@Don Konipol
@Jeff S.
Phew I was worried there about the CA broker I have been a broker in CA since the late 70's and that was the license that we used to do all our HML back in the day,, and I thought it was still the same. You go on the state DRE site and the disclosures are right there to be used by CA brokers for CA investors to make HML's.. So I think one just needs the brokers license or NMLS license and they are good.. I also have a NMLS license in Oregon ( currently in active) . However I just got it a big row with the state of Oregon about how they decided to interpret the SAFE ACT. and the state of Oregon deems any loan on any 1 to 4 unit whether its owner occ or for commercial purpose to be under the safe act and NMLS license is required. My attorney when I first set up thought we were exempt.. And when the state came in for my first audit I was so proud they asked how many loans I did I replied NON they went on to say you sure what exactly do you do.. I described it.. I make only loans to NON over occ out of state in the mid west.. They then informed me that we were under Oregon law if our brick and motor was Oregon and the loans were originated there.. So she said I want to ask you again how many have you done.. I said well about 400.. It was kind of funny at the time you had to be there... But yes Oregon does not differentiate with commercial propose as long as its 1 to 4 units. And the state really cracked down on the higher net worth guys that were loaning their own money. these guys had to partner us with and LO to stay compliant.. Not the end of the world but a change.
Also a CA broker has the right to fractionalize the Deed of Trust up to 10 is the threshold at least that was what we operated on in the day.. And I see on the CA DRE form there is a place to disclose a multi bene loan. So I would think that's still allowed.. Oregon does not allow multi bene period.. ONe of the reasons it was hard to get HML s here for more than 200k for many years you needed one investor to take down the whole note.. in my ca Days virtually every loan I made was multi bene.
The NMLS system is a big pain.. I am going to take the UTS test next week that allows me to get licensed in 39 states. Does anyone have any input on the UTS what exactly will that let me do.. Can I just open shop in any of the states on the NMLS list..I have not gotten that far to see what it allows me.. Its only 25 questions so I thought I would knock that out.
ONe last thought most states will allow up to 4 private loans in a year with no licensing or issues. and many states that deem these commercial have no regs at all that I am aware of.
And of course we can get into a big discourse about selling a security I have been in that battle for 35 years...