I haven't been in bank compliance as to taxation matters lately, an insured institution could be required in certain matters to carry loans at the UPB, reserves, etc. but you aren't them as an individual note holder.

A letter may help document your attempt to bring them back into compliance, but it is not enough.

Even so, I would consult a good real estate attorney to make sure you're making the necessary elections to be in compliance in your state.

Now, if I were to take a complete newbie, who had a decent education, had good credit, had money and was willing to really learn, I can see the cost of setting up a mortgage brokerage operation being in the 5 to 10K range, putting them in business, but that has ten times the compliance and risk issues than RE investing.

I start with Missouri and get my LLCs and C Corporation with appropriate structuring in Nevada for anonymity compliance and charging order protection and that's what is my business/company plan. 

This will provide for administrable rules that are appropriate for the purposes of Sec. 199A and that taxpayers have experience applying, and the IRS believes it will reduce compliance costs, burden, and administrative complexity." 

Jay just like your a business owner and real estate and mortgages let me just state I am NOT a broker I follow all Federal i quote again all Federal and State Laws and Compliance.

Requires ongoing risk management to continuously monitor taxes, senior liens, regulatory compliance, loan servicing.Active = Investing in non-performing notes, note brokering.

Sure, the maintenance and compliance required to keep multiple LLCs active and operational may be tedious and a little bit on the pricier side (annual reporting, multiple tax considerations, etc.), but it may be the necessary evil that saves your investments long term. 

The Rent Past Due letter provides clear documentation of what has occurred and what our next steps will be if the tenant doesn't come into compliance with the terms of the rental agreement.If it appears the missed payment was not intentional, we waive our late fee the first time this occurs and call it an "oops".