Private Lending Question

[Andrew Jambor]

Greetings BP!

Had some questions on private lending, and I figured this was the place to ask!

We have a private lender who has been writing mortgages with us for a couple of years now. His attorney had mentioned to us that once he reaches 5 mortgages in any given year, that he would have to register as a mortgage broker.

Is this true? Does this vary by state? If so, is it hard to register as a broker?  Are there other ways around this if he needs to register, but doesn't want to.

Would love to hear your thoughts on this.

Thanks!

-Andrew

[Roman M.]

it's true. Every state has their own laws. 

He can probably avoid it by using a licensed loan originator who will sell the note to him at closing. 

[Andrew Jambor]

Thanks @Roman M.!

I will look into this further.