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Deadline Extended for Comment on the Safe Mortgage Act Affecting Seller Financing

Nascent EquityOK . . . we have a breather, but if you haven’t acted already, it’s time to put in your two cents.

I copied this mostly from David Butler’s posts over on CRE online.  Gotta tune in, folks:

Perhaps due to the efforts of those who have responded to the HUD request for comments on proposed rules, HUD has extended the period for comments regarding the Safe Mortgage Act (SAFE Mortgage Licensing ACT Rules).

The new deadline to speak up is Friday, March 5th.

A good thing, but there is still much work to do.

On Monday, Feb 22 at 7:00 pm CST, former SMU law professor and attorney Bryan Dunklin will be discussing the proposed HUD statutes in the Safe Mortgage Act, in a call hosted by long time premier note buyer Eddie Speed of Colonial Funding Group, LLC and the NoteSchool.

Bryan is Colonial’s go-to lawyer for seller financing “legalese.” Known as a fellow who makes sense of the details, Bryan is going to share his perspective of the Safe Mortgage Act and what it means for seller financing.

You can register for the call here.

In short:

HUD has proposed to eliminate ALL residential seller financing unless the seller lives in the home or becomes a licensed mortgage originator.  Such rules are onerous, and would likely chill the marketplace for seller-financing in one of its most important manifestations – the transaction of non-owner-occupied residential investment properties of 1-4 units – which is a significantly critical tool of many of the most successful and knowledgeable investors, CREI’s and real estate exchangors.

This effort needs all Realtors, REIA members, CREI, Exchangors, private note investors, and note finders/brokers to contribute their articulate reasoning about why the proposed rules regarding seller-financing and loan-origination licensing related thereto is unsound legislation.

For more on HR 4173, click here.

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