And Section 204 (h)(4) says that a state can become eligible for federal funds to help implement the program by "adopting by statute or regulation a requirement that buildings be assessed and labeled, consistent with the labeling requirements of the program established under this section," or "adopting a plan to implement a model labeling program consistent with this section within one year of enactment of this Act, including the establishment of that program within 3 years after the date of enactment of this Act, and demonstrating continuous progress under that plan."

Conspiracy theory - folks that buy it for insurance want to take possession of it for the same reason that they don't want to invest in stocks - they want to be in control of something real and that can be traded privately and quickly if needed away from the prying eyes of government.

That $500,000 rental in California also has a MUCH higher eviction expense; higher property taxes; all kinds of socialist government registration fees and costs that the Ohio rental doesn't have, etc, etc, etc.

Now, you have a problem.There are several laws you need to investigate, not just a mortgage brokers license, banking laws govern the sale and servicing of notes, SEC res can apply, money laundering laws, ALTA and TIL may apply, the SAFE Act and others, state financing laws, so just looking up mortgage broker origination laws don't cover the big picture.

It's another prime example of the government trying to run things, but ends up ruining it for the average person.

The US federal government would have to facilitate such an event and I don't see that happening.

If the sale is nullified the price it was sold at is irrelevant.Financing is covered under state law as well as federal.

Colleges, especially college housing, are very skewed by financial support figures and cheap Government money.Additional housing in your area wouldn't hurt rents as much as it would decrease dorm occupancy.

The two big questions I had were 1)If this strategy catches on and the government closes the loophole of paying no taxes when borrowing against a life insurance policy then you are screwed and 2) You are committed to a set large payment that remains the same even if you lose a job or your circumstances change for the worse.

As a quasi government agency they can ask for verifications that you will never know about and at closing the borrower signs docs authorizing disclosures, lots of ways to check;Mailing address at post office, utility company, motor vehicle registration, insurance docs, bank account even your employer can report, credit cards, other debtors and more...And it's not just fannie and freddie, but any financial regulator can pull a compliance audit, state banking authorities, FDIC, CFPB, Comptroller of Currency....etc.What constitutes a residence?