Private Lending: Is this an issue with Dodd-Frank

[John Jacobs]

I have been asked to make a loan with a 3 year balloon. The borrower who is in real estate characterizes the purchase as a "live in flip." Nevertheless he and his wife would be living in the home. I had a concern as the private lender that creating a note with a 3 year balloon is not allowable under Dodd Frank as I would consider the borrower (despite the "live in flip" characterization) to be an owner occupant, and, as such, balloon payment notes are not allowed when dealing with owner occupants. Do I have this correct? Would I need a mortgage loan originator? It was suggested to me that one way to circumvent Dodd Frank in this regard is to have the aforementioned borrower buy the home in his LLC. By buying the home in his LLC and not in his personal name then the balloon payment issue relative to owner occupants would not be applicable. I was wondering what others thought.