When a loan goes into default, the simple response is for the lender to initiate foreclosure. However, many lenders will prefer to take an alternative course of action and attempt to restructure the loan in hopes that the borrower can get back on track. The two most common methods of restructuring are loan modification and …
Modification vs. Forbearance: Choosing the Right Agreement Read More »
The American Land Title Association (ALTA) updated the loan policy and various endorsements, among other things, from their 2006 versions in bits and pieces over the intervening period. These changed in 2021, and the revised policies and endorsements began rolling out in earnest in 2022 and intend to be the only policies available starting in …
ALTA 2021 Replaces ALTA 2006 – What Lenders Need to Know Read More »
TILA: What is the Truth in Lending Act? The Truth in Lending Act, also known as TILA or Regulation Z, is a federal statute enacted in 1968. Congress initially implemented TILA as part of the Consumer Credit Protection Act, aiming to protect consumers from unfair credit practices. Since its initial adoption, TILA has been amended …
You have heard the term origination fee, read it on a term sheet or settlement statement, and have likely been paid one. However, many are not aware that receiving an origination fee carries potential implications, including limitations on loan terms and usury. If you have not considered the legality of the origination fees that you …
Origination Fees: DOs and DON’Ts for Mortgage Professionals Read More »
A loan modification will change your mortgage terms, making the loan more affordable. A loan modification may be the best option for eligible borrowers if they are struggling to make the monthly payments on their mortgage or those who fall behind and face foreclosure. If this describes your borrower’s current situation, we’ve put together this …
Cross-collateral loans are valuable lending tools that can be used to a lender’s advantage. Everyone knows that if you fail to pay your mortgage, the lender has a right to foreclose on a borrower’s property and recoup its money. As an example, if a borrower were unable to pay their mortgage, the lender could be …
Cross-Collateral Loans: What Are They and How Do They Work? Read More »
By now, most of our clients obtain personal guaranties on all their loans. However, almost as if it is an afterthought, they don’t know what to do with it when they tuck their paperwork away after the loan has closed. Often, we get the question: “What should we do with the personal guaranty if this …
How to Use a Personal Guaranty to Your Advantage 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 …
Acme Loans regularly extends financing to borrowers for fix and flip projects. A prospective borrower has approached Acme requesting a loan to fund the development of four medical buildings. Acme really wants to expand the types of loans that it makes, and the prospective borrower would be a great source of new originations. Acme decides …
Making the Leap from Fix and Flip Financing to Construction Lending Read More »
Lending money for construction projects carries a meaningful level of risk. It is essential for lenders to develop an overarching vision and strategy that heeds these risks, or else the loan could cause trouble down the line. They should also evaluate each of their borrowers to determine if the project aligns with their risk tolerance. Besides …
Construction Loan Considerations: 5 Best Practices for Lenders Read More »
