Lender Liability in Real Estate Finance: Origination, Administration, Modification, and Bankruptcy Considerations
Lessons From Recent Litigation; Best Practices for Minimizing Claims
Recording of a 90-minute premium CLE video webinar with 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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Joffrey G. Long
Private Money Lender
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Mr. Long has been active as a private money lender for more than 41 years. He has also been qualified by numerous... | Read More
Mr. Long has been active as a private money lender for more than 41 years. He has also been qualified by numerous courts and testifies frequently as an expert witness in private money lending and related matters. His company makes, (as a lender) arranges, (as a broker), and acts as a loan servicer for real estate loans. Mr. Long is the Past President and Education Chair of the California Mortgage Association, the California trade association for private money lenders, brokers, and loan servicers.
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