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SECURED FINANCING AGREEMENTS | 3 Months Ended
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Mar. 31, 2026
Repurchase Agreements [Abstract] |
SECURED FINANCING AGREEMENTS | SECURED FINANCING AGREEMENTS Master Repurchase and Secured Lending Agreements On November 3, 2025, LCMT Warehouse, LLC, an indirect wholly owned subsidiary of the Company, entered into an Uncommitted Master Repurchase Agreement ("Repurchase Agreement") with JPMorgan Chase Bank, N.A.. The Repurchase Agreement provides up to $450 million to finance first mortgage loans, controlling loan participations and other commercial mortgage loan debt instruments secured by commercial real estate, as described in more detail in the Repurchase Agreement. Advances under the Repurchase Agreement accrue interest at per annum rates equal to term SOFR plus a spread to be determined on a case-by-case basis. The initial maturity date of the Repurchase Agreement is November 3, 2028, with two (2) one-year extensions at the Company's option, which may be exercised upon the satisfaction of certain conditions as described in more detail in the Repurchase Agreement. Under the Guarantee Agreement ("Guarantee Agreement") made by LFT in favor of JPMorgan Chase Bank, N.A., Borrowings under the Repurchase Agreement are on a partial (25%) recourse basis. The Repurchase Agreement contains defined mark-to-market provisions that permit the lender to issue margin calls based on credit marks. The Repurchase Agreement and Guarantee Agreement contain affirmative and negative covenants binding the Company and its subsidiaries that are customary for credit facilities of this type, including, but not limited to: minimum asset coverage ratio, minimum unencumbered assets ratio, maximum total net leverage ratio, minimum tangible net worth, and an interest charge coverage ratio. As of March 31, 2026 and December 31, 2025, we were in compliance with covenants, except for the maximum total net leverage ratio with respect to the period ended March 31, 2026. On May 14, 2026, the Company and JPMorgan Chase Bank, National Association entered into an amendment to the Guarantee Agreement which waived the maximum total net leverage ratio covenant for the period ended March 31, 2026. The Repurchase Agreement contains events of default that are customary for facilities of this type, including, but not limited to, nonpayment of principal, interest, fees and other amounts when due, violation of covenants, cross default with material indebtedness, and change of control. On December 10, 2025, LCMT NPL Warehouse, LLC, an indirect wholly owned subsidiary of the Company, entered into a loan agreement ("Loan Agreement") with Northeast Bank. The Loan Agreement provides for up to $50 million in maximum aggregate advances over a 36-month draw period to finance first mortgage loans and controlling first mortgage loan participations secured by commercial real estate. Each collateral loan financed under the Loan Agreement will be classified as a performing or non-performing loan, as described in more detail in the Loan Agreement. The Loan Agreement also provides financing for commercial REO properties, with related REO entities joining as borrowers under the Loan Agreement from time to time, as described in more detail in the Loan Agreement. The following table presents certain loan and borrowing characteristics of the Repurchase Agreement and Loan Agreement as of March 31, 2026 and December 31, 2025:
March 31, 2026
Facility |  | Collateral
Secured Funding Agreements: |  | Current Maturity |  | Final Stated Maturity(1) |  | Maximum Facility Size |  | Outstanding Balance |  | Carrying Value(2) |  | Weighted Average Funding Cost(3) |  | Outstanding Principal |  | Carrying Value
Repurchase Agreement(4) |  | November 2028 |  | November 2030 |  | $ | 450,000,000 |  |  | $ | 315,342,045 |  |  | $ | 313,515,142 |  |  | 5.7 | % |  | $ | 457,169,141 |  |  | $ | 446,737,133 |
Loan Agreement |  | April 2028 |  | April 2029 |  | 50,000,000 |  |  | 35,450,000 |  |  | 35,208,815 |  |  | 7.2 | % |  | 67,378,717 |  |  | 63,008,252 |
Subtotal |  |  |  |  |  | $ | 500,000,000 |  |  | $ | 350,792,045 |  |  | $ | 348,723,957 |  |  | 5.8 | % |  | $ | 524,547,858 |  |  | $ | 509,745,385 |
December 31, 2025
Facility |  | Collateral
Secured Funding Agreements: |  | Current Maturity |  | Final Stated Maturity(1) |  | Maximum Facility Size |  | Outstanding Balance |  | Carrying Value(2) |  | Weighted Average Funding Cost(3) |  | Outstanding Principal |  | Carrying Value
Repurchase Agreement(4) |  | November 2028 |  | November 2030 |  | $ | 450,000,000 |  |  | $ | 177,193,781 |  |  | $ | 175,204,869 |  |  | 5.6 | % |  | $ | 259,571,503 |  |  | $ | 256,531,194 |
Loan Agreement |  | December 2027 |  | December 2029 |  | 50,000,000 |  |  | 17,000,000 |  |  | 16,738,351 |  |  | 7.2 | % |  | 34,650,632 |  |  | 29,281,632 |
Subtotal |  |  |  |  |  | $ | 500,000,000 |  |  | $ | 194,193,781 |  |  | $ | 191,943,220 |  |  | 5.7 | % |  | $ | 294,222,135 |  |  | $ | 285,812,826 |
(1) Final Stated Maturity is determined based on the maximum maturity of the underlying financing agreements or corresponding loans, assuming all extension options in LFT's discretion are exercised. (2) Net of $2.1 million and 2.3 million unamortized deferred financing costs as of March 31, 2026 and December 31, 2025, respectively. (3) Weighted average funding cost for Repurchase Agreement assumes applicable 30-day term SOFR of 3.68% and 3.73% as of March 31, 2026 and December 31, 2025, respectively, and a spread of 2.01% and 1.85%, respectively. Weighted average funding cost for Loan Agreement assumes applicable 30-day term SOFR of 3.68% and 3.73% as of March 31, 2026 and December 31, 2025, respectively and a spread of 3.50%. (4) Borrowings under the Repurchase Agreement are on a partial (25%) recourse basis. This Agreement contains defined mark-to-market provisions that permit the lender to issue margin calls based on credit marks.

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- Definition Repurchase Agreements [Abstract] + References No definition available. + Details
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- Definition The entire disclosure for repurchase agreements (also known as repos), resale agreements (also known as reverse repurchase agreements or reverse repos), securities borrowed transactions, and securities loaned transactions. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481420/860-30-50-10 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 860 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/860/tableOfContent + Details
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