Since day one, we've been dedicated to industry-leading transparency into our business processes and performance. Take a look at the below updates for some new insights into our book of business, as well as what we're seeing from a macroeconomic standpoint, and how we're changing our business to reflect that.
In January, we originated 50 loans, totaling more than $12.3 million in origination volume, a reflection of seasonality and other factors outlined below. While February is not yet closed out, we have already seen a 34% increase in origination volume.
Additionally, as of February 1, 8.08% of our total loan count was 30 days or more late on payments.
As you can see above, we have started showing you both the total count of delinquent loans, as well as what that translates into in terms of total dollars. This is to remain transparent on our business performance, but also to better align with the Mortgage Bankers Association's (MBA) standard, published in its National Delinquency Survey (NDS), which is based on loan count. Additionally, the NDS states:
The data we share in our Performance Reports is not seasonally adjusted, but we feel it's pertinent to explain seasonal trends when applicable.
The economic volatility affecting the real estate market is not only happening in the U.S. but globally. The performance of the stock market, labor market, and consumer price index all reflect the headlines about the national and global economy. Because of that, we're continuing to see the overall real estate market cool down from the record-breaking rates, list prices, and sale prices seen earlier in 2022, as well as 2021. And while we're all realizing that the market is shifting to a more "normal" state (similar to pre-pandemic), that doesn't mean there aren't concerns with rate, supply, and demand. Check out our blog post on the housing market's return to "normal."
Other things affecting the performance of our book include:
As always, we're actively working with our borrowers to keep their projects moving forward, on track, and current on payments. We have recently restructured the lending side of our business in order to ensure portfolio performance is our top priority.
Learn more about how we handle loans that are 30+ days late in an episode of Investor Insights here.
We believe it's best to support our borrowers to exit their loans as successfully as possible — even if delinquent or in the foreclosure process — in order to preserve principal and speed to liquidity.
We're also continuing to build a strong forward pipeline even in a somewhat uncertain real estate market, remaining selective on markets to enter and what projects we fund by putting an even stronger focus on appraisals and historic performance. The Fund That Flip operational and business strategy is designed around utilizing a diverse capital stack so we're always positioned to weather market volatility and come out ahead.
If you have any questions or would like to provide feedback, email us at investorrelations@fundthatflip.com. We will respond as soon as possible.
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