Updated about 15 years ago on . Most recent reply
Is a License Required?
I was going to combine several loans through one mortgage refinance on the current house I reside in. I was going to get the financing from my uncle as it would save me many costs. But he just told me that he found out that he has to have some kind of "Mortgage Loan License" to make mortgage loans. Is this correct? Are there any exemptions to this law? I am doing as much research as I can but I would also like to get some feedback from BP members. Thanks
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#3 Guru, Book, & Course Reviews Contributor
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Mike, if your uncle is not in the business of lending money he does not need a license. Under the SAFE Act of any other mortgage origination regulation, A loan to a family member is not considered being in the business, which would be the first test, secondly, it's a refi, not a purchase. There is no TIL requirement either. Check with the CA department of finance to see what the usury rate is. As mentioned, you would have to complain and there is always Christmas! That's why loans between family members are really a horse of a different color.
But are you sure he want to make you a loan...lol!