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Can we get a law like this that (instead of Mortgage Originators) prevents insurance companies, doctors and attorneys from charging if their work doesn't actually produce the outcome you desire?
Here's an excerpt: (Prohibits Morgage Originators from)
(4) Solicit or enter into a contract with a borrower that provides in substance
that the person or individual subject to this Act may earn a fee or commission
through "best efforts" to obtain a loan even though no loan is actually obtained
for the borrower;
In other words, they are supposed to work for free if for any reason a loan doesn't happen.
The actual SAFE act legislation that was passed allows HUD to 'interpret' the law and change the regulations as it sees fit.
HUD has published a "state model" for Mortgage Originators (including private individuals offering land contracts on properties other than their own residence).
This 'model' may be put into place in any state whose mortgage originator licensing does not meet the HUD model requirements as of July 2010.
READ IT! http://www.hud.gov/offices/hsg/ramh/mps/modellaw.pdf
Here's a sample:
See my previous blog for instructions on how to comment on the SAFE act: http://activerain.com/blogsview/1489654/alert-action-needed-hud-about-to-require-license-for-seller-financing-land-contracts-
Comments must be made to HUD by February 16, 2010.
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