United Development Funding IV fka UDFI

[Jh5142]

Agreed Chevy, UDF is blaming both the SEC and now the auditors for their lack of publishing financials.

I can understand that the auditors wouldn't have wanted to sign off on the financials until the SEC finished. But I'm sure they were conducting their audit work.

An audit of a loan portfolio should primarily consist of reviewing the likelihood of collectability of each loan as it is accounted for on the books. That means each loan needs to have an appraisal done along with a cash flow model to support the carrying value. Hiring a company like MetroStudy to conduct an appraisal of a residential development takes about a month and can be done as quickly as 2 weeks.

The process on each loan would not be impacted by the SEC.

The SEC settlement was fully executed by all parties at the end of June. I think Hollis was the last dated signature. However, the first signature on that document was June 10 (I believe).

So, that means the company had certainty on what the SEC agreement was in early June. That's 4 months ago.

So the auditors have had 4 months to have completed the audit after knowing the terms of the SEC settlement. UDF excuses for not publishing financials don't seem to make sense to me.