In this webinar, we’ll outline the regulatory landscape that governs private lending and discuss the key federal and state consumer protection laws and regulations that are applicable to these types of loans, which include the Equal Credit Opportunity Act, the Home Mortgage Disclosure Act, the Fair Credit Reporting Act, the Servicemembers Civil Relief Act, and the Fair Housing Act.
Although the regulatory compliance landscape is well-defined for mortgage lenders making loans to consumers, these implications can be less straightforward when it comes to private money lenders. A private money lender is a non-institutional (non-bank) individual or company that loans money, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction. Private lenders typically fall into three broad categories, which include individuals, seller finance transactions, and hard money lenders. A common misconception is that these types of loans are exempt from the federal and state laws and regulations that govern consumer lending. However, as the market for these loans continues to flourish, it is important to remember that “business purpose” does not actually mean “consumer compliance exempt.”
Jennifer Newton is a former Federal Financial Services Regulator from the U.S. Consumer Financial Protection Bureau (CFPB) and brings clients more than a decade of consumer compliance management and risk advisory experience. With her combined experience in the federal government, law firm, and in-house compliance positions, Jennifer offers an uncommonly broad range and depth of consumer compliance expertise in banking and financial service matters. She regularly consults with clients on complex issues relating to the Real Estate Settlement Procedures Act (RESPA), Telephone Consumer Protection Act (TCPA), Home Mortgage Disclosure Act (HMDA), the Gramm-Leach-Bliley Act (GLBA) and the Fair Credit Reporting Act (FCRA). She also guides clients on deposit and consumer lending issues under the Unfair Deceptive Abusive Acts and Practices Act (UDAAP), the Truth in Savings Act (TISA), Regulation CC, the CARD Act, Truth in Lending Act (TILA), Equal Credit Opportunity Act (ECOA), the Community Reinvestment Act (CRA) and the Fair Debt Collection Practices Act (FDCPA). In addition, Jennifer works with clients on privacy and financial technology (fintech) matters involving data security, data breach, open banking, and payment system issues under the Electronic Fund Transfer Act (EFTA), the Global Data Privacy Regulation (GDPR) and federal and state privacy laws, including the GLBA, HIPAA, ADA, CFAA, FCRA and the Florida FIPA.