A mortgage fund or mortgage pool is typically constructed as a Limited Liability Company which sells membership interests in the company. Investors into the fund receive revenue from the returns of the fund’s loan activities. Below are the most common type of transactions that affect mortgage pool funds for which accounting support is required.
Name | Description | Example |
Investments - Loan Paydown/ Payoff | Paydowns and/or payoffs on loans that the fund has originated | |
Investment Purchase - Loans | Loans originated by the fund | |
Investment Sale - Loans sold to Third Party / Loan Assignments | Assignment of loans originated by the fund to a third party | |
Investor Contributions (new and additional funds) | New or additional investor contributions into the fund |
|
Investor Deployments | The deployment of investor contributions to the fund’s equity | |
Investor Redemptions | The withdrawal of investor capital from the fund | |
Loan Fees Receivable - Origination, Extension and Modification | Loan origination and/or extension fees owed to the fund | |
Loan Payments - Interest, Principal, Late fees, servicing and others | Loan payments received from borrowers | |
Line Of Credit Advance, Paydown and Interest | Line of Credit borrowings received from the bank (or intercompany entity) based on prior commitment to make loans to the fund up to a specified maximum, usually for one year, and any payments made on the line. | |
Preferred Dividend Income Payments | Dividend payments to the preferred equity investors of a REIT | |
Professional fees - Accounting, Tax and Audit | Costs incurred in employing accounting services including bookkeeping, tax preparation, and auditing | |
Professional fees - Legal | Costs incurred in availing legal services |
If you cannot find what you are looking for, please refer to our Master List for additional transactions and sample support available here.