Respectfully, you're misapplying 17708.03 of the CA Revised LLC Act, and, they're not the same statute. 

They may have read something in the fannie mae guideline and simply not understood it correctly and misapplied the rule.

Go screwing with the original borrower and changing the terms of the loan does require the application of the ATR requirements.Amateur hour, where rulings are not fully read or understood and then misapplied to prove a point to an incorrect position. 

Before we get distracted, we are talking about this erroneous claim "House prices will never outpace inflation over time, its impossible"People try to misapply and misinterpret economic theories all the time and in the process get both themselves and others misinformed.

Here they are:1) City misapplies owner’s payment to a different property.

So there may be misapplied payments albeit purposely or accidental.  

However, misapply it and you are in for a heap o' trouble.Yes, it is stealing.

@Jeff Zatlin it looks like you are getting these rules of thumb confused and misapplying them.

That's all you need and you actually do have more control than an invalid instrument misapplied by definition, providing covenants that are opposed to the type of agreement that require specific obligations. :).

Hi Aaron; I don't want to confuse anyone regarding cap rates, since they are already too widely misapplied in RE.