Loans include loans held for investment that are accounted for at amortized cost net of allowance for credit losses and loans held for sale that are accounted for at the lower of cost or market net of a valuation allowance. The classification for a loan is based on management’s strategy for the loan.

As of June 30, 2025 and December 31, 2024, the Company had direct reserves on outstanding principal for loans held for investment of $11.9 million and $13.3 million, respectively.

The Company offers mortgage notes receivable to be sold in real estate capital markets. The Company does not originate loans with the intent to designate them as loans held for sale. Nevertheless, as of June 30, 2025, the Company had designated seven loans as held for sale. These seven loans had a gross outstanding principal balance of $9.4 million and an aggregate valuation allowance of $0.5 million based on the lower of cost or market value. As of December 31, 2024, the Company had designated eleven loans as held for sale. These eleven loans had a gross outstanding principal balance of $15.9 million and an aggregate valuation allowance of $4.9 million based on the lower of cost or market value. As of both June 30, 2025 and December 31, 2024, such loans were on non-accrual status and pending foreclosure.


	Balance as of December 31, 2024		Transfers in		Change in valuation allowance		Transfers out, net		Balance as of June 30, 2025
	(in thousands)
Loans held for sale, net	$	10,970	$	—	$	1,047	$	(3,187)	$	8,830
Total loans held for sale, net	$	10,970	$	—	$	1,047	$	(3,187)	$	8,830

As of June 30, 2025 and December 31, 2024, loans held for investment on non-accrual status had an outstanding principal balance of $119.6 million and $87.0 million, respectively. The non-accrual loans are inclusive of loans pending foreclosure and loans held for sale. The below table summarizes the Company’s loan portfolio by the past due status:


	Loans held for investment
(in thousands)	Current		30-59 days past due		60-89 days past due		Greater than 90 days		Total
As of June 30, 2025	$	257,780	$	6,065	$	1,295	$	119,599	$	384,739
As of March 31, 2025	$	220,538	$	37,617	$	2,114	$	107,591	$	367,860
As of December 31, 2024	$	223,513	$	49,460	$	16,936	$	87,082	$	376,991

As of June 30, 2025, the Company’s mortgage loan portfolio includes loans with an outstanding principal balance amount up to $38.3 million with stated interest rates ranging from 6.5% to 15.0%. The default interest rate is generally 18.0%, but could be more or less depending on state usury laws and other considerations deemed relevant by the Company.

As of June 30, 2025 and December 31, 2024, the Company had one borrower representing 13.1% and 14.0% of the outstanding mortgage loan portfolio, or $50.4 million and $55.0 million, respectively.


	June 30, 2025				December 31, 2024
(in thousands)	Carrying Value		% of Portfolio		Carrying Value		% of Portfolio
New England	$	173,756	45.2	%	$	179,421	47.6	%
Mid-Atlantic	46,288		12.0	%	42,304		11.2	%
South	164,695		42.8	%	151,165		40.1	%
West	—		—	%	4,101		1.1	%
Total	$	384,739	100.0	%	$	376,991	100.0	%

The following tables allocate the carrying value of the Company’s loan portfolio based on credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated:


	June 30, 2025		Year Originated (1)
FICO Score (2)(in thousands)	Carrying Value		2025		2024		2023		2022		2021		Prior
Loans held for investment:
Under 500	$	300	$	—	$	300	$	—	$	—	$	—	$	—
501-550	2,860		—		—		—		—		1,060		1,800
551-600	1,096		—		1,096		—		—		—		—
601-650	26,474		2,336		7,066		1,163		1,795		7,447		6,667
651-700	58,286		1,783		3,609		6,861		12,799		31,891		1,343
701-750	152,735		18,443		6,696		38,858		15,625		72,138		975
751-800	134,228		24,943		23,847		39,735		24,841		20,862		—
801-850	8,760		2,534		—		1,541		4,685		—		—
Total	$	384,739	$	50,039	$	42,614	$	88,158	$	59,745	$	133,398	$	10,785


	December 31, 2024		Year Originated (1)
FICO Score (2)(in thousands)	Carrying Value		2024		2023		2022		2021		2020		Prior
Loans held for investment:
Under 500	$	140	$	140	$	—	$	—	$	—	$	—	$	—
501-550	2,860		—		—		—		1,060		—		1,800
551-600	7,094		1,222		290		2,170		1,816		636		960
601-650	28,779		8,432		3,347		1,798		7,411		6,149		1,642
651-700	35,711		4,250		7,177		10,302		12,079		660		1,243
701-750	159,575		6,275		40,459		11,982		97,980		1,023		1,856
751-800	124,599		26,465		32,016		36,280		28,427		1,411		—
801-850	18,233		—		415		17,818		—		—		—
Total	$	376,991	$	46,784	$	83,704	$	80,350	$	148,773	$	9,879	$	7,501


(in thousands)	Three Months Ended June 30, 2025
	Carrying Value		% of Total Carrying Value of Loans held for investment, net		Financial Effect
Principal modification, with no term extension	$	14,042	3.5	%	Unpaid interest/taxes/charges added to principal balance
Term extension	$	25,559	6.4	%	A weighted average of 7.7 months were added to the life of the loans


(in thousands)	Three Months Ended June 30, 2024
	Carrying Value		% of Total Carrying Value of Loans held for investment, net		Financial Effect
Principal modification, with no term extension	$	3,408	0.7	%	Unpaid interest/taxes/charges added to principal balance
Term extension	$	61,008	12.2	%	A weighted average of 12.0 months were added to the life of the loans


(in thousands)	Six Months Ended June 30, 2025
	Carrying Value		% of Total Carrying Value of Loans held for investment, net		Financial Effect
Principal modification, with no term extension	$	14,042	3.5	%	Unpaid interest/taxes/charges added to principal balance
Term extension	$	47,702	11.9	%	A weighted average of 7.4 months were added to the life of the loans


	Six Months Ended June 30, 2024
	Carrying Value	% of Total Carrying Value of Loans held for investment, net		Financial Effect
Principal modification, with no term extension	21,373	4.3	%	Unpaid interest/taxes/charges added to principal balance
Term extension	104,452	20.9	%	A weighted average of 10.5 months were added to the life of the loans

As of June 30, 2025, the Company had commitments to lend additional amounts totaling approximately $7.7 million to borrowers experiencing financial difficulty. During the six months ended June 30, 2025, the Company modified the interest rate on five loans with an outstanding principal balance of $18.9 million. The change in the rate was due to taking the loan off default rate.

The table below presents the performance of loans that have been modified in the last 12 months to borrowers experiencing financial difficulty. Of the loans that were modified in the last 12 months to borrowers experiencing financial difficulty, none have defaulted during the period.


	As of June 30, 2025
(in thousands)	Current		90-119 days past due		120+ days past due		Total
Principal modification, with no term extension	$	15,268	$	—	$	—	$	15,268
Term extension	61,692		12,895		—		74,587

As of June 30, 2025 and December 31, 2024, the Company had $2.6 million and $2.0 million. respectively, of deferred loan fee revenue relating to loans held for investment. There were no such deferred fees for loans held for sale as of June 30, 2025 and December 31, 2024.


	Balance as of March 31, 2025		Provision for (recovery of) credit losses related to loans		Reclassification of loans held for sale to loans held for investment		Charge-offs		Balance as of June 30, 2025

	(in thousands)
Loans held for investment	$	18,122	$	(3,256)	$	3,292	$	(513)	$	17,645
Interest and fees receivable	2,981		93		—		—		3,074
Due from borrower	1,956		(55)		—		(225)		1,676
Unfunded commitments	864		165		—		—		1,029
Real estate owned	—		3,978		—		(3,978)		—
Total allowance for credit losses	$	23,923	$	925	$	3,292	$	(4,716)	$	23,424


	Balance as of December 31, 2024		Provision for (recovery of) credit losses related to loans		Reclassification of loans held for sale to loans held for investment		Charge-offs		Balance as of June 30, 2025

	(in thousands)
Loans held for investment	$	18,470	$	(2,983)	$	3,292	$	(1,134)	$	17,645
Interest and fees receivable	3,133		(59)		—		—		3,074
Due from borrower	1,135		936		—		(395)		1,676
Unfunded commitments	924		105		—		—		1,029
Real estate owned	—		3,978		—		(3,978)		—
Total allowance for credit losses	$	23,662	$	1,977	$	3,292	$	(5,507)	$	23,424

The following table summarizes the activity in the allowance for credit losses by geographic location with respect to loans held for investment for the three months ended June 30, 2025:


	Allowance for credit losses as of March 31, 2025		Provision for (recovery of) credit losses related to loans		Reclassification of loans held for sale to loans held for investment		Charge-offs		Allowance for credit losses as of June 30, 2025
	(in thousands)
New England	$	12,878	$	(5,704)	$	3,292	$	—	$	10,466
Mid-Atlantic	1,864		2,658		—		(466)		4,056
South	1,460		(123)		—		(47)		1,290
West	1,920		(87)		—		—		1,833
Total	$	18,122	$	(3,256)	$	3,292	$	(513)	$	17,645

The following table summarizes the activity in the allowance for credit losses by geographic location with respect to loans held for investment for the six months ended June 30, 2025:


	Allowance for credit losses as of December 31, 2024		Provision for (recovery of) credit losses related to loans		Reclassification of loans held for sale to loans held for investment		Charge-offs		Allowance for credit losses as of June 30, 2025
(in thousands)
New England	$	12,844	$	(5,670)	$	3,292	$	—	$	10,466
Mid-Atlantic	1,857		2,665		—		(466)		4,056
South	1,802		156		—		(668)		1,290
West	1,967		(134)		—		—		1,833
Total	$	18,470	$	(2,983)	$	3,292	$	(1,134)	$	17,645


	2025		2024		2023		2022		2021		Prior		Total
(in thousands)
Current period charge-offs	$	—	$	—	$	—	$	—	$	513	$	—	$	513
Total	$	—	$	—	$	—	$	—	$	513	$	—	$	513


	2025		2024		2023		2022		2021		Prior		Total
(in thousands)
Current period charge-offs	$	—	$	134	$	—	$	487	$	513	$	—	$	1,134
Total	$	—	$	134	$	—	$	487	$	513	$	—	$	1,134