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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Why panic? Posted by Rick, the Probate Guy on February 13, 2010 at 8:59 AM In Reply to: HUD - Interpreting SAFE Mortgage Licensing ACT posted by hard money lender on February 12, 2010 at 9:37 AM I question if many of the posters who are so worried about this are even affected by such a bill's passage. First off, how many have ever bought or sold property using seller financing? Second, if buying, it's the seller that would be concerned that you'd turn them in (and why would you?) Third, if licensing were ever to become an issue, and you were Selling on terms, just get licensed. That would be the cost of being a pro and perhaps and advantage as a barrier to entry for those that refused to train, test and qualify. However, this is all a lot of worry over nothing. Direct quote Courtesy of fellow dealmaker Terry Vaughn: "F. Individuals Not Subject to Licensing Requirements Notwithstanding the broad definition of ``loan originator'' in the SAFE Act, as noted in HUD's Commentary, there are some limited contexts where offering or negotiating residential mortgage loan terms would not make an individual a loan originator. The provision in the definition that loan originators are individuals who take an ``application'' implies a formality and commercial context that is wholly absent where an individual offers or negotiates terms of a residential mortgage loan with or on behalf of a member of his or her immediate family. Accordingly, this proposed rule would provide in Sec. 3400.103(e)(4) that such individuals are not subject to State licensing requirements. The commercial context implied by the taking of an ``application'' is also absent where an individual seller provides financing to a buyer pursuant to the sale of the seller's own residence. The frequency with which a particular seller provides financing is so limited that HUD's view is that Congress did not intend to require such sellers to obtain loan originator licenses. Accordingly, this rule would provide in Sec. 3400.103(e)(5) that such individuals are not subject to State licensing requirements." Follow Ups: Re: Why panic? hard money lender 7:56 PM, 02/13/10 (0) Re: Why panic? - Here's why jmac 9:26 AM, 02/13/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : I question if many of the posters who are so worried about this are even affected by such a bill's passage. : First off, how many have ever bought or sold property using seller financing? : Second, if buying, it's the seller that would be concerned that you'd turn them in (and why would you?) : Third, if licensing were ever to become an issue, and you were Selling on terms, just get licensed. That would be the cost of being a pro and perhaps and advantage as a barrier to entry for those that refused to train, test and qualify. : However, this is all a lot of worry over nothing. : Direct quote Courtesy of fellow dealmaker Terry Vaughn: : "F. Individuals Not Subject to Licensing Requirements : Notwithstanding the broad definition of ``loan originator'' in the : SAFE Act, as noted in HUD's Commentary, there are some limited contexts : where offering or negotiating residential mortgage loan terms would not : make an individual a loan originator. The provision in the definition : that loan originators are individuals who take an ``application'' : implies a formality and commercial context that is wholly absent where : an individual offers or negotiates terms of a residential mortgage loan : with or on behalf of a member of his or her immediate family. : Accordingly, this proposed rule would provide in Sec. 3400.103(e)(4) : that such individuals are not subject to State licensing requirements. : The commercial context implied by the taking of an ``application'' : is also absent where an individual seller provides financing to a buyer : pursuant to the sale of the seller's own residence. The frequency with : which a particular seller provides financing is so limited that HUD's : view is that Congress did not intend to require such sellers to obtain : loan originator licenses. Accordingly, this rule would provide in Sec. : 3400.103(e)(5) that such individuals are not subject to State licensing : requirements." [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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