The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of March 31, 2020 and December 31, 2019:


						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon⁽¹⁾		Remaining Term (Years)⁽²⁾
March 31, 2020
Loans held-for-investment
Senior secured loans⁽³⁾	$	639,366,297	$	639,366,297	51	100.0	%	5.3	%	3.7
	639,366,297		639,366,297		51	100.0	%	5.3	%	3.7


						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon⁽¹⁾		Remaining Term (Years)⁽²⁾
December 31, 2019
Loans held-for-investment
Senior secured loans⁽³⁾	$	635,260,420	$	635,260,420	51	100.0	%	5.4	%	3.8
	635,260,420		635,260,420		51	100.0	%	5.4	%	3.8

(1) Weighted average coupon assumes applicable one-month LIBOR of 1.38% and 1.70% as of March 31, 2020 and December 31, 2019, respectively, inclusive of weighted average floors of 1.60% and 1.56%, respectively.

(2) Weighted average remaining term assumes all extension options are exercised by the borrower, provided, however, that our loans may be repaid prior to such date.

(3) As of March 31, 2020, $627,313,574 of the outstanding senior secured loans were held in VIEs and $12,052,723 of the outstanding senior secured are held outside VIEs. As of December 31, 2019, $629,157,956 of the outstanding senior secured loans were held in VIEs and $6,102,464 of the outstanding senior secured loans were held outside VIEs.

Activity: For the three months ended March 31, 2020, the loan portfolio activity was as follows:


	Commercial Mortgage Loans Held-for-Investment



Balance at December 31, 2019	$	635,260,420
Purchases and fundings	38,613,756
Proceeds from principal payments	(34,507,879)
Balance at March 31, 2020	$	639,366,297

Loan Risk Ratings: As further described in Note 2, the Company evaluates the commercial mortgage loan portfolio on a quarterly basis and assigns a risk rating based on a variety of factors. The following tables present the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings utilized as of March 31, 2020 and December 31, 2019:


	March 31, 2020						December 31, 2019
Risk Rating	Number of Loans	Unpaid Principal Balance		Net Carrying Value	Number of Loans	Unpaid Principal Balance	Net Carrying Value
1	—	$	—	—	1	9,000,000	9,000,000
2	7	51,807,628		51,807,628	9	87,176,088	87,176,088
3	35	451,233,186		451,233,186	37	487,513,256	487,513,256
4	9	136,325,483		136,325,483	4	51,571,076	51,571,076
5	—	—		—	—	—	—
	51	$	639,366,297	639,366,297	51	635,260,420	635,260,420

As of March 31, 2020, the average risk rating of the commercial mortgage loan portfolio was 2.9 (Moderate Risk), weighted by investment carrying value, with 78.7% of commercial loans held-for-investment rated 3 (Moderate Risk) or better by the Company's Manager.

As of December 31, 2019, the average risk rating of the commercial mortgage loan portfolio was 2.8 (Moderate Risk), weighted by investment carrying value, with 91.9% of commercial loans held-for-invested rated 3 (Moderate Risk) or better by the Company's Manager.

The increase in the average risk rating during 2020 is primarily the result of downgrade of several non multi-family loans to a risk rating of "4" to reflect higher risk in loans collateralized by retail and office properties that are particularly negatively impacted by the COVID-19 pandemic.

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, 2020 and December 31, 2019:


	March 31, 2020		December 31, 2019
Geography
Southwest	34.4	%	38.7	%
South	32.4		27.5
Midwest	16.2		16.9
Mid-Atlantic	8.5		8.4
Various	5.5		5.5
West	3.0		3.0
Total	100.0	%	100.0	%


	March 31, 2020⁽¹⁾		December 31, 2019
Collateral Property Type
Multi-Family	90.3	%	93.9	%
Retail	5.5		2.7
Office	2.8		2.0
Mixed-Use	0.7		0.7
Self-Storage	0.7		0.7
Total	100.0	%	100.0	%

(1) During the quarter ended March 31, 2020, two multi-family loans were reclassified to retail and office, respectively, due to the primary nature of the underlying properties. The reclassification represents a reduction in multi-family of 3.6% and an increase to retail and office of 2.8% and 0.8%, respectively, to the percentages presented for December 31, 2019.

We did not have any impaired loans, nonaccrual loans, or loans in maturity default as of March 31, 2020 or December 31, 2019.