Lender Liability in Real Estate Finance: Origination, Administration, Modification, and Bankruptcy Considerations
Lessons From Recent Litigation; Best Practices for Minimizing Claims
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will analyze the most common types of lender liability claims, discuss how they are being asserted in various phases of the lending cycle, and explain lessons learned from recent financial litigation. The panel will outline best practices to minimize and avoid the risk of lender liability claims.
Outline
- Phases of the loan cycle where liability may arise
- Advertising
- Standards of conduct/code of ethics
- Underwriting
- Predatory lending and loan-to-own
- Conflicts of interest
- Loan origination
- Documentation
- Payment structure practices
- Know your customer
- Syndication/participation
- Loan administration
- Restructuring of defaulted loans
- Foreclosure
- Bankruptcy
- Theories of lender liability
- Breach of contract
- Fraud, duress, and misrepresentation
- Negligence
- Infliction of emotional distress (on an individual borrower)
- Violation of statutory duties
- Breach of fiduciary duty
- Improper control of the borrower
- Breach of the covenant of good faith and fair dealing
Benefits
The panel will review these and other key issues:
- What are the common mistakes lenders make at origination, in loan administration, or in loan workouts that can lead to lender liability claims?
- What theories of lender liability are most often asserted by borrowers after a loan default?
- What theories of lender liability are asserted by junior or participating lenders against senior lenders?
- How are lender liability claims being asserted in bankruptcy and what steps can lenders take to survive a challenge in bankruptcy?
Faculty
Jason E. Goldstein
Shareholder, Co-Chair Mortgage Banking Group
Buchalter
Mr. Goldstein specializes in resolving complex business disputes for a diverse cross-section of clients, ranging from... | Read More
Mr. Goldstein specializes in resolving complex business disputes for a diverse cross-section of clients, ranging from national banks to insureds, private money lenders, credit unions, individuals, loan servicers, landowners, pharmaceutical companies, vaping companies, equipment finance companies, brokers and investors. He is Co-Chair of the firm’s Mortgage Banking Group, a fellow of the American College of Mortgage Attorneys (ACMA) and a member of the ACMA Title Insurance Committee. Mr. Goldstein has an extensive legal background in state and federal courts across the country, which includes business litigation, real property related litigation, “private money,” title insurance claims and litigation (as well as CGL, D&O, etc.), escrow claims and litigation and misappropriation of trade secrets litigation. He also handles litigation involving wrongful foreclosure, lender liability defense, leases (commercial, residential and equipment), general contractors, receiverships and judicial foreclosures.
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John L. Hosack
Shareholder
Buchalter
Mr. Hosack focuses his transactional practice on commercial real property loan documentation, loan workouts, REO sales... | Read More
Mr. Hosack focuses his transactional practice on commercial real property loan documentation, loan workouts, REO sales and foreclosures. He represents secured lenders and property owners at trial and on appeal in complex real property disputes, including lender liability, fraud, class actions, breaches of contract, wrongful foreclosures, mechanic’s liens, stop notices, judicial foreclosures, receiverships, escrow claims and title insurance claims.
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Enrique (Rick) Rodriguez, Jr.
Founder and Principal
Rodriguez & Associates
Mr. Rodriguez is a qualified expert in banking and real estate matters and for the past 17 years has provided a wide... | Read More
Mr. Rodriguez is a qualified expert in banking and real estate matters and for the past 17 years has provided a wide variety of real estate brokerage, financial advisory, consulting, litigation support and expert witness services to his clients. He advises law firms, development companies, financial institutions and investors on standard lending practices, market rates of interest, and other business transactions which often involve tens of millions of dollars. He is knowledgeable of capital markets and financing transactions and, as a licensed real estate broker, procures debt and equity capital for his clients from financing sources which include banks, life insurance companies, pension funds, REIT’s and conduit lenders.
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