Profile: LM Funding America Inc (LMFA.PH)
3 Jun 2019
LM Funding America, Inc., incorporated on April 20, 2015, is a specialty finance company. The Company provides funding to nonprofit community associations primarily located in the state of Florida and to nonprofit community associations in the states of Washington and Colorado. The Company also has operations in Illinois. The Company offers incorporated nonprofit community associations, which the Company refers to as Associations, a range of financial products customized to each Association's financial needs. The Company's products include Original Product and New Neighbor Guaranty. Its Original Product offering consists of providing funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. The Company provides funding against such delinquent accounts, which the Company refers to as Accounts, in exchange for a portion of the proceeds collected by the Associations from the account debtors on the Accounts. It also engages in purchasing Accounts on varying terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty program. All of its business is conducted through its subsidiary, LM Funding, LLC, and its subsidiaries.
The Original Product relies upon Florida statutory provisions that protect the principal amount invested by it in each Account. Under its contracts with Associations for its Original Product, the Company pays Associations an amount up to the Super Lien Amount for the right to receive all collected interest and late fees on Accounts purchased from the Associations. The Company offers its Original Product in Washington, Colorado and Illinois.
New Neighbor Guaranty
The Company offers the New Neighbor Guaranty, wherein an Association assigns its outstanding indebtedness and accruals on its delinquent units to it in exchange for payments in an amount equal to the regular ongoing monthly or quarterly assessments for delinquent units when those amounts would be due to the Association. The Company assumes both the payment and collection obligations for these assigned Accounts under this product. Once the Company implements the New Neighbor Guaranty program, it begins making scheduled payments to the Association on the Accounts as if the Association had non-delinquent residents occupying the units underlying the Accounts. New Neighbor Guaranty contracts typically allow it to retain all collection proceeds on each Account other than special assessments and accelerated assessment balances.
LM Funding America Inc
302 Knights Run Ave Ste 1000
TAMPA FL 33602-5955