Do I need a license to broker private/hard money loans?
I heard that there is no license needed to broker private/ hard money loans, Is there any truth to this? I know that you don't need one in the commercial sector. Is there one needed in the residential hard mney sector?
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Back to the original thread on licensing ...
The documentation on the new SAFE act is pretty good (rare but true). If you read the text related to "Loan Originators" (LO) it says when required (e.g. brokering) and when not needed (fewer than 5 loans/yr using own money unless handled by licensed LO).
NOTE: having a license is necessary in these cases, but NOT sufficient. You need to hang your license with a Mortgage Broker or Mortgage Banker ... or get that license too.
State laws can be stricter ... so they have a link to the state regulations.
Don't you love it ... the banks aren't lending ... and Govt. complicates life for private lenders!
Even though LO's (like me) are registered nationally, we need to have a license in each state we lend.
NOTE: request for loans should go to the separate subgroup on private lending