Draft for counsel review. This page is a working draft prepared for LB1 Capital LLC and has not been reviewed by counsel. Bracketed items need to be confirmed before publication.
1. Who we are and what this covers
LB1 Capital LLC ("LB1 Capital," "we," "us") is a direct lender making business-purpose loans to entities for the acquisition, renovation, construction and refinancing of residential investment property. This policy covers information we collect through lb1capital.com, including the request-terms form, the deal sizers and the partner submission portal, and information we collect by email, phone and in the course of underwriting, closing and servicing a loan.
Our loans are made to entities for business or commercial purposes and are not consumer loans. Where a law gives rights to individuals, including guarantors and principals of a borrowing entity, we honor those rights as described below.
2. Information we collect
From anyone who contacts LB1 or requests terms
- Name, company or entity, email address and phone number.
- The loan you are asking about: program, purpose, property address, property type and unit count, requested loan amount, purchase price or value, renovation or construction budget, number of completed projects, target closing date and anything you write in the notes.
From referring partners who use the submission portal
- Your name, firm, role (for example attorney, mortgage broker, accountant, real estate broker, title or escrow, contractor), relationship to the borrower, email and phone.
- The legal name of the person or entity to be paid a referral fee at closing, and later the tax and payment information needed to pay it (for example a Form W-9 and wire or check instructions).
- Everything in the "Borrower and deal" and "Documents" steps, described next, which you provide on the borrower's behalf and with the borrower's authorization.
About the borrower, its principals and guarantors
- Identity and entity information: borrowing entity name, formation documents, operating or partnership agreement, certificate of good standing, employer identification number, ownership breakdown, and for each owner of 20% or more and each guarantor, name, address, date of birth, government-issued identification and Social Security number or other tax identification number.
- Credit information: a signed credit authorization and the consumer credit reports and scores we obtain under it, estimated credit score you provide, and public-record information such as bankruptcies, foreclosures, judgments and liens.
- Financial information: bank statements, proof of closing funds and reserves, statements of other assets and liabilities, and for refinances the current lender, payoff amount and twelve-month payment history.
- Experience and track record: addresses, dates, costs and sale or appraised values of past projects, and information about contractors and partners involved in them.
- Property and project information: purchase contract or payoff statement, scope of work, budget and schedule of values, plans, specifications and permits, construction schedule, contractor agreements and licenses, photographs, rent roll, leases and rent receipts, tax and insurance bills, homeowners' association statements, appraisals and valuation support, title commitments and insurance binders.
- Exit and plan information: the intended exit, timeline and anything else you tell LB1 about the deal.
Collected automatically on the website
- Standard server logs: IP address, browser type, pages requested, date and time, and the page that referred you. [Confirm whether web analytics or advertising tags will be installed; if so, list them here.]
- The deal sizers on the loan pages run in your browser. Figures you type into them are not sent to LB1 unless you submit a form.
- Files you attach in the portal are sent to our intake desk. We do not use tracking cookies on this site. [Confirm once the portal is connected to the intake system and once any cookie-based tools are added.]
From third parties during underwriting and closing
- Consumer reporting agencies (credit reports and scores, under the authorization you sign), fraud and identity verification services, and public-record and property-data providers.
- Appraisers, budget and feasibility reviewers, permit validators and draw inspectors engaged on the file.
- Title and escrow companies, closing attorneys, insurance agents, contractors and the referring partner who submitted the file.
3. How we use it
- To size, price and underwrite the loan, issue a term sheet and commitment, verify identity, satisfy anti-money-laundering and sanctions screening obligations, and detect and prevent fraud.
- To close and fund the loan, order and review third-party reports, manage construction draws and inspections, bill and collect payments, issue payoff letters and otherwise service the loan.
- To sell, assign, pledge or participate the loan, or to arrange funding for it, including sharing the loan file with prospective and actual purchasers, funding sources, servicers, custodians and their auditors, counsel and due-diligence providers.
- To pay referral fees and maintain our relationship with referring partners.
- To communicate with you about the file, respond to requests and, where you have not opted out, tell you about programs that may suit you.
- To comply with law, licensing requirements, examinations, subpoenas and legal process, and to establish and defend legal claims.
- To operate, secure and improve the website and our intake systems.
4. Who we share it with
- Funding sources and loan purchasers. Loans we originate may be funded at closing by, or sold after closing to, institutional funding sources. They receive the loan file, including borrower, guarantor, credit, financial and property information, and may contact you directly as holder or servicer of the loan.
- Service providers on the file: appraisal management companies and appraisers, budget and feasibility reviewers, permit validators, draw inspectors, credit bureaus, identity and fraud screening vendors, title and escrow companies, closing counsel, loan servicers and payment processors, document and e-signature platforms, and hosting and IT providers.
- Referring partners. The attorney, broker or other partner who submitted a file is copied on the term sheet and kept informed of the file's status through closing. We do not share your credit report or bank statements with the referring partner unless you ask LB1 to.
- Insurers, title and settlement parties as needed to close.
- Regulators, auditors and legal process where required or permitted by law.
- Successors in a merger, acquisition, financing or sale of all or part of our business or loan portfolio.
We do not sell personal information, and we do not share it with third parties for their own marketing.
5. Credit reports and the Fair Credit Reporting Act
We obtain consumer credit reports on guarantors and principals only with written authorization and only for a permissible business purpose in connection with a credit transaction they are a party to or guaranteeing. If we decline a loan or offer less favorable terms based in whole or in part on a credit report, we will tell you and identify the reporting agency so you can obtain a free copy and dispute inaccuracies.
6. How long we keep it
We keep loan files, including files for loans that did not close, for as long as needed for the purposes above and to meet legal, licensing, audit and loan-purchaser requirements. As a general rule, files for funded loans are kept for the life of the loan plus [seven] years, and files for applications that did not close are kept for [three] years from the last activity. Website logs are kept for [12] months. We delete or de-identify information when it is no longer needed.
7. How we protect it
Loan files are stored on access-controlled systems with encryption in transit and at rest, and access is limited to staff and vendors who need it for the file. Sensitive documents such as identification, Social Security numbers and bank statements should be sent through the portal or a secure link we provide rather than in plain email. No system is perfectly secure, and we cannot guarantee the security of information in transit over the internet.
8. Your choices and rights
- You can ask LB1 what personal information we hold about you, ask LB1 to correct it, and, where the law allows and we no longer need it for a loan or a legal obligation, ask LB1 to delete it.
- You can opt out of marketing messages at any time by replying "unsubscribe" or writing to the address below. We will still send messages about an active file or loan.
- Residents of California, and of other states with comprehensive privacy laws, may have additional rights to access, correct, delete and port personal information and to limit certain uses, subject to exemptions for information collected under federal financial privacy law. We do not sell or share personal information for cross-context behavioral advertising. [Confirm with counsel which state laws apply given the lending footprint and the business-purpose nature of the loans.]
- We will not discriminate against you for exercising these rights.
9. Referring partners' obligations
If you submit a file on a borrower's behalf, you confirm that you are authorized to share the information and documents with LB1, that you have given the borrower and guarantors any notices your own professional rules require, and that you will keep any information we return to you confidential and use it only for the transaction.
10. Other points
- This website is for businesses and is not directed to children under 18. We do not knowingly collect information from them.
- Links to other sites, including those of title companies, appraisers and funding sources, are governed by their own policies.
- We may update this policy. The effective date at the top will change, and material changes will be posted on this page.
11. Contact
Privacy questions and requests: privacy@lb1capital.com or LB1 Capital LLC, [street address], New York, NY [ZIP]. We will respond to a verified request within [45] days.
LB1 Capital LLC · Loans are made to entities for business purposes only.
