	13	195,210,492		195,210,492
4	3	48,789,810		48,789,810
5	—	—		—
	22	$	326,883,547	326,883,547

Geographic Concentrations

The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value:

Loans Held-for-Investment



	June 30, 2018			June 30, 2018
Geography			Collateral Property Type
Texas	28.4	%	Multifamily	88.1	%
Arizona	15.2		Retail	6.8
Georgia	10.8		Mixed Use	3.7
Connecticut	8.6		Office	1.4
Florida	8.2		Total	100.0	%
California	7.6
Mississippi	6.3
Washington	4.7
North Carolina	4.6
Ohio	3.7
Louisiana	1.9
Total	100.0	%

The geographic concentrations of credit risk exceeding 5% of the total loan balances related to the FREMF trusts as of June 30, 2018 and December 31, 2017 are as follows:



	June 30, 2018			December 31, 2017
Texas	71.3	%	New York	16.5	%
Connecticut	28.7	%	Texas	14.2	%
			Washington	8.7	%
			Colorado	7.8	%
			Georgia	5.7	%