Seller Financing Loan Origination Service

[Tony Gunter]

Hello BP,

Has anyone found a service that is friendly to MH investors with regards to having seller financing set up to pass DF/SAFE Act scrutiny? This would apply not only to those who want to by and resell with financing but also with regards to buying a park that has park owned homes and wanting to get those out of park ownership (and upkeep).

Interested to see what others have been able to work out in this regard as this topic still seems so nebulous at this point even after reading up on the matter.

Thanks!

[Bill Gulley]

And for those who insist on looking for the Holy Grail of Loopholes, for Dodd Frank, there aren't any.

Look it up yourself in the Act, it says basically, any scheme, method or arrangement that may be implemented to circumvent the intention of the Act shall be considered to be a covered activity.

You can put 50 attorneys in a round room to devise anything they like (to sell to you) as the loophole and it will be a covered activity. They don't get fined or jailed, you do!

The way to get around the issues of Dodd Frank is really pretty simple........comply! :)

The CFPB has made exceptions, given special considerations these lease arrangements and I don't look at MH dealer status,  Ken does that, knows what he's talking about so why should I even go there, is my thinking.

If there is anything given as a credit or consideration of any kind, regardless of what you call it that reduces an agreed price, you are financing, that's pretty simple as well.

John Jackson doing L/O gives a credit to settlement costs, he's not reducing the sale piece, that type of credit should be fine.

If any security interest is held in an installment contract (it is since title doesn't pass until performance has been met) you will have a financing arrangement.

As to any service, I have spoken to a member here about an "origination" service, it is needed, that is not put together over night.

Another way for SF deals being made safer for the lender is to lock in a graduated note purchase agreement in the event of default, I don't mind putting the arrangement out there since there isn't anyone who could throw that together over night either, it is similar to PMI but it is not insurance. If that were utilized, the underwriting for the purchase would be accomplished at a higher level so to speak, not more stringent necessarily, but deeper than what is expected at a RMLO level.

I think of Ben L.'s using that old saying about what appears to be a road block may well be a steeping stone. You can use regulations to your advantage, if you know them and those in the SF business should know them (but don't get it because they concentrate on getting around things instead of going through them).

If one horse is tired, switch horses! :)