Collateral file
A collateral file is the set of original documents that prove a loan and its lien: the original note with endorsements or allonges, the recorded mortgage or deed of trust, assignments, and the title policy. It moves to the buyer or its custodian in a loan sale.
What a collateral file contains
- The original promissory note, endorsed (with any allonges)
- The recorded mortgage or deed of trust, and any riders
- Recorded assignments in the chain, plus the assignment to the buyer
- The lender's title policy and endorsements
- Guaranties and any modification agreements
The rest of the loan file (appraisal, borrower and entity documents, payment and draw history, insurance) is the credit file, which buyers review to price the loan.
Why it matters to a private lender
Buyers and their custodians check the collateral file line by line before they pay. A complete file with originals in hand shortens settlement; a missing original note can stop a sale.
On Lender Capital
To sell a loan you submit the original title policy, payment history and draw history with the rest of the file, and the sale settles through an escrow agent. On Lender Capital, private and hard money lenders sell whole, first-lien, business-purpose loans they originated and funded, performing or not (no seller-financed notes or land contracts): a capital partner buys the entire loan and the sale settles through an escrow agent. Lender Capital never lends or buys loans with its own money. See sell your loans.
Where Lender Capital fits
Lender Capital places first-lien, business-purpose real estate loans with capital partners. You apply once, then submit each loan with the full file. We send it only to capital partners whose criteria it fits, one partner funds the whole loan at closing and it is assigned to them. You keep your points (less the placement fee), earn the spread above the partner’s rate and service the loan. You pay a placement fee only when a loan funds.
Lender Capital is a business-to-business platform. This page is general information, not legal, tax or securities advice. Terms of warehouse lines and other funding sources vary by provider; confirm them with each provider and your counsel.