Mortgage Pools

This document outlines the most common transactions affecting mortgage pool funds.

Updated over a week ago

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

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.

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