Investor Report: HUD Regulations

Investor Report: HUD Regulations - Seller financing to buyers is an essential tool for many real estate investors, but proposed regulations from HUD could create big problems.  In HUD's interpretation of who is, and who is not, a "mortgage originator," it exempts individuals who offer seller financing to homebuyers.  However, the proposed regulation appears to limit the exemption to just one group -- people selling their own primary residences.  That cuts out investors who offer seller financing on rental houses or second homes and condos.  Under HUD's proposal, they'd have to go through the same registration, licensing, fingerprinting and other licensing hoops required of fulltime mortgage brokers.
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