COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table summarizes certain characteristics of the Company's investments in commercial mortgage loans as of December 31, 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⁾
December 31, 2018
Loans held-for-investment
Senior secured loans⁽³⁾	$	555,172,891	$	555,172,891	44	100.0	%	6.4	%	4.1
	555,172,891		555,172,891		44	100.0	%	6.4	%	4.1


(1)	Average weighted by unpaid principal balance of loan. Weighted average coupon assumes applicable one-month LIBOR rate as of December 31, 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 December 31, 2018, $550,555,503 of the outstanding senior secured loans are held in VIEs and $4,617,388 of the outstanding senior secured loans are held outside VIEs

Activity: For the year ended December 31, 2018, the loan portfolio activity was as follows:



	Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2017	$	—
Purchases, net	756,565,299
Proceeds from principal repayments	(201,392,408		)
Balance at December 31, 2018	$	555,172,891

The table below sets forth additional information relating to the Company's portfolio as of December 31, 2018:



Loan #	Form of Investment	Origination Date	Total Loan Commitment	Current Principal Amount	Location	Property Type	Coupon	Max Remaining Term (Years)	LTV
1	Senior Loan	12-Jun-17	4,675,000	4,675,000	Winston-Salem, NC	Multi-Family	1mL + 6.0%	1.7	77.2	%
2	Senior Loan	5-Nov-15	5,535,000	5,535,000	Pascagoula, MS	Multi-Family	1mL + 4.5%	2.0	72.9	%
3	Senior Loan	15-Jan-16	13,500,000	12,226,810	Akron, OH	Mixed Use	1mL + 5.3%	2.3	56.7	%
4	Senior Loan	11-Oct-17	6,370,000	6,370,000	New Orleans, LA	Multi-Family	1mL + 4.1%	4.0	75.5	%
5	Senior Loan	13-Oct-17	14,715,000	14,715,000	Hattiesburg, MS	Multi-Family	1mL + 4.8%	4.0	78.4	%
6	Senior Loan	9-Jan-18	10,317,000	9,407,298	North Highlands, CA	Multi-Family	1mL + 4.0%	4.3	79.0	%
7	Senior Loan	16-Jun-17	5,810,000	5,721,511	Dallas, TX	Multi-Family	1mL + 4.8%	3.7	75.2	%
8	Senior Loan	15-Nov-17	30,505,000	30,505,000	Phoenix, AZ	Multi-Family	1mL + 3.8%	4.1	74.3	%
9	Senior Loan	30-Nov-16	5,000,000	4,618,553	Stafford, TX	Office	1mL + 5.5%	3.1	56.4	%
10	Senior Loan	29-Sep-17	12,364,000	11,813,177	Austell, GA	Multi-Family	1mL + 4.2%	3.9	80.4	%
11	Senior Loan	6-Sep-17	15,250,000	15,250,000	Seattle, WA	Multi-Family	1mL + 4.5%	0.8	54.1	%
12	Senior Loan	29-Jun-16	8,882,738	8,882,738	Various, TX	Multi-Family	1mL + 5.5%	0.7	69.2	%
13	Senior Loan	1-Dec-17	19,110,000	19,110,000	Tucson, AZ	Multi-Family	1mL + 4.5%	4.1	80.3	%
14	Senior Loan	8-Aug-18	35,000,000	31,772,256	Dallas, TX	Multi-Family	1mL + 3.7%	4.8	81.2	%
15	Senior Loan	27-Dec-17	7,600,000	7,600,000	Philadelphia, PA	Multi-Family	1mL + 4.1%	4.2	79.8	%
16	Senior Loan	25-Oct-17	6,360,000	6,360,000	Tulsa, OK	Multi-Family	1mL + 4.5%	4.0	70.1	%
17	Senior Loan	9-Jul-18	33,830,000	28,759,119	Baltimore, MD	Multi-Family	1mL + 3.1%	4.8	77.6	%
18	Senior Loan	9-Oct-18	9,250,000	8,305,000	Dallas, TX	Multi-Family	1mL + 3.7%	5.0	78.4	%
19	Senior Loan	10-Oct-18	3,569,150	2,684,000	Philadelphia, PA	Multi-Family	1mL + 4.6%	5.0	79.6	%
20	Senior Loan	30-Nov-18	72,000,000	33,000,000	Various	Student Housing	1mL + 4.1%	5.1	70.4	%
21	Senior Loan	6-Dec-18	21,000,000	16,994,000	Greensboro, NC	Multi-Family	1mL + 3.4%	5.1	79.8	%
22	Senior Loan	13-Dec-18	17,000,000	17,000,000	Seattle, WA	Multi-Family	1mL + 3.8%	3.2	53.7	%
23	Senior Loan	5-Jun-18	50,858,145	33,534,144	Palatine, IL	Multi-Family	1mL + 4.3%	4.6	68.5	%
24	Senior Loan	18-May-18	28,000,000	25,355,116	Woodridge, IL	Multi-Family	1mL + 3.8%	4.6	76.4	%
25	Senior Loan	29-Nov-17	22,500,000	22,500,000	Richmond, TX	Multi-Family	1mL + 3.9%	2.1	73.5	%
26	Senior Loan	31-May-18	24,700,000	19,430,000	Omaha, NE	Multi-Family	1mL + 3.7%	4.6	77.3	%
27	Senior Loan	28-Jun-18	17,000,000	14,800,000	Greenville, SC	Multi-Family	1mL + 3.9%	4.7	76.3	%
28	Senior Loan	26-Mar-18	19,235,000	13,841,399	Rochelle Park, NJ	Office	1mL + 4.0%	4.4	76.8	%
29	Senior Loan	1-Feb-18	14,320,000	12,920,000	Fresno, CA	Multi-Family	1mL + 3.9%	4.3	82.4	%
30	Senior Loan	23-Jul-18	16,200,000	12,075,000	Chicago, IL	Office	1mL + 3.8%	4.8	72.7	%
31	Senior Loan	24-May-18	12,720,000	11,159,150	Austin, TX	Multi-Family	1mL + 3.6%	4.6	80.2	%
32	Senior Loan	25-May-18	11,000,000	9,440,000	Phoenix, AZ	Multi-Family	1mL + 3.9%	4.6	69.4	%
33	Senior Loan	12-Mar-18	9,112,000	9,112,000	Waco, TX	Student Housing	1mL + 4.8%	4.4	72.9	%
34	Senior Loan	15-Feb-18	10,500,000	8,590,138	Atlanta, GA	Multi-Family	1mL + 4.3%	4.3	80.2	%
35	Senior Loan	23-Feb-18	8,070,000	8,070,000	Little Rock, AR	Multi-Family	1mL + 4.3%	4.3	81.3	%
36	Senior Loan	30-Aug-18	9,034,000	8,000,000	Blacksburg, VA	Student Housing	1mL + 3.9%	4.8	66.6	%
37	Senior Loan	7-Aug-18	9,000,000	7,782,850	Birmingham, AL	Multi-Family	1mL + 3.5%	4.8	78.0	%
38	Senior Loan	4-Apr-18	7,332,000	6,874,000	Little Rock, AR	Office	1mL + 4.9%	4.4	72.4	%
39	Senior Loan	2-Aug-18	10,000,000	6,500,000	Goldsboro, NC	Retail	1mL + 4.0%	4.8	56.5	%
40	Senior Loan	9-Nov-17	6,647,000	5,547,000	Las Vegas, NV	Self-Storage	1mL + 4.3%	4.1	76.0	%
41	Senior Loan	22-Jun-18	6,200,000	5,667,487	Chicago, IL	Multi-Family	1mL + 4.1%	4.7	80.5	%
42	Senior Loan	29-Jun-18	4,525,000	4,375,805	Washington, DC	Mixed Use	1mL + 4.7%	4.7	73.3	%
43	Senior Loan	30-Apr-18	4,080,000	3,580,000	Wichita, KS	Multi-Family	1mL + 5.0%	4.5	69.0	%
44	Senior Loan	30-Nov-18	8,250,000	4,714,340	Decatur, GA	Office	1mL + 4.1%	5.0	56.8	%


(1)	LTV as of such date the loan was originated by a Hunt affiliate and is calculated after giving effect to capex and earnout reserves, if applicable. 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.

Financing Receivable Credit Quality Indicators

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



December 31, 2018
Risk Rating	Number of Loans	Unpaid Principal Balance		Net Carrying Value
1	—	$	—	—
2	5	51,589,000		51,589,000
3	34	455,323,082		455,323,082
4	5	48,260,809		48,260,809
5	—	—		—
	44	$	555,172,891	555,172,891

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



	December 31, 2018			December 31, 2018
Geography			Collateral Property Type
Southwest	30.2	%	Multi-Family	87.2	%
South	22.6		Office	7.6	%
Midwest	20.2		Mixed-Use	3.0
West	10.8		Retail	1.2
Mid-Atlantic	10.3		Self-Storage	1.0
Various	5.9
Total	100.0	%	Total	100.0	%

The following table presents the geographic concentrations of credit risk exceeding 5% of the total loan balances related to the FREMF trusts as of December 31, 2017. As of December 31, 2018, all of the loans paid-in full:



December 31, 2017
New York	16.5	%
Texas	14.2	%
Washington	8.7	%
Colorado	7.8	%
Georgia	5.7	%

Commercial mortgage loans held-for-investment

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT

The following table summarizes certain characteristics of the Company's investments in commercial mortgage loans as of December 31, 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⁾
December 31, 2018
Loans held-for-investment
Senior secured loans⁽³⁾	$	555,172,891	$	555,172,891	44	100.0	%	6.4	%	4.1
	555,172,891		555,172,891		44	100.0	%	6.4	%	4.1


(1)	Average weighted by unpaid principal balance of loan. Weighted average coupon assumes applicable one-month LIBOR rate as of December 31, 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 December 31, 2018, $550,555,503 of the outstanding senior secured loans are held in VIEs and $4,617,388 of the outstanding senior secured loans are held outside VIEs

Activity: For the year ended December 31, 2018, the loan portfolio activity was as follows:



	Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2017	$	—
Purchases, net	756,565,299
Proceeds from principal repayments	(201,392,408		)
Balance at December 31, 2018	$	555,172,891

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:



December 31, 2018
Risk Rating	Number of Loans	Unpaid Principal Balance		Net Carrying Value
1	—	$	—	—
2	5	51,589,000		51,589,000
3	34	455,323,082		455,323,082
4	5	48,260,809		48,260,809
5	—	—		—
	44	$	555,172,891	555,172,891

As of December 31, 2018, the average risk rating of the commercial mortgage loan portfolio was 2.9 (Moderate Risk), weighted by investment carrying value, with 91.3% 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



	December 31, 2018			December 31, 2018
Geography			Collateral Property Type
Southwest	30.2	%	Multi-Family	87.2	%
South	22.6		Office	7.6	%
Midwest	20.2		Mixed-Use	3.0
West	10.8		Retail	1.2
Mid-Atlantic	10.3		Self-Storage	1.0
Various	5.9
Total	100.0	%	Total	100.0	%

The table below sets forth additional information relating to the Company's portfolio as of December 31, 2018:



Loan #	Form of Investment	Origination Date	Total Loan Commitment	Current Principal Amount	Location	Property Type	Coupon	Max Remaining Term (Years)	LTV
1	Senior Loan	12-Jun-17	4,675,000	4,675,000	Winston-Salem, NC	Multi-Family	1mL + 6.0%	1.7	77.2	%
2	Senior Loan	5-Nov-15	5,535,000	5,535,000	Pascagoula, MS	Multi-Family	1mL + 4.5%	2.0	72.9	%
3	Senior Loan	15-Jan-16	13,500,000	12,226,810	Akron, OH	Mixed Use	1mL + 5.3%	2.3	56.7	%
4	Senior Loan	11-Oct-17	6,370,000	6,370,000	New Orleans, LA	Multi-Family	1mL + 4.1%	4.0	75.5	%
5	Senior Loan	13-Oct-17	14,715,000	14,715,000	Hattiesburg, MS	Multi-Family	1mL + 4.8%	4.0	78.4	%
6	Senior Loan	9-Jan-18	10,317,000	9,407,298	North Highlands, CA	Multi-Family	1mL + 4.0%	4.3	79.0	%
7	Senior Loan	16-Jun-17	5,810,000	5,721,511	Dallas, TX	Multi-Family	1mL + 4.8%	3.7	75.2	%
8	Senior Loan	15-Nov-17	30,505,000	30,505,000	Phoenix, AZ	Multi-Family	1mL + 3.8%	4.1	74.3	%
9	Senior Loan	30-Nov-16	5,000,000	4,618,553	Stafford, TX	Office	1mL + 5.5%	3.1	56.4	%
10	Senior Loan	29-Sep-17	12,364,000	11,813,177	Austell, GA	Multi-Family	1mL + 4.2%	3.9	80.4	%
11	Senior Loan	6-Sep-17	15,250,000	15,250,000	Seattle, WA	Multi-Family	1mL + 4.5%	0.8	54.1	%
12	Senior Loan	29-Jun-16	8,882,738	8,882,738	Various, TX	Multi-Family	1mL + 5.5%	0.7	69.2	%
13	Senior Loan	1-Dec-17	19,110,000	19,110,000	Tucson, AZ	Multi-Family	1mL + 4.5%	4.1	80.3	%
14	Senior Loan	8-Aug-18	35,000,000	31,772,256	Dallas, TX	Multi-Family	1mL + 3.7%	4.8	81.2	%
15	Senior Loan	27-Dec-17	7,600,000	7,600,000	Philadelphia, PA	Multi-Family	1mL + 4.1%	4.2	79.8	%
16	Senior Loan	25-Oct-17	6,360,000	6,360,000	Tulsa, OK	Multi-Family	1mL + 4.5%	4.0	70.1	%
17	Senior Loan	9-Jul-18	33,830,000	28,759,119	Baltimore, MD	Multi-Family	1mL + 3.1%	4.8	77.6	%
18	Senior Loan	9-Oct-18	9,250,000	8,305,000	Dallas, TX	Multi-Family	1mL + 3.7%	5.0	78.4	%
19	Senior Loan	10-Oct-18	3,569,150	2,684,000	Philadelphia, PA	Multi-Family	1mL + 4.6%	5.0	79.6	%
20	Senior Loan	30-Nov-18	72,000,000	33,000,000	Various	Student Housing	1mL + 4.1%	5.1	70.4	%
21	Senior Loan	6-Dec-18	21,000,000	16,994,000	Greensboro, NC	Multi-Family	1mL + 3.4%	5.1	79.8	%
22	Senior Loan	13-Dec-18	17,000,000	17,000,000	Seattle, WA	Multi-Family	1mL + 3.8%	3.2	53.7	%
23	Senior Loan	5-Jun-18	50,858,145	33,534,144	Palatine, IL	Multi-Family	1mL + 4.3%	4.6	68.5	%
24	Senior Loan	18-May-18	28,000,000	25,355,116	Woodridge, IL	Multi-Family	1mL + 3.8%	4.6	76.4	%
25	Senior Loan	29-Nov-17	22,500,000	22,500,000	Richmond, TX	Multi-Family	1mL + 3.9%	2.1	73.5	%
26	Senior Loan	31-May-18	24,700,000	19,430,000	Omaha, NE	Multi-Family	1mL + 3.7%	4.6	77.3	%
27	Senior Loan	28-Jun-18	17,000,000	14,800,000	Greenville, SC	Multi-Family	1mL + 3.9%	4.7	76.3	%
28	Senior Loan	26-Mar-18	19,235,000	13,841,399	Rochelle Park, NJ	Office	1mL + 4.0%	4.4	76.8	%
29	Senior Loan	1-Feb-18	14,320,000	12,920,000	Fresno, CA	Multi-Family	1mL + 3.9%	4.3	82.4	%
30	Senior Loan	23-Jul-18	16,200,000	12,075,000	Chicago, IL	Office	1mL + 3.8%	4.8	72.7	%
31	Senior Loan	24-May-18	12,720,000	11,159,150	Austin, TX	Multi-Family	1mL + 3.6%	4.6	80.2	%
32	Senior Loan	25-May-18	11,000,000	9,440,000	Phoenix, AZ	Multi-Family	1mL + 3.9%	4.6	69.4	%
33	Senior Loan	12-Mar-18	9,112,000	9,112,000	Waco, TX	Student Housing	1mL + 4.8%	4.4	72.9	%
34	Senior Loan	15-Feb-18	10,500,000	8,590,138	Atlanta, GA	Multi-Family	1mL + 4.3%	4.3	80.2	%
35	Senior Loan	23-Feb-18	8,070,000	8,070,000	Little Rock, AR	Multi-Family	1mL + 4.3%	4.3	81.3	%
36	Senior Loan	30-Aug-18	9,034,000	8,000,000	Blacksburg, VA	Student Housing	1mL + 3.9%	4.8	66.6	%
37	Senior Loan	7-Aug-18	9,000,000	7,782,850	Birmingham, AL	Multi-Family	1mL + 3.5%	4.8	78.0	%
38	Senior Loan	4-Apr-18	7,332,000	6,874,000	Little Rock, AR	Office	1mL + 4.9%	4.4	72.4	%
39	Senior Loan	2-Aug-18	10,000,000	6,500,000	Goldsboro, NC	Retail	1mL + 4.0%	4.8	56.5	%
40	Senior Loan	9-Nov-17	6,647,000	5,547,000	Las Vegas, NV	Self-Storage	1mL + 4.3%	4.1	76.0	%
41	Senior Loan	22-Jun-18	6,200,000	5,667,487	Chicago, IL	Multi-Family	1mL + 4.1%	4.7	80.5	%
42	Senior Loan	29-Jun-18	4,525,000	4,375,805	Washington, DC	Mixed Use	1mL + 4.7%	4.7	73.3	%
43	Senior Loan	30-Apr-18	4,080,000	3,580,000	Wichita, KS	Multi-Family	1mL + 5.0%	4.5	69.0	%
44	Senior Loan	30-Nov-18	8,250,000	4,714,340	Decatur, GA	Office	1mL + 4.1%	5.0	56.8	%


(1)	LTV as of such date the loan was originated by a Hunt affiliate and is calculated after giving effect to capex and earnout reserves, if applicable. 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.

- 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