Dodd Frank Act

[Steve Smith]

I was just listening to a webinar with Sharon Vanholt and Bill Walton regarding the Dodd Frank act. I have a question about the upcoming government regulations.

Is this law going to affect the loaning of private money to investors and if so just how?

[Curt Smith]

Hi Steve, No this only applies to loans to owner occupants. Any kind of a loan to an investor, who won't occupy the property these regs don't apply.

For others, this is the link to this interview:

Dodd Frank interview

[Account Closed]

Steve,

Everyone should abide by the Dodd Frank act but will they. I think the only way to know if the Dodd Frank act will work is to test it in court. If the Dodd Frank act is such a big deal, it looks like AC 360 would pick it up plus all the news channels.

Joe Gore

[Steve Smith]

@Account Closed @Curt Smith thank you both

The reason I asked this question was because Bill Walston referred to private money lenders having to qualify the potential buyer The same way a bank would .

[Curt Smith]

Steve, lenders only have to follow DF qualifying the borrower only if the borrower will occupy the property. Lending to an investor who will fix and flip for example Dodd Frank is not involved.

[Aaron Junck]

Check out Clint Coons radio interview. He is an attorney that is familiar with this and goes into detail. Its about an hour and a half long but VERY informative!

http://clintcoons.wordpress.com/2013/12/03/dodd-frank-radio-interview/

[Bill Walston]

Originally posted by Steve Smith:
@Account Closed @Curt Smith thank you both
The reason I asked this question was because Bill Walston referred to private money lenders having to qualify the potential buyer The same way a bank would .

@Steve Smith , I think the segment to which you are referring is when I was discussing the private lender having to qualify an OO for the residential loan. I had mentioned earlier that DF did not apply to loans made to investors. There are some private lenders who loan directly to end buyers and in those instances DF would apply.

Curt Smith is spot on with his assessment.

[Steve Smith]

@Aaron Junck thank you I found the interview very informative

@Bill Walston thank you for the information and the video have listened to it two more times