Dodd Frank

[Account Closed]

I've seen multiple debates surrounding Dodd Frank and am feeling very lost. Some passionately feel investors should back away, while others feel there are still creative solutions for desperate home owners. Looking for a reputable real estate attorney to clarify my investment options. Thank you.

....lovin' more government regulations...oy

[Curt Smith]

Hi Rachell, BP has alot, maybe too many threads on Dodd Frank. It's been pretty much beat to death and the business opportunity to continue owner financing, but now following a few steps, still exists. There's exemptions to the DF requirements for the 1 per year folks selling their own home, and up to 3 per year for entities. I choose to ignore the exemption I would have and follow the simple enough requirements to be on the safer side for my 1-3 per year sold out of an entity. here's some links. But there's more threads on BP than just this one I included.

A thread on lease option re dodd frank:

http://www.biggerpockets.com/forums/83/topics/105709-dodd-frank-and-lease-option?page=2

There's threads from hell on biggerpockets on dodd frank, one could read for a day! All good though.

Watering down may be in the works. This source has not been determined to be credible but it may just be leading edge, we have to wait and see, but follow DF in the near term:
http://bundlr.com/clips/52cd7f4440892f0562000681

I posted a recipe for owner financing being dodd frank compliant half way down in the comments:
http://clintcoons.wordpress.com/2013/10/16/seller-financing-is-about-to-get-ugly-on-january-10/

The main key is finding a licensed mortgage originator in your state who will do investor owner financed loan origination steps with the borrower. Most LMLO's are tied to a lender and can't do 3rd party loans. It has to be an independant. I know of one in GA but am looking for more for competition on fees. DF will create new business opportunities!!

The hard money lenders I talk to say Dodd Frank is being puffed way out of proportion when thinking this will limit credit and thus buyers who can close on flip deals. This remains to be verified. We've heard of very (very) few odd scenarios where strickly following 43% DTI rejected an otherwise very strong financials borrower. I don't flip for other reasons so I don't follow the borrower / banking side of DF. My business does rent to own and owner financing, which the above clintcoons link gives the terse solution. I think I forgot to add taking a 1003 app at the start of rent to own, and running the borrower through a mortgage broker for an approval letter...