Seller Fianancing Illegal - HUD

Financing, Hard Money Lenders, Private Money
1

Anyone read the proposed Safe Mortgage Licensing Act???

HUD Issues Problematic Rules Interpreting SAFE Mortgage Licensing ACT
HUD has proposed to eliminate ALL seller financing unless the seller
lives in the home or becomes a licensed mortgage originator.

Submit your comments regarding this nonsensical law.

  1. Logon to www.regulations.gov You will see two white boxes for
    searching
  2. On the left box labeled “Document Type”, pull the menu down and select
    “proposed rules”
  3. On the right box labeled “Enter keyword or ID”, enter “safe mortgage”.
    Then, press search
  4. Locate the blue search result “FR-5271-P-01 Safe Mortgage Licensing
    Act: HUD Responsibilities Under …” To read the rules, click on this
    title. You will be taken to another page. You will see “views”. You can
    click on PDF file or another symbol which will show you the rule document
    online.
  5. On the right of the screen, click on “submit comment”
  6. Complete the form providing required information and your comments and
    then submit
2

I think that it would be pretty rare to find a seller that is willing to seller finance that does not live in the home. This wouldnt affect a wrap mortgage either I dont think

3

This stuff smells of conspiracy :wink: I can’t help but wonder if the Seller Financing Regulation and the FHA letting up on the 90 day seasoning requirement are intended to help banks. I don’t know, just seems like a strange coincidence. When combined, they would force people to go through conventional lenders. However, it doesn’t really make sense if people are having difficulty obtaining financing because banks have restricted their lending. It would just hurt the housing market more.