A properly structured workout file is the primary evidence a regulator, plaintiff's attorney, or note buyer examines after a loss-mitigation decision. This guide covers the five-section file structure, contact log standards, document intake protocols, internal decisioning records, and final-disposition documentation that survive regulatory and legal review.
Foreclosure is the most expensive way for a private lender to resolve a default. ATTOM's Q4 2024 data put the national average foreclosure timeline at 762 days, with Louisiana running 3,038 days and New Hampshire just 82 days. Across that window, the note accrues [...]
Ten reference answers on California and New York usury law, Reg Z business-purpose classification, and the broker exemption — drawn from primary statutory and case sources.
California and New York take opposite approaches to usury law. If your private mortgage portfolio spans both states, the rate you charge is only part of the analysis — where the collateral sits, how you're licensed, and who your borrower is all determine whether you're inside or outside the ceiling.
Barker v. Rokosz (E.D.N.Y. 2024) is now the primary citation plaintiff-side attorneys use to pierce entity-borrower structures under Reg Z. Learn what drove the holding, which statutory consequences reattach, and what private lenders must change in their origination files.
A business-purpose classification under Regulation Z survives challenge only when the closing file documents all five Comment 3(a)-3 factors. This guide walks private lenders through the five document categories that make the exemption hold from origination through payoff.
California Civil Code §1916.1 exempts broker-arranged private loans from the state's constitutional usury ceiling — but only when the file proves substance, not just a name on a closing statement. These seven documentation gaps are the fact patterns plaintiffs use to pierce that exemption and void private mortgage notes.
Usury law sets the rate ceiling — but private lenders live or die by the exemption, not the cap. California, New York, and Reg Z each demand independent documentation that the exemption was earned and stayed earned across the life of the loan.
SAFE Act licensing, TILA disclosures, ATR analysis, and RESPA Section 6 transfer notices all apply to seller-financed notes. This FAQ answers the 10 compliance questions private lenders ask most — with direct answers grounded in federal statute.
Seller financing lets property sellers extend credit directly to buyers outside institutional channels. This guide covers the four legal structures, SAFE Act and Dodd-Frank compliance, required documentation, and why note investors value properly papered seller-financed instruments.
