Every state operates under a specific set of laws, rules and regulations regarding real estate transactions. Private Lender Law works with private lenders to provide reliable legal services to help them stay compliant. You will partner with a knowledgeable regulatory compliance attorney who can provide insight into the laws that apply to your state.
Our experienced lender compliance attorney team can help you understand the various regulatory issues that impact the lending process and how they affect your transactions.
Violating the real estate laws — whether intentionally or unintentionally — can have significant legal and financial consequences. Working with a regulatory attorney offers protection from penalties and ensures adherence to the laws. Breaching lending and other related agreements can result in lawsuits, and our attorneys can help ensure you perform your contractual obligations.
A comprehensive compliance review is an essential function of a lender compliance attorney. The process involves assessing documents and business practices to ensure they meet the regulatory standards, licensing requirements and other applicable laws.
The laws governing private real estate lending are numerous and complex, which creates challenges for private real estate lenders.
Private Lender Law attorneys keep abreast of the constantly changing laws and regulations, removing the burden from your shoulders. We can inform you when these changes occur and recommend updated steps and procedures to maintain compliance.
A summary of the functions that an attorney performs regarding real estate lending compliance includes:
Licensing is another area that can create compliance issues for real estate lenders, who can benefit from capable legal guidance.
Our Private Lender Law lender licensing attorneys are familiar with the real estate licensing requirements that apply to all 50 states, and the steps for obtaining and maintaining licensure.
Private Lender Law is a national law firm focusing on delivering a range of services for the nonbank private lending industry. Our attorneys possess the knowledge and experience to actively advise private and public companies in all aspects of private real estate lending transactions, including legal compliance.
As a client-focused law firm, we can deliver personalized and dependable legal services tailored to each client’s specific needs.
Private lenders face a complex web of state and federal regulations that vary depending on the type of loan (consumer vs. business-purpose), the state of origination, the loan amount, and the lender’s structure. Key areas include state lending licenses, usury laws, mortgage broker acts, anti-predatory lending statutes, and securities laws governing investor fund structures.
A business-purpose loan exemption is a regulatory carve-out that excludes certain commercial real estate loans from consumer mortgage licensing requirements (such as RMLA or Dodd-Frank). For a loan to qualify, proceeds must be used for business rather than personal, family, or household use. Lenders must carefully document borrower intent and loan structure to maintain this exemption.
Private Lender Law’s regulatory attorneys are familiar with the licensing requirements in all 50 states. The firm evaluates a lender’s business model to determine which licenses are required in each state of operation, assists with license applications, manages renewals, and monitors ongoing compliance.
A compliance review is a systematic assessment of a lender’s documents, policies, and procedures to ensure they meet applicable regulatory standards. Private Lender Law attorneys examine loan agreements, closing documents, underwriting guidelines, and origination practices against current state and federal requirements.
Any nonbank lender, debt fund, family office, or private equity firm originating real estate loans should have regulatory compliance counsel,especially lenders operating in multiple states, lenders launching new loan products, or lenders whose programs have not been reviewed since applicable laws changed.
Private lending regulations vary dramatically by state in areas including usury caps, foreclosure procedures, licensing thresholds, anti-predatory lending requirements, and recording and notarization rules. For example, Illinois requires APLD submissions for certain loans, while California has specific licensing rules for non-owner-occupied loans.
Non-compliance can expose a private lender to loan voidance, loss of lien position, inability to foreclose, regulatory fines, license revocation, and civil litigation. In some states, regulatory violations give borrowers defenses that can prevent foreclosure entirely. Proactive compliance is far less costly than remediation after a violation occurs.
Do you have concerns about real estate lending compliance? Learn more about how Private Lender Law can support your compliance efforts and give you peace of mind. Call us at 1-212-536-3529 to schedule a consultation with a regulatory attorney today. You can also return the online contact form to request assistance.
