Using a licensed MLO to originate seller financing loans
There have been several threads here on BP lately about the legality issues when seller financing to consumers. New, apparently stricter federal regs are in place to start 1/2014.
I've posted before that I've been offering seller financing only to investors the last few years as those loans are exempt from the Safe Act and Dodd Frank. However, I have a cash offer in front of me for a property I'm selling. The buyers will live in the property and have cash from an inheritance ($150K). They are $10K short to make the deal work for me. I'd be happy to carryback $10K for 60 months at 6% interest with no prepayment penalty...in first position. How can I do that and be in compliance with all the regs?
I've posted before that I've been offering seller financing only to investors the last few years as those loans are exempt from the Safe Act and Dodd Frank. However, I have a cash offer in front of me for a property I'm selling. The buyers will live in the property and have cash from an inheritance ($150K). They are $10K short to make the deal work for me. I'd be happy to carryback $10K for 60 months at 6% interest with no prepayment penalty...in first position. How can I do that and be in compliance with all the regs?
I'd like input and experience on using a licensed MLO to originate loans on my seller finance deals to owner occupant consumers in CA. Does using a licensed MLO to take the application really keep me in compliance with the regs? Who are these MLOs that will do such originations for a fee?