Dodd Frank/Safe Act

[Miguel G.]

I was planning on buying properties and sell them using owner finance. Then, I read the Dodd Frank and SAFE acts and ran into a road block. I heard that you need a Mortgate Loan Originator.

All I wanted to do originally was signed a Deed of Trust reviewed by an attorney but it seems I'll also need an MLO to be compliant with this regulation. 

Is anybody out there doing investor seller financing? Can you tell me the process to be compliant with this regulation? How do you find an MLO?

[Art G.]

You should look into buying mortgage notes. That is your goal after all is the note. So why take on the liabilty of being a seller, and the headaches that go with it. Why not just buy notes? You can get them at a large discount, and still get interest and principle, protection if default, all of it! This cuts through Dodd Frank, liability of being owner, and gets you to the meat.  I think there is a whole forum on here for that topic.

And as far as Dodd Frank interpretation goes... ask 20 people, get ready for 20 diff answers. A real estate attorney I know, that is super smart and experienced as an investor, said he read it twice, (its like 3 feet tall of paper) and he said he still doesn't understand it completely. So any advice you get will be grey.  But at least if you go to an attorney, you now pass the buck off on his liability insurance. So think of the retainer fee as an insurance premium ;)