Coronavirus Impacts in Lending

Welcome to Geraci LLP’s Coronavirus: Impacts in Lending hub. Over the next several weeks and months, we will be sharing COVID-19 information that directly impacts the lending community, as well as offering resources.

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Geraci Letters and Articles on COVID-19



Webinars

 

CRE and COVID-19: Impacts and Predictions for Commercial Real Estate

Thursday, May 28, 2020 at 11:00 AM Pacific
Hosts: Tae Kim, Esq. and David Kelly, Esq. of the Corporate and Securities department
It’s no question that COVID-19 has had an extraordinary impact on the various sectors of the commercial real estate market – but what is the extent of this impact?

Investors and sponsors alike should listen and consider various investment strategies and perspectives about where the CRE market is, and where it might be headed.

Here are the takeaways to expect from this webinar:

    • An analysis of trends and constantly changing regulatory updates
    • An analysis of the industry as a whole, in its current state
    • A look to the future of commercial real estate

Register Now

 
 

More Than One Investor on the Note? Legal and Practical Advice on How to Fractionalize Notes in California Under Your DRE License

Thursday, June 4 at 11:00 AM Pacific
Speakers: Nema Daghbandan of Geraci LLP, Peter Steigleder of Fidelity Mortgage Lenders, Pam Sosa of Standard Mortgage Financial Services, Inc.
California is a unique lending market in that it permits California real estate brokers to place multiple investors on a single loan transaction without needing lengthy securities disclosure documents. Unlike most mortgage funds, the DRE permits brokers to arrange these loans to non-accredited investors. The DRE has very specific disclosure requirements, suitability standards, and reporting needs. Hear from Fidelity Mortgage Lenders who has been fractionalizing loans for almost 50 years and Geraci LLP about the business and legal side of loan fractionalization under a DRE license.

You will learn:

    • Your disclosure requirements to your investors.
    • The minimum suitability standards and how to verify them.
    • How to manage investor expectations and to make sure they know how this loan will be administered.
    • How to market these loans to your investor base.
    • How to comply with the DRE regulations when brokering and/or servicing a multi-beneficiary loan.
    • What other issues to consider when brokering a multi-bene transaction such as loan servicing, payoff requests and administration, and REO disposition.
    • What forms you will need to be compliant (provided!).

Register Now

 

Watch Past Webinars

 

[PAST]Loan Origination Fraud 101: Obstacles and Remedies for Litigation or Bankruptcy

Monday, May 18, 2020 at 11:00 AM Pacific
Hosts: Darlene Hernandez, Esq. and Marisol Nagata, Esq. of the Litigation and Bankruptcy department
Loan origination fraud is an incredibly prevalent issue during the COVID-19 crisis. For example, what if your borrower asserts that the purpose of the loan is for a business purpose, but later you discover it’s not? What do you do if the client forecloses or files a lawsuit? How do you proceed if the borrower has vs. doesn’t have assets? What will happen to the debt in bankruptcy? Will Client get paid in full, partially, or will the debt be discharged?

In this webinar, you will learn:

    • Challenges and remedies regarding loan origination litigation
    • Challenges and remedies surrounding the possibility of bankruptcy

VIEW PAST WEBINAR

 

[PAST] Qualified Opportunity Zones – COVID-19 Issues, New Regulations, and Extensions

Thursday, May 14 at 11:00 AM Pacific
Hosts: Tae Kim, Esq. of the Corporate and Securities Department and Beeta Lecha, Principal at Spiegel Accountancy Corp.
The COVID-19 outbreak has caused the United States economy to tank. The unemployment rate is at an extremely high level, and uncertainties abound. As the United States navigates through reopening businesses while balancing out public health & safety, Qualified Opportunity Funds should be one of the most instrumental investment vehicles in deploying money to the severely and economically distressed areas.

To account for timing issues with respect to QOZ regulations, the IRS has adjusted and/or extended timelines pertaining to QOFs, including substantial improvement test, among others. But is it enough?

Come and join us as we navigate through:

    • The December 2019 Regulations
    • Opportunity Zone Funds extensions
    • Investment strategies

View Past Webinar

 

[PAST] Lenders’ Rights and Responsibilities in Chapter 11 and Chapter 13 Bankruptcies

Monday, May 11 at 11:00 AM Pacific
Host: Marisol Nagata, Esq., Senior Bankruptcy Associate Counsel
The economic downturn due to the Coronavirus outbreak is expected to get worse. With unemployment claims already at record levels, small businesses temporarily or permanently closed, and mortgage delinquencies looming, it is natural to expect financially distressed consumers and small businesses to seek bankruptcy protection.

Now is the time to pause and prepare for the post-Coronavirus economy, which would likely include an onslaught of Chapter 11 and Chapter 13 bankruptcy filings.

In this webinar, you will get an overview of your rights and responsibilities as lenders in Chapter 11 and Chapter 13 bankruptcy cases from filing proof of claims, objecting to debtors’ plans of reorganization, filing motions for relief, and defending lien strips.

View Past Webinar

 

[PAST] Cancelled Contract: Managing Contract Disputes Amid the Outbreak

Thursday, May 7 at 11:00 AM Pacific
Hosts: Anthony Geraci, Esq., CEO of Geraci LLP, and Darlene Hernandez, Esq., Senior Litigation Associate Attorney at Geraci Law Firm
Force Majeure, Impossibility, COVID Addendum are all words being thrown around in these unprecedented times. Property sellers are trying to force their buyers to purchase with the threat of liquidated damages. Borrowers are threatening lenders for leaving them at the altar. Organizations are slow paying their vendors to maintain cash management pushing many to the brink of insolvency.

During this crisis, contracts of all kinds are coming under assault. Geraci LLP’s expert litigation attorneys will provide a succinct explanation of the various contract disputes involving real estate professionals and how to manage those disputes.
You will learn:

    • What claims are being made to get out of contracts and how you can defend against them.
    • What lawsuits you should expect related to real estate purchase contracts and how buyers and sellers should respond.
    • What lawsuits you should expect related to your loan agreements and what you can do to be prepared.

View Past Webinar

 

[PAST] American Association of Private Lenders – State of the Private Lending Market

Wednesday, May 6 at 11:00 AM Pacific
Hosts: Eddie Wilson, CEO of AAPL, and Melissa Martorella, Esq. of Geraci LLP
Panelists: Allen Shayanfekr, CEO of Sharestates, Paul Jackson, Principal at Residential Capital Partners, Jason Gilbert, Partner at Armanino, Brian Ward, Jenny Redlin, Principal at Partner Engineering & Science, Technical Director of Construction Services at Partner Engineering & Science, Kevin Kim, Partner at Geraci LLP, and Boots Dunlap, CEO at RRA Capital
The state of the private lending market is evolving rapidly. Those on the front lines are facing new challenges and coming up with novel solutions at breakneck speed. Leaders of national private lending institutions along with the lead consultants in the private lending space will provide an update on the state of the private lending market. Topics include revised lending parameters, forbearance policies, origination expectations, foreclosure prohibitions, construction management, new opportunities, and best practices.

Topics We Will Cover:

    • What revised underwriting criteria are lenders using
    • How are lenders managing their forbearance requests and what impact is this having
    • When do lenders anticipate going back into the marketplace
    • How to manage the construction process during this time period
    • What legal prohibitions are in place nationally
    • What new opportunities exist in a post crisis world
    • What are the industry best practices right now

View Past Webinar

 

[PAST]California Foreclosures 101: Strategies for Defaulted Loans

Thursday, April 30 at 11:00 AM Pacific
Hosts: Nema Daghbandan, Esq. and Melissa Martorella, Esq. of the Banking and Finance department
The lending world just got turned upside down. All strategies a mortgage lender used to rely upon to understand borrower defaults are no longer reliable. In this new normal, a lender must be tactical when understanding what to do when a borrower defaults, because a one-size-fits-all solution does not work in a post-crisis world.
Our attorneys are expert strategists in loss mitigation and default management, and will provide attendees with the best methods to navigate non-performing loans.

You will learn:

    • The available options for lenders when a borrower defaults
    • What foreclosure restrictions are currently in place
    • How to manage pre-crisis and post-crisis defaults
    • The process, timelines, and potential challenges lenders face when foreclosing

View Past Webinar

 

[PAST] Getting Ahead of the Game: Brand Building During a Downturn

Monday, April 27 at 11:00 AM Pacific
Hosts: Ruby Keys, VP of Geraci Media, Ruben Izgelov, CEO of We Lend, LLC, and Jenny-Rose Halupka, General Marketing Officer at We Lend, LLC
In this webinar, hear from marketing experts about the importance of marketing and branding in the private lending industry, and how you can get ahead during this downturn.

Our panelists have created a brand from scratch and implemented creative campaigns that have increased brand awareness and lead generation. If you’re in the private lending industry and are wondering if and how to move forward with a marketing plan, this webinar is for you.

View Past Webinar

 

[PAST] Loan Syndications are Making a Comeback: How to Take Advantage of this Trend in the Market

Wednesday, April 22 at 11:00 AM Pacific
Hosts: Kevin Kim, Esq. and Olivia Durnell, Esq. of the Corporate and Securities department
Due to recent changes in the market, there has been a resurgence in loan syndications. Investors are more willing than ever to invest in loan syndications and this trend is creating a unique opportunity for private lenders and fund managers looking to raise capital. However, lenders and fund managers hoping to take advantage of this opening in the market must be well versed in the complex compliance requirements of such an investment. There are numerous state and federal rules that must be followed in order to legally offer investments in a loan syndication.

If you are a lender or fund manager wanting to seize this unique opportunity, this webinar is for you. Our expert attorneys at Geraci LLP are well versed in the intricate legal requirements of loan syndications and are here to help instruct you on everything you need to know.

View Past Webinar

 

[PAST] Forbearance Agreements 101: What to Do When Your Borrower Can’t Pay

Monday, April 20 at 11:00 AM Pacific
Hosts: Nema Daghbandan, Esq. and Melissa Martorella, Esq. of the Banking and Finance department
During this crisis, there is an unprecedented number of borrowers requesting loan payment deferrals from their lenders. Once a lender determines they want to proceed with a loan forbearance, the next step is making sure the agreement is properly documented. Our legal experts will provide the industry’s best practices and break down the essential components of a well written agreement to keep lenders out of future litigation.

You will learn:

    • How to properly evaluate a Forbearance Request
    • How to communicate with your borrowers when they are making these requests to keep you out of future litigation
    • What the essential components of a Forbearance Agreement are

View Past Webinar

 

[PAST] Best Practices for Funds, Fund Managers, and Lenders during the COVID-19 Crisis

Thursday, April 16 at 11:00 AM Pacific
Hosts: Kevin Kim, Esq., and Tae Kim, Esq., of the Corporate and Securities department
As the economic downturn caused by the COVID-19 outbreak starts to look more and more like a recession, many lenders and fund managers are asking what they can do to prepare. Evaluating your current capital arrangements is an essential step in preparing for this possibility.

Fund managers – do your funds have the capabilities to withstand the stresses of a recession? Do you have the right tools and powers as the fund manager to preserve capital, work out loans, prevent a run on the fund, or acquire distressed assets?

Lenders – are your capital partners, secondary market buyers, and bankers liquid enough to provide the capital flow you need? Perhaps it’s time to evaluate their commitments to you, and explore new options to control the capital.

During this webinar, you will learn:

    • How to protect yourself, your business, and your investors in the event of a recession
    • Best practices and creative strategies regarding capital preservation, redemptions, and capital markets
    • Practical solutions for fund operations, including insurance, supplemental disclosures, and investor relations tactics

View Past Webinar

 

[PAST] Private Lending Industry Best Practices for Payment Deferral Requests

Tuesday, April 14 at 11:00 AM Pacific
Hosts: Eddie Wilson of AAPL and Nema Daghbandan, Esq. of Geraci LLP
Panelists: Ray Sturm of AlphaFlow, John Beacham of Toorak Capital Partners, and Kevin Kim, Esq. of Geraci LLP
The mortgage lending industry is being inundated with requests for payment deferrals. For conventional mortgage lenders, there are best practices and requirements in place requiring payment deferrals for needy borrowers. The private lending industry is generally not regulated, and mortgage lenders and servicers are looking for guidance on how to approach this wave of payment deferral requests. The non-conventional lending industry needs a coordinated and cohesive response right now.

Takeaways:

    • Understand how to manage the flood of deferral requests
    • Understand what your legal rights are as private lenders versus regulated consumer lenders
    • Receive best practices on how to manage requests and understand when you should defer payments
    • Understand how to communicate your decisions and strategy to your investors

View Past Webinar

 

[PAST] COVID-19 Opportunity: Invest in Distressed Assets and Unique Gaps in the Private Lending Market

Wednesday, April 8 at 11:00 AM Pacific
Hosts: Kevin Kim, Esq., and Tae Kim, Esq., of the Corporate and Securities department
The COVID-19 outbreak can be scary for ourselves as humans, and for our economy. But there are silver linings and opportunities in every economic downturn. Distressed assets, including nonperforming loans, will become a high-demand asset class as the crisis continues to affect our economy. If you are an investor, a fund manager, or a lender with dry power, this webinar is for you.

During this webinar, our expert attorneys will discuss:

    • The legal issues and solutions surrounding distressed asset strategies
    • Practical aspects of pursuing these strategies
    • The viability of these strategies considering the volatility of today’s market

View Past Webinar

 

[PAST] AAPL Emergency Webinar

Monday, April 6 at 12:00 PM Pacific
Hosts: Eddie Wilson of AAPL, and Nema Daghbandan, Esq. of Geraci LLP
Panelists: Kevin Kim of Geraci LLP, Josh Youngblood of Alfred Tech, Mike Tedesco of Appraisal Nation, Dina Kroshkin of Complete Loan Sourcing, Rocky Butani of Private Lender Link, Beeta Lecha of Spiegel Accountancy Corp., and Seth Davis of Western Alliance Bank

It’s easy to feel isolated and out of touch when large portions of the populace are sheltering-in-place, businesses are closed, and the economy is at a near-standstill. So the American Association of Private Lenders and Geraci LLP want to show you their love by bringing the private lender community to you.

Monday April 6 at 2:00PM CST, they will be hosting a virtual event to bring you much-needed private lender market intelligence and business best practices. Subject matter experts from the Accounting, Appraisals, Banking, Legal, Loan Origination/Brokerage, Small Business Association, and Technology fields will each provide a 3-5 minute update on “the thing you need to know right now,” after which the floor will open to your questions.

View Past Webinar

 

[PAST] Major Changes in Privacy Law: What Lenders Nationwide Must Do Now to be Compliant with the CCPA

Thursday, April 2 at 11:00 AM Pacific
Hosts: Tom Hajda, Esq., and Nema Daghbandan, Esq., of the Banking and Finance department
California Consumer Privacy Act became law on January 1, 2020 and fundamentally reshaped what companies can do with private data. Even though this act only applies to data received from California residents, companies nationwide should be concerned as this law appears to have national ramifications. It will include new developments related to COVID-19.

During this presentation, expert real estate attorneys will discuss:

    • Summary of CCPA and major changes in consumer privacy because of its passage
    • Who does CCPA apply to?
    • If you are a covered company, how do you comply?
    • Even for those that do not have to comply, what practices should you consider implementing now as there appears to be significant momentum in Congress and in other states for similar regulations

View Past Webinar

 

[PAST] Managing Loan Defaults During the COVID-19 Crisis

Monday, March 30th at 11:00 AM Pacific
Hosts: Nema Daghbandan, Esq., and Melissa Martorella, Esq., of the Banking and Finance department
In these unprecedented times, national liquidity and unemployment have reached a fever pitch, resulting in a dramatic increase of borrower requests to postpone loan payments. The federal and state governments are also implementing plans to forego payments on student loans and federal home mortgage loans.
Our team of experts will provide guidance on how to manage this time of crisis with discipline, proactivity, and calm amidst a storm.

During this webinar you will learn:

    • Tactical and practical legal strategies for managing short term defaults
    • The current federal and state prohibitions regarding defaults
    • The current federal and state policies regarding non-consumer loan payments and how this affects business purpose lenders
    • The communication and documentation that lenders should be using if their borrowers are requesting loan payment deferrals

View Past Webinar

 

[PAST] COVID-19 Opportunity: Making Owner Occupied Business Purpose Loans

Thursday, March 26 at 11:00 AM Pacific
Hosts: Nema Daghbandan, Esq., and Melissa Martorella, Esq., of the Banking and Finance department
Private lenders are trying to find a way to help the thousands of struggling small business owners as they suffer from a nationwide liquidity crisis prompted by the COVID-19 Outbreak and related shutdowns. Hear from our team of experts about how private lenders are able to provide loans to borrowers secured by their primary residences to help unlock equity in their homes to keep their businesses alive during this uncertain time.

Our attorneys will cover the following key points during this informal webinar:

    • Dispelling myths regarding owner occupied business purpose loans
    • Providing a summary of states where lenders can make these loans without a license
    • Providing best practices when making these types of loans to make sure you are staying compliant

View Past Webinar

 

 

Quick Resources

To help all of our clients and friends, we have compiled the most relevant information that will help you right now. Click the links below to find valuable information about the California DRE, the California Secretary of State, Title Companies, California Recorders, Federal and State Foreclosure and Evictions Moratoriums nationwide, Information regarding Fannie Mae and Freddie Mac, and Shelter in Place/Stay at Home orders by state. If you have any questions, please contact Geraci LLP.

Forbearance Materials

We teamed up with the American Association of Private Lenders to create a forbearance request form and a guide to forbearances, in order to aid lenders in the forbearance process.

Click the buttons below for the PDFs:

Forbearance Request Form   Guide to Forbearances

 



News, Relevant Information, and Resources on COVID-19

 

News and Relevant Information

Resources



GERACI MEDIA HOSTS FIRST VIRTUAL CONFERENCE IN PRIVATE LENDING: LENDER CONNECT

On May 20, 2020, Geraci Media hosted a one-day, online conference in response to the growing concern over COVID-19 and the temporary restriction of in-person events.

This virtual conference created networking opportunities for lenders, brokers, investors, and various service providers within the Private Lending industry. The event also provided top-tier content with hosted panel sessions, and even had a fully interactive Exhibitor Hall with sponsors as well.

Interested in learning more? Please contact us to get involved with our future Geraci events, both in-person, and virtual.

Visit Our Conference Site to Learn More!

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