I'm apparently still stirring up hornets' nests with my newsletter article stating that people who sell "dwellings" and hold some or all of the financing will need a mortgage loan originator's license unless they are selling their own personal residence. I feel very strongly about my opinion. But, everything is just an opinion right now. No one except HUD knows for sure.Why does HUD matter? Because they are driving this bus. Here's an excerpt from their website:
- The SAFE Act's licensing and registration standards for mortgage loan originators are minimum standards. (See section 1505(b).) Legislation enacted or regulations promulgated by a state may exceed the minimum standards of the SAFE Act. States may not, however, enact legislation, promulgate regulations, or otherwise impose requirements that would frustrate the objectives of the SAFE Act, keeping in mind that the SAFE Act's primary objectives include provision of a comprehensive licensing and supervisory system with uniform application and reporting requirements. (Reprinted from http://www.hud.gov/offices/hsg/ramh/safe/cmsl.cfm
- Does seller financing require a license if the dwelling being sold is not the seller's personal residence?
- Will a bond for title or a contract for deed be considered a transaction covered by the S.A.F.E. Act?
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