California Passes Small Business Truth-in-Lending Law

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP  In response to complaints about small businesses being gouged by finance companies, on September 30, 2018, California enacted Senate Bill No. 1235, the so called “Small Business Truth-in-Lending Law (“SBTL”).  It is the first of its kind in this country.  It aims to protect […]

Challenge To DRE’s Attack On O/O Business Purpose Loans

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    Financial Code Sections 4970-4978.8, California’s High Cost Mortgage Law, became law in 2001. It applies to “covered loans,” meaning consumer loans under the Fannie Mae conforming loan limit secured by borrowers’ principal dwellings where one of two thresholds are crossed: (a) the APR […]

DRE Withdraws Its Attack On O/O Business Purpose Loans

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    Doss Law, LLP is pleased to announce that on September 6, 2019, the California Department of Real Estate agreed to: A.  Dismiss all charges, fines and audit expenses against KS Capital and Bobby Kashani, completely clearing their names; B.  Publish an article on its […]

Mortgage Debt Regulated By Consumer Debt Collection Law

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP  Recent legislation signed into law will affect mortgage lenders, servicers, brokers and attorneys who seek to collect mortgage debt from California consumers. In 1977, Congress enacted the Fair Debt Collection Practices Act (“FDCPA”) to “eliminate abusive debt collection practices by debt collectors, to insure […]

Loan to Business Entity Homeowner Struck Down

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP  As most readers know, loans to business entities, such as corporations and limited liability companies, are exempt from nearly all consumer protection statutes, including the Federal Truth-in-Lending Act, Real Estate Settlement Procedures Act, Safe Act and California High Cost Law contained in Financial Code […]

HMDA Threshold Raised By CFPB

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    Very good news for small lenders and brokers.  On April 16, 2020, the CFPB raised the threshold for the number of residential mortgage loans that a lender must make before being subject to HMDA reporting.  Effective July 1, 2020, the new threshold will […]

Trust Borrower Shelters Under Consumer Protection Laws

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP  Have you ever considered a mortgage loan to a living trust?  Most of you know that loans to estate planning trusts occupied by the creators of the trust are regarded as owner-occupied consumer loans.  The reason for this treatment is the following language in […]

SEC Expands Accredited Investor Definition

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    Attention fund managers and capital raisers for private offerings!  Your pool of potential investors just got much larger.  On August 26, 2020, the Securities and Exchange Commission (“SEC”) approved “Amendments” to the definition of “accredited investor.”  This definition is a key component of […]

Utah Federal Court Rebuffs Homeowner’s Attempt to Stop Foreclosure in the Face of Material Disclosure Errors

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP    The September 21, 2021 Drummond v. Veritas Funding, LLC, (D. Utah) No. 2:21-CV-423-TS-DBP (“Drummond”) case is a horn-a-plenty for lenders attempting to fend off borrowers’ attempts to enjoin foreclosure.  The lender, Veritas, under-disclosed several items in its Loan Estimate and Closing Disclosure on a home mortgage […]

Attention CFL Licensees! NMLS Transition Update

by Dennis H. Doss & Christopher J. Donovan | Doss Law, LLP  We previously announced that the California Department of Financial Protection and Innovation (“DFPI”) published new regulations requiring that all California Financing Law (“CFL”) licensees must transition their licenses over to the Nationwide Multistate Licensing System (“NMLS”) electronic portal no later than December 31, 2021. […]