New Oct 1st Rules Regarding Private Lending?

[Curtis Mears]

I was in the process of lending my father in law some money so he could buy a new house (basically loaning him money until he sold his current house). I was going to put a lien on the existing house as is usual. He spoke to his attorney and the attorney said that as of Oct 1st, 2015, private lenders can no longer lend money and put liens on property, only mortgage banks can have liens. Has anyone heard of this? And if true, how does this effect private investors, and also WTF was the government thinking?