looking for RMLO in TN for owner finance deal

4 Replies

Hey BP, I'm looking for some help from the group. I'm selling a recent rehab with owner financing. The plan is to generate the note for the buyer, discount it, and sell it to a private long term lender. My understanding is that to comply with Dodd Frank requirements, the buyer needs to be qualified through a residential mortgage loan originator? I've made a number of calls to Johnson City TN area mortgage brokers, but no one seems to be familiar with an owner finance deal like this. Can anyone refer me to a broker or independent loan officer that is familiar with owner financing deals? Any and all help is appreciated. Thanks, Jay

Jay Chekansky

    @Jay Chekansky you are selling it to investor or the home owner/or investor ? if it is home owner than it has to be Dodd Frank comply. 

    send me a PM or email I will send you what i have so far. I am trying to do similar thing in Ohio and other market and keep the note with my self. 

    Rahul Bhatt

    Actually, if this is your first owner financing deal this year you should be alright without an RMLO underwriting. 'Small Lenders' get a bye on the first three deals. HOWEVER, if you are looking to sell the note is advisable to have the loan application and the buyer and loan at least qualified by a licensed professional. We owner financed a deal in TN in Dec, and have in fact sold the note. The problem was after much searching I could not find someone in TN to do the actual underwriting. 

    I went to our TX underwriter, Texas Pride Lending, to complete the application process and write us up a full underwriters package and am very glad we did. Sarah Montes would be the person to contact as Texas Pride. She is also on Bigger Pockets so you can probably reach out to her here Sarah Montes

    Thanks for the detailed reply @Shari Bertsch . I reached out to Texas Pride Lending this morning, but they are not licensed in TN.  

    @Rahul Bhatt Thank you for sharing the contact info. I'll be reaching out to them shortly.

    Jay Chekansky

      Technically, you can do your first 3 without a MLO... BUT you still need to comply with the Dodd Frank laws such as fixed rate for first 5 years, no balloon, checking the "ability to pay", etc.  TN has a limit on interest rate of 7.5%.  Call atty Timothy D. Wardlow in TN and tell him Randy Rodenhouse sent you.

      Randy Rodenhouse

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