Concentrations of Credit Risk

3 Months Ended

Mar. 31, 2018

(22)	Concentrations of Credit Risk

The lending activities of Newmark create credit risk in the event that counterparties do not fulfill their contractual payment obligations. In particular, Newmark is exposed to credit risk related to the Fannie Mae DUS and Freddie Mac TAH loans (see Note 21—Financial Guarantee Liability). As of March 31, 2018, 26% of $5.4 billion of the maximum loss (see Note 21—Financial Guarantee Liability) was for properties located in California. As of December 31, 2017, 26% of $5.3 billion of the maximum loss (see Note 21—Financial Guarantee Liability) was for properties located in California.