When: Tuesday, June 18th 2019
Seminar: 7:00pm – 8:30pm
Private lenders often rely on the business purpose exemption from Dodd-Frank to make
loans outside of the vast array of disclosures and limitations that are imposed on
consumer financial transactions. Misunderstandings and abuses of the business purpose
exemption can and with increasing frequency do lead to exposure to extensive liability
and can put DRE and CFL licensees at risk.
David Epstein will address the rules, and misunderstandings that have resulted in dire
consequences for many lenders who thought they were just doing their best to make
funds available to borrowers in need, but who cannot meet traditional requirements.
We will address many of the misunderstandings concerning:
– What difference does it make if the property securing the loan is a residence or a
– How does the business of the borrower affect whether the loan qualifies as
– Does it make a difference if some of the funds go to personal uses?
– Does it make a difference if the property securing the loan is a rental?
– Does the size of the loan make a difference?
– What damages can a lender be found liable for if the loan doesn’t qualify as
– How can a lender avoid getting it wrong and incurring liability for extensive