May 22, 2017 Comments (0) Current Investigations

United Mortgage Trust Investment Losses

United Mortgage Trust
(Last Updated On: May 22, 2017)

Concerned about Investment Losses in United Mortgage Trust?

Have you suffered investment losses in United Mortgage Trust? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

United Mortgage Trust is a real estate investment trust (REIT). It invests primarily in lines of credit and secured loans for the acquisition and development of single-family home lots; and lines of credit and loans secured by developed single-family lots and completed model homes. The company also invests in lines of credit and loans secured by single family lots and homes constructed thereon; and senior or subordinate securities backed by finished lot loans and/or development loans, as well as in recourse obligations and deficiency notes, according to Bloomberg.

According to recent SEC filings, on May 8, 2017, United Mortgage Trust (UMT) reported that it would not be able to file its Form 10-Q for the quarter ended March 31, 2017 in a timely manner. UMT noted it would file the Form 10-Q as soon as practicable.

 The Problem with REITs

The trouble with non-traded real estate investment trusts (REITs) like United Mortgage Trust, is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITs are more complex and are better suited for investors that can afford to risk the total losses of their investment.

Brokers often earn extremely high sales commission selling non-traded REITs, sometimes as high as 15%. Unfortunately, the high sales commissions associated with non-traded REITs often provides some broker dealers with enough incentive to overlook suitability requirements.

Brokers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor and are in line with the clients risk tolerance, age, net worth, and investment experience.

If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.

Recovery of Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase United Mortgage Trust, please contact The White Law Group at (888) 637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.

 

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