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The purpose of the SAFE Act (“Secure and Fair Enforcement for Mortgage Licensing Act of 2008”) seems to be to get all mortgage loan originators in the nation licensed under one system. I’m wondering if this will affect us since a mortgage loan originator is defined broadly. If those of us in the house business sell using owner financing or lease-purchase agreements, will we be affected by this act? Will it require investors selling their own property with some sort of owner financing to become licensed as a mortgage loan originator?
Anyone have any thoughts or information about this?
Has this bill passed? They are throwing so many at us that I can’t keep up.
When I read the original bill, it appeared that if you sell more than 1 house every 3 years with owner financing, then you would have to get a mortgage brokers license or pay a mortgage broker to handle the transaction.
RIDICULOUS!
The solution is to NOT sell the real estate. Hold title in a land trust then sell the beneficial interest of the trust ( which is personal property)
Here’s what’s on the HUD website regarding the status of this act…..hope you feel better soon Jackie.
The Housing and Economic Recovery Act of 2008, signed into law on July 30, 2008 (Public Law 110-289) (HERA), constitutes a major new housing law that is designed to assist with the recovery and the revitalization of America’s residential housing market – from modernization of the Federal Housing Administration, to foreclosure prevention, to enhancing consumer protections. The SAFE Act is a key component of HERA.
The SAFE Act requires the states to have the licensing and registration system in place by: (1) July 31, 2009, for states whose legislatures meet annually; and (2) July 31, 2010, for states whose legislatures meet biennially. For both this 1-year period and 2-year period, HUD may extend the deadline, by not more than 24 months, if HUD determines that a state is making a good faith effort to establish a state licensing law that meets the minimum requirements of the SAFE Act.
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