Legal & Compliance

The loan purchase sale agreement is the binding contract that governs every mortgage note trade. This guide breaks down the key provisions note investors must understand — from closing and cutoff dates to representations and warranties, repurchase clauses, and the exhibit schedule — so you can review contracts with confidence and negotiate protections that matter.

California's AB 130, effective July 1, 2025, imposes strict new requirements on anyone seeking to foreclose on a subordinate mortgage. The law targets zombie second mortgages but affects all junior lien holders, requiring a signed certification under penalty of perjury before foreclosure can proceed. Note investors holding California second liens face heightened due diligence burdens, increased legal costs, and new borrower defenses that did not previously exist.

The CFPB has been effectively placed on standby as part of a broader federal deregulation push. For note investors, this creates both risk and opportunity: large institutions may resume aggressive foreclosure practices reminiscent of the robo-signing era, while ethical investors who maintain compliance standards are positioned to fill the gap left by reduced federal oversight.

New legislation and court rulings at the federal and state level are reshaping the landscape for note investors. This expert session with Matt Kelley covers the CFPB's proposed foreclosure moratorium, the Bankruptcy Reform Act, California's debt collection licensing requirements, new lien types in Washington, and several court cases that establish critical precedents for credit pulls, call recording, HOA super liens, and deficiency judgments.

Operating without an LLC in note investing isn’t “saving time” — it’s gambling your personal assets on someone else’s paperwork and your own inexperience.

Texas homestead protections are among the strongest in the country, shielding owner-occupied primary residences from forced sale for most types of debt. Note investors who hold judgment liens, deficiency balances, or commercial debt tied to a borrower's homestead must understand these protections or face lawsuits, unenforceable liens, and costly delays. This article explains what the exemption covers, how it limits investor remedies, and what steps to take during due diligence to avoid getting caught off guard.

Statute of limitations rules vary dramatically across states and directly determine whether a note investor can enforce a debt or foreclose on a property. This expert session with Malena Lopez of JMJL Investment Group breaks down the limitation periods, acceleration triggers, and critical due diligence steps for Florida, Maryland, Michigan, Ohio, and Pennsylvania.

The Supreme Court ruled the CFPB's single-director leadership structure unconstitutional in a 5-4 decision, while allowing the agency to continue operating. This article breaks down what the ruling actually changed, what it did not change, and how note investors should adjust their compliance posture in response.

Recording the assignment of mortgage transfers your security interest in a property into the public record, establishing your legal standing as the new lien holder. This guide covers the full process from confirming the original recorded mortgage through e-recording and mail-in recording, including county-specific requirements that can cause rejections if overlooked.