By National REAI
CALL TO ACTION: HUD Proposes New Rules
The SAFE Mortgage Licensing Act was passed last year in an effort to protect consumers from bad lending practices. In accordance with their responsibilities under the Act, The Department of Housing and Urban Development recently issued their Proposed Rules, which leave much to be desired. The majority of the regulatory oversight that HUD would have over the enactment of this legislation pertains to the licensing of “loan originators”, but in defining loan originators, HUD has neglected to provide protection to individuals who would aim to provide “seller financing” on real property that they actually own.
As with all Proposed Rules, HUD has solicited public comment on the matter, and as such, it is the responsibility of National REIA members to voice their collective concerns with the proposed regulations.
Please cut and paste the link below to visit HUD’s comment page and offer your concerns.
http://www.regulations.gov/search/Regs/home.html#submitComment?R=0900006480a6b033
Below you will find the comments left by a member of National REIA, which specifically address the
necessary amendments that would need to be made.
"Sec. 3400.103 (e) (4) and Sec. 3400.103 (e) (5) should be amended to specifically exempt from licensing individuals who: only offer or negotiate terms of a residential mortgage loan secured by a dwelling or other real property that the individual owns and is selling to a buyer with owner financing.
In other words, the proposed rules should make it clear that individuals would not be required to become licensed loan originators in order to sell any real property that the individual owns, and to offer terms with the sale such as sale of the property "subject to" an existing mortgage and/or with other owner financing.
Requiring an individual to become a licensed loan originator in order to sell one's own interest in real property with owner financing or terms would diminish the existing property rights of that individual/owner."
To view a copy of the Proposed Rules please visit the National REIA Library.
Cut and paste here to view the Waiver of Requirements of 24 CFR 203.37a(b)(2), or visit www.NationalRIEA.com/LegislativeInfo or www.HUD.gov for more information.
The protection of our industry is essential, particularly in this time of economic and political turmoil. We must protect our industry
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