Replies to post #384 on United Development Funding IV fka UDFI

[56Chevy]

Current Report Filing (8-k)

Date : 10/03/2018 @ 5:17PM
Source : Edgar (US Regulatory)
Stock : United Development Funding Iv (PN) (UDFI)
Quote : $4.70 0.1 (2.17%) @ 4:31PM

On September 27, 2018, United Development Funding IV (the “Trust”) received an Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934, File No. 3-18832, dated September 24, 2018 (the “Order”). The Order was issued by the U.S. Securities and Exchange Commission (the “Commission”) via Release No. 84273 and commences an Administrative Proceeding alleging that the Trust failed to comply with Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rules 13a-1 and 13a-13 thereunder (the “Allegations”) by failing to file periodic reports since the Trust filed a Form 10-Q for the period ended September 30, 2015. The Commission seeks to determine whether it is necessary and appropriate for the protection of investors to suspend for a period not exceeding twelve months, or revoke, the registration of the Trust’s common shares registered pursuant to Section 12 of the Exchange Act.

The Trust expects to shortly engage in discussions with the Commission’s staff seeking to resolve the Administrative Proceeding without de-registration. However, there can be no assurance that the Trust will be able to avoid de-registration or how long the Administrative Proceeding may take to conclude.

Source:
https://ih.advfn.com/p.php?pid=nmona&article=78393704

[Valsartan160]

They are being right lipped on how long the audit will take. They need to get udfi out first since it is the only listed fund.

[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.