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

3 Months Ended

Mar. 31, 2019

Variable Interest Entity [Line Items]

Condensed Consolidated Balance Sheets

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



Balance Sheets	December 31, 2018
Assets
Multi-family mortgage loans held in securitization trusts	$	—
Receivables	24,357,335
Total assets	$	24,357,335
Liabilities and Equity
Multi-family securitized debt obligations	$	19,231,331
Payables	363,855
Total liabilities	$	19,595,186
Equity	4,762,149
Total liabilities and equity	$	24,357,335

Summary of Loan and Borrowing Characteristics

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT

The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of March 31, 2019 and December 31, 2018:



						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon⁽¹⁾		Life (Years)⁽²⁾
March 31, 2019
Loans held-for-investment
Senior secured loans⁽³⁾	$	585,770,803	$	585,770,803	45	100.0	%	6.5	%	4.0
	585,770,803		585,770,803		45	100.0	%	6.5	%	4.0



						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 March 31, 2019 and December 31, 2018.

(2) The weighted average life of each loan is based on the expected repayment of principal assuming all extension options are exercised by the borrower.


(3)	As of March 31, 2019, $581,878,684 of the outstanding senior secured loans were held in VIEs and $3,892,119 of the outstanding senior secured are held outside VIEs. As of December 31, 2018, $550,555,503 of the outstanding senior secured loans were held in VIEs and $4,617,388 of the outstanding senior secured loans were held outside VIEs.

Activity: For the three months ended March 31, 2019, the loan portfolio activity was as follows:



	Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2018	$	555,172,891
Purchases	64,612,349
Proceeds from principal repayments	(34,014,437		)
Balance at March 31, 2019	$	585,770,803

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 tables present the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of March 31, 2019 and December 31, 2018:



March 31, 2019
Risk Rating	Number of Loans	Unpaid Principal Balance		Net Carrying Value
1	—	$	—	—
2	7	63,522,869		63,522,869
3	34	483,865,447		483,865,447
4	4	38,382,487		38,382,487
5	—	—		—
	45	$	585,770,803	585,770,803

As of March 31, 2019, the average risk rating of the commercial mortgage loan portfolio was 2.9 (Moderate Risk), weighted by investment carrying value, with 90.9% of commercial loans held-for-investment rated 3 (Moderate Risk) or better by the Company's Manager.



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-invested 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 as of March 31, 2019 and December 31, 2018:

Loans Held-for-Investment



	March 31, 2019		December 31, 2018
Geography
Southwest	36.3	%	30.2	%
South	21.6		22.6
Midwest	17.5		20.2
Mid-Atlantic	11.3		10.3
West	7.7		10.8
Various	5.6		5.9
Total	100.0	%	100.0	%



	March 31, 2019		December 31, 2018
Collateral Property Type
Multi-Family	83.8	%	87.2	%
Office	7.3		7.6
Retail	7.2		1.2
Self-Storage	0.9		1.0
Mixed-Use	0.8		3.0
Total	100.0	%	100.0	%

The table below sets forth additional information relating to the Company's portfolio as of March 31, 2019:



Loan #	Form of Investment	Origination Date	Total Loan Commitment⁽¹⁾	Unpaid Principal Balance	Location	Property Type	Coupon	Max Remaining Term (Years)	LTV⁽²⁾
1	Senior Loan	12-Jun-17	4,675,000	4,675,000	Winston-Salem, NC	Multi-Family	1mL + 6.0%	1.3	77.2	%
2	Senior Loan	5-Nov-15	5,535,000	5,535,000	Pascagoula, MS	Multi-Family	1mL + 4.5%	1.7	72.9	%
3	Senior Loan	11-Oct-17	6,370,000	6,370,000	New Orleans, LA	Multi-Family	1mL + 4.1%	3.7	75.5	%
4	Senior Loan	13-Oct-17	14,715,000	14,715,000	Hattiesburg, MS	Multi-Family	1mL + 4.8%	3.7	78.4	%
5	Senior Loan	9-Jan-18	10,317,000	9,518,294	North Highlands, CA	Multi-Family	1mL + 4.0%	3.9	79.0	%
6	Senior Loan	16-Jun-17	5,634,482	5,543,885	Dallas, TX	Multi-Family	1mL + 4.8%	3.3	75.2	%
7	Senior Loan	15-Nov-17	30,505,000	30,505,000	Phoenix, AZ	Multi-Family	1mL + 3.8%	3.8	74.3	%
8	Senior Loan	30-Nov-16	5,000,000	4,675,039	Stafford, TX	Office	1mL + 5.5%	2.8	56.4	%
9	Senior Loan	29-Sep-17	12,364,000	11,950,194	Austell, GA	Multi-Family	1mL + 4.2%	3.6	80.4	%
10	Senior Loan	29-Jun-16	8,882,738	8,882,738	Various, TX	Multi-Family	1mL + 5.5%	0.3	69.2	%
11	Senior Loan	1-Dec-17	19,110,000	19,110,000	Tuscon, AZ	Multi-Family	1mL + 4.5%	3.8	80.3	%
12	Senior Loan	8-Aug-18	35,000,000	31,939,667	Dallas, TX	Multi-Family	1mL + 3.7%	4.4	81.2	%
13	Senior Loan	27-Dec-17	7,600,000	7,600,000	Philadelphia, PA	Multi-Family	1mL + 4.1%	3.8	79.8	%
14	Senior Loan	9-Jul-18	33,830,000	29,338,307	Baltimore, MD	Multi-Family	1mL + 3.1%	4.4	77.6	%
15	Senior Loan	9-Oct-18	9,250,000	8,511,430	Dallas, TX	Multi-Family	1mL + 3.7%	4.7	78.4	%
16	Senior Loan	10-Oct-18	3,569,150	2,788,015	Philadelphia, PA	Multi-Family	1mL + 4.6%	4.7	79.6	%
17	Senior Loan	30-Nov-18	72,000,000	33,000,000	Various	Multi-Family	1mL + 4.1%	4.8	70.4	%
18	Senior Loan	6-Dec-18	21,000,000	17,448,900	Greensboro, NC	Multi-Family	1mL + 3.4%	4.8	79.8	%
19	Senior Loan	13-Dec-18	17,000,000	17,000,000	Seattle, WA	Multi-Family	1mL + 3.8%	2.8	53.7	%
20	Senior Loan	18-Jan-19	10,750,000	7,958,000	Philadelphia, PA	Multi-Family	1mL + 4.0%	4.9	71.3	%
21	Senior Loan	28-Dec-18	24,123,000	17,000,000	Austin, TX	Retail	1mL + 4.1%	4.8	60.5	%
22	Senior Loan	13-Mar-19	19,360,000	15,862,000	Barytown, TX	Multi-Family	1mL + 3.1%	5.1	80.5	%
23	Senior Loan	5-Jun-18	50,858,145	35,625,000	Palatine, IL	Multi-Family	1mL + 4.3%	4.3	68.5	%
24	Senior Loan	18-May-18	28,000,000	25,355,116	Woodridge, IL	Multi-Family	1mL + 3.8%	4.3	76.4	%
25	Senior Loan	29-Nov-17	22,500,000	22,500,000	Richmond, TX	Multi-Family	1mL + 3.9%	1.8	73.5	%
26	Senior Loan	31-May-18	24,700,000	19,430,000	Omaha, NE	Multi-Family	1mL + 3.7%	4.3	77.3	%
27	Senior Loan	28-Jun-18	17,000,000	14,800,000	Greenville, SC	Multi-Family	1mL + 3.9%	4.3	76.3	%
28	Senior Loan	26-Mar-18	19,235,000	14,212,713	Rochelle Park, NJ	Office	1mL + 4.0%	4.1	76.8	%
29	Senior Loan	1-Feb-18	14,320,000	12,920,000	Fresno, CA	Multi-Family	1mL + 3.9%	3.9	82.4	%
30	Senior Loan	23-Jul-18	16,200,000	12,432,514	Chicago, IL	Office	1mL + 3.8%	4.4	72.7	%
31	Senior Loan	24-May-18	12,720,000	11,323,290	Austin, TX	Multi-Family	1mL + 3.6%	4.3	80.2	%
32	Senior Loan	25-May-18	11,000,000	9,440,000	Phoenix, AZ	Multi-Family	1mL + 3.9%	4.3	69.4	%
33	Senior Loan	12-Mar-18	9,112,000	9,112,000	Waco, TX	Multi-Family	1mL + 4.8%	4.1	78.3	%
34	Senior Loan	15-Feb-18	10,500,000	8,708,582	Atlanta, GA	Multi-Family	1mL + 4.3%	4.0	80.2	%
35	Senior Loan	23-Feb-18	8,070,000	8,070,000	Little Rock, AR	Multi-Family	1mL + 4.3%	4.0	81.3	%
36	Senior Loan	30-Aug-18	9,034,000	8,000,000	Blacksburg, VA	Multi-Family	1mL + 3.9%	4.5	66.6	%
37	Senior Loan	7-Aug-18	9,000,000	8,053,748	Birmingham, AL	Multi-Family	1mL + 3.5%	4.5	78.0	%
38	Senior Loan	4-Apr-18	7,332,000	6,874,000	Little Rock, AR	Office	1mL + 4.9%	4.1	72.4	%
39	Senior Loan	2-Aug-18	10,000,000	6,860,637	Goldsboro, NC	Retail	1mL + 4.0%	4.4	56.5	%
40	Senior Loan	9-Nov-17	6,647,000	5,547,000	Las Vegas, NV	Self-Storage	1mL + 4.3%	3.8	76.0	%
41	Senior Loan	22-Jun-18	6,200,000	5,667,487	Chicago, IL	Multi-Family	1mL + 4.1%	4.3	80.5	%
42	Senior Loan	29-Jun-18	4,525,000	4,404,365	Washington, DC	Mixed Use	1mL + 4.7%	4.3	73.3	%
43	Senior Loan	30-Apr-18	4,080,000	3,793,542	Wichita, KS	Multi-Family	1mL + 5.0%	4.2	69.0	%
44	Senior Loan	30-Nov-18	8,250,000	4,714,340	Decatur, GA	Office	1mL + 4.1%	4.7	56.8	%
45	Senior Loan	28-Dec-18	20,850,000	18,000,000	Austin, TX	Retail	1mL + 3.9%	4.8	71.4	%


(1)	See Note 16 Commitments and Contingencies for further discussion of unfunded commitments.


(2)	LTV as of the 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.

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 March 31, 2019 and December 31, 2018 included the following VIE assets and liabilities:



ASSETS	March 31, 2019		December 31, 2018
Cash, cash equivalents and restricted cash	$	52,348,987	$	51,330,950
Accrued interest receivable	2,591,990		2,398,905
Investment related receivable	—		32,666,128
Loans held for investment	581,878,684		550,555,503
Total Assets	$	636,819,661	$	636,951,486

LIABILITIES
Accrued interest payable	$	936,589	$	867,794
Collateralized loan obligations⁽¹⁾	504,460,023		503,978,918
Total Liabilities	$	505,396,612	$	504,846,712
Equity	131,423,050		132,104,774
Total liabilities and equity	$	636,819,661	$	636,951,486


(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 tables present certain loan and borrowing characteristics of Hunt CRE 2017-FL1, Ltd. and Hunt CRE 2018-FL2, Ltd. as of March 31, 2019 and December 31, 2018:



As of March 31, 2019
Collateral (loan investments)				Debt (notes issued)
Unpaid Principal Balance		Carrying Value		Face Value		Carrying Value
$	581,878,684	$	581,878,684	$	510,181,000	$	504,460,023

Special Purpose Entity And Variable Interest Entity Disclosure [Text Block]

A Special Purpose Entity (“SPE”) is an entity designed to fulfill a specific limited purpose of the company that organized it, and a SPE is frequently used for the purpose of securitizing, or re-securitizing, financial assets. SPEs are typically structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to certificate holders. As a consequence of their purpose and design, SPEs are typically VIEs.

As further discussed in Notes 2, 6 and 7, the Company has evaluated its investments in Multi-Family MBS and Non-Agency RMBS and has determined that they are VIEs. The Company then undertook an analysis of whether it is the primary beneficiary of any of these VIEs, and determined that it was the primary beneficiary of the FREMF 2012-KF01 Trust as of December 31, 2018 and through January 25, 2019, the repayment date of the underlying security. Accordingly, the Company consolidated the assets, liabilities, income and expenses of this trust in its financial statements through January 25, 2019 and December 31, 2018. However, the assets of the trust are restricted, and can only be used to fulfill the obligations of the trust. Additionally, the obligations of the trust do not have any recourse to the Company as the consolidator of the trust. The Company has elected the fair value option in respect of the assets and liabilities of the trusts. As noted in Notes 6 and 7, the Company sold the underlying securities of the FREMF 2011-K13 and CSMC 2014-OAK1 trusts effective May 18, 2018 and June 18, 2018, respectively, and the FREMF 2012-KF01was paid-in full effective January 25, 2019, and henceforth no longer consolidates these three trusts.

On April 30, 2018, the Company acquired Hunt CMT Equity LLC, which was comprised of commercial mortgage loans financed through collateralized loan obligations ("Hunt CRE 2017-FL1, Ltd."), a licensed commercial mortgage lender and eight loan participations. The Company determined Hunt CRE 2017-FL1, Ltd. was a VIE and that the Company was the primary beneficiary of the issuing entity, and accordingly consolidated its assets and liabilities into the Company's financial statements in accordance with GAAP. On August 20, 2018, the Company closed a collateral loan obligation ("Hunt CRE 2018-FL2, Ltd."). The Company determined Hunt CRE 2018-FL2, Ltd. was a VIE and the Company was the primary beneficiary of the issuing entity, and accordingly consolidated its assets and liabilities into the Company's financial statements in accordance with GAAP. However, the assets of each of the trusts are restricted, and can only be used to fulfill the obligations of the respective trusts. Additionally, the obligations of each of the trusts do not have any recourse to the Company as the consolidator of the trusts.



ASSETS	March 31, 2019		December 31, 2018
Cash, cash equivalents and restricted cash	$	52,348,987	$	51,330,950
Accrued interest receivable	2,591,990		2,398,905
Investment related receivable	—		32,666,128
Loans held for investment	581,878,684		550,555,503
Total Assets	$	636,819,661	$	636,951,486

LIABILITIES
Accrued interest payable	$	936,589	$	867,794
Collateralized loan obligations⁽¹⁾	504,460,023		503,978,918
Total Liabilities	$	505,396,612	$	504,846,712
Equity	131,423,050		132,104,774
Total liabilities and equity	$	636,819,661	$	636,951,486


(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.

The following tables present certain loan and borrowing characteristics of Hunt CRE 2017-FL1, Ltd. and Hunt CRE 2018-FL2, Ltd. as of March 31, 2019 and December 31, 2018:



As of March 31, 2019
Collateral (loan investments)				Debt (notes issued)
Unpaid Principal Balance		Carrying Value		Face Value		Carrying Value
$	581,878,684	$	581,878,684	$	510,181,000	$	504,460,023



As of December 31, 2018
Collateral (loan investments)				Debt (notes issued)
Unpaid Principal Balance		Carrying Value		Face Value		Carrying Value
$	550,555,503	$	550,555,503	$	510,181,000	$	503,978,918

- 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.

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