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News for Real Estate Investors and Landlords — license

Attorney Exception for Seller Financing/Mortgage License

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Alabama Code Section 5-26-4(2)(d) contains an exception to the S.A.F.E. Act. It says the Act does not apply to: "A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator." The question, of course, is what is meant by the words "as an ancillary matter to the attorney's representation of the client..." HUD's...

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Actual Regulation Regarding Seller Financing

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The regulation about the mortgage licensing exceptions for seller financing of dwellings is at 12 CFR Part 1026.36.  There are two versions of the regulation--one effective before 1/10/14, and one effective on 1/10/14. Both are addressed below. The regulations refer to a "person," and then tell you that "person" is defined in another regulation. Here is that definition of person: "(22) Person means a natural person or an organization, including a corporation, partnership, proprietorship, association, cooperative, estate, trust, or government unit."  You'll  need to know this to fully understand the regulation regarding the exceptions. The regulation that is in effect...

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