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FAIR VALUE | 3 Months Ended
--- | ---
Mar. 31, 2026
Fair Value Disclosures [Abstract] |
FAIR VALUE | FAIR VALUE The following tables summarize the valuation of the Company's assets and liabilities carried at fair value on a recurring basis within the fair value hierarchy levels as of March 31, 2026 and December 31, 2025:
|  | March 31, 2026
|  | Quoted prices in active markets for identical assets Level 1 |  | Significant other observable inputs Level 2 |  | Unobservable inputs Level 3 |  | Balance as of March 31, 2026
Assets: |  |  |  |  |  |  |  |
Mortgage servicing rights |  | $ | — |  |  | $ | — |  |  | $ | 524,001 |  |  | $ | 524,001 |
Total |  | $ | — |  |  | $ | — |  |  | $ | 524,001 |  |  | $ | 524,001 |
|  | December 31, 2025
|  | Quoted prices in active markets for identical assets Level 1 |  | Significant other observable inputs Level 2 |  | Unobservable inputs Level 3 |  | Balance as of December 31, 2025
Assets: |  |  |  |  |  |  |  |
Mortgage servicing rights |  | $ | — |  |  | $ | — |  |  | $ | 554,246 |  |  | $ | 554,246 |
Total |  | $ | — |  |  | $ | — |  |  | $ | 554,246 |  |  | $ | 554,246 |
As of March 31, 2026 and December 31, 2025, the Company had $524,001 and $554,246, respectively, in Level 3 assets. The Company's Level 3 assets are comprised of MSRs. For more detail about Level 3 assets, also see Notes 2 and 7. The following table provides quantitative information about the significant unobservable inputs used in the fair value measurement of the Company's MSRs classified as Level 3 fair value assets at March 31, 2026 and December 31, 2025:
As of March 31, 2026
Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average
Discounted cash flow |  | Constant prepayment rate |  | 7.0 - 8.7% |  | 7.9 | %
|  | Discount rate |  | 12.0 | % |  | 12.0 | %
As of December 31, 2025
Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average
Discounted cash flow |  | Constant prepayment rate |  | 7.0 - 8.6% |  | 7.9 | %
|  | Discount rate |  | 12.0 | % |  | 12.0 | %
As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate that value. The following table details the carrying amount, face amount and fair value of the financial instruments described in Note 2:
|  | March 31, 2026
|  | Level in Fair Value Hierarchy |  | Carrying Value |  | Face Amount |  | Fair Value
Assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 1 |  | $ | 21,249,107 |  |  | $ | 21,249,107 |  |  | $ | 21,249,107 |
Restricted cash |  | 1 |  | 9,372,908 |  |  | 9,372,908 |  |  | 9,372,908 |
Commercial mortgage loans held-for-investment, net |  | 3 |  | 1,108,061,062 |  |  | 1,130,899,066 |  |  | 1,112,987,038 |
Total |  |  |  | $ | 1,138,683,077 |  |  | $ | 1,161,521,081 |  |  | $ | 1,143,609,053 |
Liabilities: |  |  |  |  |  |  |  |
Collateralized loan obligations and secured financings |  | 2 |  | $ | 580,302,828 |  |  | $ | 584,983,000 |  |  | $ | 588,122,325 |
Master repurchase agreements |  | 3 |  | 313,515,142 |  |  | 315,342,045 |  |  | 313,515,142 |
Term lending agreement |  | 3 |  | 35,208,815 |  |  | 35,450,000 |  |  | 35,208,815 |
Secured Term Loan |  | 3 |  | 49,635,956 |  |  | 50,000,000 |  |  | 48,913,772 |
Total |  |  |  | $ | 978,662,741 |  |  | $ | 985,775,045 |  |  | $ | 985,760,054 |
|  | December 31, 2025
|  | Level in Fair Value Hierarchy |  | Carrying Value |  | Face Amount |  | Fair Value
Assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 1 |  | $ | 23,112,995 |  |  | $ | 23,112,995 |  |  | $ | 23,112,995 |
Restricted cash |  | 1 |  | 3,505,087 |  |  | 3,505,087 |  |  | 3,505,087 |
Commercial mortgage loans held-for-investment, net |  | 3 |  | 1,114,047,992 |  |  | 1,140,268,217 |  |  | 1,119,645,026 |
Total |  |  |  | $ | 1,140,666,074 |  |  | $ | 1,166,886,299 |  |  | $ | 1,146,263,108 |
Liabilities: |  |  |  |  |  |  |  |
Collateralized loan obligations and secured financings |  | 2 |  | $ | 748,433,484 |  |  | $ | 754,638,462 |  |  | $ | 756,051,842 |
Master repurchase agreements |  | 3 |  | 175,204,869 |  |  | 177,193,781 |  |  | 175,204,869 |
Term lending agreement |  | 3 |  | 16,738,351 |  |  | 17,000,000 |  |  | 16,738,351 |
Secured term loan |  | 3 |  | 47,719,278 |  |  | 47,750,000 |  |  | 47,746,394 |
Total |  |  |  | $ | 988,095,982 |  |  | $ | 996,582,243 |  |  | $ | 995,741,456 |
Estimates of cash and cash equivalents and restricted cash are measured using quoted prices, or Level 1 inputs. Estimates of the fair value of collateralized loan obligations and secured financings are measured using observable, quoted market prices, in active markets, or Level 2 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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