On July 8, 2020, NexPoint Advisors, L.P. delivered a letter to the Board of Trustees of United Development Funding IV, in which NexPoint Advisors urged the Board to engage with NexPoint Advisors regarding its potential interest in management of the Company. NexPoint Advisors stated that it has urged the Board of the Company to engage with NexPoint Advisors regarding the Company and its management. NexPoint Advisors expressed its view that the letter would create an opportunity for a productive dialogue and a mutually beneficial business opportunity.

NexPoint Advisors added that it has informed the Board that if it does not receive meaningful engagement from the Board, it intends to file a lawsuit in Maryland state court in order to compel the Board to call the annual meeting of the shareholders.