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USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES
 9 Months Ended
Sep. 30, 2020
Hunt CRE 2017-FL1, Ltd. and Hunt CRE 2018-FL2, Ltd.  
Variable Interest Entity [Line Items]  
USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES
As further discussed in Notes 2 and 4, the Company evaluated its investment in Multi-Family MBS and determined that it was a VIE. The Company determined that it was the primary beneficiary of the FREMF 2012-KF01 Trust 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. However, the assets of the trust were restricted, and could only have been used to fulfill the obligations of the trust. Additionally, the obligations of the trust did not have any recourse to the Company as the consolidator of the trust. The Company had elected the fair value option in respect of the assets and liabilities of the trust. As noted in Note 4, the FREMF 2012-KF01 was paid-in full effective January 25, 2019, and henceforth the Company no longer consolidates this trust.

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. At September 30, 2020, the Company continued to determine it was the primary beneficiary of Hunt CRE 2017-FL1, Ltd. and Hunt CRE 2018-FL2, Ltd. based on its obligations to absorb losses derived from ownership of preferred shares.

The CLOs we consolidate are subject to collateralization and coverage tests that are customary for these types of securitizations. As of September 30, 2020 and December 31, 2019 all such collateralization and coverage tests in the CLOs we consolidate were met. If the duration of the COVID-19 pandemic continues to prolong, its impact on our borrowers and their tenants could result in a sustained deterioration in a material amount of assets and may impact these tests.

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, 2020 and December 31, 2019 included the following VIE assets and liabilities:

ASSETSSeptember 30, 2020December 31, 2019
Cash, cash equivalents and restricted cash$14,548,916 $5,069,715 
Accrued interest receivable(1)
2,203,444 2,313,818 
Investment related receivable(2)
9,166,516 — 
Loans held for investment582,771,880 629,157,956 
Total Assets$608,690,756 $636,541,489 
LIABILITIES
Accrued interest payable$338,656 $732,173 
Collateralized loan obligations(3)
479,704,710 505,930,065 
Total Liabilities$480,043,366 $506,662,238 
Equity128,647,390 129,879,251 
Total liabilities and equity$608,690,756 $636,541,489 
(1)    Accrued interest receivable includes $133,723 of interest and exit fees receivable, which were settled subsequent to September 30, 2020.
(2)    Investment related receivable includes one loan in Hunt CRE 2017-FL1 with a principal amount due of $9,166,516 which paid off after the September remittance and was received in October. This repayment will be used to pay down the Class A Notes of the CLO.
(3)     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 September 30, 2020 and December 31, 2019:


As of September 30, 2020
Collateralized Loan ObligationsCountPrincipal Value
Carrying Value(1)
Wtd. Avg. Yield
Collateral (loan investments)44$582,771,880 $582,771,880 
L + 3.53%
Financings provided2482,440,642 479,704,710 
L + 1.43%

As of December 31, 2019
Collateralized Loan ObligationsCountPrincipal Value
Carrying Value(1)
Wtd. Avg. Yield
Collateral (loan investments)51$629,157,956 $629,157,956 
L + 3.60%
Financing provided2510,181,000 505,930,065 
L + 1.40%
(1)     The carrying value for Hunt CRE 2017-FL1, Ltd. is net of discount of $472,055 and $1,344,923 for September 30, 2020 and December 31, 2019, respectively and the carrying value for Hunt CRE 2018-FL2, Ltd. is net of debt issuance costs of $2,263,877 and $2,906,012 for September 30, 2020 and December 31, 2019, respectively.

The statement of operations related to Hunt CRE 2017-FL1, Ltd. and Hunt CRE 2018-FL2, Ltd. for the three and nine months ended September 30, 2020 and September 30, 2019 include the following income and expense items:
Statements of OperationsThree Months Ended September 30, 2020Three Months Ended September 30, 2019
Interest income$7,900,183 $9,717,060 
Interest expense(2,495,996)(5,244,001)
$5,404,187 $4,473,059 
General and administrative fees(201,459)(256,269)
Net income$5,202,728 $4,216,790 

Statements of OperationsNine Months Ended September 30, 2020Nine Months Ended September 30, 2019
Interest income$25,225,152 $29,695,218 
Interest expense(9,649,523)(16,147,178)
$15,575,629 $13,548,040 
General and administrative fees(497,088)(538,028)
Net income (loss)$15,078,541 $13,010,012