I JUST this minute finished a phone call with the Alabama Banking Department. I asked them three questions:
- Does the mortgage loan originator's license requirement apply to seller-financed transactions? Their answer: YES!
- Are there any exceptions for seller financing? Their answer: ONLY when the seller is selling his or her personal residence and holding some or all of the financing.
- Do "bonds for title" and "contracts for deed" and similar arrangements qualify as "seller financing" and require a license as a result? Their answer: YES!
Share this post