Jimmy, HMLs that do consumer lending, like a bridge loan for a purchase will have the SAFE Act issues, there are tons of threads here, some very recent within a day.If they only do commercial, D/F won't really apply, but then they will need to ensure that the use of funds remain as agreed and used only for commercial enterprise, if those loans become tainted they could be required to reclassify the loan which can impact there operations.The question is simply too broad as to how life could change or what the impact could be.

I would suggest you have a good attorney structure the docs to ensure compliance.

Section 204 (h)(3) of the bill, as introduced on May 15 (and as passed) says that a "State shall seek to ensure that labeled information be made accessible to the public in a manner so that owners, lenders, tenants, occupants, or other relevant parties can utilize it."

California does impose statutory limits on interest rate and loan fees for consumer loans, google "California High Cost Loan Law", it's been around for a while, since 2001 I think.ALSO, between Dodd Frank, CA Department of Real Estate and CA high cost loan law, lenders have to ensure that the borrower is actually able to pay back the loan.

Find a broker who works with several banks -- especially regional banks -- and ensure he is familiar with the FHA rules.

Clearly all of these costs would be calculated before making an offer an a property to ensure making a profit.

Plus, refinancing will cost about $3000.Is there any way to ensure that they record the payments on time so I don't get hit with late fees that aren't true?

This team should include a realtor and/or birddog (to help you locate properties and watch for solid deals), an appraiser (who can help you know the ARV of a property and can tell you what it is really worth now), several mortgage brokers (to ensure you get the best loan possible when needed), a good inspector who will help you to know whether the problems with the property are serious or not, but who won’t kill your deal when the bank looks at your inspection, a good contractor, a good real estate attorney and accountant, and most importantly (in my opinion), good advisors or mentors.

I tend to lean towards the conservative; I advise my investor buyers of duplexes/triplexes/fourplexes to use the same value decisions/calculations prescribed to by commercial lenders (DSCR, NOI, etc.) to ensure that there is ample cash flow in the property.

As the option is not given until the lease is finished, and held in escrow depending on specific conditions being met, eviction on the lease is probably ensured for non payment.Brian