Lender Loan – Flight 93 http://flight93.org/ Thu, 23 Sep 2021 21:57:54 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://flight93.org/wp-content/uploads/2021/07/icon-5-150x150.png Lender Loan – Flight 93 http://flight93.org/ 32 32 Ex-COO of LoanDepot: Tony Hsieh cropped to increase volume http://flight93.org/ex-coo-of-loandepot-tony-hsieh-cropped-to-increase-volume/ Thu, 23 Sep 2021 21:14:43 +0000 http://flight93.org/ex-coo-of-loandepot-tony-hsieh-cropped-to-increase-volume/ A former frame of loan deposit bombed the mortgage industry Wednesday night, alleging in a lawsuit that the California-based non-bank lender, in a scheme to raise money during the refi boom and in preparation for its IPO, had closed thousands loans without proper documentation. The lawsuit, filed by Tammy Richards, former COO, accuses LoanDepot CEO […]]]>

A former frame of loan deposit bombed the mortgage industry Wednesday night, alleging in a lawsuit that the California-based non-bank lender, in a scheme to raise money during the refi boom and in preparation for its IPO, had closed thousands loans without proper documentation.

The lawsuit, filed by Tammy Richards, former COO, accuses LoanDepot CEO Anthony Hsieh of ordering the sales team to “trust [their] borrowers’ and close loans, disregarding the proper underwriting etiquette.

Richards claims that this request was announced at a production meeting in August 2020, where Hsieh reportedly shouted, “I’m Mello Clear, and we need to close the loans immediately regardless of the documentation.” Senior LoanDepot executives would not have looked at Hsieh’s tactics.

After two months, the same remark was made to Ms. Richards, with Hsieh allegedly announcing that the sales team was to “close all loans … close without credit report … close without documentation … close all loans”.

Closing loans without documentation violates federal laws, including the Dodd-Frank Act, which requires mortgage originators to follow minimum standards for all mortgage products. Historic law also prohibits lenders from making loans unless they reasonably determine that the borrower can repay based on documentation proving current and expected credit history and income.

Officials of the Consumer Financial Protection Bureau, the Federal Housing Finance Agency and Fannie Mae and Freddie mac did not immediately respond to HousingWire’s requests for comment.

Richards’ lawsuit, filed in California Superior Court in Orange County, claims his refusal to comply with Hsieh’s demands, particularly regarding the closing of non-credit report loans, resulted in his demotion in November.

Richards claims that after his demotion, LoanDepot executives devised a strategy dubbed “Project Alpha” in which Hsieh allegedly personally identified more than 8,000 loans that were closed without proper documentation. Two hundred processors were tasked with taking out the loans in exchange for additional bonuses at the end of the year, according to the lawsuit.

Richards accuses the CEO, who founded LoanDepot in 2009, of ordering the company’s chief credit officer, Brian Rugg, to refrain from auditing the 8,000 loans.

Richards, who at one point supervised 4,000 employees, said she was ultimately forced to quit her job for refusing to break the rules. After going on sick leave, she resigned in March 2021.

Richards’ lawsuit also includes multiple allegations that male corporate executives created and enforced a “misogynistic fellowship house culture” that has consistently led to harassment and demeaning of women.

The non-bank mortgage lender took issue with the claims of Richards, who held senior positions at Wells fargo, Bank of America, Caliber home loans and Nationwide financial (one of the bad actors in the subprime crisis) before joining LoanDepot.

“LoanDepot is committed to operating at all times in accordance with ethical, responsible and compliant business practices,” a company statement read.

“The claims in the lawsuit, which we take very seriously, have already been thoroughly investigated by independent third parties and have been found to be without merit,” LoanDepot said, without providing further information on who has conducted these investigations and when they took place. “We intend to defend ourselves vigorously against these far-fetched allegations …”

LoanDepot, the country’s second-largest non-bank retail mortgage lender, went public in February, selling 3.85 million shares at $ 14 and raising $ 54 million. The company has filed reports showing that its revenues have grown from $ 1.3 billion in 2019 to $ 4.3 billion in 2020, according to Security and Trade Commission deposits. The company made approximately $ 100.7 billion in loans in 2020.

Hsieh was the biggest beneficiary of the IPO – as the largest shareholder he enjoyed a one-time discretionary performance bonus of $ 42.5 million last year.

In recent months, the non-bank lender has decided to appoint new faces to its board, including Pamela Hughes Patenaude, former deputy secretary of the US Department of Housing and Urban Development and Mike Linton, a marketing expert who currently serves as chief revenue officer for a genomics company Ancestry,

The company was trading at $ 6.98 late Thursday afternoon, with a valuation of $ 2.1 billion. He recently named the former Department of Housing and Urban Development Assistant Secretary Pamela Patenaude on the Board of Directors.


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New financing program available for smaller businesses in the state http://flight93.org/new-financing-program-available-for-smaller-businesses-in-the-state/ Thu, 23 Sep 2021 04:58:56 +0000 http://flight93.org/new-financing-program-available-for-smaller-businesses-in-the-state/ Smaller businesses in California now have access to an additional $ 56.5 million through the California Rebuilding Fund, which offers flexible, low-cost loans to support long-term recovery from the COVID-19 pandemic. First announced by Governor Gavin Newsom in November 2020, the California Rebuilding Fund is a public-private partnership that combines capital from private, philanthropic and […]]]>

Smaller businesses in California now have access to an additional $ 56.5 million through the California Rebuilding Fund, which offers flexible, low-cost loans to support long-term recovery from the COVID-19 pandemic. First announced by Governor Gavin Newsom in November 2020, the California Rebuilding Fund is a public-private partnership that combines capital from private, philanthropic and public organizations to support new loans administered by community development finance institutions ( CDFI).

Objective: Secure funding for the years to come

Born out of the recommendations of the Governor’s Task Force on Business and Jobs Recovery, the California Rebuilding Fund received an anchor commitment from the California Infrastructure and Economic Development Bank (IBank); and, although launched in response to the pandemic, the program fills credit gaps that have existed for decades and continues to increase public and private investment to ensure that financing is available to small businesses for years to come.

“It goes without saying that too many small California businesses are still reeling from the pandemic,” said Scott Wu, executive director of IBank. “Our vision is that this additional funding will not only help these business owners, their employees and their families survive, but by growing this fund through the continued support of partners across the state, we will go even further and we ensure that they prosper. . “

Early successes of the program help historically underserved people

To date, the Rebuilding Fund has provided loans to over 700 small businesses for an average loan amount of approximately $ 63,000. Over 90% of loans have gone to historically “unbanked” small businesses, which means they do not have access to credit from traditional financial institutions. These include businesses in low-income communities and those with annual sales of less than $ 1 million. The additional $ 56.5 million will bring the total amount raised by the California Rebuilding Fund to over $ 100 million, helping California’s smallest businesses – especially those in economically disadvantaged and historically unbanked or “underbanked” areas. “state – to continue to survive this economic storm and emerge with better growth prospects.

Growing base of funders and supporters

The California Rebuilding Fund is supported by public, private and philanthropic investors interested in supporting the equitable growth of small businesses across the state, including IBank, Santa Clara County, San Francisco County, Wells Fargo, First Republic Bank, Bank of America, the Grove Foundation, The Kapor Center, the Panta Rhea Foundation and generous individual donors. The most recent backers of the Fund are The Doctors Company, Sonen Capital, Visa Foundation and others.

“We are excited to work with the California Rebuilding Fund to enable equitable access to capital for historically underserved small and micro businesses as they recover and rebuild,” said Graham Macmillan, president of the Visa Foundation. “We believe the Fund’s approach of providing patient and affordable financing to small business lenders who understand the challenges of the local market will help small business growth and long-term resilience. “

Many eligible small businesses

Community Lenders participating in the Reconstruction Fund offer a standardized loan on low cost, transparent and flexible terms to small businesses with loans of up to $ 100,000. Businesses that have received funding from the State Pandemic Grant Program or other relief fund are still eligible to receive a low-interest loan from the Reconstruction Fund.

“By the end of 2020, I was out of options,” said Alicia Villanueva, owner of Alicia’s Tamales Los Mayas, a catering and food processing facility in Hayward, Calif. “That’s when I heard about the California Rebuilding Fund. I applied through a participating lender, Pacific Community Ventures, and was one of the first small businesses in the state to receive a loan. The loan came at a crucial time for us, and we used the funds for payroll, reinvested some in the business, and reached new customers.

Free advice and support

All interested small business owners should submit a pre-application to www.CALoanFund.org, which will collect standard information about their business and connect them with a community lender. If it matches, the lender will help business owners with the application and provide free advice and support through a network of organizations organized by CAMEO (The State of California Micro-Business Network ), Small Business Majority, California Small Business Development Centers, and Women’s Business Centers. .

“The California Rebuilding Loan has been an essential product for small California businesses on the road to recovery as we weather the effects of the pandemic,” said Susan Lamping, vice president of CDC Small Business Finance, one of the 12 participating communities. lenders. “It gives our business community access to much-needed capital as they rebuild and regain ground, and it allows lenders to increase our loans to support our community of entrepreneurs as they grow. get back on their feet. “

The fund is managed by Kiva Capital Management and organized by Calvert Impact Capital.

“Under the strong leadership of Governor Newsom, the California Rebuilding Fund was established and is one of the many tools available to help small businesses adapt to their new operational reality,” said Dee Dee Myers, director of the office. of the governor for business and economy. Development (GO-Biz). “Small businesses and innovative start-ups now have access to free resources and technical assistance to start, manage, grow and prosper through the new website of the California Office of the Small Business Advocate. “

Small businesses can learn more about other help available for small businesses in the California Small Business Fact Sheet.

The Community Reinvestment Fund’s Connect2Capital platform hosts applications at www.CALoanFund.org.


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Kennedy Funding closes $ 2.5 million land loan in Peru http://flight93.org/kennedy-funding-closes-2-5-million-land-loan-in-peru/ Wed, 22 Sep 2021 13:19:00 +0000 http://flight93.org/kennedy-funding-closes-2-5-million-land-loan-in-peru/ ENGLEWOOD CLIFFS, NJ, September 22, 2021 / PRNewswire / – There are approximately 5,771 commercial lenders in the United States. If you ask any of them if they would – or could – take out a land loan in the Tarapoto Hills, Peru, the answer would be a categorical “no”. This is why a Coral […]]]>

ENGLEWOOD CLIFFS, NJ, September 22, 2021 / PRNewswire / – There are approximately 5,771 commercial lenders in the United States. If you ask any of them if they would – or could – take out a land loan in the Tarapoto Hills, Peru, the answer would be a categorical “no”.

This is why a Coral Springs, Florida, the broker approached Kennedy Funding, a Englewood Cliffs, New Jerseydirect based private lender.

Kennedy Funding has built a worldwide reputation for loan closing when others cannot. Land loans have become one of their successful on-demand loan products. They successfully closed $ 3 billion on loan, mostly on land, all over the world: Belize, Brazil, Colombia, Dominican Republic, Jamaica, St. Barts, and many countries and continents, including loans across the United States and Canada.

“I met Kennedy’s management team a long time ago and knew there were special circumstances that would necessitate their services,” said Alex stiglich, South Pacific Funds and Commerce Limited, which represented the borrower.

“Commercial banks and other conventional lenders are asking just too much, and especially if time is of the essence there is no chance of closing,” he said. “Kennedy is more flexible in a lot of ways. They focus exclusively on the warranty. That’s how they close the deal. I trust them 100% in their ability to close.”

At September 10, Kennedy Funding closed the $ 2.5 million loan of land to Allan Construcciones SAC to finance the construction of their residential project. The loan will be used initially for working capital.

The loan was secured by two lots – 26,326.89 square meters of land located at Jr. Jose galvez C-08 Tarapoto, Peru, and 145,109 square meters of land located at plot 0639141 Oxapampa, Not co, Peru. The site is currently mud.

Kevin wolfer, CEO of Kennedy Funding, said securing a loan outside of the United States presented enormous challenges.

“It takes an experienced lender like Kennedy Funding to do business in Peru“Wolfer said.” You have to navigate the maze of local laws and mounds of paperwork regarding real estate, land use, title and the environment. Ensuring an accurate appraisal of property in an unfamiliar country is vital, especially when it comes to raw land – which is why Kennedy uses world-class companies like CBRE. We can count on them to provide the highest possible loan amount to our borrowers. ”

“Allan Construcciones was able to provide us with two top-notch plots in different parts of the country,” he said. “They are located in areas that appealed to us as lenders, and each has a rich history.”

Tarapoto is a shopping center located in the province of San Martin in the north Peru; although Moyobamba is the capital of the region, Tarapoto is the largest city in the region. It is located approximately 356 meters above sea level on the high jungle plateau, also known as the cloud forest. It was founded in 1782 by Baltazar Martinez Jiménez of Compagnon. According to the 2017 census, it has a total population of 310,073, including the Morales and Banda districts of Shilcayo. The main activities of the region are tourism, commerce and agriculture.

“We are proud to have been able to close this loan in Peru“adds Wolfer.” We have a large pipeline of loan applications from all over South America. Other lenders cannot enter into these types of loans. We can. We look forward to filling this void in the market. “

About Kennedy Funding

Kennedy Funding is a global direct private lender specializing in bridge loans for acquisition, development, reorganization, bankruptcy, and foreclosure of commercial real estate and land. Kennedy Funding has closed more than $ 3 billion in loans to date. Their expertise in creative financing makes it possible to finance up to 75% of the loan-to-value, $ 1 million ($ 3 million international) to more than $ 50 million in as little as five days. The company has closed loans throughout United States, the Caribbean, Europe, Canada, and central and South America.

www.kennedyfunding.com

SOURCE Kennedy Funding


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Paying your rent on time can now help you qualify for a mortgage http://flight93.org/paying-your-rent-on-time-can-now-help-you-qualify-for-a-mortgage/ Tue, 21 Sep 2021 20:44:37 +0000 http://flight93.org/paying-your-rent-on-time-can-now-help-you-qualify-for-a-mortgage/ Renters who pay their landlords on time may start to find it easier to get a mortgage. Over the weekend, federally backed home loan investor Fannie Mae showcased a tool that allows lenders to assess whether tenants are paying on time and use that information to help them qualify. for a mortgage. This decision is […]]]>

Renters who pay their landlords on time may start to find it easier to get a mortgage.

Over the weekend, federally backed home loan investor Fannie Mae showcased a tool that allows lenders to assess whether tenants are paying on time and use that information to help them qualify. for a mortgage. This decision is designed to help more people with limited credit histories or poor credit scores become homeowners.

Here’s how it works: Once you apply for a mortgage, the lender runs it through Fannie Mae’s underwriting software to determine if Fannie Mae would purchase the loan. (Most lenders won’t give a loan. Fannie Mae or Freddie Mac, his counterpart, won’t buy.) Now, if the answer is not based on traditional inputs like credit score, tenants have another. luck.

At this point, the lender will ask for permission to search your bank statements. An automated system will then look for records of 12 consecutive months of on-time lease payments. Fannie Mae says her system can identify rent payments made by check or electronically and regardless of where they are made through a landlord’s payment portal or a digital payment platform such as Venmo. . Information is only meant to be integrated if it improves eligibility.

Fannie Mae estimates that 17% of recent applicants who were not recommended for a mortgage would have qualified had rent payments been considered.

A disproportionate share of people without sufficient traditional credit histories to qualify for a mortgage are black, so Fannie Mae hopes the decision to include rent payments will be a step towards closing the racial gap in home ownership. the property. Twenty-nine percent of black borrowers say a lack of credit history is the biggest barrier to mortgage approval, compared to just 18 percent of whites, Fannie Mae noted.

“While a credit history is a key component in assessing a borrower’s ability to make a mortgage payment, creating credit in the United States is not a fair business,” Fannie CEO wrote. Mae, Hugh Frater, in a blog post. “Most of the ways to build credit involve student loans, credit cards, or parental co-signers. But people of color are statistically less likely to use these forms of credit to manage their financial lives. “

Why might adding rent payments help?

A recent Urban Institute study found that rental history is a very accurate predictor of a borrower’s performance on future mortgage payments. Those who did not default were much more likely to continue making payments on time than those who had one or more missed payments.

“It seems obvious that if someone pays their rent consistently, it is likely that they could and would pay their mortgage consistently,” Frater wrote.

“For many households, rent is the most important monthly expense. There is absolutely no reason why the timely payment of monthly housing expenses should not be included in underwriting calculations,” added Sandra L. Thompson, acting director of the Federal Housing Finance Agency, which regulates Fannie Mae, in a statement.

However, until now, rent payments have rarely been factored into mortgage applications. Only 5% of current renters have information about rent payments on their credit reports, as landlords typically don’t share this information with credit bureaus. Often, rent payments only show up when there is a problem.