Korth Direct Mortgage 10-Q 14 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2019shares
Document And Entity Information
Entity Registrant Name	Korth Direct Mortgage LLC
Entity Central Index Key	0001695963
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	Yes
Entity Small Business	true
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding	1,000,000
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

UNAUDITED STATEMENTS OF FINANCI

UNAUDITED STATEMENTS OF FINANCIAL CONDITION - USD ($)	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and Cash Equivalents	$ 48,937	$ 15,323
Restricted Cash	228,898	161,454
Mortgages Owned	27,708,513	13,173,466
Mortgage Servicing Rights, at Fair Value	614,984	215,459
Prepaid Expenses	10,584	10,584
TOTAL ASSETS	28,611,916	13,576,286
LIABILITIES
Due to Parent		494,122
Escrows Payable	193,611	125,045
Due to Investors	35,288	36,409
Accrued Expenses	20,500	15,000
Mortgage Secured Notes Payable	27,708,513	13,173,466
Total Liabilities	27,957,912	13,844,042
MEMBER'S EQUITY (DEFICIT)
Accumulated Equity (Deficit)	650,482	(271,278)
Capital	3,522	3,522
Total Member's Equity (Deficit)	654,004	(267,756)
TOTAL LIABILITIES AND MEMBER'S EQUITY (DEFICIT)	$ 28,611,916	$ 13,576,286

UNAUDITED STATEMENTS OF OPERATI

UNAUDITED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
REVENUES
Interest Income	$ 270
Total Revenues	504,830	32,850
COST OF REVENUES
Broker Underwriting Expense	181,775
Mortgage Broker Expense	203,025
Bank Fees	2,702	545
Appraisal Costs	1,195	(7,000)
Marketing	3,360	3,539
License and Registration	595	5,002
Ratings	26,000
Technology Fees	2,055	157
Total Cost of Revenues	420,707	2,243
GROSS PROFIT (LOSS)	84,123	30,607
OPERATING EXPENSES
Office Supplies	642	1,171
Accounting	5,500
Salaries	86,295	28,382
Payroll Taxes	4,372	4,203
Professional & Legal	4,791	34,050
SEC Filing Expense		748
Travel & Entertainment	7,919	204
Business Development	1,171
Total Expenses	110,690	68,758
Net Loss From Operations	(26,567)	(38,151)
Other Income
Unrealized Gain on Mortgages	399,525	130,043
Gain from Write-Off of Due to Parent	548,802
Total Other Income	948,327	130,043
NET INCOME	921,760	91,892
Origination Revenue [Member]
REVENUES
Total Revenues	493,825	26,825
Service [Member]
REVENUES
Total Revenues	4,116	6,025
Processing Revenue [Member]
REVENUES
Total Revenues	1,500
Late Fees [Member]
REVENUES
Total Revenues	$ 5,119

UNAUDITED STATEMENTS OF CASH FL

UNAUDITED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 921,760	$ 91,892
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Unrealized Gain on Motgages Owned	(399,525)	(130,043)
Changes in Operating Assets and Liabilities:
Restricted Cash	(67,444)	(44,287)
Mortgage Secured Notes Issued	14,535,047	2,188,729
Prepaid Expenses		748
Due to Parent	(494,122)	48,301
Escrow Payable	68,566	28,118
Due to Investors	(1,121)	16,168
Accrued Expenses	5,500
New Mortgage Lending	(14,535,047)	(2,188,729)
Total Adjustments	(888,146)	(80,995)
NET CASH PROVIDED BY OPERATING ACTIVITIES	33,614	10,897
NET INCREASE IN CASH AND CASH EQUIVALENTS	33,614	10,897
CASH AND CASH EQUIVALENTS - Beginning of Year	15,323	19,844
CASH AND CASH EQUIVALENTS - End of Year	$ 48,937	$ 30,741

NATURE OF BUSINESS

NATURE OF BUSINESS	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NOTE 1 - NATURE OF BUSINESS Korth Direct Mortgage LLC (the “Company”) is a limited liability company formed in the State of Florida. The Company is a wholly owned subsidiary of J. W. Korth & Company, L.P. (“J. W. Korth”), an SEC and FINRA registered broker dealer. The Company was created to sell Notes secured by mortgage loans. The Company and J. W. Korth executed a support agreement that provides financial, managerial, and office support to the Company until it is fully operational and a going concern. Pursuant to this agreement, for any moneys owed by the Company to J. W Korth, J. W. Korth may not seek reimbursement from the Company until the Company shall maintain a liquid net worth of at least $1,000,000 for a minimum period of 90 days. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with US generally accepted accounting principles (“GAAP”) have been condensed or omitted. These unaudited financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The accompanying financial statements are solely for the Company. The financial statements of the parent company, J. W. Korth, have these accounts consolidated within them. BASIS OF ACCOUNTING The accompanying financial statements have been prepared on the accrual basis of accounting, in accordance with GAAP. CASH AND CASH EQUIVALENTS For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. MORTGAGE VALUATION Mortgages that are current are carried at the principal value owed by the borrower, as of the date of the financial statements, according to the amortization schedule for the loan. All mortgages owned as of the date of these financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights, at fair value on the Unaudited Statements of Financial Condition, and is recognized on the Unaudited Statement of Operations as an unrealized gain on mortgages owned. MORTGAGE SECURED NOTES The Company funds the mortgage loans that it makes by issuing Mortgage Secured Notes (“MSNs”), which are secured by those same mortgages. As of the date of these financial statements, the Company has funded loans totaling $27,740,250, and it issued MSNs secured by those loans, also in the amount of $27,740,250. The deals have been funded in multiple ways, including private placements, SEC registered deals, and 144A offerings. REVENUE RECOGNITION The Company has three primary sources of revenue: origination fees, servicing fees, and processing fees. Origination Fees Loan origination fees represent revenue earned from originating mortgage loans, net of any credits given to the borrower. Loan origination fees generally represent flat, per-loan fee amounts and are recognized as revenue at the time the loans are funded. Servicing Fees Loan servicing fees represent revenue earned for servicing loans for various investors. Loan servicing fees are a percentage of the outstanding unpaid principal balance and represent the difference between the Corresponding Mortgage Loan (“CM Loan”) interest received and the MSN interest payable. Servicing Fees are recognized as revenue as the related mortgage payments are received; similarly, loan servicing expenses are charged to operations as incurred. Processing Fees Processing fees are collected from the borrower at the time the commitment letter is signed and cover a variety of expenses during the underwriting process. If the Company cancels the transaction, then unused fees are refunded. If the transaction is unable to proceed for any reason not the fault of the Company, then the Company keeps the full processing fee. Revenues from processing fees are recognized at closing or at the time a transaction is canceled. Unrealized Gain on Mortgages Owned The net present value of the servicing income is recognized at the time the mortgage is initiated. This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has limited operating history and a small amount of loans outstanding, we have a limited basis to predict prepayment rates and default rates. ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. DUE TO PARENT AND PAYABLES Items due to parent are operating expenses due to the parent company, J. W. Korth, pursuant to the support agreement. On May 2, 2019 and as of March 31, 2019, J. W. Korth forgave its receivable $548,802 that was on the Company's balance sheet as Due to Parent in order to assist KDM in strengthening its balance sheet and Members' Equity. INCOME TAXES The Company is a limited liability company which is treated as a partnership for federal and state income tax. Accordingly, no provision for federal income taxes is required since the members report their proportionate share of company taxable income or loss on their respective income tax returns. Such income or losses are proportionately allocated to the members based upon their ownership interests. In accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 740 – Income Taxes

RESTRICTED CASH

RESTRICTED CASH	3 Months Ended
	Mar. 31, 2019
Restricted Cash [Abstract]
RESTRICTED CASH	NOTE 3 - RESTRICTED CASH The Company maintains two segregated accounts in trust for borrowers and investors. The value of these accounts is carried under the asset “Restricted Cash.” The “In Trust for 1” account holds the monthly tax and insurance payments collected from borrowers and distributes payments annually, on behalf of borrowers, to the appropriate tax authority and insurance companies. This account corresponds to the Escrow Payable liability. As of March 31, 2019, this account has a balance of $193,611. The “In Trust for 2” account receives payments from borrowers, distributes payments to investors, and pays the servicing fee to the Company. This account corresponds to the Due to Investors liability. As of March 31, 2019, this account has a balance of $35,288 (commitment fees/accrued interest).

COMMITMENTS

COMMITMENTS	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 4 - COMMITMENTS The Company relies partially on its parent, J. W. Korth, to provide office space, internet connectivity, phone service, and incidentals through the end of 2019.

INDEMNIFICATIONS

INDEMNIFICATIONS	3 Months Ended
	Mar. 31, 2019
Indemnifications
INDEMNIFICATIONS	NOTE 5 - INDEMNIFICATIONS

CUSTOMERS

CUSTOMERS	3 Months Ended
	Mar. 31, 2019
Risks and Uncertainties [Abstract]
CUSTOMERS	NOTE 6 - CUSTOMERS As of March 31, 2019, the Company has nine customers. The Company defines customers as borrowers that have an active loan with the Company, or are in the midst of the underwriting process and have a commitment fee on deposit with the Company. Currently, 32% of loans, by unpaid balance, are geographically concentrated in the state of Ohio and 35% are concentrated in the state of New Jersey.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 – RELATED PARTY TRANSACTIONS The Due to Parent account has been forgiven as of March 31, 2019 pursuant to the agreement dated May 1, 2019 by and between J. W. Korth (parent) and the Company. The Company was previously largely supported by its parent company, J. W. Korth. The Company owed J. W. Korth $548,802 on March 30, 2019. The cancelation of this liability resulted in a one-time gain, which is included on the Unaudited Statement of Operations for the three months ended March 31, 2019. The Company owed J.W. Korth $0 and $494,122 as of March 31, 2019 and December 31, 2018, respectively. The Support Agreement between the Company and J. W. Korth remains in place should it be necessary.

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE	NOTE 8 – FAIR VALUE GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level I Level II Level III Valuation Process Cash and cash equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1 . Mortgages Owned and Mortgage Secured Notes Payable: All of the loans on the balance sheet as of March 31, 2019 are carried at principal value, as are the corresponding Mortgage Secured Notes Payable. The Company has determined that the fair values were determined by the market at the time of sale and should be classified as Level II of the fair value hierarchy. The carrying amounts for these items approximate the fair value. For amortizing loans, the Company discounts those to remaining principal value. Due to the fact that the Company issues notes secured directly by underlying loans, our assets and liabilities in this category have identical values and assets have offsetting balances. Mortgage Servicing The net present value of the servicing income is recognized at the time the mortgage is initiated as an unrealized gain. This value uses several inputs that are highly subjective including: discount rate, constant prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has limited operating history and a small amount of loans outstanding, we have a limited basis to predict prepayment rates and default rates, but have engaged a third party, MIAC Analytics, to assist us in our valuation of this asset. The amount is included on the Unaudited Statement of Financial Condition as “Mortgage Servicing Rights, at Fair Value.” Fair Value Disclosure The following tables display the Company’s assets and liabilities measured at fair value on a recurring basis: March 31, 2019 Total Level I Level II Level III Financial Assets Mortgages Owned $ 27,708,513 $ - $ 27,708,513 $ - Mortgage Servicing Rights 614,984 - - 614,984 Total Financial Assets $ 28,323,497 $ - $ 27,708,513 $ 614,984 Financial Liabilities Mortgage Secured Notes Payable $ 27,708,513 $ - $ 27,708,513 $ - December 31, 2018 Financial Assets Mortgages Owned $ 13,173,466 $ - $ 13,173,466 $ - Mortgage Servicing Rights 215,459 - - 215,459 Total Financial Assets $ 13,388,925 $ - $ 13,173,466 $ 215,459 Financial Liabilities Mortgage Secured Notes Payable $ 13,173,466 $ - $ 13,173,466 $ - Fair Value Measurements Changes in Fair Value Measurements for the quarter ended March 31, 2019 The following table presents a reconciliation of changes in Level 3 assets and liabilities reported in the Statements of Financial Condition for the quarter ended March 31, 2019: Changes in assets: Year ended March 31, 2019 Mortgage Servicing Value Beginning balance at January 1, 2019 $ 215,459 Purchases - Sales - Issues - Settlements - Net realized gain/loss - Unrealized Gain from newly issued mortgages 396,758 Fair Value adjustment 2,767 Transfers into Level 3 - Transfers out of Level 3 - Ending balance at March 31, 2019 $ 614,984 The Company’s policy for recording transfers between levels of the fair value hierarchy is to recognize as of the financial statement date. For the quarter ended March 31, 2019, there were no transfers between levels. The Company has established valuation processes and policies for its Level 3 investments to ensure that the methods used are fair and consistent in accordance with ASC 820 – Fair Value Measurements and Disclosures The following table presents quantitative information regarding the significant unobservable inputs the Company uses to determine the fair value of Level 3 investments held as of March 31, 2019: Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 614,984 Net Present Value Prepayment Discount 9.27 % Discount rate 15.00 %

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION The accompanying financial statements are solely for the Company. The financial statements of the parent company, J. W. Korth, have these accounts consolidated within them.
BASIS OF ACCOUNTING	BASIS OF ACCOUNTING The accompanying financial statements have been prepared on the accrual basis of accounting, in accordance with GAAP.
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.
MORTGAGE VALUATION	MORTGAGE VALUATION Mortgages that are current are carried at the principal value owed by the borrower, as of the date of the financial statements, according to the amortization schedule for the loan. All mortgages owned as of the date of these financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights, at fair value on the Unaudited Statements of Financial Condition, and is recognized on the Unaudited Statement of Operations as an unrealized gain on mortgages owned.
MORTGAGE SECURED NOTES	MORTGAGE SECURED NOTES The Company funds the mortgage loans that it makes by issuing Mortgage Secured Notes (“MSNs”), which are secured by those same mortgages. As of the date of these financial statements, the Company has funded loans totaling $27,740,250, and it issued MSNs secured by those loans, also in the amount of $27,740,250. The deals have been funded in multiple ways, including private placements, SEC registered deals, and 144A offerings.
REVENUE RECOGNITION	REVENUE RECOGNITION The Company has three primary sources of revenue: origination fees, servicing fees, and processing fees. Origination Fees Loan origination fees represent revenue earned from originating mortgage loans, net of any credits given to the borrower. Loan origination fees generally represent flat, per-loan fee amounts and are recognized as revenue at the time the loans are funded. Servicing Fees Loan servicing fees represent revenue earned for servicing loans for various investors. Loan servicing fees are a percentage of the outstanding unpaid principal balance and represent the difference between the Corresponding Mortgage Loan (“CM Loan”) interest received and the MSN interest payable. Servicing Fees are recognized as revenue as the related mortgage payments are received; similarly, loan servicing expenses are charged to operations as incurred. Processing Fees Processing fees are collected from the borrower at the time the commitment letter is signed and cover a variety of expenses during the underwriting process. If the Company cancels the transaction, then unused fees are refunded. If the transaction is unable to proceed for any reason not the fault of the Company, then the Company keeps the full processing fee. Revenues from processing fees are recognized at closing or at the time a transaction is canceled.
Unrealized Gain on Mortgages Owned	Unrealized Gain on Mortgages Owned The net present value of the servicing income is recognized at the time the mortgage is initiated. This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has limited operating history and a small amount of loans outstanding, we have a limited basis to predict prepayment rates and default rates.
ESTIMATES	ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
DUE TO PARENT AND PAYABLES	DUE TO PARENT AND PAYABLES Items due to parent are operating expenses due to the parent company, J. W. Korth, pursuant to the support agreement. On May 2, 2019 and as of March 31, 2019, J. W. Korth forgave its receivable $548,802 that was on the Company’s balance sheet as Due to Parent in order to assist KDM in strengthening its balance sheet and Members’ Equity.
INCOME TAXES	INCOME TAXES The Company is a limited liability company which is treated as a partnership for federal and state income tax. Accordingly, no provision for federal income taxes is required since the members report their proportionate share of company taxable income or loss on their respective income tax returns. Such income or losses are proportionately allocated to the members based upon their ownership interests. In accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 740 – Income Taxes

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value	The following tables display the Company’s assets and liabilities measured at fair value on a recurring basis: March 31, 2019 Total Level I Level II Level III Financial Assets Mortgages Owned $ 27,708,513 $ - $ 27,708,513 $ - Mortgage Servicing Rights 614,984 - - 614,984 Total Financial Assets $ 28,323,497 $ - $ 27,708,513 $ 614,984 Financial Liabilities Mortgage Secured Notes Payable $ 27,708,513 $ - $ 27,708,513 $ - December 31, 2018 Financial Assets Mortgages Owned $ 13,173,466 $ - $ 13,173,466 $ - Mortgage Servicing Rights 215,459 - - 215,459 Total Financial Assets $ 13,388,925 $ - $ 13,173,466 $ 215,459 Financial Liabilities Mortgage Secured Notes Payable $ 13,173,466 $ - $ 13,173,466 $ -
Schedule of fair value measurements	The following table presents a reconciliation of changes in Level 3 assets and liabilities reported in the Statements of Financial Condition for the quarter ended March 31, 2019: Changes in assets: Year ended March 31, 2019 Mortgage Servicing Value Beginning balance at January 1, 2019 $ 215,459 Purchases - Sales - Issues - Settlements - Net realized gain/loss - Unrealized Gain from newly issued mortgages 396,758 Fair Value adjustment 2,767 Transfers into Level 3 - Transfers out of Level 3 - Ending balance at March 31, 2019 $ 614,984
Schedule of quantitative information	The following table presents quantitative information regarding the significant unobservable inputs the Company uses to determine the fair value of Level 3 investments held as of March 31, 2019: Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 614,984 Net Present Value Prepayment Discount 9.27 % Discount rate 15.00 %

NATURE OF BUSINESS (Details Nar

NATURE OF BUSINESS (Details Narrative)	3 Months Ended
	Mar. 31, 2019USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquid net worth	$ 1,000,000
Minimum period liquid net worth	90 days

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Mortgage secured notes funded	$ 27,740,250
Mortgage second secured notes funded	27,740,250
Due to Parent		$ 494,122
J W Korth [Member]
Due to Parent	$ 548,802

RESTRICTED CASH (Details Narrat

RESTRICTED CASH (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Restricted Cash [Abstract]
Escrow Payable	$ 193,611	$ 125,045
Due to Investors	$ 35,288	$ 36,409

CUSTOMERS (Details Narrative)

CUSTOMERS (Details Narrative)	3 Months Ended
	Mar. 31, 2019Customer
Number of customer	9
OHIO
Percentage of revenue	32.00%
NEW JERSEY
Percentage of revenue	35.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Due to Parent		$ 494,122
J W Korth [Member]
Due to Parent	548,802
J W Korth [Member] | Private Placement [Member]
Due to Parent	$ 548,802

FAIR VALUE (Details)

FAIR VALUE (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Financial Assets
Mortgages Owned	$ 27,708,513	$ 13,173,466
Mortgage Servicing	614,984	215,459
Total Financial Aseets	28,323,497	13,388,925
Financial Liabilities
Mortgage Secured Notes Payable	27,708,513	13,173,466
Fair Value, Inputs, Level 1 [Member]
Financial Assets
Mortgages Owned
Mortgage Servicing
Total Financial Aseets
Financial Liabilities
Mortgage Secured Notes Payable
Fair Value, Inputs, Level 2 [Member]
Financial Assets
Mortgages Owned	27,708,513	13,173,466
Mortgage Servicing
Total Financial Aseets	27,708,513	13,173,466
Financial Liabilities
Mortgage Secured Notes Payable	27,708,513	13,173,466
Fair Value, Inputs, Level 3 [Member]
Financial Assets
Mortgages Owned
Mortgage Servicing	614,984	215,459
Total Financial Aseets	614,984	215,459
Financial Liabilities
Mortgage Secured Notes Payable

FAIR VALUE (Details 1)

FAIR VALUE (Details 1)	3 Months Ended
	Mar. 31, 2019USD ($)
Fair Value Disclosures [Abstract]
Beginning balance at January 1, 2019	$ 215,459
Purchases
Sales
Issues
Settlements
Net realized gain/loss
Unrealized Gain from newly issued mortgages	396,758
Fair Value adjustment	2,767
Transfers into Level 3
Transfers out of Level 3
Ending balance at December 31, 2018	$ 614,984

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) - Fair Value, Measurements, Recurring [Member]	3 Months Ended
	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Fair Value	$ 614,984	$ 215,459
Valuation technique	Net Present Value
Unobservable input	Discount rate
Value	0.15
Prepayment Discount [Member]
Value	0.0927