Finance Receivables - Special Product (New Neighbor Guaranty program)

12 Months Ended

Dec. 31, 2016

Special Product (New Neighbor Guaranty Program) [Member]

Accounts Notes And Loans Receivable [Line Items]

Note 3. Finance Receivables – Special Product (New Neighbor Guaranty program)

The Company typically funds amounts equal to or less than the “Super Lien Amount”. During 2012 the Company began offering Associations an alternative product under the New Neighbor Guaranty program where the Company funds amounts in excess of the “Super Lien Amount”.

Under this special product, the Company purchases substantially all of the outstanding past due assessments due from delinquent property owners, in addition to all interest, late fees and other charges in exchange for the Company’s commitment to pay monthly assessments on a going forward basis up to 48 months.

As of December 31, 2016, maximum future contingent payments under these arrangements was approximately $602,000. The Company had mitigated the credit risk for these transactions by insuring the payment of a portion of uncollected assessments paid by the Company during 2016 and 2015, (See Note 4 below).

Finance receivables at December 31, 2016 and 2015 related to this special product were approximately $492,000 and $716,000, respectively, under agreements with 33 associations covering 152 units at December 31, 2016 and 32 associations covering 175 units at December 31, 2015.

Delinquent assessments and accrued charges under these arrangements as of December 31, are as follows:

	2016		2015
Delinquent assessments	$	1,636,000	$	2,018,000
Accrued interest and late fees		1,045,000		1,088,000

Recoveries on the collection of assessments in excess of the Company’s cost during 2016 and 2015 approximated $143,000 and $346,000, respectively.