The "Business and Professions Code" regulates the amount of fee a "hard money lender" may charge. The size of the fee depends on the length of the loan and whether it is a "first trust deed" or "junior mortgage". For a loan that is less than two years, the maximum fee is 5%; for a loan between two and three years, the maximum fee is 10%; and for a loan of three years or more, the maximum fee is 15%.
These are questions that the above text answers:
1. What regulates the amount of fee a hard money lender may charge?
2. How does the size of the fee charged by a hard money lender depend on the loan?
3. What is the maximum fee for a loan that is less than two years?
4. What is the maximum fee for a loan between two and three years?
5. What is the maximum fee for a loan of three years or more?
6. What is the "Business and Professions Code"?
7. What is a first trust deed?
8. What is a junior mortgage?
9. How does the length of the loan affect the fee charged by a hard money lender?
10. What are the regulations for hard money lending in California?