How to Onboard a Mortgage Fund to a Subservicer
A five-stage framework for moving a mortgage fund's loan portfolio to a subservicer: due diligence, the agreement, loan boarding, trust accounting, and investor reporting.
Seven Mortgage Fund Subservicing Mistakes
Mortgage fund subservicing runs against the Subservicing Agreement under 12 CFR §1024.31 and the investor-reporting framework against the fund's operating agreement. Seven mistakes recur on a fund subservicing engagement, and each runs the fund into an audit exposure against the lender-investor base or the [...]
Mortgage Fund Subservicing Done Right
A mortgage fund runs a portfolio of mortgage notes against a pooled investor base under a Reg D §506 offering and an Investment Company Act §3(c)(5)(C) real-estate exception. The fund runs the loans against the investor base under a preferred-return waterfall and runs the [...]
§10238 Multi-Lender vs §25102(f) Private Offering
The California §10238 Multi-Lender Law and the Corporate Code §25102(f) private offering exemption run two different frameworks on private real estate notes held by multiple lender-investors. The two frameworks run different investor caps, different disclosure forms, different broker-arrangement structures, and different servicing requirements. This [...]
Multi-Lender Ten-Investor Questions Lenders Ask
The questions below recur from California private lender-investors on the §10238 multi-lender framework. Each answer runs against the California Business and Professions Code §10238 framework on multi-lender loans.Does the ten-investor cap run against the funding cycle or the loan term?The §10238 ten-investor cap runs [...]
When the Eleventh Investor Broke the Multi-Lender Note
This case study walks a composite California §10238 multi-lender note scenario in which the broker ran the lender-investor count across the ten-investor cap on a single assignment cycle. The composite runs against recurring patterns documented on DRE enforcement records on §10238 violations. Specific dollar [...]
How to Structure a §10238 Multi-Lender Note
This guide walks the §10238 multi-lender note structuring framework from the lender-investor onboarding step through the broker-servicing setup.Step 1: Confirm the lender-investor count against the ten-investor capThe §10238 framework runs the lender-investor count cap at ten. The broker runs an investor inventory on the [...]
Seven Mistakes on §10238 Multi-Lender Notes
California §10238 multi-lender notes impose structural, disclosure, and servicing requirements that most brokers underestimate. These seven compliance mistakes — from crossing the ten-investor cap to skipping the RE 860 filing — create direct DRE audit exposure. Here is how to identify and correct each one.
Multi-Lender Notes With Up to 10 Investors
California Business and Professions Code §10238 — the Multi-Lender Law — runs the framework on private real estate notes held by more than one lender-investor. The framework runs an investor-count cap at ten lender-investors on a single multi-lender note, runs the identical-interests requirement on [...]
Fidelity Bond Questions Private Lenders Ask
The questions below recur from California private lender-investors on the Reg 2834 fidelity bond framework against a broker trust account. Each answer runs against the Cal Code Regs Title 10 §2834 framework and the broker's trust-fund discipline under §10145.Does the broker need a fidelity [...]