Background Checks: Financial Crime Exclusions in Lending

Rule

Applicants with a criminal history involving financial crimes—including but not limited to financial theft, fraud, money laundering, forgery, or financial misrepresentation—are ineligible for financing through Lendency.

Lendency Insight

Integrity is the bedrock of business-purpose lending. Because DSCR loans are underwritten based on the cash flow of an asset and the reliability of the sponsor, a history of financial crimes is viewed as a significant risk to the security of the loan. Our background check process is thorough and focuses specifically on "crimes of dishonesty." While we may be able to work with certain non-violent, non-financial historic offenses on a case-by-case basis (with a letter of explanation), financial crimes are a "hard stop" in our underwriting process.

Common Scenarios & FAQs

• Does this include minor traffic violations? No. Background checks for lending are primarily focused on serious felonies and financial misdemeanors.

• How far back do you look? While some states have "look-back" limits, institutional lenders typically review a sponsor's entire adult history for major financial infractions.

• What if the charge was dismissed? We generally only look for convictions. However, if a case is currently "pending," we may wait for a final disposition before moving forward with the loan.

Key Definitions

• Financial Misrepresentation: The act of providing false or misleading information to obtain a financial benefit.

• Exclusion: A policy that prevents a specific type of borrower or property from being eligible for a loan program.