For over a decade, Ignite Funding has been one of the leading providers of real estate investments to private investors seeking predictable, passive income outside of the stock market. To put this into perspective, in 2021, 75 loans were funded with over $250M in private investor capital.
It is important for investors to understand that the process to participate in Trust Deed investments is in place to protect both the investors and the borrowers involved.
Ignite Funding operates as a licensed mortgage broker in the state of Nevada and is regulated by the Nevada Mortgage Lending Division (MLD). The Nevada MLD is one of the most stringent regulating bodies in the nation where lenders, like Ignite Funding, must adhere to rigorous licensing requirements, lending practice regulations, and regular oversight.
Ignite Funding is a well-oiled machine when it comes to maintaining the highest standards of compliance for each investment opportunity that we deliver to clients.
Nevada is one of the few states that do not allow exemptions from licensing as a commercial broker.
“This means that we are held to the same high standards as residential mortgage brokers,” states Misty Bethany, Ignite Funding’s Chief Compliance Officer. “Not only does our company have to be licensed to broker the loans, but our Investment Representatives must also be licensed so they can discuss available investment opportunities with clients and prospective investors.”
The process to become licensed requires 30 hours of pre-licensing coursework to prepare for the national Mortgage Loan Originators exam that must be passed with a score of 75 or greater.
“Recent statistics have shown that only about 60% of test-takers nationwide pass on the first try,” affirms Ms. Bethany. “With that level of difficulty, you cannot underestimate the level of expertise our representatives bring to the table.”
Once the test is passed, a thorough background check is performed, including a review of personal financial fitness, criminal history, and history of professional fiduciary conduct.
To maintain the MLO license, the State regulations require a minimum of 8 hours of continuing education each year. Additionally, applications must be made each year by each licensed agent and the company. If there have been ANY changes to personal financial condition, professional fiduciary conduct or criminal history it must be disclosed at the time it occurs. In fact, regulations require any such changes to be disclosed within 7-30 days of the incident, depending on the nature of the change.
“It would be accurate to say that licensed individuals and companies are held to the highest degree of conduct, both on and off the clock,” says Ms. Bethany. “The regulators stay on top of licensees to make sure nothing falls through the cracks.”
Lending Practice Regulations
To invest in a loan, there is more to it than just a click of a button.
“New investors are often surprised, and maybe even overwhelmed, at the amount of documentation that they are required to read and sign each time they invest on a loan,” says Ms. Bethany. “But I do believe that they appreciate the lengths Ignite Funding takes to ensure complete transparency and understanding of the investments and the processes that are followed through the life cycle of a loan.”
There are numerous disclosures and paperwork requirements imposed by the state to ensure full disclosure to all investors and borrowers on every loan that is done with Ignite Funding. Likewise, Ignite Funding has its own policies and procedures in place to ensure that our clients and borrowers fully understand all risks and requirements of investing or borrowing.
Ignite Funding has streamlined this process for clients by providing them with the ability to review and sign these documents online.
Special Power of Attorney
A notarized Special Power of Attorney (SPOA) is required by every investor on each investment. The purpose is to facilitate the servicing of the loan by Ignite Funding. To learn more about the purpose of the SPOA, read our previous blog.
Post Investment – Post Closing Documents
For each individual investment, clients receive a copy of the Promissory Note, the Recorded Deed of Trust, and the Title Policy. In these documents clients are listed as a beneficiary to the subject property. Our government regulators require that clients acknowledge that they received these documents for each individual loan.
Ignite Funding is not a financial institution nor do clients directly invest in the company. Each investment is tied directly to a loan collateralized by real property. Funds submitted are deposited to a trust account for the property that the investor has selected to invest in. For this reason, funds are not held nor accepted by Ignite Funding unless a client has selected a loan and completed the documentation to invest in the selected loan.
All marketing for Ignite Funding must be reviewed and approved by the Chief Compliance Officer and/ or the President of Ignite Funding before it is ever released. In addition, all marketing is subject to review and audited by the state regulators to ensure that all applicable disclosures are shown and that the company is not being deceptive in its marketing practices.
Ignite Funding is subject to periodic audits by the States in which they are licensed. Audits are not conducted on a predetermined time schedule, but rather the regulator will send notice and request information on all aspects of the company for a specific time. Ignite Funding is expected to have the documents readily available to deliver to the state for inspection and review.
Ignite Funding’s internal policy is to continuously audit their own files and documents, ensuring 100% compliance with all regulations. This allows Ignite Funding to discover any mistakes or issues quickly and then take the appropriate corrective actions.
Our Track Record
The highest audit score a company can receive in the State of Nevada is a 1, and they do not hand these out lightly. During the last exam, Ignite Funding is proud to report that they achieved that “perfect” score.
“We believe we have the systems, policies and procedures in place to continue to achieve this high ranking and we will never compromise compliance as we grow our business,” affirms Ms. Bethany. “We are constantly seeking ways to enhance and improve our accuracy.”
Investor Due Diligence
At Ignite Funding, we strongly encourage prospective investors to perform their due diligence on the regulation and oversight of the companies, like Ignite Funding, that they choose to invest with their hard-earned money.
If you are interested in learning more about how to add predictable, passive income and capital preservation to your investment strategy, schedule a no obligation consultation with one of our Investment Representatives today!
Ignite Funding releases several new available investments on a monthly basis so clients can easily implement portfolio diversification into their strategy. Be one of the first to know about the latest Trust Deed investment release by texting the word "Investments" to 844.552.7022.