Dodd Frank re: lease option monthy credits

[Steve Brown]

I have seen many posts warning not to get involved in monthly option credits in view of Dodd Frank Act. I have downloaded the entire act and would like someone to direct to that section that deals with monthly lease option credits.

Thanks,

Steve Brown

S

[Bill Gulley]

Steve, do you have a finance compliance background? Are you an attorney? Do you have any regulatory background? Are you aware of what constitutes a financing agreement and how a security interest is vested or perfected in an installment purchase contract?

Dodd-Frank, I don't believe uses the words "lease-option financing" what you will find is that the DF encompasses the SAFE Act and establishes authority over any consumer RE transaction that is designed, intended to or facilitates the transfer of title in a 1-4 family dwelling by doing so.

You will be very busy looking up the statutes that have been modified, adopted or the recension of regulations, going back to 1938 that I noticed.

Much of this stuff lies in definitions, you can't just read the word "make" or "makes" or "maker" of a financial obligation and assume it means the same thing as a car maker or one who makes cookies, the English word has different applications. Originating a loan has a legally applied definition that includes different activities. You can't breeze through finance regulations without starting at the beginning of financial terms and definitions. You also need to understand how finance and security regulations are intertwined with other laws, they rarely stand alone as our economy is a very deep subject matter with roots.

In my opinion, really, people who have no formal training in finance or law can attempt to study things on their own. They do run the risk of making wrong assumptions regardless of how brilliant they may be in other matters. They can try to figure things out for themselves any many do, especially those marketing programs and dead set on doing business in these areas. They will probably be influenced by more of what they want to read into things than what is relevant.

You have better options, get legal guidance from a qualified attorney, that's a top choice. After that you might consider what some might suggest after you determine the real level of their knowledge, expertise and experience in specific issues. Just keep in mind that real estate agents or others are not trained in financial law or regulation beyond skimming the surface, whatever. Getting specific and qualified legal advice is your best route. :)