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.
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
The deployment of investor contributions to the fund’s equity
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.