Anchor Loans and Aloha Capital Scams and not licensed

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Anchor Loans and Aloha Capital Scams and not licensed

Chris Fuller
Member since 2019 · 7 posts · 5 votes

I would stay away!! Peerstreet buys Alohas notes and Aloha still tries to service the debt that is not theirs. This is illegal!! They are a lender that will set you up for failure. They are currently in litigation with many borrowers and investors that have been taken advantage of. I have been wanting these loans paid off for a year but they continue to collude with another lender "Anchor Loans" to try and "strong arm" me into dropping my case. Please make sure your attorneys research the lenders Federal pending cases and the state in which they operate in.


Anchor does many things that are not above board. They sell the notes and service debt that is not theirs. They short the investors that give them money which are called "Junior Lenders". This is illegal!! They are a lender that will set you up for failure. They are currently in litigation with my company and they want me to drop my case against them in exchange for payoffs. Really!! I have been wanting these loans paid off for a year but they continue to collude with another lender "Aloha Capital" to try and "strong arm" me into dropping my case. Look up "RICO" and you will see that lenders with these tactics fit right in the "RICO" charge. Contact me if you have been forced into "Deeds in Lieu" and or Bankruptcy. Have your attorney look up cases where Anchor Loans was the defendant and you will see the trend. We have gathered information from other victims and will not stop. Check outhttps://www.hardmoneyhome.com/lenders/view/anchor-loans

https://www.facebook.com/hardmoneylendervictims

Tip of the day: Contract law does NOT supersede State law. Know your facts. Know your rights!!

How these lenders have skated around licensing in many states is because the "commercial loan" language but they really did not know is some states the exempt law state:

Exempt-
(d) Any person engaged solely in commercial mortgage lending or any person making or acquiring residential or commercial construction loans with the person's own funds for the person's own investment;

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Kyle Altenau
Tinton Falls, NJ · Member since 2020 · 108 posts · 85 votes
6y

I don't know anything about Anchor Loans or Aloha Capital, but I think you may be incorrect on a few points here. The discrepancy may be down to differences in state law or just misunderstandings. 

First - If Peerstreet buys a note from Aloha, their agreement can be set up so that Aloha still services the debt. There is nothing wrong with a third party servicing debt. It's actually quite common. Sometime investors prefer an originator use a third party to create some separation once the loan closes. 

Second - I am not sure what you mean about shorting investors. Can you elaborate? Are you saying they short pay loans that pay off even if the loan was paid in full? That'd certainly be illegal, but I can't imagine how you could even get away with that on a large scale.

Third - There are a handful of states that you need a license to lend commercial loans, but the majority of states it is perfectly legal. And quite common. If that changed I think it'd put a lot of people in a big capital crunch and really disrupt the market. 

You are absolutely right about contract law though and I think it's a good point to bring up. Just because another party puts something in a contract does not mean that it is entirely enforceable. There are definitely some shady people out there that might put outrages penalties or provisions in loan documents that try to take advantage of people that don't know better. It just drives home why it's important to have not just any lawyer, but a good lawyer.

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  • Chris Fuller
    OP
    Member since 2019 · 7 posts · 5 votes
    6y

    Levbern Properties, LLC, et al. v. Anchor Loans, LP (Bankr. C.D. Cal. – Besorat Investments, Inc.) – Levbern makes arguments challenging Anchor’s business practices, its relationship with the debtor and allegations that Anchor encourages borrowers to have junior lienholders put up funds that were ultimately not repaid. This case was not litigated. Anchor did not even file an answer and there is no attorney who formally entered an appearance.

    0Reply
  • Kyle Altenau
    Tinton Falls, NJ · Member since 2020 · 108 posts · 85 votes
    6y

    I don't know anything about Anchor Loans or Aloha Capital, but I think you may be incorrect on a few points here. The discrepancy may be down to differences in state law or just misunderstandings. 

    First - If Peerstreet buys a note from Aloha, their agreement can be set up so that Aloha still services the debt. There is nothing wrong with a third party servicing debt. It's actually quite common. Sometime investors prefer an originator use a third party to create some separation once the loan closes. 

    Second - I am not sure what you mean about shorting investors. Can you elaborate? Are you saying they short pay loans that pay off even if the loan was paid in full? That'd certainly be illegal, but I can't imagine how you could even get away with that on a large scale.

    Third - There are a handful of states that you need a license to lend commercial loans, but the majority of states it is perfectly legal. And quite common. If that changed I think it'd put a lot of people in a big capital crunch and really disrupt the market. 

    You are absolutely right about contract law though and I think it's a good point to bring up. Just because another party puts something in a contract does not mean that it is entirely enforceable. There are definitely some shady people out there that might put outrages penalties or provisions in loan documents that try to take advantage of people that don't know better. It just drives home why it's important to have not just any lawyer, but a good lawyer.

    1Reply
  • Chris Fuller
    OP
    Member since 2019 · 7 posts · 5 votes
    6y

    Hello,

    I will answer your questions here Shortly. See attached and this will help. I have been having people reach out to me direct and sending me NEW case law. Please see the link for Missouri "Exempt Person"

    https://revisor.mo.gov/main/OneSection.aspx?section=443.703

    Peerstreet Loans

    https://www.reuters.com/article/us-health-coronavirus-colchiscapital-exc/exclusive-eyeing-defaults-us-direct-lender-colchis-capital-to-shut-funds-idUSKBN21P21X#:~:text=BOSTON%20(Reuters)%20%2D%20San%20Francisco,to%20materials%20reviewed%20by%20Reuters.

    https://www.nasdaq.com/articles/exclusive-u.s.-sec-steps-up-scrutiny-of-private-debt-financial-games-2020-03-11


    FCI servicing has cases mounting as well. Some to watch

    https://www.classaction.org/news/suit-alleges-fci-lender-services-tried-to-collect-illegal-interest-late-fees#:~:text=FCI%20Lender%20Services%2C%20Inc.%20is,FCI%20Lender%20Services%2C%20Inc.&text=A%20proposed%20class%20action%20citing,alleges%20FCI%20Lender%20Services%2C%20Inc.

    https://trellis.law/ruling/18STCV08781/ASHLEY-PEREZ-VS-FCI-LENDER-SERVICES%252C-INC%252C-ET-AL./20200630ed92d0

    https://dockets.justia.com/docket/california/caedce/2:2020cv01463/376213




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  • Kyle Altenau
    Tinton Falls, NJ · Member since 2020 · 108 posts · 85 votes
    6y

    So the two articles about PeerStreet....aren't about Peerstreet. The first vaguely mentions them and the second doesn't at all. I'm not sure how that has anything to do with my comment or helps shed some light on your perspective. 

    Your original comment mentioned that it is illegal to use third part servicing companies, which I state is incorrect. The suits against FCI that you sent aren't related to them being a third party servicing company, but them charging illegal/fees interest. 

    The articles you posted are definitely the darker side of debt funds/private lending. They're things a lot of the forums here warn about and people try to educate to beware of. But they're also not related in any way to a lot of the outlandish claims you made in your original post. 

    0Reply
  • Chris Martin
    Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    4y

    @Chris Fuller can you follow up with verdicts in these cases? These posts are from a few years ago. I don't see merit in the cases, but I am not an attorney nor do I know state statute outside of NC. I assume you were on the short end of one of these deals, but maybe this is a bad assumption since I don't know the outcome. 

    I guess the big question I have is: what does your lawyer (attorney closing state) or title company (title closing state) say about your transaction? You did close with a legal professional, right? As a former private lender, I relied upon a deed-of-trust for 'insurance', meaning I had state-specific remedies in case of default... and these documents were reviewed and approved by an attorney and if things went south, I had a competent attorney to rely on.  

    The DILF has become standard practice in the lending business after the (GR) great recession. It (the DILF) existed before the GR but was not common. I've never seen a RICO case verdict, so if you have an outcome, please post a link. 

    1Reply
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