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Avoiding Marshalling

Cross-Collateralized Lenders May Face Litigation from Junior Lienholders Private lenders with cross-collateralized assets typically have extra security but face a unique challenge: junior lienholders who have no other source of assets from the same creditor can sue to force the lender into focusing on a different collateral or even get...

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An abstract close-up of a loan amortization schedule printed on cream paper

Introduction: Managing Early Payoff Risk Prepayment penalties—more accurately termed “prepayment premiums”—serve as compensation mechanisms when borrowers repay mortgage loans before anticipated maturity dates. When loans ...

A mortgage REIT misconceptions list spread on a desk five common misstatements each with a

Mortgage REITs have gained significant traction among private lending fund managers over the past several years, and their popularity continues to grow in 2025. The ...

A mechanics lien and a preliminary notice side by side on a construction lender's desk the

For private lenders and fund managers active in construction and renovation financing, few risks are as consequential as an unexpected mechanics lien claiming priority over ...

A foreclosure sale confirmation and a REO asset transfer entry side by side acquisition cost

For a private lender or mortgage fund, foreclosure is the legal endpoint of a non-performing loan and the financial midpoint of a recovery cycle that ...

Two documents side by side a corrective addendum on the left

Post-closing changes to loan documents arise with some regularity in private lending—whether due to clerical errors discovered after funding, mutual decisions to adjust material loan ...

Editorial still life: a California state code book open to interest rate statutes

Usury law is the compliance topic private lenders most often misunderstand and most often regret misunderstanding. Charge an interest rate above what state law allows ...

A multistate lending compliance binder open to a state-by-state licensing matrix renewal dates

Expanding a private lending operation beyond a single state is one of the most significant growth milestones for any originator or mortgage fund. It also ...

A private lender's risk assessment dashboard portfolio concentration metrics

The private lending industry operates in cycles, and 2025 presents a market environment that demands careful, deliberate decision-making. Elevated interest rates, shifting property values in ...

A well-maintained multifamily property occupied units visible

Among the various sectors within commercial real estate, multifamily properties have consistently demonstrated superior performance characteristics across economic cycles. For private lenders, fund managers, and ...

The AB 2424 text and a California foreclosure compliance checklist spread side by side on a

California’s legislative landscape for private lending shifted significantly when Governor Newsom signed AB 2424 into law on September 20, 2024. Effective January 1, 2025, this ...

A law firm engagement letter on a private lender's desk scope of services marked

The global private credit market is on track to surpass $1.67 trillion in 2025, driven by institutional demand, bank retrenchment, and an expanding base of ...

Wide editorial photograph of the Miami skyline from across Biscayne Bay at dawn

Florida’s regulatory treatment of business purpose mortgage lending has experienced significant attention over the past several years. Understanding the current licensing requirements—and how they compare ...