USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2018

Variable Interest Entity [Line Items]

Condensed Consolidated Balance Sheets

The condensed consolidated balance sheets of the FREMF trusts at September 30, 2018 and December 31, 2017 are set out below:



Balance Sheets	September 30, 2018		December 31, 2017
Assets
Multi-family mortgage loans held in securitization trusts	$	24,787,988	$	1,130,874,274
Receivables	110,216		4,377,606
Total assets	$	24,898,204	$	1,135,251,880
Liabilities and Equity
Multi-family securitized debt obligations	$	19,462,838	$	1,109,204,743
Payables	103,435		4,352,039
Total liabilities	$	19,566,273	$	1,113,556,782
Equity	5,331,931		21,695,098
Total liabilities and equity	$	24,898,204	$	1,135,251,880

Summary of Loan and Borrowing Characteristics

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT

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



						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon⁽¹⁾		Life (Years)⁽²⁾
September 30, 2018
Loans held-for-investment
Senior secured loans⁽³⁾	$	544,586,537	$	544,586,537	43	100.0	%	6.5	%	3.9
	544,586,537		544,586,537		43	100.0	%	6.5	%	3.9

(1) Average weighted by unpaid principal balance of loan. Weighted average coupon assumes applicable one-month LIBOR rate as of September 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 September 30, 2018, $540,531,960 of the outstanding senior secured loans are held in VIEs and $4,054,577 of the outstanding senior secured loans are loan participations

Activity: For the nine months ended September 30, 2018, the loan portfolio activity was as follows:



	Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2017	$	—
Purchases, net	669,080,048
Proceeds from principal repayments	(124,493,511		)
Balance at September 30, 2018	$	544,586,537

Loan Risk Ratings: As further described in Note 2, the Company evaluates the commercial mortgage loan portfolio on a quarterly basis. In conjunction with the quarterly commercial mortgage loan portfolio review, the Company assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors. Loans are rated "1" (very low risk) through "5" (default risk), which are described in Note 2. The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings:



September 30, 2018
Risk Rating	Number of Loans	Unpaid Principal Balance		Net Carrying Value
1	—	$	—	—
2	9	105,814,995		105,814,995
3	30	393,620,797		393,620,797
4	4	45,150,745		45,150,745
5	—	—		—
	43	$	544,586,537	544,586,537

As of September 30, 2018, the average risk rating of the commercial mortgage loan portfolio was 2.9 (Moderate Risk), weighted by investment carrying value, with 91.7% of commercial loans held-for-investment rated 3 (Moderate Risk) or better by the Company's Manager.

Concentration of Credit Risk: 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



	September 30, 2018			September 30, 2018
Geography			Collateral Property Type
Southwest	41.3	%	Multi-Family	80.4	%
South	20.9		Office	6.8
Midwest	20.0		Retail	5.6
Mid-Atlantic	9.9		Student Housing	3.2
West	7.9		Mixed-Use	3.0
Total	100.0	%	Self-Storage	1.0
			Total	100.0	%

The table below sets forth additional information relating to the Company's portfolio as of September 30, 2018:



Loan #	Investment	Origination Date	Total Loan Commitment	Outstanding Face Amount	Location	Property Type	Coupon	Max Remaining Term (Years)	LTV⁽¹⁾
1	Senior Loan	12-Jun-17	4,675,000	4,675,000	Winston-Salem, NC	Multi-Family	1mL + 6.0%	1.8	83.5	%
2	Senior Loan	30-Jan-17	3,743,000	3,743,000	Tyler, TX	Multi-Family	1mL + 5.5%	1.4	66.8	%
3	Senior Loan	5-Nov-15	6,035,000	6,035,000	Pascagoula, MS	Multi-Family	1mL + 4.5%	2.2	72.9	%
4	Senior Loan	15-Jan-16	13,500,000	12,226,811	Akron, OH	Mixed Use	1mL + 5.3%	2.4	56.7	%
5	Senior Loan	11-Oct-17	6,370,000	6,370,000	New Orleans, LA	Multi-Family	1mL + 4.1%	4.2	75.5	%
6	Senior Loan	13-Oct-17	14,715,000	14,715,000	Hattiesburg, MS	Multi-Family	1mL + 4.8%	4.2	81.5	%
7	Senior Loan	9-Jan-18	10,317,000	9,295,085	North Highlands, CA	Multi-Family	1mL + 4.0%	4.4	79.0	%
8	Senior Loan	16-Jun-17	5,810,000	5,653,628	Dallas, TX	Multi-Family	1mL + 4.8%	3.8	79.3	%
9	Senior Loan	15-Nov-17	30,505,000	30,505,000	Phoenix, AZ	Multi-Family	1mL + 3.8%	4.3	75.5	%
10	Senior Loan	30-Nov-16	5,000,000	4,618,553	Stafford, TX	Office	1mL + 5.5%	3.3	56.4	%
11	Senior Loan	16-Aug-17	24,000,000	24,000,000	League City, TX	Multi-Family	1mL + 4.5%	2.0	76.4	%
12	Senior Loan	29-Sep-17	12,364,000	11,720,232	Austell, GA	Multi-Family	1mL + 4.2%	4.1	80.4	%
13	Senior Loan	4-Nov-16	10,250,000	10,250,000	Greensboro, NC	Multi-Family	1mL + 5.3%	1.2	88.7	%
14	Senior Loan	6-Sep-17	15,250,000	15,250,000	Seattle, WA	Multi-Family	1mL + 4.5%	1.0	54.1	%
15	Senior Loan	9-May-17	16,500,000	15,050,568	Austin, TX	Retail	1mL + 7.3%	3.8	70.8	%
16	Senior Loan	29-Jun-16	23,145,934	23,145,934	Various, TX	Multi-Family	1mL + 5.5%	0.8	76.0	%
17	Senior Loan	1-Dec-17	19,110,000	19,110,000	Tuscon, AZ	Multi-Family	1mL + 4.5%	4.3	81.0	%
18	Senior Loan	19-Apr-17	11,200,000	8,824,763	Austin, TX	Retail	1mL + 5.2%	3.7	32.2	%
19	Senior Loan	8-Aug-18	35,000,000	31,678,000	Dallas, TX	Multi-Family	1mL + 3.7%	4.9	81.2	%
20	Senior Loan	25-Oct-17	6,360,000	6,360,000	Tulsa, OK	Multi-Family	1mL + 4.5%	4.2	76.6	%
21	Senior Loan	27-Dec-17	7,600,000	7,600,000	Philadelphia, PA	Multi-Family	1mL + 4.1%	4.3	79.8	%
22	Senior Loan	9-Jul-18	33,830,000	28,476,000	Baltimore, MD	Multi-Family	1mL + 3.1%	4.9	77.6	%
23	Senior Loan	5-Jun-18	51,971,621	31,690,000	Palatine, IL	Multi-Family	1mL + 4.3%	4.8	70.9	%
24	Senior Loan	18-May-18	28,000,000	24,521,093	Woodridge, IL	Multi-Family	1mL + 3.8%	4.8	77.8	%
25	Senior Loan	29-Nov-17	22,500,000	22,500,000	Richmond, TX	Multi-Family	1mL + 3.9%	2.3	73.5	%
26	Senior Loan	31-May-18	24,700,000	19,430,000	Omaha, NE	Multi-Family	1mL + 3.7%	4.8	77.3	%
27	Senior Loan	28-Jun-18	17,000,000	14,800,000	Greenville, SC	Multi-Family	1mL + 3.9%	4.8	76.3	%
28	Senior Loan	26-Mar-18	19,235,000	13,600,000	Rochelle Park, NJ	Office	1mL + 4.0%	4.6	76.8	%
29	Senior Loan	1-Feb-18	14,320,000	12,920,000	Fresno, CA	Multi-Family	1mL + 3.9%	4.4	82.3	%
30	Senior Loan	23-Jul-18	16,200,000	12,075,000	Chicago, IL	Office	1mL + 3.8%	4.9	72.7	%
31	Senior Loan	24-May-18	12,720,000	11,070,000	Austin, TX	Multi-Family	1mL + 3.6%	4.8	80.2	%
32	Senior Loan	25-May-18	11,000,000	9,440,000	Phoenix, AZ	Multi-Family	1mL + 3.9%	4.8	69.4	%
33	Senior Loan	12-Mar-18	9,112,000	9,112,000	Waco, TX	Student Housing	1mL + 4.8%	4.6	72.9	%
34	Senior Loan	15-Feb-18	10,500,000	8,262,000	Atlanta, GA	Multi-Family	1mL + 4.3%	4.5	80.2	%
35	Senior Loan	23-Feb-18	8,070,000	8,070,000	Little Rock, AR	Multi-Family	1mL + 4.3%	4.5	86.8	%
36	Senior Loan	4-Apr-18	7,332,000	6,874,000	Little Rock, AR	Office	1mL + 4.9%	4.6	72.4	%
37	Senior Loan	9-Nov-17	6,647,000	5,547,000	Las Vegas, NV	Self-Storage	1mL + 4.3%	4.3	86.0	%
38	Senior Loan	22-Jun-18	6,200,000	5,322,870	Chicago, IL	Multi-Family	1mL + 4.1%	4.8	80.5	%
39	Senior Loan	29-Jun-18	4,525,000	4,325,000	Washington, D.C.	Mixed Use	1mL + 4.7%	4.8	73.3	%
40	Senior Loan	30-Apr-18	4,080,000	3,580,000	Wichita, KS	Multi-Family	1mL + 5.0%	4.7	69.0	%
41	Senior Loan	30-Aug-18	9,034,000	8,000,000	Blacksburg, VA	Student Housing	1mL + 3.9%	5.0	72.7	%
42	Senior Loan	7-Aug-18	9,000,000	7,645,000	Birmingham, AL	Multi-Family	1mL + 3.5%	5.0	78.0	%
43	Senior Loan	2-Aug-18	10,000,000	6,500,000	Goldsboro, NC	Retail	1mL + 4.0%	4.9	56.5	%

(1) LTV as of such date the loan was originated by a Hunt affiliate. LTV has not been updated for any subsequent draws or loan modifications and is not reflective of any changes in value which may have occurred subsequent to the origination date.

Hunt CRE 2017-FL1, Ltd.

Variable Interest Entity [Line Items]

Condensed Consolidated Balance Sheets

The carrying values of the Company's total assets and liabilities related to Hunt CRE 2017-FL1, Ltd. and Hunt CRE 2018-FL2, Ltd. at September 30, 2018 included the following VIE assets and liabilities:



ASSETS	September 30, 2018
Cash, cash equivalents and restricted cash	$	77,694,265
Accrued interest receivable	2,403,506
Investment related receivable	16,242,900
Loans held for investment	540,531,960
Total Assets	$	636,872,631

LIABILITIES
Accrued interest payable	$	750,625
Collateralized loan obligations⁽¹⁾	503,487,121
Fees and expenses payable to Manager	$	1,816,338
Total Liabilities	$	506,054,084

(1) The stated maturity of the collateral loan obligations per the terms of the underlying collateralized loan obligation agreement is August 15, 2034 for Hunt CRE 2017-FL1, Ltd. and August 15, 2028 for Hunt CRE 2018-FL2, Ltd.

Summary of Loan and Borrowing Characteristics

The following table presents certain loan and borrowing characteristics of Hunt CRE 2017-FL1, Ltd. and Hunt CRE 2018-FL2, Ltd.:



As of September 30, 2018
Collateral (loan investments)				Debt (notes issued)
Unpaid Principal Balance		Carrying Value		Face Value		Carrying Value
$	540,531,960	$	540,531,960	$	510,181,000	$	503,487,121

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details