As the United States slowly transitions back to “normal” (whatever that will look like), we want you to be prepared for every situation: an influx of loans, forbearance, foreclosures, and bankruptcies as courts start to open up, and more. Keep an eye on your inbox for our biweekly emails, and feel free to reply if you have any suggestions of topics you’d like to see.
Prepare yourself now for whatever comes next. Geraci Law Firm is here to help.
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Oh California – A Guide to DRE and DFPI licensing, Usury, Loan Sales and Daily Compliance
Tuesday, May 18, 2021 11:00 AM Pacific Time
Host: Nema Daghbandan, Esq., and Kevin S. Kim, Esq., of Geraci LLP
Confused by the mortgage lending regulatory lay of the land in California? Get in line. Unlike most of the country, California regulates mortgage lenders through its Department of Real Estate (DRE) AND the Department of Financial Protection and Innovation (DFPI). Understanding the interplay between these two regulators can be confusing. Beyond licensing and regulators, California regulates far more than almost any other state including complex usury laws, regulations on loan sales, tablefunding restrictions, complex late charge restrictions, limitations of interest charges, and a series of other potential landmines for mortgage lenders. In one succinct presentation we will provide you the tools necessary to understand how to make loans in California without accidentally shooting yourself in the foot in the process.
This webinar will discuss:
- The difference between a DRE Broker’s license and DFPI’s CFL license.
- What license may be necessary when you buy, sell, service and broker loans.
- Whether your debt fund and its affiliates all need to be licensed.
- Whether you and your employees need to be additionally licensed.
- California’s regulatory climate related to tablefunding and other secondary market transactions.
- Construction loan limitations and complications.
- Loan level limitations such as usury, late charges, and prepayment restrictions.
Construction Loan Considerations for Private Lenders
Wednesday, April 21, 2021 11:00 AM Pacific Time
Host: Melissa C. Martorella, Esq., and Kyle Niewoehner, Esq., of Geraci LLP
Many private lenders make constructions loans of varying size and scope. From small rehab projects to ground up construction, there are many considerations at play to ensure a lender is protected throughout the loan. At the outset, lenders will need to work with their title company to confirm whether there are outstanding mechanics liens, whether an indemnity package is required to proceed, and confirm the type of title policy and endorsements required for ongoing protection under the loan. On larger projects, lenders will also want to obtain assignments of contracts, plans, and permits related to the construction in the event of a default under the loan. Finally, lenders will also want to make sure the documentation reflecting the loan agreement is representative of the actual project and includes appropriate holdback language, draw schedules, and customizations. In this webinar, we will discuss best practices for lenders to approach their construction loans.
This webinar will discuss:
- Best practices to approach title policies when making construction loans.
- How to review and obtain assignments of third party contracts related to a construction project.
- Proper documentation to protect lenders when making construction loans of various complexity.