Doss Law, LLP

Distressed assets funds rise in popularity during a recession. Banks are eager to purge their portfolios of labor-intensive mortgages that punch holes in their balance sheets and increase their reserve requirements. Private equity funds must liquidate non-performing loans to meet capital calls from their credit facilities and to satisfy investor redemption demands....Link to full article below. https://www.dosslaw.com/2020/04/13/distressed-assets-funds/

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 Sections 4970 and 4995. However, we have always advised that the business entity borrower must be a bona fide business endeavor for the exemption to apply. Click the link below to continue reading. https://www.dosslaw.com//loan-to-business-entity-homeowne/

Recent legislation signed into law will affect mortgage lenders, servicers, brokers and attorneys who seek to collect mortgage debt from California consumers. Click the link below to read the full article. https://www.dosslaw.com//mortgage-debt-is-now-regulated-u/

Is it time to think outside of the box when structuring private money mortgage funds? In the traditional mortgage fund we have created hundreds of times to house private money mortgages, the pool manager collects payments on the mortgages in the fund and from that cash flow first pays the manager an asset management fee. Second in the waterfall is the payment of a preferred return to the fund members (private investors), say 7%, and to the extent that there are profits in excess of the preferred return, splits those profits with the members, say 50/50. The manager does not guaranty any return; the return to the investor is wholly dependent upon collection of the mortgages the fund owns. Click the link below to continue reading. https://www.dosslaw.com//4-5-senior-debt-class-in-a-priva/

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 text of the exemption regulation: 1. All business purpose loans are wholly exempt from TILA/RESPA coverage. 2. All loans to bona fide business entities are wholly exempt from coverage, regardless of purpose. 3. All real estate secured loans to natural persons for consumer purposes are subject to the new TIL Integrated Disclosure (e.g. ...a loan on a high-rise to pay school tuition) Click the link below to continue reading. https://www.dosslaw.com//business-purpose-exemption-simpl/ See more