California is a unique lending market in that it permits California real estate brokers to place multiple investors on a single loan transaction without needing lengthy securities disclosure documents. Unlike most mortgage funds, the DRE permits brokers to arrange these loans to non-accredited investors. The DRE has very specific disclosure requirements, suitability standards, and reporting needs. Hear from seasoned veterans, Pam Sosa with Standard Mortgage Financial Services, Peter Steigleder with Fidelity Mortgage Lenders, and Nema Daghbandan with Geraci LLP about the business and legal side of loan fractionalization under a DRE license.
You will Learn:
(1) What are your disclosure requirements to your investors?
(2) What are the minimum suitability standards and how do you verify them?
(3) How to manage investor expectations and to make sure they know how this loan will be administered.
(4) How to market these loans to your investor base.
(5) How to comply with the DRE regulations when brokering and/or servicing a multi-beneficiary loan.
(6) What other issues should you consider when brokering a multi-bene transaction such as loan servicing, payoff requests and administration, and REO disposition.
(7) What forms you will need to be compliant (provided!).
Nema Daghbandan – Partner, Geraci LLP
Peter Steigleder – COO, Fidelity Mortgage Lenders
Pam Sosa – Principal, Standard Mortgage Financial Services, Inc.