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H.S. freshman Avg
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New words:
AWC, begin, behalf, bilateral, bringing, cap, challenging, cycle, de, delever, eleven, exempt, feature, foregoing, fourth, instantaneously, lead, lending, LP, merit, month, nineteen, Park, paydown, percentage, policy, preservation, preserve, progressing, promote, public, recapitalize, recapture, recaptured, refinance, relief, sixteen, strategy, sustain, Terrossa, thirty, waive
Removed:
agent, alleged, AMI, announced, apply, ARI, broad, commenced, conservation, converting, court, deducting, detailed, developed, disclose, discovery, efficiency, effort, emerged, energy, enhanced, exercise, expand, extensive, FASB, finalized, frequently, governed, guidance, Homestead, identification, incurring, index, indexed, lawsuit, motion, mutual, newer, nonperformance, offering, pandemic, plaintiff, pledge, practice, prejudice, principle, Proportional, pursue, reached, reclassified, recover, regulation, remove, replenishable, servicer, standing, Stay, subsidiary, swap, troubled, VIE, Village, Vintage, water
Financial report summary
?Risks
- The COVID-19 pandemic caused severe disruptions to the U.S. and global economies and to our business and may continue to have an adverse impact on our business, results of operations and financial condition.
- An economic slowdown, a lengthy or severe recession, or declining real estate values could harm our operations.
- Prolonged disruptions in the financial markets could affect our ability to obtain financing on reasonable terms and have other adverse effects on us and the market price of our common stock.
- Major bank failure or sustained financial market illiquidity could adversely affect our business, financial condition and results of operations.
- Increases in loan loss reserves and other impairments are likely if economic conditions deteriorate.
- Loan repayments are less likely in a volatile market environment.
- We may be unable to invest excess capital on acceptable terms, or at all, which would adversely affect our operating results.
- A declining portfolio could adversely affect the returns from our investments.
- Changes in interest rates could have an adverse effect on our net investment income.
- The discontinuation of LIBOR and changes in banks’ inter-bank lending rate reporting practices may adversely affect the value of the financial obligations to be held or issued by us.
- We may not be able to hire and retain qualified loan originators or grow and maintain our relationships with key customers, and if we are unable to do so, our ability to implement our business and growth strategies could be limited.
- The real estate investment business is highly competitive. Our success depends on our ability to compete with other providers of capital for real estate investments.
- We may not achieve our targeted rate of return on our investments.
- Our due diligence may not reveal all of a borrower’s liabilities and may not reveal other weaknesses in its business.
- Preferred equity investments involve a greater risk of loss than traditional mortgage financing.
- We invest in mezzanine loans which are subject to a greater risk of loss than loans secured by a first priority mortgage lien.
- Volatility in values of multifamily and commercial properties may adversely affect our loans and investments.
- Many of our commercial real estate loans are funded with interest reserves and our borrowers may be unable to replenish those interest and other reserves once they run out.
- We may not have control over certain of our loans and investments.
- Properties may fail to perform as expected.
- The loss of, or changes in, our Agency Business’s relationships with the GSEs, U.S. Department of HUD and institutional investors would adversely affect our ability to originate commercial real estate loans through GSE and HUD programs, which would materially and adversely affect us.
- Our Agency Business is subject to risk of loss in connection with defaults on loans sold under the Fannie Mae DUS program that could materially and adversely affect our results of operations and liquidity.
- We satisfy most of our restricted liquidity requirements with Fannie Mae with a letter of credit issued by one of our lenders. If the letter of credit was not renewed for any reason, we could suffer a reduction in our cash flow from operations, or we may breach our obligations to Fannie Mae, which would have a material adverse effect on our Agency Business.
- If we fail to act proactively with delinquent borrowers in an effort to avoid a default, the number of delinquent loans could increase, which could have a material adverse effect on us.
- A reduction in the fees paid for servicing the loans of our Agency Business or an increase in loan or security interest rates by investors could materially and adversely affect our results of operations and liquidity.
- A significant portion of our Agency Business’s revenue is derived from loan servicing fees and declines in, or terminations of, servicing engagements, or breaches of servicing agreements, could have a material adverse effect on us.
- The Agency Business is subject to the risk of failed loan deliveries, and even after a successful closing and delivery, we may be required to repurchase the loan or to indemnify the investor if there is a breach of a representation or warranty made by the Agency Business in connection with the sale of the loan through a GSE or HUD program, any of which could have a material adverse effect on us.
- For most loans we service under the Fannie Mae and HUD programs, we are required to advance payments due to investors if the borrower is delinquent in making such payments, which requirement could adversely impact our liquidity and harm our results of operations.
- We may not be able to access financing sources on favorable terms, or at all, which could adversely affect our ability to execute our business plan.
- Our credit and repurchase facilities and unsecured debt (senior and convertible notes) contain restrictive covenants relating to our operations.
- We may not be able to obtain the level of leverage necessary to optimize our return on investment.
- The debt facilities that we use to finance our investments may require us to provide additional collateral.
- We utilize a significant amount of debt to finance our portfolio, which may subject us to an increased risk of loss, adversely affecting the return on our investments and reducing cash available for distribution.
- We guarantee some of the leverage and contingent obligations of our subsidiaries.
- We may not be able to acquire suitable investments for a CLO issuance, or we may not be able to issue CLOs on attractive terms, or at all, which may require us to utilize more costly financing for our investments.
- The use of CLO financings with over-collateralization and interest coverage requirements may have a negative impact on our cash flows.
- We may not be able to find suitable replacement investments for CLO reinvestment periods.
- We may be required to repurchase loans that we have sold or to indemnify holders of our CLOs.
- Through our Private Label platform we engage in securitization transactions relating to real estate mortgage loans that expose us to potentially material risks.
- The securitization market is subject to an evolving regulatory environment that may affect certain aspects of these activities.
- Our loans and investments may be subject to fluctuations in interest rates which may not be adequately protected, or protected at all, by our hedging strategies.
- Hedging instruments may not be guaranteed by an exchange or its clearing house and involve risks and costs.
- We enter into derivative contracts that could expose us to contingent liabilities in the future.
- Our investments financed in foreign locations may involve significant risks.
- If our Agency Business fails to comply with the regulations and program requirements of the GSEs and HUD, we may lose our approved lender status with these entities and fail to gain additional approvals or licenses for our business. We are also subject to changes in laws, regulations and existing GSE and HUD program requirements, including potential increases in reserve and risk retention requirements that could increase our costs and affect the way we conduct the Agency Business, which could materially and adversely affect our financial results.
- Failure to maintain certain qualifications and licenses could adversely affect our results of operations.
- Failure to maintain an exemption from regulation as an investment company under the Investment Company Act would adversely affect our results of operations.
- One of our subsidiaries is required to register under the Investment Advisors Act, and is subject to regulation under that Act.
- The effects of government regulation could negatively impact the market value of loans.
- A change to the conservatorship of Fannie Mae and Freddie Mac and related actions, along with any changes in laws and regulations affecting the relationship between Fannie Mae and Freddie Mac and the U.S. federal government, could materially and adversely affect our Agency Business.
- If we are unable to safeguard against cybersecurity breaches and cyberattacks with respect to our information systems, our business may be adversely affected.
- ACM and our chief executive officer have significant influence over our policies and strategies.
- Our charter generally does not permit anyone to own in excess of 5% of our capital stock, and attempts to acquire our capital stock in excess of this limit are ineffective without prior approval from our Board of Directors which could discourage a change of control of us.
- Our staggered board and other provisions of our charter and bylaws may prevent a change in our control.
- If we fail to remain qualified as a REIT, we will be subject to corporate tax and could face a substantial tax liability.
- Even if we remain qualified as a REIT, we may face other tax liabilities that reduce our cash flow.
- The Agency Business may have adverse tax consequences.
- The “taxable mortgage pool” rules may increase the taxes that we may incur and reduce the amount of our distributions to our stockholders.
- The “taxable mortgage pool” rules may limit the manner in which we effect future securitizations.
- Complying with REIT requirements may cause us to forego otherwise attractive opportunities.
- Complying with REIT requirements may force us to liquidate otherwise attractive investments.
- We may be unable to generate sufficient revenue from operations to pay our operating expenses and to pay dividends to our stockholders.
- We may need to borrow funds to satisfy our REIT distribution requirements, and a portion of our distributions may constitute a return of capital. Debt service on any borrowings for this purpose will reduce our cash available for distribution.
- We may be subject to adverse legislative or regulatory tax changes that could reduce the market price of our common stock.
- The price of our common stock may be volatile.
- We depend on key personnel for our future success, the loss of whom could threaten our ability to operate our business successfully.
- The adverse resolution of a lawsuit could have a material adverse effect on our financial condition and results of operations.
- The impact of any future terrorist attacks and the availability of terrorism insurance expose us to certain risks.
- The impact of any future laws, and amendments to current laws, may impact our business.
- Environmental, social and governance matters may cause us to incur additional costs, make personnel changes, and affect the attractiveness of our stock to investors.
- Climate change could have an adverse effect on both our borrowers and our financial condition and results of operations.