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Loan participation agreements have ample benefits and risks for lenders. Below are several common myths on loan participation agreements circulating in the private lending industry along with explanations on why they are incorrect. Myth #1 – Only banks can sell participation interest in mortgage loans. FALSE. Mortgage lenders can kick off a participation agreement with …

Debunking Myths about Loan Participations Read More »

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Dealing with a financial crisis during uncertain times creates significant challenges for many lenders and borrowers. As seen during the COVID-19 crisis, a significant number of borrowers had difficulty making their mortgage payments, leaving lenders with no choice but to move forward with foreclosure. However, there is an alternative to foreclosure that offer advantages to …

Why You Should Consider a Deed in Lieu of Foreclosure Read More »

Article by Al YoonArticle from Debtwire.com Residential mortgage rates have hovered more than a quarter-point above record lows in recent weeks but it’s a different story if the borrower is an investor. For them, costs are falling. The latest sign that financing business-purpose residential purchases is getting cheaper came as lender and bond issuer Temple …

Residential business-purpose loan rates drop in face of investor demand Read More »

Is your borrower struggling financially? Have they fallen upon hard times? Do they need you to forbear on certain portions of the loan so that they do not fall behind on payments? A forbearance may be the perfect solution for your borrower and you. However, if you are an unlicensed lender, before you rush into …

Usury and Forbearances in California Read More »

During the COVID-19 crisis, an unprecedented number of borrowers requested loan payment deferrals from their lenders. But even without a national crisis, sometimes borrowers hit hard times and need help for a short period to manage loan payments. Lenders will need to evaluate a particular borrower’s facts and decide whether to proceed with a loan …

Forbearance Agreements 101 – What To Do When Your Borrower Can’t Pay Read More »

When it comes to guarantees, one size does not fit all. What type of guaranty is best for your loan? As a private lender underwriting a loan, guarantees can help limit the risk associated with taking on debt, adding an extra layer of safety in the event that a borrower defaults or the value of …

5 Types of Guarantees Read More »

Selling participation interests in mortgage loans is a common practice in the real estate lending industry—enabling the initial lender to improve liquidity and explore further funding opportunities while mitigating its risk profile. Participating lenders receive several benefits, including the ability to diversify their portfolios without the burden of underwriting and servicing the loans. Despite these …

Understanding Loan Participation Agreements Read More »