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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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Wide editorial photograph of a California residential street at late evening

⚠️ REQUIRES HUMAN REVIEW BEFORE PUBLICATION ⚠️ Introduction On August 31, 2020, California Governor Gavin Newsom signed into law Assembly Bill 3088 (AB 3088), formally ...

A loan classification decision tree spread on a compliance desk business-purpose indicators and

Determining whether a loan qualifies as a business purpose transaction or falls under consumer lending regulations is one of the most consequential compliance decisions a ...

A loan participation agreement spread on a deal desk lead lender and participant rights

Private lenders frequently encounter a strategic crossroads once they have originated a mortgage loan: hold the entire note on their own balance sheet, or distribute ...

A lien priority analysis spread on a modification desk pre-modification and post-modification

When modifying loans where junior liens exist on the collateral property, senior lenders must carefully evaluate how the modification affects their lien priority. Well-intentioned modifications ...

A private lender's workout strategy decision tree forbearance, modification

When a borrower stops paying, private lenders face a series of consequential decisions. The instinct to pursue immediate foreclosure is understandable, but experienced lenders know ...

A Qualified Opportunity Fund formation binder section 1400Z requirements

The Qualified Opportunity Zone (QOZ) program created under the Tax Cuts and Jobs Act remains one of the most consequential tax incentive structures available to ...

Cinematic side-by-side editorial photograph: on one side

The security instrument you use to collateralize a real estate loan fundamentally shapes your rights and remedies as a lender. While borrowers and even some ...

Bankruptcy Complications Sb 1079 California Foreclosure Law - Geraci LLP

California’s Senate Bill 1079, codified as Civil Code Section 2924m, fundamentally transformed non-judicial foreclosures on residential properties containing 1-4 units. While the legislation aimed to ...

A CFPB QM rule amendment spread beside a private lending exemption analysis business-purpose

Understanding the CFPB’s Proposed Amendments to the Ability-to-Repay Rule The Consumer Financial Protection Bureau’s Ability-to-Repay/Qualified Mortgage Rule represents one of the most consequential regulatory frameworks ...

The expanded accredited investor definition spread beside a 2020 subscription update new

When the Securities and Exchange Commission voted 3-2 in August 2020 to amend the accredited investor definition for the first time in over three decades, ...

A SB-1079 foreclosure landmine map spread on a litigation strategy desk each litigation trigger

California’s Senate Bill 1079 fundamentally restructured how non-judicial foreclosures work for residential properties with one to four units. Enacted effective January 1, 2021, the law ...

A workout tool selection guide spread on a lender's desk loan modification and forbearance

When a private lender faces a borrower who cannot meet payment obligations, two primary instruments are available to restructure the relationship without resorting to immediate ...