Setting the Standard
A Brief Overview of the CFP Board’s New Code of Ethics and Standards of Conduct Effective October 1, 2019, CFP (Certified Financial Planner) Board’s new Code of Ethics and Standards of Conduct (“Code and Standards”) was issued. The Code and Standards sets forth the ethical standards for CFP professionals, and replaces CFP Board’s current Code of Ethics, Rules of Conduct, Financial Planning Practice Standards and Terminology. The enforcement date for the new Code and Standards is June 30, 2020. The new Code and Standards includes a range of important changes,...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
All Hard Money Lenders Care About Is Equity
There is a huge misunderstanding by clients when they call thinking they can get a hard money loan just because they have equity. Sure, hard money lenders are mainly equity based lenders and lend base on the collateral’s equity position. The more equity the collateral has, the more the lender is protected, but that doesn’t mean money is lent solely based on equity. There are other factors considered before money is lent: ONE Does the client have the ability to repay the loan? There are many ways we verify this and it doesn’t necessarily follow the conventional...Read More
