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Other Related Party Transactions
 6 Months Ended
Jun. 30, 2011
Other Related Party Transactions  
Other Related Party Transactions

(17)  Other Related Party Transactions

 

The Company has contracted with the Acquisition Partnerships and related parties as a third-party loan servicer. Servicing fees and due diligence fees (included in other income) derived from such affiliates totaled $2.3 million and $1.6 million for the three month periods ended June 30, 2011 and 2010, respectively, and $4.5 million and $3.4 million for the six month periods ended June 30, 2011 and 2010, respectively.

 

Through a series of related-party transactions in 2008, FC Acquisitions SRL de CV (“FC Acquisitions”), a majority-owned Mexican subsidiary of FirstCity, acquired a loan portfolio in Mexico. The final funding for this transaction resulted in a note payable to MCS Trust SA de CV (“MCS Trust”) by FC Acquisitions, and a note receivable from MCS Trust held by BMX Holding III LLC (“BMX Holding III”), a majority-owned subsidiary of FirstCity. The accounts of MCS Trust are consolidated by BMX Holding II, a FirstCity equity-method investee in which it has an 8.0% ownership interest. At June 30, 2011 and December 31, 2010, the note receivable held by BMX Holding III had a carrying amount of $7.5 million and $7.6 million, respectively (included in “Loans receivable — affiliates” on the Company’s consolidated balance sheet), and accrued interest of $4.8 million and $4.0 million, respectively (included in “Other assets, net” on the Company’s consolidated balance sheet). At June 30, 2011 and December 31, 2010, the note payable to MCS Trust had a carrying amount of $7.5 million and $7.6 million, respectively (included in “Notes payable to affiliates” on the Company’s consolidated balance sheet), and accrued interest of $4.8 million and $4.0 million, respectively (included in “Other liabilities” on the Company’s consolidated balance sheet). Should the note payable be forgiven at some future date, the corresponding note receivable would be forgiven as well.