Lending and California’s Usury Laws
California usury laws add a layer of complexity to doing business in the state. Usury laws limit the amount of interest that can be charged by various parties, and usury is the charging of interest in excess of the amounts permitted by those laws. The California Constitution characterizes “interest” as fees, bonuses, commissions, discount, or other compensations received from a borrower. Before brushing aside usury laws, it is important to know that any lender that originates a usurious loan in California will be subject to tough civil penalties. Unfortunately,...Read More
Not Your Typical Short Testimonial
If you have ever done business with Evoque lending then you already know this, and for those of you who haven’t, you need to read this and join the fortunate people who have discovered and have done business with Evoque lending. Because once you do, you are going to be glad and thankful you have found the best of the best for your Home Loan needs, and you will never go anywhere else when your home loan needs come up again. This is exactly the case for me, I have used them before for my home loan needs and yet now again. And Mike Arnold who works for Evoque...Read More
Open House Incidents
It was late on a Saturday afternoon. The day before, Susan, a real estate agent, had confirmed the Saturday afternoon open house for one of her clients. When Susan arrived, she let herself into the home, as instructed, and saw that the house was a little messy. Wanting to present the home in the best light to potential buyers, Susan washed the dishes in the sink, folded some laundry, and tidied up rooms. The time for the open house came, a few people arrived, and Susan showed them the property. About 45 minutes into the open house, another real estate agent...Read More
Factors for Evaluating Whether a Loan is for a Business Purpose
Part 1 of 2 – Federal factors. Although lenders are perhaps more familiar with the regulations involved in making loans to consumers, it is important to keep in mind that different rules apply to business purpose loans secured by real property. The first step in the analysis is, naturally, to determine whether the loan is a business purpose loan, or a consumer purpose loan. In Part 2, we will examine some of the state considerations. Part 1 we focus on some of the federal considerations, starting with the Truth in Lending Act (TILA). Along with its federal...Read More
Keeping Things Interesting – How Federal Interest Rates Work
To anyone who has ever had a credit card, borrowed money or deposited money in a savings account, you know firsthand how interest rates impact the amount of money you have at any given time. A somewhat complex system directs how interest rates are set at any point in time. If you’re interested in how federal interest rates work, this information will help you. How Do Interest Rates Work? Interest rates can be thought of as essentially the price of borrowing money. It is the amount charged by a lender for use of an asset, expressed as a percentage of the...Read More
