Private Lending Question

[Andrew Jambor]

Greetings BP!

Had some questions on private lending, and I figured this was the place to ask!

We have a private lender who has been writing mortgages with us for a couple of years now. His attorney had mentioned to us that once he reaches 5 mortgages in any given year, that he would have to register as a mortgage broker.

Is this true? Does this vary by state? If so, is it hard to register as a broker?  Are there other ways around this if he needs to register, but doesn't want to.

Would love to hear your thoughts on this.

Thanks!

-Andrew