Finding, using Residential Mortgage Loan Originatos for deals.

Flipper · concord, CA · Member since 2014 · 2 posts · 0 votes

Roy Nagal of Vallejo, CA 94591. 12-29-16.

When doing deals between the seller of SFRs and the buyer and me (the REI) . . . whether it is a Sub2, Option Assignment, Land Contract, Lease Option, AITD or Seller-Financing . . . where & when are Residential Mortgage Loan Originators used ? If so, how do you find local RMLOs? What are their typical Fee Schedule? Will using RMLOs satisfy the Dodd-Frank Act?

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Bill Gulley

Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes

Originally posted by @Jo-Ann Lapin:

pm me

Jo-Ann, this is not a forum response, solicitation for private conversations is simply soliciting and not allowed except in the appropriate market place forum.

That said, you might address the questions and allow others to be informed of your opinion, tossing in your service and knowledge. :)

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Jo-Ann LapinPro Member
Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
9y
pm me
[email protected]
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
9y
Welcome to BP, Roy! Dodd-Frank is only applicable to consumer financing, financing to a buyer who is to occupy a property, not so much to a commercial loan made to an investor buying a property.
A homeowner selling their residence has exemptions with the D-F Act, but may not be applicable for dealers, depends on your state.
The difficulty is in finding a RMLO who is actually compliant and able to originate third party loans, which is what will be required with financing equity. There are many RMLOs out there that are misinformed thinking they can provide free lanced services, they cannot as that is determined at the mortgage banking and brokerage level, they are to operate under a qualified lender and those lenders willing to take on third party transactions will be very rare.
Most likely, in reality, having a RMLO seal with their registration number on your financing documents will shift liability away from you as long as you're making a good faith effort to comply, at least as to regulations, you could still have liability to a borrower as a civil matter if your origination was not properly accomplished. You really need to speak to an attorney. :)
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
9y
Originally posted by @Jo-Ann Lapin:

pm me
Jo-Ann, this is not a forum response, solicitation for private conversations is simply soliciting and not allowed except in the appropriate market place forum.
That said, you might address the questions and allow others to be informed of your opinion, tossing in your service and knowledge. :)
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Bill Gulley in CA real estate brokers can provide this service. one of the few states or only state I know of that they can. the BRE has disclosure docs on their website.. that are used for these transactions.
OP you will probably be best to find a local HML who may do this on a fee basis.. RMLO's generally are working for a company and do not allow outside or private transactions through their companies.. its a huge problem for many to find these.. luckily in CA you have the broker angle should not be tough..
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
9y
Originally posted by @Jay Hinrichs:

@Bill Gulley in CA real estate brokers can provide this service. one of the few states or only state I know of that they can. the BRE has disclosure docs on their website.. that are used for these transactions.
OP you will probably be best to find a local HML who may do this on a fee basis.. RMLO's generally are working for a company and do not allow outside or private transactions through their companies.. its a huge problem for many to find these.. luckily in CA you have the broker angle should not be tough..
In CA, the agent must be a party to the transaction, it's an allowed additional service, they cannot just hangout a lender's shingle or run an origination shop for the public. So, so long as you use a real estate broker, you may shift much of that liability as you mentioned. :)
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Bill Gulley I hear ya I tried to find one in Vegas and promptly got a nasty gram from the lending regulators in Nevada... and it was stern... I had to swear out a response that I had never originated or lent money in the state.. subject to a fine etc.
there is a huge gap here in the DF for this service..
When I had my HML company in Oakland in the 80's Real estate broker license was the only nexus to lending quasi private money,, seller notes etc..
I see a lot of folks jump on BP that think they can private lend in CA without licenses and disclosures and they could not be further from the reality..
I just closed one in Sac ( borrowed from a SF company for a flip) and the package was 78 pages thick Holly Guacamole .. my files were 5 pages in the day... LOL
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Walter PurdyPro Member
Real Estate Consultant · Las Vegas, NV · Member since 2016 · 51 posts · 19 votes
9y
@ROY NAGAL you can find mortgage lenders like me by simply posting on BP like you just did. To answer your question, licensed RMLO's have to be compliant with Dodd Frank to keep their license. I do equity lending on commercial & land but my main focus is residential mortgages. We are used at the beginning of the transaction to verify the investors income & credit & provide financing if their eligible. You dont have to work with a local lender either, my banks licensed in all 50 states so ive helped people from BP no matter where they're located. To check rates & fees, i have a website that gives you side by side comparisons to other banks fees & rates cause we guarantee to have the lowest ones, hence the name Guaranteed Rate. Hope this helped, feel free to reach out to me if you have more questions
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