Commercial Mortgage and Other Loans Receivable

3 Months Ended

Sep. 30, 2019

Commercial Mortgage and Other Loans Receivable

Commercial Mortgage and Other Loans Receivable

4.           Commercial Mortgage and Other Loans Receivable

We had $8,878,000 of commercial loan assets as of September 30, 2019, of which $3,378,000 are mortgage loans secured by real property in certain markets throughout the United States. Mortgage loan activity for the three months ended September 30, 2019 is as follows:

					Provision
	Principal		Deferred		for Loan		Carrying
Mortgage Loans Receivable	Balance		Fees		Loss		Value
	(Amounts in thousands)
Balance at July 1, 2019	$	4,195	$	(81)	$	—	$	4,114
Additions during the period:
Amortization of deferred fees		—		33		—		33
Deductions during the period:
Collections of principal		(769)		—		—		(769)
Balance at September 30,  2019	$	3,426	$	(48)	$	—	$	3,378

On July 1, 2019, a commercial mortgage loan in the amount of $1,400,000 defaulted.  We do not believe the value of this loan is impaired, as the appraised value of the underlying property exceeds the outstanding balance of the mortgage.  We are currently pursuing foreclosure and sale of this property to settle the outstanding debt.

Commercial loan/credit facility activity for the period is as follows (amounts in thousands):

	Carrying
Other Loans Receivable	Value
Balance at July 1, 2019	$	2,750
Additions during the period:
Borrowings		2,750
Balance at September 30,  2019	$	5,500

During the fourth quarter of our fiscal year 2019 we originated commercial loans in an aggregate principal amount of $2,750,000 to an MCA originator.  During the first three months of our fiscal year 2020 we loaned an additional $2,750,000 to the same MCA originator with the same terms as the loans issued in the fourth quarter of our fiscal year 2019.  These commercial loans have two-year terms and interest is charged at a rate of 17.0% per annum on the outstanding balances.