Legal Issues Concerning Note Finding

[John Bagwell]

To all Note Finders,
After carefull research on whether note finders need to be mortgage brokers you must look at the legal definition of each state's legal definition of a mortgage broker. My states defination for a mortgage broker is the following:
21(a): "Mortgage broker" means an entity that obtains, attempts to obtain, or assists in obtaining a mortgage loan for a borrower from a mortgage lender in return for consideration or in anticipation of consideration.
Since note finding does not relate to obtaining a mortgage loan for a borrower from a mortgage lender...then I do not need to be a mortgage broker in my state.
But your entire blog discussion did not examine another very interesting law that relates to referral fees related to real estate related transactions. Referral fees can be paid to residents in only the following states:
Arizona, California, Florida, Georiga, Illinois, Indiana, Michigan, Minnesota, Montana, New Hampshire, Oklahoma, Oregon, and Virigina.
If you are doing any note business and earning a referal fee from an investor in any state not mentioned above, you are breaking a completely different set of state laws.