Hypothecation in SDIRA

[Angela Russo]

I was listening to a webinar replay that briefly touched on hypothecation to recapitalize from performing notes to increase speed of building a portfolio. It seemed the overall focus of the call was on SDIRAs, but there was only broad overviews of UBIT in the presentation.

If you used this strategy, would the transaction be subject to UDFI?   Is hypothecation really only an option with private lenders or are there banks that would use notes as collateral as well?