All Forum Posts by: Account Closed

Hi @Tracy Z. Rewey

Your description says the collateral docs contain a note and mortgage for this loan. I had a look out of curiosity and saw that this was actually a land contract with a quit claim deed, which are very different from a note secured by a mortgage. Have I missed something?

Hey @Marco Bario, 

Obviously I'm no lawyer, but I don't believe HMDA covers non-performing loan investors. For one, Reg C (the act that implemented HMDA) generally excludes transactions where you're modifying/extending/amending an existing loan, which is what most all note investors are doing when they restructure an existing non-performing loan. The CFPB doesn't plan on changing that view with this ruling. 

Reg C/HMDA is mainly intended to help the government keep an eye on institutions originating new loans and make sure they aren't discriminating against certain communities, being fair etc. The bulk of institutions who have to report are depository banks. Some non-depository firms also need to report, but only if they are in the business of new mortgage origination. 

Lots of good options, I keep mine in the Cap 360 money market account. FDIC insured and they pay 1.35% interest.

That seems really odd, hedge funds have a much higher cost of capital than banks, and a 30 year fixed rate priced cheaper than banks seems very difficult for them to sell-off. I've never seen a hedge fund or PE fund do something like this. Has your friend or anyone you know used them before? First question I would have is where they are getting the capital to make the loan, since they don't have any deposits and no way they have investor capital for this.

@Account Closed - think I would prefer working with someone who was upfront when pitching their company vs saying "I use [insert company I work for]" 

@Account Closed - is it a coincidence a Haniel Monjaras is listed as the contact for Economic Granite?

Thanks for sharing @Account Closed, helpful for those of us relatively new to the space. What in your due diligence process do you think you would do differently on the next one? 

Jay Hinrichs Bob Malecki Got it, thanks both. Bob your point is exactly what I was wondering with my question, it seems buying a CFD basically puts you in the position of a homeowner and shouldn’t be viewed the same as a loan that has a first lien security. It’s weird I met an investor couple months back who was saying he preferred CFDs because they are the same as loans, but you can claim the property back easier. Figured there were some additional key differences he wasn’t considering...

Thanks @Bob Malecki, that's a good point. Using an example, if I bought a CFD, and then a month later the current occupant didn't pay utility bills so there was now a municipal lien, would that muni lien now be senior to my position as an investor holding a CFD? It sounds like that would be the case, which means I'm technically not a "first lien lender" if I own a CFD, I'm basically in the same position as a home owner (which makes sense since with CFDs the "lender" still owns the property)?

Versus if I bought a whole loan (note + deed of trust) and then a muni lien was put on the property, that muni lien would typically be junior to my 1st lien position? 

Let me know if I got that wrong though. I see a lot of conversations about notes where CFDs and whole loans are used interchangeably, so just want to make sure I understood what the difference was (and may be helpful to new investors as they conduct their due diligence).

Just curious, does anyone have thoughts on additional due diligence items to keep in mind when reviewing a contract for deed? I don't buy CFDs so wouldn't know the answer, but would assume there are extra steps to keep in mind from a disclosure/legal perspective vs when you're reviewing a note secured by a deed of trust/mortgage?