Accounts – Afarin Rahmanifar Thu, 22 Sep 2022 00:50:47 +0000 en-US hourly 1 Accounts – Afarin Rahmanifar 32 32 Litigation Client Alert – Litigation/PPP Enforcement Risks Pending | Kaufman & Canoles Thu, 22 Sep 2022 00:50:47 +0000

It took a while, but the onset of litigation against the financial institutions, which provided the Paycheck Protection Program (PPP) loans, began. Government/regulatory investigations will follow. Is your business ready?

Small banks and non-bank lenders account for a large percentage of PPP loans disbursed and total net lending. Some 4,105 relatively small banks and credit unions, each with assets of less than $1 billion, have issued and approved a total of 1,812,102 PPP loans for more than $101.5 billion.

The risks are numerous, including liability claims by lenders under state law, potential exposure to the False Claims Act (FCA), risks of anti-money laundering violations money (AML), the Bank Secrecy Act (BSA), whistleblowers, and investigations by the DOJ or other government agencies. , to name a few. What should financial service providers do about their exposure to PPPs?

The CARES Act is (so far) not a full shield

In March 2020, Congress passed the CARES (Coronavirus Aid, Relief, and Economic Security) Act to provide emergency financial support to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. The Paycheck Protection Program was a nearly $1 trillion business loan bailout administered by the U.S. Small Business Administration (SBA), and it allowed entities to apply for low-cost private loans. interest rate to pay their payroll and certain other costs. These loans have been promoted as being subject to full forgiveness if they are SBA compliant. If canceled, PPP loans are repaid by the government. If not forgiven, the loans must be repaid to the lenders.

PPP regulations allowed lenders to rely on “borrower’s documents and certificates”.[s].” This concession encouraged lenders to start approving PPP loans and processing them quickly. However, the SBA regulations also required lenders to conduct a “good faith review” of PPP loan applications and did not relieve them of their obligations under other laws, such as the BSA.

SBA rules provide that lenders are to be “held harmless” if borrowers fail to meet PPP program criteria and will not be subject to any enforcement action or sanction related to the granting of the PPP program. loan or cancellation of the PPP loan if the lender (1) “acts in good faith with respect to making or canceling the PPP loan” and (2) “satisfies all other federal, state, local and other requirements applicable legal or regulatory requirements”.

So, lenders have received partial immunity under the CARES Act, but how far that extends remains to be seen. The CARES Act did not establish a private right of action against banks. Profiles Inc. v. Bank of America Corp.., No. 1:20-cv-00894, ECF No. 17 (D. Md., filed April 13, 2020). This case is currently on appeal. Taking an alternative legal route, class action plaintiffs have now turned to state law claim theories to sue lenders – such as negligence, fraud, breach of contract, and unfair acts or practices or misleading (UDAP).

The Cabbage Dispute in the NDGA

That lawsuit, filed in late March 2022, alleges that Kabbage failed to properly handle borrowers’ PPP loan forgiveness requests. See Carr v. Kabbage, Inc., Case No. 1:22-cv-01249 (ND Ga.). Apparently, Kabbage did not process the requests within the time required by federal regulations that required customers to sign modified forms and required customers to provide unnecessary documents. The lawsuit argues that Kabbage should have participated in the SBA’s loan cancellation portal, and it alleges that Kabbage improperly attempted to collect loans that should have been cancelled.

The lawsuit seeks to certify a nationwide class of Kabbage borrowers. In damages, he is seeking to restore Kabbage for all of his PPP loan origination fees. Kabbage filed a motion to dismiss, which was advised, but no decision was rendered.

PNC litigation in NDIL

US Cargo Direct, Inc. v. PNC Bank, NA, Case 1:22-cv-03925 (ND. Ill. July 28, 2022). This case was filed in the Northern District of Illinois on July 28, 2022. A trucking and logistics company that used self-employed truck drivers received a PPP loan from PNC on April 14, 2020, in the amount of $1,524,000 and used the proceeds to pay its contractors. PNC had approached US Cargo in March 2020, to apply for a PPP loan since it was an existing bank customer and a known entity. The bank told US Cargo that it would confirm the eligible amount of the PPP loan and the bank had US Cargo’s tax returns and Forms 1099. The bank had approved the PPP loan within 24 hours of submission.

When US Cargo applied to PNC’s remission portal on July 28, 2021, PNC first notified US Cargo that only $53,017 of the PPP loan was eligible for remission and requested payment of the balance of 1 $470,983. Apparently, the PNC’s loan application procedures for PPP loans as of April 14, 2020 had not been updated to reflect the SBA’s interim final rule dated April 6, 2020, which stated that payments that PPP loan recipients could make to independent contractors would not be considered payments to employees and therefore would not be eligible for the forgiveness.

PNC was sued for five claims: (1) breach of contract; (2) unjust enrichment; (3) breach of fiduciary duty; (4) negligent misrepresentation; and (5) promissory estoppel. The case is pending and no response has yet been filed.

BOA Litigation in Maryland

On August 23, 2022, Bank of America (BOA) was sued by a putative nationwide class of PPP borrowers under North Carolina law — since that’s where BOA is headquartered and choice of the law in all BOA promissory notes signed by PPP clients.

Apparently the bank made many loans that wrongly included 1099 worker wages as part of the formula and then discovered the errors [and the BOA legal department wrote a memo detailing that the bank had to deny submissions of forgiveness requests to the SBA or else face False Claims Act liabilities]. Rather than directing borrowers to the SBA Forgiveness Portal, the bank controlled its own portal and flatly refused to allow borrowers to even apply for forgiveness if their submissions/loans included 1099 workers or used loan proceeds to pay 1099 workers. The result was a large amount of unforgiven loans.

1099 workers are usually independent contractors hired by companies when repairers are needed. 1099 workers are not included in the company’s payroll. The complaint says the expenses of these workers could not be used to calculate a company’s loan eligibility under the PPP, but the BOA did so anyway. The specific allegation is that “BOA asked small business owners to include this salary in their loan applications to calculate their maximum loan eligibility and then included these 1099 worker expenses when obtaining loans for these amounts.” The complaint further states “To their surprise, the plaintiffs and class members found themselves responsible for repaying the portions of their loans that they used to pay their 1099 workers. the payments to 1099 workers were not eligible for plaintiffs and that the group would not have applied for and taken out a loan, reduced the amount of the loan they applied for, and/or allocated their loan funds differently. The plaintiffs cite that BOA was the second largest PPP lender and earned fees on those loans of more than $345 million.

The case is pending and no response has yet been filed. Modern Perfection LLC et al. against Bank of America NAfile number 1:22-cv-02103in the USA District Court for the District of Maryland.

Analytical imperatives

Lender negligence includes conduct that fails to meet the standard of due care with respect to an obligation owed to the prospective borrower, which causes immediate harm. This may include failure to process a loan application with reasonable care. See, First Federal Savings & Loan Ass’n v. Caudle, 425 So. 2d 1050 (Alabama 1982). What is reasonable caution in the context of the torrent of loan applications processed in the first few weeks of a PPP loan? This is the question which must be examined by the courts.

The 1099-worker-ineligibility for loan application amounts [or for the use of proceeds] is a vulnerable area for lenders of all types and sizes. The issues are many:

  1. How many mistakes were made with these 1099 inclusions?
  2. Were the errors detected by the lender, and if so, when, in what amounts and how?
  3. Have lenders ever denied forgiveness to PPP borrowers based on 1099 defaults in the process?
  4. Did some 1099 infractions slip through and get forgiveness and the lender was aware of the error?
  5. Have whistleblowers raised the issue with the lenders – claiming the lender knowingly processed PPP loan forgiveness applications for businesses with 1099 smears included, and could the FCA be held liable by the lender?
  6. Did the lender engage in an analysis of the PPP loan portfolio to look for errors in the processing of 1099 workers?
  7. Has the lender suspended all document destruction policies and practices for the 10-year period applicable to FCA cases?
  8. Has the lender consulted and considered all available information, particularly where a review has revealed inconsistencies. For example, when a PPP loan was issued to an existing bank customer, would the tax returns show 1099 workers? Was this information inconsistent with the borrower documentation provided on the PPP loan application?

Fortunately for lenders, the government has a heavy burden to prove FCA violations. Liability under the FCA requires proof of some level of knowledge of the fraud. The United States Supreme Court has ruled that this scientific requirement must be strictly enforced. Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S.Ct. 1989 (2016).

But, the government is investigating, and it has a long time to look back for any culpability. If a lender’s response to government inquiries suggests compliance deficiencies, or if the documentation provided suggests that the lender did not act in good faith in making the loan, or in cancellation of the PPP loan, the government may open a broader investigation into the conduct of the lender.

Given the increase in litigation and/or enforcement that PPP lenders are likely to face in the months and years to come, lenders would be well advised to take proactive steps to ensure that their portfolios of PPP loans were reviewed for compliance.


Federal banking agencies
CFPB Guide to Adverse Action Notices for PPPs
OCC Guidelines on PPP Loan Documentation
Federal Reserve PPP Liquidity Facility

PPP rules and guidelines

Non-Bank fintech Lender sees record growth and need for bridging loans continues to grow Tue, 20 Sep 2022 02:59:07 +0000

Brokers’ continued need for new bridge loan options for clients is helping lender achieve record growth.

The need for bridging loans

With the increased need for bridging loans when a client has purchased a new property before they have sold their current property, products have become the number one solution for brokers and their clients, the Gold Coast-based fintech offers loans from $20,000 to over $10,000,000 with LVRs up to 65% and more, the unique prepaid offer and capitalized interest on the loan amount with no outstanding fees or charges. box offer code and non-code loans for transition, business and construction purposes with loan terms of up to 36 months with a simple and transparent fee structure and no commission recovery this keep separating them from banks and other lenders

The broker originated the need for

Brokers continue to offer a service that many lenders cannot to deliver, being available when a client needs it and having the client’s interests at heart. Lending at any time can be stressful, especially when you need a loan quickly or when other lenders won’t help. It is therefore extremely valuable for clients to have a trusted advisor such as a broker to help you through this period. Having brokers offering brings their products to more and more people, which saw achieve record growth in new broker accreditation, with double-digit growth figures leading to record amounts of new loans, driving their loan book growth to an all-time high.

Meet the needs of brokers a quick decisions and quick settlement products are digitally designed and delivered to meet any deadline or broker scenario must meet, be able to give a broker a credit decision within two hours and the ability to settle a loan within three days for a client allows a broker to deliver the best service on the market for short-term transition funding. meets the needs of brokers

Broker accreditation has now seen double-digit growth every month in 2022, leading to a record number of broker offers to their customers. Broker accreditation is in progress an hour and gives the broker the ability to quote online and deposit directly via website or aggregation portals.

The ability to look at business and construction lending purposes in no-code agreements as well as consumer bridging loans creates a unique product offering for brokers with has partnerships, including AFG, VOW and YBR.

Broker support and tools help brokers offer clients

The Broker portal allows brokers to submit and track their quotes and inquiries including see their loan portfolio and their fees. It also includes a broker toolkit with product guides, a credit handbook, fact sheets, client guides and forms, and product education and training modules. for brokers. offers the #1 bridging product on the market, delivered quickly to brokers and keep supporting Brokers by the expansion of their experienced BDM team and growing its credit team which provides direct access to quote offers instantly, credit advice, broker support, negotiation workshops and any product training required.

Learn more about brokers HERE

Get Accredited as a Broker HERE

Or visit

Non-Bank fintech Lender sees record growth and need for bridging loans continues to grow


Last update: September 20, 2022

Posted: September 19, 2022

Gregg Pierce, Managing Director of Global Capital Partners Fund LLC, interviewed by Inspirery Magazine Fri, 16 Sep 2022 07:40:00 +0000

Global Capital Partners Fund LLC is a direct lender offering hard money loans in a wide range of options

Gregg Pierce, Managing Director of Global Capital Partners Fund LLC, was recently interviewed by Inspirery Magazine.

NEW YORK, NEW YORK, USA, September 16, 2022 / — Inspirery Magazine features interviews with entrepreneurs and executives to help inspire those just starting out as well as those who have been working successfully for years. It also creates an opportunity for interviewees to act as mentors for entrepreneurs. As a well-known and respected representative in the business of commercial lending and brokerage, Gregg Pierce was a natural choice to feature in Inspirery Magazine.

Gregg Pierce covered a wide range of topics, including questions such as “What advice would you give to other entrepreneurs starting out”, “What is your hiring philosophy”, “How do you delegate work” and “What a piece of advice you wish someone had given you at the start of your career.

In response to the question “How do you delegate work”, Gregg Pierce answered:
“There is no single answer to this question, as the best way to delegate work will vary depending on the specific situation and context. However, here are some tips on how to delegate work effectively:
1. Define the goal or result you want to achieve.
2. Assign tasks based on individual strengths and weaknesses.
3. Make sure everyone understands their role and responsibilities.
4. Set clear expectations on what needs to be done and by when.
5. Provide regular feedback and guidance throughout the process.
6. Be available to answer questions and provide support as needed.

Mr Gregg Pierce went on to talk about how he deals with fear, what were some of the biggest fears he faced as an entrepreneur, his thoughts on the current state of the economy and one of his habits as an entrepreneur. contractor he would recommend. When asked how he deals with rejection, Gregg Pierce replied, “Rejection is never easy, but you have to learn from every experience. The most important thing to remember about rejection is that it can’t always be your fault. Sometimes it’s out of your control and the only way to find out is to try everything to figure out what you’re good at. The more experience you have, the better because when you get rejected for something you’ve already done, you’ll know how much effort to put into future projects so they don’t meet the same fate! It’s okay if things don’t go your way – keep trying until they do, because not every situation calls for the same approach.

As to what made him successful, Mr. Pierce said: “I think there are several things. One of the main things that has helped me has been to stay humble, as well as being grateful for the success I’ve seen and the help I’ve received along the way. Sometimes we are too quick to look at the outer causes why we failed and then look within for the reasons why we succeeded. I think having a balanced outlook has helped keep my feet on the ground, and that, in turn, has allowed me to be successful.

Gregg Pierce’s favorite quote is: “Leadership is raising a person’s vision toward high goals, elevating a person’s performance to a higher level, building a personality above beyond its normal limits. This is an appropriate citation for Gregg Pierce given his track record of helping clients and colleagues reach the next level of their potential, whether through mentorship or business partnership.

About Gregg Pierce

Gregg Pierce is a renowned financial expert known for his insights into hard money lending and its impact on the US economy. He currently works as Managing Director of Global Capital Partners Fund LLC, where he advises businessmen from all sectors. It has a stellar reputation for excellent customer service, fast loan closings, and a range of loan options. Global Capital Partners is a New York-based private global commercial lender, offering many financing options including: bridge financing, hard money loans, private loans, commercial real estate financing, joint venture structured financing, permanent financing, mezzanine financing, loans to construction and acquisition financing. It is recognized as one of the best mortgage lenders due to its easy loan applications and fast processing. It has been very successful and has helped many clients over the years. Global Capital Partners has funded over $2 billion in transactions. From mortgages to land, development and even equipment, his expertise in private loan financing allows him to quickly close loans ranging from $1 million to over $100 million.

Jason Phillips
Market News
write to us here

Global Capital Partners’ Joe Malvasio reviews third quarter commercial mortgage-backed securities Fri, 16 Sep 2022 07:31:00 +0000

Global Capital Partners Fund LLC is a direct lender offering hard money loans in a wide range of options

As companies and investors enter the third quarter of the year, it’s time to take a look at the commercial mortgage-backed securities (CMBS) market.

NEW YORK, NEW YORK, USA, September 16, 2022 / — As companies and investors enter the third quarter of the year, it’s time to take a look at the commercial mortgage-backed securities (CMBS) market. Commercial mortgage-backed securities (CMBS) are fixed income investment products that are backed by mortgages on commercial properties rather than residential real estate. CMBS can provide liquidity to real estate investors and commercial lenders. Because there are no regulations to standardize CMBS structures, their valuations can be difficult. The underlying securities of CMBS may include a number of commercial mortgages of varying terms, values ​​and property types, such as multi-family dwellings and commercial real estate. CMBS may offer less prepayment risk than residential mortgage-backed securities (RMBS) because the term of commercial mortgages is generally fixed.

Similar to debt-backed bonds (CDOs) and mortgage-backed bonds (CMOs), CMBS come in the form of bonds. Mortgages that form a single commercial mortgage-backed security act as collateral in the event of default, with principal and interest flowing through to investors. Loans are usually contained in a trust and they are very diverse in their terms, types of assets and amounts. The underlying loans that are securitized in CMBS include loans for properties such as apartment buildings and complexes, factories, hotels, office buildings, office parks and shopping malls, often within of the same trust.

A mortgage loan is generally considered non-recourse debt, which is any consumer or commercial debt that is secured only by collateral. In the event of default, the lender cannot seize any assets of the borrower beyond the collateral. Since CMBS are complex investment vehicles, they require a wide range of market participants including investors, lead manager, lead manager, special manager, manager certificate holder, trustees and rating agencies. Each of these actors plays a specific role in ensuring the proper functioning of the CMBS.

The CMBS market represents approximately 2% of the total US fixed income market. Joe Malvasio of Global Capital Partners Fund, LLC provides its view on the current state of the market and what we can expect in the coming months. The CMBS market had a strong first half, with issuances totaling $140 billion. This is up from $120 billion in the first half of 2020 and is the highest level of issuance since 2007. The increase in activity can be attributed to a number of factors including low interest rates, strong borrower demand and increased refinancing activity. .

Looking ahead, investors can expect commercial mortgage-backed securities issuance to remain strong in the third quarter as borrowers take advantage of low interest rates. There may also be changes in the makeup of shows, with more private label deals coming to market and fewer conduit deals. This is due to the continued strong demand for higher yielding products from investors. Overall, the CMBS market is doing well right now. Borrowers are taking advantage of favorable conditions to refinance or buy property, and investors are finding many attractive opportunities. Investors should see another strong quarter of issuance, followed by a fourth quarter that could be even stronger.

About Joseph Malvasio, President of Global Capital Partners Fund, LLC

Joseph Malvasio is the President of Global Capital Partners Fund, LLC. Over the past 40 years, Mr. Malvasio has become one of the most trusted private lenders in the United States. It has a stellar reputation for excellent customer service, fast loan closings, and a range of loan options. Global Capital Partners is a New York-based private global commercial lender, offering many financing options including: bridge financing, hard money loans, private loans, commercial real estate financing, joint venture structured financing, permanent financing, mezzanine financing, loans to construction and acquisition financing. It is recognized as one of the best mortgage lenders due to its easy loan applications and fast processing. It has been very successful and has helped many clients over the years. Global Capital Partners has funded over $2 billion in transactions. From mortgages to land, development and even equipment, his expertise in private loan financing allows him to quickly close loans ranging from $1 million to over $100 million.

Jason Phillips
Market News
+1 (202) 335-3939
write to us here

LEGACY EDUCATION ALLIANCE, INC. : Creation of a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Registrant Arrangement, Financial Statements and Exhibits (Form 8-K) Mon, 12 Sep 2022 21:05:04 +0000

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under a

          Off-Balance Sheet Arrangement of a Registrant

Between August 26, 2022 and September 1, 2022, Legacy Education Alliance, Inc.
(the “Company”) has borrowed a total of $151,000 (collectively, the “Loan”) of ABCImpact I, LLCa Delaware with limited liability (the “Lender”), evidenced by one or more 10% convertible debentures (the “Debentures”). Under the debentures, the lender has the option to lend up to
$4,549,000 to the society.

The lender is a newly incorporated entity in which a subsidiary of Barry Kostiner, Chief Executive Officer and Sole Director of the Company, holds a passive non-controlling interest. The lender has previously loaned a total of $300,000 to the Company pursuant to convertible debentures substantially similar to the Debentures.

The maturity date of each Debenture is the earliest of 12 months following the date of issue and the date of a Liquidity Event (as defined in the Debentures), and is the date on which principal and interest will be due and payable. The debentures bear interest at a fixed rate of 10% per annum. Any overdue accrued and unpaid interest will incur a late charge at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law, which will accrue daily from the date on which such interest are due until the date of effective payment in full.

The Company intends to use the net proceeds of the loan for general corporate purposes and working capital.

The principal and interest then outstanding and unpaid under each Debenture will be converted into common shares of the Company and an equal number of common share purchase warrants (the “Warrant”) at the option of the lender, at a conversion price per share of $0.05, subject to adjustment (including under certain dilutive issues) in accordance with the terms of the debenture. The Debentures are subject to a beneficial ownership limit of 4.99% (or 9.99% at the option of the lender).

The Company may not prepay the Debentures without the prior written consent of the lender.

Debentures contain customary events of default for transactions such as lending. If an Event of Default occurs, the unpaid principal amount of the Debentures, plus accrued but unpaid interest, liquidated damages and other amounts due up to the Acceleration Date, will, at the Lender’s election, become immediately due and payable. in cash on the mandatory due date. Default amount. “Mandatory Default Amount” means the sum of (a) the greater of (i) the principal amount outstanding of the Debenture, plus all accrued and unpaid interest, divided by the conversion price on the date on which the amount Mandatory Default is either (A) demanded or otherwise due or (B) paid in full, whichever is lower, multiplied by the VWAP (as defined in the Debenture) on the date on which the Default Amount obligatory is either (x) demanded or otherwise due or (y) paid in full, whichever is greater VWAP, or (ii) 130% of the principal amount outstanding of the debenture, plus 100% of accrued and unpaid interest, and ( (b) all other amounts, costs, expenses and damages due in respect of the Debenture.

The warrant has an exercise price per share of $0.05, subject to adjustment (including by virtue of certain dilutive issues) in accordance with the terms of the Warrant. The exercise period of the Warrant is five years from the date of issue.

Exercise of the Warrant is subject to a beneficial ownership limit of 4.99% (or 9.99%) of the number of common shares outstanding immediately after giving effect to such exercise.

The shares underlying the Debenture and the Warrants carry “add-on” registration rights.

The foregoing is a brief description of the Debenture and Warrant, and is qualified in its entirety by reference to the full text of the Debentures and Warrant, the forms of which are included in Exhibit 10.1 of this company’s current report on Form 8-K, each of which is incorporated herein by reference.

Item 9.01 Financial statements and supporting documents.

Exhibit   Description
10.1        Form of Convertible Debenture, with form of Common Stock Purchase
          Warrant (incorporated by reference to the Company's Current Report on
          Form 8-K filed with the SEC on August 25, 2022)
104       Cover Page Interactive Data File (embedded within the Inline XBRL

© Edgar Online, source Previews

Fintech Milo Unveils Crypto Mortgage Refis Tue, 06 Sep 2022 20:46:21 +0000

Miami-based fintech Milo has has begun diversifying its portfolio for investors holding digital assets by offering its first crypto-mortgage refinance product, the company announced on Tuesday.

The new offering comes five months after the fintech’s 30-year-old crypto-mortgage purchase product hit the market and has reached $10 million in origination volume. HousingWire first reported on the lender’s plans to launch refinance products in early July.

“Based on the success of our crypto mortgage offering, we are now able to give those who would have liked 100% financing via a crypto mortgage when purchasing their home,” said Josip Rupena , CEO and founder of Milo, in a statement. “Through our crypto refinance, they can benefit from access to the equity in their property when attractive investment opportunities arise.”

Milo offers cash refinance, a product that allows customers to replace their current mortgage with a new one to take advantage of better loan terms, such as lower rates and longer terms, and withdraw some of the value net of the house in one go. sum.

However, with Milo’s product, borrowers can pledge their crypto assets — including Bitcoin, Ethereum, and some stablecoins, such as USD Coin and Gemini Dollars — and their property to cash out up to 100% of the appraised value. of their property. Milo maintains crypto at regulated custodians, platforms Coinbase and Gemini.

It is possible to borrow up to $5 million for investment properties in the refi product, depending on the website. The product has a fixed rate starting at 7.95%. Milo does not currently offer mortgage solutions outside of the United States.

“Milo’s crypto refinance offer is a game-changer for those who have already sold their crypto or taken out a short-term crypto loan to buy a home with cash,” the company explains in a press release. “This solution allows them to extend the repayment period to 30 years and to access the financing they would have preferred from the start.”

The fintech also launched an under-secured mortgage on Tuesday.

Borrowers can take 100% of the property value by pledging only 40% of the loan amount in USDC. “Many crypto consumers already earn and spend exclusively in the digital world,” Rupena said. “Our USDC offering simply helps these consumers build a bridge to the real world.”

Milo, a licensed and insured direct lender, also offers non-crypto mortgage products to US and foreign nationals to purchase or refinance a home in the United States.

The company says it has originated $100 million in loans through its more traditional mortgage line — with applicants hailing from more than 90 countries, according to a press release announcing Milo’s crypto mortgage milestone.

Can you cancel private mortgage insurance? Mon, 05 Sep 2022 12:32:15 +0000

Image source: Getty Images

It is important to understand the rules surrounding the PMI.

Key points

  • Private mortgage insurance is mandatory insurance for many home buyers.
  • You will generally have to pay PMI if you deposit less than 20%.
  • Once your home drops below 80% of the original value when you bought it, you will be able to have the PMI removed from your loan.

Many homeowners must pay for private mortgage insurance as part of their monthly mortgage payment. Private mortgage insurance, or PMI for short, is generally required for homeowners who put less than 20% down on their home.

Lenders force homeowners to pay PMI when they put down a small down payment, because lenders want to make sure they don’t suffer uncompensated losses. If a borrower defaults on a mortgage, the lender can foreclose. But with a small down payment, the home may not sell enough to pay off the loan and cover the lender’s fees. PMI ensures that lenders do not lose money under these circumstances.

Although homeowners pay for the PMI, they actually receive no direct protection. They can always be seized if they cannot pay their bills. For this reason, many homeowners are eager to cancel PMI so they don’t have to pay hundreds of dollars a year for insurance that only benefits their lender.

But is it possible to cancel the PMI? Here’s what you need to know.

This is how PMI can be removed from a loan

The good news is that it is possible to cancel private mortgage insurance. You are allowed to do this after you reach the date when your mortgage principal balance is expected to fall below 80% of the original value of your home when you paid for it. You can find out the date by looking at your PMI disclosure from your original mortgage documents, by looking at your loan repayment schedule, or by asking your loan officer when it is.

If you make additional payments on your loan, your loan balance will fall below 80% of your home’s value sooner than originally scheduled. If so, you can ask your lender to remove the PMI sooner than expected.

If the value of your home increases, you could also see your loan balance fall below 80% of the running market price of the property, even if it is still more than 80% of the original value of the house when you bought it. Although you will generally need to have an appraisal done to prove the current value of your home if you wish to waive the PMI in these circumstances, it should be possible to have the private mortgage insurance waived if the appraisal is high enough.

If one of these situations applies to you, you must make a written request to your lender to request the cancellation of the PMI. Generally, you should be up to date on your payments and your lender may require proof that your home’s value has not decreased before removing private mortgage insurance from your loan.

PMI will be automatically canceled under certain circumstances

In some cases, you do not have to request that the PMI be removed from your loan. In fact, private mortgage insurance automatically ends on the date your loan balance is expected to fall below 78% of the home’s original value.

While you could technically wait for automatic cancellation, that would mean paying the PMI longer since you are allowed to remove it once your balance drops to 80%. There’s no reason to wait and pay extra mortgage insurance premiums when it’s easy to request withdrawal.

The Best Mortgage Lender in Ascent in 2022

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This is where Better Mortgage comes in.

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Soaring interest rates prompt ICS Mortgages to take a cautious approach to new loans – The Irish Times Sat, 03 Sep 2022 04:00:24 +0000

Dilosk, the first lender to enter the Irish mortgage market after a string of exits in the wake of the property crash, has held back – for now, at least – just as new home lending is on track this year to hit highs. levels last seen in 2008.

The non-bank lender, which trades under the ICS Mortgages brand which it acquired from Bank of Ireland in 2014, unveiled the first round of Irish mortgage rate hikes in years in March by raising rates on its main rate fixed for three to five years. -evaluate the products. It was quickly followed by rivals Finance Ireland and Avant Money.

Three weeks ago, ICS tightened its lending criteria, saying it was temporarily restricting new home loans to 2.5 times borrowers’ gross income, up from 3.5 times the current limit set by the Central Bank for the most loans. First-time buyers approaching ICS for a mortgage must now have a 20% down payment, while movers must DIY 30%. These are also more restrictive than the regulator’s already strict rules.

Then, earlier this week, it announced increases to its variable rates, starting in October, effectively knocking it out of the races in the already less competitive segment of the mortgage market. (ICS started out in the buy-to-let market in 2016 before offering homeowner loans in late 2019.)

The government experienced the rise in market rates on Thursday when it had to pay a rate of almost 2.22% to sell benchmark bonds, due in 2032, at an auction.

These measures underscore how non-bank lenders, who depend on capital markets rather than deposits for funding, are on the brink when financial markets turn sour. Banks, on the other hand, are awash with excess deposits that faced a negative charge when stored at the European Central Bank until recently.

Market borrowing costs, meanwhile, have soared across the euro zone over the past eight months as the ECB cut net bond purchases under its multi-billion dollar stimulus packages. euros and started to raise its key interest rates in an attempt to curb galloping inflation.

News this week that eurozone inflation hit a record 9.1% in August – a multiple of the ECB’s 2% target and fueled by soaring energy prices – prompted a slew of economists to predict that the central bank’s governing council will follow its July half-percentage-point hike in its core rates with an aggressive 0.75-point hike next week.

The government saw a market rate hike on Thursday when it had to pay a rate of almost 2.22% to sell benchmark bonds, due in 2032, at an auction – the highest price that the state had to offer to get money over 10 years. since 2014.


But the real volatility has been in short-term debt markets, as every other statement from a central banker these days is analyzed for clues about where rates are headed. ICS, which currently only offers three- to five-year loans in the fixed rate space, has been most exposed to this among non-banks.

By contrast, Finance Ireland, which started providing mortgages in 2018, offers fixed rates up to 25 years and has been known to write most of its new business in the 10-15 year bracket at the moment. Prior to Money, the unit of Spanish banking group Bankinter which entered the Irish mortgage market two years ago, offers fixed rates for up to 30 years.

ICS’ business model is based on initially borrowing from large investment banks to lend to clients, before refinancing loan pools in international bond markets through the sale of residential mortgage-backed securities (RMBS) .

There has been strong speculation in the market that ICS’ recent decision to cut new loans sharply was due to it maximizing its bank credit facilities at a time when the RMBS market, although it is not entirely closed, is not really inviting.

However, sources say ICS has around €600m of remaining lending capacity from a €900m facility – its largest ever – agreed with three international banks several months ago. The company is also reportedly in talks with overseas pension and insurance companies to open up a new avenue of loan funding – or so-called term funding. The Netherlands is the most advanced market in Europe for this type of activity.

Meanwhile, ICS is expected to try to secure an RMBS deal in the last quarter of this year – either in the public markets or through a deal with a small group of private investors – when investors are expected to have a better idea of ​​where central bank rates are headed. A company spokesperson declined to comment.

However, he said ICS’ full-year mortgages are on track to reach 800-850 million euros, up from 530 million euros last year. That would equate to a share of up to 6.5% of the €13 billion in new Irish mortgages that bankers and economists expect to provide this year. Market sources say, however, that most of these commitments had already been committed before ICS tightened its criteria.

“Continued Volatility”

“Our continued growth is supported by careful management of our loan portfolio and in response to the continued volatility in international financial markets, as well as changing interest rates, we have introduced a number of changes to our mortgage interest rates and our lending policies,” the spokesperson said.

ICS’ self-proclaimed conservatism may well appeal to its senior lenders and the pension and insurance money it courts, but it has badly tarnished its reputation with mortgage brokers.

“ICS Mortgages continues to actively lend to both the owner-occupied and buy-to-let markets, through brokerage and direct lending channels, with a strong pipeline of activity into Q4 2022 and beyond. “

ICS’ self-proclaimed conservatism may well appeal to its senior lenders and the pension and insurance money it courts, but it has seriously tarnished its reputation with mortgage brokers. These folks are responsible for about 45% of mortgages taken out in the state so far this year, down from a low of about 14% after the housing crash.

It also makes Dilosk, the subject of perennial takeover speculation that escalated earlier this year, a far less attractive target.

The company, led by chief executive and co-founder Fergal McGrath, is said to be at least looking for new investment and 14 per shareholder Chenavari is known to be looking for an exit.

The perfect time would have been a year ago, observers say, when market funding continued to be ultra cheap, big lenders Ulster Bank and KBC Bank Ireland signaled they were pulling out of the Republic and ICS offered real competition.

Lakeview Mortgage Bankers unveils new website. Fri, 02 Sep 2022 05:59:00 +0000

On the new website, Lakeview Mortgage Bankers reaffirms its commitment to helping people secure their dream home at the lowest rate on their home loans.

Lakeview Mortgage Bankers launched its new website. The new site aims to help more people achieve their dreams of ownership. As digital media becomes a crucial part of businesses and the real estate industry, Lakeview Mortgage enables people to find it online.

Lakeview Mortgage is a mortgage lender serving people nationwide. By lending to more people at the lowest rate for home loans, the mortgage banker has been ranked among New York’s top small businesses. Lakeview Mortgage believes home ownership shouldn’t be long and frustrating. Thanks to the new website, people can find all the services they need in one place.

“Whether you’re buying your first home, second home, or an investment property, Lakeview Mortgage offers a variety of loan products to meet those needs. The direct mortgage lender provides flexible loan solutions, meeting needs for terms similar to more traditional loans, but with lower rates and combining them with other services like one-click insurance quotes.

With a team of knowledgeable and professional mortgage agents, Lakeview Mortgage supports clients every step of the way. The goal of every agent is to provide the best quality service to homebuyers. “We are committed to helping borrowers overcome and prevent obstacles that can arise when obtaining a loan.”

Lakeview Mortgage Bankers outlines their simple process on the new website. Website visitors can choose from a list of advisors in the branch closest to them. The next step is to create an account and complete the loan application process. Once completed and submitted, a specialist mortgage broker takes over and contacts the client with the next steps.

The website simplifies Lakeview Mortgage Bankers’ offerings and details each purchase, refinance and investment loan option it offers. The site also offers a resource center packed with educational content to help homeowners avoid common mortgage pitfalls.

Browse Lakeview Mortgage’s new website for expert advice on getting the lowest rates for home loans.

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Personal loans for veterans: what you need to know Wed, 31 Aug 2022 13:48:00 +0000

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Veterans and active military personnel may qualify for special personal loan rates and terms. Learn more about veteran loans. (Shutterstock)

Some lenders help support veterans, military personnel and their families by offering special personal loan products or by extending more favorable rates and repayment terms. It is quite common for active service members to be able to receive assistance if they have difficulty repaying their loans while on active military duty.

You can use a veteran loan (which is a type of unsecured personal loan) to help you through a tough financial time, pay for an upcoming move, or cover medical expenses. Whether you have good or good credit, here are some veteran loans to consider.

Visit Credible for view your prequalified personal loan rates from various lenders, all in one place.

3 Personal Loans for Veterans and Military with Good Credit

If you have a good credit rating, you will have many borrowing options. Although not all lenders offer special benefits to veterans, many have programs or incentives available to all borrowers, including veterans.

Under the Servicemembers Civil Relief Act (SCRA), eligible service members may receive a low interest rate of 6% or less each year for debts they incurred before entering active duty. Reservists may receive this rate for debts they incurred prior to receiving their active duty notice.

These three credible partner lenders offer personal loans for veterans and military with good credit.

Axos Bank

  • Underline: Axos does not charge prepayment penalties if you prepay your loan and offers loans of large amounts.
  • Eligibility criteria: Available in all 50 states; does not disclose the minimum income requirement
  • Loan amounts: $10,000 at $50,000
  • Minimum credit score: 700
  • Benefits for veterans: While not a direct benefit, Axos partners with philanthropic organizations to help build military financial literacy.

loan club

  • Underline: If you’re using a LendingClub personal loan to pay off credit cards or other debts, you might get a lower rate if you let LendingClub pay up to 12 creditors directly.
  • Eligibility criteria: Available in all 50 states; no minimum income requirement
  • Loan amounts: $1,000 to $4,000
  • Minimum credit score: 600
  • Benefits for veterans: This peer-to-peer lender can provide a loan decision in minutes and fund loans in about two days.

Marcus of Goldman Sachs

  • Underline: Marcus offers discounts for setting up automatic payments and will also pay your creditors directly if you use the loan for debt consolidation.
  • Eligibility criteria: Available in all 50 states; minimum income of $30,000 per year
  • Loan amounts: $3,500 to $40,000
  • Minimum credit score: 660
  • Benefits for veterans: All borrowers who make 12 consecutive one-time payments can defer one monthly payment without interest.

Credible, it’s easy to compare personal loan rates from these and other lenders without affecting your credit score.

3 Veteran and Military Personal Loans with Fair Credit

If you only have a good credit score (or even a bad credit score), many lenders work with borrowers with lower credit scores and can help you achieve your financial and personal goals. These three credible partner lenders offer personal loans for veterans and military with fair credit.


  • Underline: Funding is fast – as early as the next business day if you’re approved by 4:30 p.m. Central Time on a weekday – and the lender also offers an automatic payment discount.
  • Eligibility criteria: Available in all states except CO, IA, HI, VT, NV, NY and WV; minimum income of $1,200 per month
  • Loan amounts: $2,000 to $35,000
  • Minimum credit score: 550
  • Benefits for veterans: Avant accepts PO boxes for the military, while civilian borrowers must have a physical residence to qualify. Avant will not charge late fees or insufficient funds while in active service.


  • Underline: Upgrade offers an automatic payment discount and can fund the loan within a day of validating the necessary verifications.
  • Eligibility criteria: Available in all states except West Virginia; does not disclose the minimum income requirement
  • Loan amounts: $1,000 to $50,000
  • Minimum credit score: 560
  • Benefits for veterans: Upgrade offers all borrowers free credit monitoring and educational resources.


  • Underline: Upstart offers a wide range of personal loan amounts and can fund the loan within one business day.
  • Eligibility criteria: Available in all 50 states; minimum income of $12,000 per year
  • Loan amounts: $1,000 to $50,000
  • Minimum credit score: 580
  • Benefits for veterans: Upstart will consider borrowers with no credit score and assess education, major, and employment history when making loan decisions.

Financial Aid and Resources for Veterans

If you are a veteran who is struggling financially and needs support, here are some resources you can turn to for help:

  • Coalition to Salute American Heroes — The Coalition to Salute American Heroes The organization provides financial assistance to seriously injured veterans in Afghanistan and Iraq.
  • Operation Family Fund — If a veteran was severely disabled while serving in Operation Enduring and Iraqi Freedom, they can apply for grants through Operation Family Fund. Grant funds help cover housing, vehicle repairs, medical expenses and emergency transportation.
  • Operation First Response — Operation First Response provides financial support to injured veterans and their families as they navigate the VA claims process. Since this process can take a year or more, these funds can help cover immediate needs, such as clothing, housing, groceries and utilities.
  • USA Cares Emergency Assistance Program — Veterans struggling to cover their monthly bills can apply for a grant through the USA Cares Emergency Assistance Programwith an average grant amount of $650.
  • U.S. Department of Veterans Affairs Help and Assistance / Home Assistance – This program helps veterans who receive a VA pension and who are bedridden or need another person to support them in their daily activities. Through this program, veterans may be eligible for an increase in the amount of monthly benefits per Help and assistance and home help.

If you need to apply for a personal loan, Credible makes it quick and easy compare personal loan rates to find the right one for your situation.