My Question Mike:
I’m sure you’re aware of the new "Safe Act" that requires investors like me, who finance the purchasers of properties we sell, to get a Mortgage Brokers License and a Mortgage Lenders License with all the bureaucracy that goes along with it.
Do you have a "work-around" to avoid this "all-too-intrusive" and absurd law? Note that we own our properties free and clear at the time we sell them.
Great question Ron!
Quote From The SAFE ACT.
The maximum amount of penalty for each act or omission described in paragraph (a) of this section shall be $25,000.
HUD is poised to take away our rights to offer owner or seller financing on property we own.
Under the Safe Mortgage Act proposal, you can only offer owner financing on the home you live in one time every 3 years or you must become a licensed mortgage originator.
The SAFE Act is always lurking in the background. It is an ugly law for consumers and investors. The sole intent and purpose of this law is to protect consumers from predatory lenders. There are so many proposed procedures, many of which are being handed down to each state to handle all of the details.
Your ultimate and final answer Ron will be your state’s implementation of this insane law.
Watch for an upcoming Mike’s Mondays on this very topic with my real estate investor expert attorney Harry Borders.
Here are some links if you wish to dig around yourself. I have included the hud page for the SAFE Act and some more.
(Item F Page 66551 of the HUD Summary Comments).
The HUD proposals under the Safe Act are all part of the fall out
from the failed lending institutions and related to HR 1728 and HR 4173.