Commercial Mortgage Broker Program

Commercial Mortgage Brokerage Program   

For Residential Lenders and Brokers who want to add another source of revenue

 

With interest rates rising in the residential sector all of us should develop additional sources of revenue that do not rely on traditional residential lending.

 

State and Federal Regulators are tightly focused on residential mortgage lending. They are largely unfocused on small commercial lending.

 

Commercial loans are largely exempt from Dodd-Frank. This means less paperwork, easier compliance, and an earning potential that falls outside of the CFPB Originator Compensation Rule.

 

We have developed a program for small Lenders and Brokers that will allow them to originate commercial mortgages with confidence. It includes the necessary documentation to present your deal professionally. It includes the federal policies and procedures that commercial lending requires. Our firm is attorney owned with clients in 13 states and because of this – we have funding sources for you.

 

We are offering this package at $750. Limited time offer.

 

To learn more, send us an email at nl@lockelaw.us

If you prefer, call us at (800) 656-4584.

Mention the word COMMERCIAL.

 

Respectfully,

Nelson A. Locke, Esq.

Compliance Services, USA

7800 Preston Road – Suite 118

Plano, TX 75024

 

http://www.lockelaw.us

 

 

 

New York Mortgage Lenders (and other States as well) pay attention. New Regulation – Cybersecurity Policy!

Recently we received a letter from the Superintendent of Financial Services, State of New York, advising that Financial Services Providers must create an implement a comprehensive Cybersecurity Program by March 1st. So we investigated and discovered that many states are in the process of implementing the same type of requirement.

We have created such a policy. We structured it to satisfy New York’s requirements and be easily adaptable to any other state. It consists of 13 pages of guidance and two affidavits regarding Notice and Exemption – because your entity may be small enough to request an exemption once your Program is in place. However, if you don’t qualify for an exemption you must not only implement this program but have your compliance certified.

Because the Cybersecurity Program makes frequent reference to Risk Assessment, we are  including a 13 page comprehensive Risk Assessment Program. New York requires this as well. Other states are trending in this direction.

If you need this, reply at the link below and I will provide it quickly. The cost is $250 for the bundle. I will invoice via PayPal.

Don’t get caught by surprise on this one.

This offer is limited to mortgage lenders and brokers that are NMLS licensees and not part of a large national bank. Credit Unions are allowed.

To request these policies, email me at nl@lockelaw.us and write CYBER in the subject line.

Nelson A. Locke

(800) 656-4584

http://www.lockelaw.us

 

An update on potential CFPB changes……

Hi folks, please be sure to read all the way to the bottom to see my comment.

Hot off the CFPB presses:

Dovetailing with President Trump’s recent Executive Order requiring a reduction in regulatory burden, on March 21, 2017, a CFPB official remarked at the American Bankers Association Government Relations Summit that the CFPB was planning to start its review of significant mortgage regulations, including the ability to repay/qualified mortgage rule.

The Dodd-Frank Act requires the CFPB to use available evidence and data to assess all of its rules five years after they go into effect to ensure they are meeting the purposes and objectives of Dodd-Frank, and the specific goals of the subject rule.  January 2018 will mark five years since the ability to repay/ qualified mortgage rule was finalized, as well as other key mortgage regulations, in January 2013.

Citing this requirement and “common sense,” Chris D’Angelo, Associate Director of the CFPB’s Division of Supervision, Enforcement and Fair Lending, said that the CFPB is “embarking upon now the beginning of an assessment process for our major mortgage rules.” D’Angelo said that the CFPB would assess these rules’ “real-world effects” on the market, as well as “whether it had the effect which was intended, what the costs were, .”

D’Angelo noted that the CFPB was still receiving complaints related to the mortgage servicing industry despite the existence of these rules, and that most of the problems were due to “the third-party service providers and the folks who develop your technology solutions.”  He also stated that incentive compensation practices would be considered but noted that “We know that you need those in order to manage larger organizations and how you drive your employees.”

Given Presidential pressure to reduce regulatory burdens and the fact that the CFPB’s mortgage rules have been criticized by financial industry participants and consumer advocates alike, the CFPB review of the key mortgage rules warrants close attention.

So what does this say? My interpretation is that they are planning on waiting until at least next year, probably after January, to issue a report supporting what they have done to us since 2013. It is in their best interest to write a persuasive report and show the best possible results. Many of you out there think this agency will disappear or be weakened by the Administration. I am asking you to be concerned about the exact opposite. Now, more than ever you better keep your compliance guard up. After we enter 2018 and actually read their findings I could make a better prediction. No matter what you hear, there is no crystal ball you can use to predict how this will go.

We recently changed our program a bit to provide free web and social media audits and free Safe Act certifications. Further, we have expanded our “repurchase defense” practice and it is working very well. Let us hear from you, and see how we can be of service.

(800) 656-4584

Nelson A. Locke, Esq.

Compliance Services USA

CLICK HERE to view Web Site

CLICK HERE to send email and request more information

Mortgage Brokers and Realtors Indicted

Seventeen Mortgage Brokers and Settlement Service Providers have been charged in a 17-count indictment with conspiracy to commit bank fraud and various substantive bank fraud offenses, in violation of Title 18, United States Code, Sections 1349 and 1344.

 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agent, Office of Inspector General (FHFA-OIG), Southeast Region, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Division, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.

 

During 2007 and 2008, the defendants conspired to perpetrate a complex mortgage fraud scheme against various FDIC-insured lenders.

 

The defendants conspired to fraudulently obtain mortgage loans for unqualified buyers of units in two condominium projects on the west coast of Florida: Portofino at Largo, also known as Indian Palms, in Largo, Florida; and Bayshore Landing, in Tampa, Florida.

 

The defendants submitted fraudulent loan applications to induce the lenders to make mortgage loans to the unqualified buyers. The submitted loan applications contained false and fraudulent statements relating to: the borrower’s occupation of, or intent to occupy, the mortgaged property as a residence; the borrower’s employment, income, and assets; the borrower’s liabilities; the borrower’s payment of an earnest money deposit and cash-to-close; the sellers’ payment of kick-backs to the borrowers; and other information that was material to the borrower’s qualifications to borrow money from the lenders and the values of the mortgage properties.

 

The indictment states that the co-conspirators would require certain parties to use some of the proceeds from certain of the fraudulently obtained mortgage loans to pay a fictitious “marketing fee” to one of the “marketing companies” set up by the conspirators.

 

If convicted, the defendants face a statutory maximum term of 30 years’ imprisonment, a $1 million fine, and mandatory restitution, on each count in the indictment.

 

Mr. Ferrer commends the investigative efforts of the FHFA-OIG, FBI and MDPD. The case is being prosecuted by Assistant United States Attorney Dwayne E. Williams.

 

An indictment is a formal charging documents notifying the defendant of the charges. All persons charged by indictment are presumed innocent until proven guilty in a court of law.

If you are concerned that you might have inadvertently done something like this, and you want us to review your situation, call us at (800) 656-4584. Sooner is better.

So you only do “commercial loans” and that means you are exempt?

Florida Senate to re-open 494 with special attention to Commercial Lending and Unlicensed Loan Originators

 We told you so. There has been so much abuse regarding the re-branding of residential property into commercial or investment classifications that it now looks like the state is going to close the loop hole.  The OFR is tightening up what residential means, tracking it to what RESPA and TILA consider residential. Next, they are looking at those of you who tell us all the time you don’t “hold yourself out” to the public, yet you clearly do. Finally, with these new interpretations, where is your license?

 If this news is making you nervous you probably need our services. You can reach us at (800) 656-4584 x103.

 We have experience evaluating and advising “commercial lenders” who are in the danger zone.

 If you ignore this regulatory and enforcement trend you will find yourself on the wrong end of an audit very soon.

sb-1298-mortgage-brokers

 Again, call (800) 656-4584 x103. Let us help you get out of the grey zone and into the safe zone.

 Respectfully,

 Nelson A. Locke, Esq.

Mortgage Industry Compliance Expert

Attorney and Expert Witness

Office (800) 656-4584

Cell (305) 951-2785

http://www.lockelaw.us

http://expertlenderservices.com

LL Logo 112715

 

Private Lenders, Licenses, and Servicing a Portfolio in Florida

Is this an issue? YES. Florida looks at servicing like this.

FLORIDA MORTGAGE LENDER SERVICER LICENSE  Who is required to have this license? This licensing endorsement is required for any mortgage lender licensee who services a loan. 

“Servicing a mortgage loan” means to receive, cause to be received, or transferred for another, installment payments of principal, interest, or other payments pursuant to a mortgage loan. A “servicing endorsement” means authorizing a mortgage lender to service a loan for more than 4 months.

Who does NOT need this license?

  1. A person acting in a fiduciary capacity conferred by the authority of a court. Probably NOT you.

  2. A person who, as a seller of his or her own real property, receives one or more mortgages in a purchase money transaction. So this refers to PERSONAL not held out as a business.

  3. A person who acts solely under contract and as an agent for federal, state, or municipal agencies for the purpose of servicing mortgage loans. Probably NOT you.

  4. A person who makes only non-residential mortgage loans and sells loans only to institutional investors. Here is the key – the legal definition of non-residential.

  5. An individual making or acquiring a mortgage loan using his or her own funds for his or her own investment, and who does not hold himself or herself out to the public as being in the mortgage lending business.  If you have a business card, and make more than two or three of these a year, this might be YOU.

  6. An individual selling a mortgage that was made or purchased with that individual’s funds for his or her own investment, and who does not hold himself or herself out to the public as being in the mortgage lending business.  Selling “notes”.  

So now, ask this – What is a non-residential loan?

  • Legally acceptable definition – A loan that is used to purchase nonresidential property such as an office building or a factory.

Now – what is a commercial property?

  • Legally acceptable definition – Property used for retail or trade and not zoned residential.

    Commercial

CONCLUSION – Just because you “call” a 1-4 family a commercial investment, and have affidavits signed regarding NOO and not second or vacation home – that may not be legally sufficient. The RESPA definition and the definitions used above will apply.

So, be warned. On the radar for enforcement this year. If in doubt about your situation, let us hear from you. 

(800) 656-4584 Ext 103.

 

Site visits – “Mock Audits”

Compliance Services intends to add this service on a limited basis.

If you have interest in our coming to your facility and “auditing” your entity to see how you would do when the state or the feds come calling, send me an email at nl@lockelaw.us.

These visits clearly show us what Brokers and Lenders thought they knew but didn’t.

These visits can save thousands in potential fines.

Nelson A. Locke, Esq.

(800) 656-4584