Opinion ID: 1913349
Heading Depth: 2
Heading Rank: 2

Heading: Other Lubach Loan Transactions

Text: 19. On or about March 13, 2006, Lubach referred Mr. Timothy S. Brewer and Mrs. Michele A. Brewer (the Brewers) to the Respondent for assistance in closing a loan from Lubach. 20. On or about March 18, 2006, the Brewers signed closing documents prepared and/or finalized for closing by the Respondent for a loan from Lubach, in the principal amount of $20,922 (the Brewer Loan). The note was secured by a mortgage on the Brewers' residential real property located in Clayton, Delaware. The Respondent performed the closing for the Brewer Loan. 21. The Respondent's file includes a document entitled Statement of Representation and Disclosure/Timothy S. Brewer and Michele S. Brewer, dated March 13, 2006. The substance of this document is identical to the Statement of Representation and Disclosure included in the Respondent's file for the November 2 and 15, 2005, Cross Loans, except that (1) it includes the amount of the Respondent's fee, to be collected from the loan proceeds; (2) it states that [i]n this case, you were referred to me by a private lender, Robert Lubach; and (3) it is signed by the Respondent. 22. The Respondent did not provide the March 13, 2006, Statement of Representation and Disclosure to the Brewers in advance of the March 18, 2006, closing. By way of explanation, the Respondent states that because settlement occurred within days of the referral and took place on a Saturday, the Statement of Representation and Disclosure was provided to the Brewers at settlement. 23. The Respondent charged attorney's fees to the Brewers for legal services relating to the Brewer Loan, which he collected from the loan proceeds. 24. The Respondent prepared and/or finalized for closing a note for the Brewer Loan which included payment provisions ( i.e., pre-payment penalty and balloon payment) prohibited by federal law. [3] The Respondent does not contest that this note unintentionally violated federal law. 25. The lender failed to provide a right to rescind notice to the Brewers about their right to rescind the loan transaction within three days after the closing. [4] The Respondent failed to provide the Brewers with legal advice about their right to rescind.
26. Lubach referred Mr. Lance W. Bruce and Ms. Maria A. Bruce (the Bruces) to the Respondent for assistance in closing a loan from Lubach. 27. On or about November 27, 2006, the Bruces signed closing documents prepared by the Respondent for a loan from Lubach, in the principal amount of $11,000 (the Bruce Loan). The note was secured by a mortgage on the Bruces' residential real property located in Wilmington, Delaware. The Respondent performed the closing for the Bruce Loan. 28. The Respondent's file includes a document entitled Statement of Representation and Disclosure/Lance W. Bruce and Maria A. Bruce, dated November 20, 2006. The substance of this document is identical to the Statement of Representation and Disclosure included in the Respondent's file for the November 2 and 15, 2005, Cross Loans, except that (1) it includes the amount of the Respondent's fee, to be collected from the loan proceeds; (2) it states that [i]n this case, you were referred to me by a private lender, Robert Lubach; and (3) it is signed by the Respondent. 29. The Respondent did not provide the November 20, 2006, Statement of Representation and Disclosure to the Bruces in advance of the November 27, 2006, closing. By way of explanation, the Respondent states that because settlement occurred within days of the referral, the Statement of Representation and Disclosure was provided to the Bruces at settlement. 30. The Respondent charged attorney's fees to the Bruces for legal services relating to the Bruce Loan, which he collected from the loan proceeds. 31. The Respondent prepared and/or finalized for closing a note for the Bruce Loan which included payment provisions ( i.e., pre-payment penalty and balloon payment) prohibited by federal law. [5] The Respondent does not contest that this note unintentionally violated federal law. 32. The lender failed to provide a right to rescind notice to the Bruces about their right to rescind the loan transaction within three days after the closing. [6] The Respondent failed to provide the Bruces with legal advice about their right to rescind.
33. Lubach referred Ms. Karlo Bazemore (Bazemore) to the Respondent for assistance in closing a loan from Lubach. 34. On or about June 13, 2006, Bazemore signed closing documents prepared by the Respondent for a loan from Lubach, in the principal amount of $16,500 (the Bazemore Loan). The note was secured by a mortgage on Bazemore's residential real property located in Newark, Delaware. The Respondent performed the closing for the Bazemore Loan. 35. The Respondent's file includes a document entitled Statement of Representation and Disclosure/Karlo Bazemore, dated June 5, 2006. The substance of this document is identical to the Statement of Representation and Disclosure included in the Respondent's file for the November 2 and 15, 2005, Cross Loans, except that (1) it includes the amount of the Respondent's fee, to be collected from the loan proceeds; (2) it states that [i]n this case, you were referred to me by a private lender, Robert Lubach; and (3) it is signed by the Respondent. 36. The Respondent did not provide the June 5, 2006, Statement of Representation and Disclosure to Bazemore in advance of the June 13, 2006, closing. By way of explanation, the Respondent states that because settlement occurred within days of the referral, the Statement of Representation and Disclosure was provided to Bazemore at settlement. 37. The Respondent charged attorney's fees to Bazemore for legal services relating to the Bazemore Loan, which he collected from the loan proceeds. 38. The Respondent prepared and/or finalized for closing a note for the Bazemore Loan which included payment provisions ( i.e., pre-payment penalty and balloon payment) prohibited by federal law. [7] The Respondent does not contest that note unintentionally violated federal law. 39. The lender failed to provide a right to rescind notice to Bazemore about her right to rescind the loan transaction within three days after the closing. [8] The Respondent failed to provide Bazemore with legal advice about her right to rescind.