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AlexsonLaw Services. How We Help You To Reduce Costs And Legal Risk

De Novo Financial Institutions

My firm specializes in transactions, regulations, strategic alliances and mixed collateral loan transactions in the real estate and financial services industries. We are positioned in a unique space in that my many years in big firm law and my expertise in complex mixed collateral transactions, mergers and acquisitions, private funds, fintech  and bank regulation allow us to provide consulting services and training  in-house for commercial and real estate lenders.

As a result of the 2016 election, there has been renewed interest in the Dodd-Frank Law and other laws regulating  banks and mortgage lenders.   Additionally,  private real estate funds organized under Regulation D are increasingly concerned about the requirements and changes affecting the prospectus disclosures.

The Consumer Financial Protection Bureau (“CFPB”), created under Dodd-Frank to protect consumers has been very active and we are now beginning to see cases where the power of the Agency, through its structure, is being litigated.  Dodd-Frank was intended to primarily protect consumers against certain residential lending practices, but some of the rules have already reached  the commercial real estate market, as the Credit Risk Retention Rule that went into effect, Dec. 24, 2016  also applies to securitization of commercial real estate loans.

Sponsors in the CMBS market are concerned about compliance with this rule.  Since the FDIC has seen a sharp drop in de novo bank applications, a new advisory handbook is now going through a comment period.  The OCC, has now decided that it will grant limited charters to fintech companies.  We do not know yet what the requirements will be and what compliance rules and procedures must be put into effect for each new entity.

We are also working with financial institutions, to provide education and training for the commercial, middle market and real estate lenders.  Although some lenders use certain form loan documents, the loan processors need to understand the documents, changes in the law must be updated into these documents and the lenders must learn to negotiate the loan documents, amendments and workouts to reduce the risk of lender liability claims by borrowers and guarantors.   Corporate training in a lender’s core business reduces risk and litigation costs  to the financial institution.

We consult with investment advisory firms and structure private real estate funds under Regulation D.  Our role can be that of consultant or strategic partner to in-house or outside counsel, accounting firms and investment advisors.   We work with real estate brokers, marketplace lenders,  community banks and finance lenders to create value between different lending platforms,  in compliance with state and federal law.   There are a number of new cases, one most recently in Ca. which address the structure of a strategic alliance between a marketplace and traditional lender.    We will be consulting with our clients on the new FDIC requirements to own and operate an FDIC insured financial institution and  the new OCC limited charters for fintech.  Our consulting and training will be essential to reducing costs and risk to your fund, institution, advisory or brokerage firm.

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© 2018 Harriet Alexson All Rights Reserved




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