Our Business Standards

Underwriting Standards

Borrower Credit and Experience: Every new borrower completes astandard loan application which is evaluated with the results of theircredit report. In addition, the borrower’s experience and track recordof buying, repositioning, and marketing properties is also consideredprior to determining the final loan structure. Most of Anchor'sborrowers are repeat clients who have successfully sold properties andrepaid debts in a timely fashion.

Property Market Valuation: The primary security for an investor is the equity of the property securing the loan. Anchor places a strong emphasis on due diligence and property evaluation, and immediately performs a comparative market analysis of potential loans. Anchor also inspects the subject property and determines if there is enough equity for the potential loan. After reaching an internal value, a certified appraisal is also ordered to gain an independent valuation of the property.

Loan Servicing Standards

As the loan servicing agent, Anchor performs the following services for each loan:

  • Collects monthly payments from borrowers and remit monthly payments to investors

  • Advances funds for construction draws

  • Provides monthly statements of loan activity

  • Issues demand and conveyance documents

  • Issues Form 1098 to the borrower and Form 1099 to the investor

  • Coordinates default procedures for non-paying borrowers

All investor funds are maintained in separate, non-interest bearing deposit accounts and are not commingled with Anchor monies.

Thesetrust accounts are subject to regular audits by independentaccountants. As a regulated entity, Anchor services these loans inaccordance with the rules promulgated by the California Bureau ofReal Estate.