loan

Lenders are typically responsible for drawing up a loan contract to detail the commitments of a loan agreement with borrowers, from how funds will be used to exactly how and when they will be repaid. When it comes to real estate lending, these agreements can be complex and often require more than a simple signature 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 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 Read More »

With certain exceptions, the Ability to Repay/Qualified Mortgage Rule (“Rule”) requires lenders to make a reasonable, good faith determination of a consumer’s ability to repay a residential mortgage loan and provides certain protections from liability for residential mortgage loans that meet the Rule’s requirements for “qualified mortgages” or “QMs.” A lender that makes a QM Read More »

Many hard money lenders who make primarily business-purpose loans consider consumer bridge loans as a path to diversify their business while still avoiding some of the most restrictive consumer loan protections. However, many lenders are unclear on what exactly qualifies as a “bridge loan” and which consumer protection laws apply. Regulation Z provides some special Read More »

The Federal Reserve’s increase of interest rates a few weeks ago has spurred many homebuyers into action for fear that the continuous lowering of interest rates may have come to an end. Even so, borrowing costs for banks is at the lowest level since 2008, and even mortgage rates for borrowers with damaged credit have Read More »

THE PRICE OF STUPIDITY – OR HOW TO REALLY SCREW UP SERVICING A LOAN

In April 2019, the Eleventh Circuit Court of Appeal issued a lengthy ruling eviscerating Carrington Mortgage Services, LLC (“CMS”) for a litany of idiocies perpetrated upon a Florida couple. A complete recitation of CMS’ buffoonery consumes the Court’s 60-page opinion and provides a veritable “how not to” treatise of easily avoidable violations of the Fair Read More »

Although marijuana is legal in some form in over 25 states, it is still designated as a Schedule 1 drug at the federal level.  This federal designation makes it extremely hard for cannabis businesses to borrow money.  Most banks refuse to lend to cannabis businesses regardless of the legal status in the state they operate.  Read More »

On September 10, an appeals court in Pennsylvania reversed a District Court’s decision, holding that under Pennsylvania law, a title insurer is only bound to defend claims explicitly covered in its policy, and is not required to defend uncovered claims joined in the same suit. In a thinly-reasoned opinion, the U.S. Court of Appeals for Read More »

A Nevada couple was awarded $119,000.00 after their loan servicer continued to send out account statements and demand letters well after the couple’s debts were discharged in their Chapter 7 bankruptcy. A federal bankruptcy appellate court held the servicer liable for violating the couple’s discharge order by sending numerous letters and making phone calls to Read More »

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