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COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Summary of Commercial Mortgage Loans
The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of September 30, 2022 and December 31, 2021:
Weighted Average
Loan TypeUnpaid Principal BalanceCarrying ValueLoan CountFloating Rate Loan %
Coupon(1)
Term
 (Years)(2)
September 30, 2022
Loans held-for-investment
Senior secured loans(3)
$1,045,929,099 $1,045,953,691 70 100.0 %6.0 %3.6
Allowance for loan lossesN/A(1,872,937)
Loans held-for-investment, net of allowance for loan losses1,045,929,099 1,044,080,754 70 100.0 %6.0 %3.6

Weighted Average
Loan TypeUnpaid Principal BalanceCarrying ValueLoan CountFloating Rate Loan %
Coupon(1)
Term
 (Years)(2)
December 31, 2021
Loans held-for-investment
Senior secured loans(3)
$1,001,869,994 $1,001,825,294 66 100.0 %3.9 %3.7
1,001,869,994 1,001,825,294 66 100.0 %3.9 %3.7

(1)    Weighted average coupon assumes applicable one-month LIBOR of 2.66% and 0.10% and 30-day Term Secured Overnight Financing Rate ("SOFR") of 2.60% and 0.00% as of September 30, 2022 and December 31, 2021, respectively, inclusive of weighted average interest rate floors of 0.26% and 0.49%, respectively. As of September 30, 2022, 83.5% of the investments by total investment exposure earned a floating rate indexed to
one-month USD LIBOR and 16.5% of the investments by total investment exposure earned a floating rate indexed to 30-day Term SOFR. As of December 31, 2021, 100% of the investments by total investment exposure earned a floating rate indexed to one-month LIBOR
(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 September 30, 2022, $971,905,743 of the outstanding senior secured loans were held in VIEs and $73,696,034 of the outstanding senior secured loans were held outside of VIEs. As of December 31, 2021, $974,025,294 of the outstanding senior secured loans were held in VIEs and $27,800,000 of the outstanding senior secured loans were held outside VIEs.

Activity: For the nine months ended September 30, 2022, the loan portfolio activity was as follows:
Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2021$1,001,825,294 
Purchases and fundings269,596,827 
Principal payments(225,537,724)
Accretion of purchase discount125,098 
Amortization of purchase premium(55,804)
Provision for loan losses(1,872,937)
Balance at September 30, 2022
$1,044,080,754 
Summary of Loan Risk Ratings The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of September 30, 2022 and December 31, 2021:
September 30, 2022
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal20222021201920182017
1— $— — — — — — 
223 302,083,221 24,084,750 273,552,471 — 4,446,000 — 
345 720,837,210 108,478,640 533,959,935 42,077,193 16,672,623 19,673,411 
41 12,750,000 — 12,750,000 — — — 
51 10,258,668 — — — 8,385,731 — 
70 $1,045,929,099 132,563,390 820,262,406 42,077,193 29,504,354 19,673,411 

December 31, 2021
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal20212020201920182017
1— $— — — — — — 
240 634,438,386 596,052,235 4,920,000 33,466,151 — — 
323 342,350,405 201,402,134 6,870,561 70,566,216 43,777,862 19,688,932 
43 25,081,203 — 8,037,399 5,295,605 11,748,199 — 
5— — — — — — — 
66 $1,001,869,994 797,454,369 19,827,960 109,327,972 55,526,061 19,688,932 
Schedule of 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 as of September 30, 2022 and December 31, 2021:
Loans Held-for-Investment
September 30, 2022December 31, 2021
Geography
South48.2 %46.2 %
Southwest23.4 27.5 
Mid-Atlantic12.1 7.9 
West9.1 13.9 
Midwest7.2 4.5 
Total100.0 %100.0 %
September 30, 2022
December 31, 2021
Collateral Property Type
Multifamily95.1 %92.0 %
Self-Storage1.9 5.2 
Retail1.6 1.7 
Office0.8 1.1 
Seniors Housing and Healthcare0.6 — 
Total100.0 %100.0 %
Schedule of Allowance for Loan Losses The following table presents the changes for the three and nine months ended September 30, 2022 and September 30, 2021 in the provision for credit losses on loans held-for-investment:
Three months endedNine months ended
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Allowance for loan losses at beginning of period351,914 — — — 
Provision for loan losses1,521,023 — 1,872,937 — 
Allowance for loan losses at end of period1,872,937 — 1,872,937 —