Seller Financing Dodd

[Andrew Lax]

Posting here -  Apologize if wrong forum

I current own 15 single family homes in Fort Lauderdale and would like to start selling and hold paper. 

Each is held by the same LLC with no debt.

Trying to understand Dodd Frank-Frank ("DF") but a little unclear... 

I will discuss with my attorney obviously but was hoping to get an eduction from you guys first.

Am I incorrect thinking DF does not apply if I sell and finance 3 properties or less per year? 

Thank you in advance ... Much appreciated... 

[Randy Rodenhouse]

Dodd Frank will apply...see below.

Not More Than 3 Properties Exemption

Any person or entity cannot provide seller financing to an owner occupant more than 3 times in a 12 month period without using a MLO (mortgage loan originator). The loan cannot include a balloon. Seller does have to prove borrowers ability to repay. Other restrictions are:

• Interest rate fixed for first 5 years and no negative amortization.
• Adjustable rate allowed but restrictions on the amount of increase and frequency of rate adjustments.
• The loan cannot include a balloon.
• Seller must not be the builder.

More Than 3 Properties You Must Use a MLO and Comply With All Regulations Such As:

• The loan cannot include a balloon.
• Seller does have to prove borrowers ability to repay.
• Interest rate fixed for first 5 years and no negative amortization.
• Adjustable rate allowed but cannot adjust more than a certain amount per year.
• Seller must not be the builder.