Business Purpose Loans

Business Purpose Loans

Alternatives to the Multi-Lender Rule

If a private investor relies on you for any aspect of a trust deed investment, you are engaged in the sale of securities. The only scenario I can imagine that would be otherwise would be when an investor brings the potential loan to you, does his or her own due diligence and collects the loan […]

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What are Advance Fees and Who Can Charge Them?

By Dennis Doss An “advance fee” is money collected by a loan originator from a loan applicant before a loan has been closed. Due to unscrupulous originators that took advance fees and then failed to procure promised loans, the mortgage law generally disfavors advance compensation. We have three types of mortgage origination licenses in California. […]

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Don’t Leave Money on the Table–Hire a Subservicer

In this article Doss Law, LLP discusses ways to retaining a servicing spread without the burdens of actually servicing mortgage loans. Don’t Leave Money on the Table–Hire a Subservicer Many private money brokers outsource the servicing of their loans to avoid the stiff rules of the Department of Real Estate as to the handling of […]

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Borrower Payment Dependent Notes–New Lipstick, Old Pig

Doss Law, LLP discusses the emerging practice of using borrower payment dependent notes to raise capital for mortgage loans. Borrower Payment Dependent Notes–New Lipstick, Old Pig

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Private Trust Deed Lending Disclosure and DRE Filing Summary

by Dennis H . Doss  The following is an non-exhaustive summary of key disclosures and filings for private money lending using a DRE broker’s license. This memo is education material, not legal advise. Legal counsel should review your final docs before you use them and your specific DRE filing requirements. Borrower Disclosures in Non-Consumer Loans […]

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Business Purpose Exemption Simplified

Business Purpose Exemption Simplified by Dennis H . Doss This post is intended as educational material, not legal advice. Consult a lawyer before implementing any of the information in this post. I get many questions about the Business Purpose Exemption to Regulation Z and RESPA’s Regulation X. Here are some simple rules followed by the […]

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