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What is a Hard-money Lender?

Question: 
We have a customer who has titled his business as an investment company, and indicated that on his CIP form. Recently, he withdrew $15,000 in cash, and when asked the nature of his business, explained that it was "hard-money lending". Considering the amount of cash withdrawn, which is unusual for him, could he be an MSB? What is a hard-money lender?
Answer: 

Hard money lenders make loans (usually secured by real estate) at a much higher rate of interest and lower loan-to-value than a bank would make. This is true collateral lending without regard to credit score or repayment ability. Many hard money lenders are individuals.

First published on BankersOnline.com 4/12/10

First published on 04/12/2010

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