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NY regulator cracks down on hard money lenders

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Mortgage Professional America | 16 Sep 2014, 02:11 PM Agree 0
New York's top financial regulator has opened a probe into several hard money lenders in order to investigate possible predatory lending practices
  • Nancy V | | 16 Sep 2014, 03:20 PM Agree 0
    This should be interesting. This is a big topic of conversation lately.
  • Cory U | | 16 Sep 2014, 06:33 PM Agree 0
    This will be interesting. My personal experience with hard money lenders is that they offer short-term mortgages to mostly investors looking to quickly acquire a commercial property while seeking traditional financing, or those looking to purchase and flip residential properties. From the surface they look predatory because of their up-front points and higher than conventional financing interest rates. However, you take the short term aspect of the mortgage (usually 90 to 180 days) it's understandable why they do: The mortgage won't be around long enough to make any money on it, so they need to get it all up-front. Hard money lenders want their money back quick so they can lend to someone else and collect points again. They don't want to foreclose and hold properties. That's not the business they are in.
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