Private Lending Certification--Seriously?

[Jim Fell]

I spoke with my attorney this afternoon, and he told me that Illinois is about the pass laws that will "crack down" on self directed IRAs and require private lenders to be certified.  Has anyone else heard about this?

[John Thedford]

@Jay Hinrichs are you sure? If they were worried about people losing money...what about equities? If they intend to pass the law referenced in the OP, I would bet it is just another example of government intrusion into our personal lives. As you know, some states allow private lenders and others don't. I got a call from an angry mortgage broker telling me she intends to turn me in for advertising private loans. I encouraged her to do so after she reads the law...AND the exemption in Florida that states a private individual may lend their OWN funds. That person may not hold themselves out to the public as a mortgage company. My loan ads start out with: I am not a mortgage company. I am not a mortgage broker. I am a private lender. Hopefully, that suffices. If they lock me up, I hope some of my favorite BP members will come visit me:) This is one of many threads on BP about government intervention. If there is truly a problem they can solve, I am all for it. Most of these regs are anti freedom, anti landlord, social engineering geared, and of little true value. Government has failed at almost everything. The Dodd-Frank law, and its detriment to lending, is a perfect example. Certainly people do need some backup, but geez...contracts are made to be read before signing and not after the fact. I recall several years ago when I was in a business that has since been put out of existence, a borrower came in asking how many more payments they needed to make to have the loan paid off. I almost fell out of my chair. They were paying interest only on a consumer loan at 264% APR for almost six months! The new TRID closing document is a good move provided people READ it. The government actually did something GOOD for once!