United Development Funding IV fka UDFI

[Jh5142]

UDF's explanation of my the audits make some sense to me. The problem is that they still have a credibility issue in my opinion, and therefore, you cannot. know for certain that what they wrote is true or not.

It would make sense to not spend money on an audit until you had certainty on the outcome of the sec investigation. I'm encouraged that they had Riveron complete the loan packages during that time period since the SEC outcome would not impact that process.

It also seems that UDF is going to need a lot of guidance from the SEC on whether or not an omnibus 2017 10k is acceptable. If the SEC determines that isn't the appropriate path, I wonder if the timeline proposed will be further delayed. It seems to me that the March timing for 2017 financials depends largely on how quickly the SEC will provide guidance to UDF.