Sun Pacific Investor Quarterly
A Newsletter for Investors in Trust Deeds
Volume 7 Issue 2 – Integrity • Knowledge • Honesty – June 2017
Our Background in Lending
Hello again. Hopefully this newsletter will serve to put you, the Investor, and us, your favorite Broker, more and more on the same page.
This year is our 30th year in the lending business. We have been responsible for thousands and thousands of home loans in California. Sun Pacific Mortgage has a California Bureau of Real Estate Broker License and I, Broker, am the principal Broker. We also have the federally mandated Nationwide Mortgage Licensing System (NMLS) License.
6 or 7 years ago we were doing all loan programs, from the 30-year fixed rate programs to Hard Money. Then the underwriting guidelines for the 30-year fixed rate programs became too restrictive, so we decided to do only Hard Money loans. We have expanded to the point where we fund over 20 loans per month. In April we funded 24 loans for almost $8 million dollars.
Because all we do are Hard Money loans, we are expert, and most importantly, compliant with the myriad of regulations that apply to hard money. We are active members of the Hard Money organization CMA (California Mortgage Association) and attend all of their 4 annual conferences. At these conventions we receive training on current hard money regulations and learn how to comply. We have on retainer, and regularly consult, the #1 Hard Money attorney for CMA, Dennis Doss, to make sure we correctly interpret and apply any and all state and federal regulations.
Our loan docs are specific to hard money and customized to conform precisely to federal and state regulations. They are monitored and updated regularly by our hard money doc service.
We subscribe to the Dodd-Frank Update and the RESPA News. We read their frequent publications from cover to cover allowing us to stay on the cutting edge of our industry.
We do all this on your behalf because you are the Lender. Our compliance makes you compliant.
Servicing of Fractionalized Loans
We are doing an ever-increasing amount of fractionalized loans. These loans are required to be serviced, with few exceptions. The reason is, as a Lender, you cannot receive funds on behalf of someone else unless you have a trust account. There are probably other reasons buried under the 3,300 pages of Dodd/Frank, but that is the main one.
It will cost you a monthly servicing fee per investor. These monthly fees vary from service agent to service agent. Usually, we allow the Investor with the most money into a fractionalized loan to dictate what service provider to use. We can send you a current list of these upon request.
Each Servicer will have their own servicing agreement which spells out what will occur, if and when a loan gets into trouble.
Finally, if such a loan gets into trouble, the general idea is to file for a foreclosure as soon as is practicable. If, as rarely occurs, the foreclosure goes through and the fractionalized group gets the property, the idea would be to sell it as soon as possible.
When You Receive Trust Deeds From Us
When you see an offering you are interested in, please reply to that email as soon as possible. Do not delay hours or days doing further research as these opportunities go quickly. Your response goes directly to both of us: Broker, Broker, and Loan Originator, Broker.
If it is decided you are going to be the Investor for a particular loan, whoever has the loan will email you a full loan package, and at this time, you can do a more thorough review of the opportunity. If the trust deed has already been sold, you will be informed and we will, of course, continue to send out more offerings.
Broker & Broker
The Guys in the White Hats
Broker & Broker
Sun Pacific Mortgage & Real Estate
800 Mendocino Avenue #2, Santa Rosa, CA 95401
CA BRE License # 01464899
NMLS # 360993