OCCUPY LA AND SANTA CRUZ BEGIN SET SIGHTS ON HALTING FORECLOSUREAn article on DSNEWS today states that “occupy” protestors are setting their sights on haltingforeclosures in California and across the country. The MERS scandal is still in the forefront of the newsas borrowers, investors, and servicers fight to property they feel is rightly theirs. If homeowners acrossthe country present a united front to GSE’s and servicers will these tactics work? Note Builders hasidentified another and possibly deleterious effect to these protests.Note Builders has several articles mentioning the effects of Dodd Frank and the Safe Act on themarketplace. Increased regulation means increased … (0 comments)

safe act: The lost art of the (chain of title) search - 10/06/11 04:29 PM

I can remember in the early eighties at 20 sitting in a real estate practices class. I was deciding what I wanted to do with the rest of my life. Do I want to sell real Estate? Can I sell Real Estate. Can I make money at it? Can I own it, fix it up, sell it and make a profit? I was probably about to fall asleep in Community College night school after working a full day at the grocery store (Alpha Beta).
Well in 30 years not much has changed only now I am sitting in … (4 comments)

safe act: When a seller carry's the loan, do you need a MLO Licence? - 09/29/11 06:20 PM
Seller financing would include under the definitions of the SAFE Act, Carrying all or part of the purchase to a buyer of the home, a wrap around loan, AITD, lease option, lease purchase, contract of sale!
The Safe Act final rule became law August 29 2011. One of the new laws  agents may be exempt from the necessity of having a MLO licence depending on the laws that were passed in your particular state. Each state has it's own version of the SAFE Act. In California it is SB36.
Agents crossing the line into the seller financing world should … (3 comments)

safe act: How can a broker or seller assess a seller financed transaction under the SAFE Act. and Dodd Frank? - 09/05/11 01:39 PM
Answer = INCOME, CREDIT, COLLATERAL!!Underwriting seller financed loans can be an arduous process.  With the SAFE Act final rule now in effect, how does the Real Estate Broker or Realtor navigate this process legally, ethically, and competently?  This is a common question asked of Note Builders and a growing concern in the industry.We’ve covered the legal aspects of seller financing in earlier articles.  The new laws are complicated and make it extremely difficult for sales people involved in these transactions to ensure compliance without a MLO license.  The question is, if you’re not a licensed MLO, do you possess the qualifications … (2 comments)

safe act: Seller Financing compliance and the SAFE Act. final rule, Dodd Frank, and CA SB 36 - 08/20/11 05:43 AM
Note Builders, Inc. is the first entity in the real estate brokerage and mortgage space to successfully ensure compliance with the new seller finacing regulations in the marketplace. Our mission is to originate compliant notes and maintain the value of the notes for our investors in the secondary market.
The SAFE Act, CA SB 36, and The Dodd Frank & Financial Reform Act severely restrict seller’s abilities to successfully complete COMPLIANT seller carry back transactions and protect the value of the underlying asset.  Homeowners have become much savvier with the attention brought to the MERS issues about contesting the validity of … (2 comments)

safe act: Seller Financing and Broker Disclosure Forms under the SAFE Act. - 08/11/11 03:33 PM
The SAFE Act final rule effective date is August 29, 2011.  Brokers involved in negotiating seller carryback transactions will be under intense scrutiny at the end of the month.  
We would like to look at the specific passage in the final rule that addresses real estate professionals in the seller financing space.Negotiating loan terms within the meaning of 3400.103(c)(2) SAFE Act. includes presenting to a borrower particular loan terms.  In the State of California, we have the CAR seller financing addendum which requires disclosures of particular loan terms.  This form includes principal and interest payments, specific underlying financing terms, balloon … (0 comments)

safe act: Seller Financing exempt from MLO licensing (5 transactions in 12 months)? - 07/26/11 01:50 PM
The following excerpt is to HUD Secretary Donovan, from Representative Frank and Senator Bachus. The passage addresses a minimum standard believed to be safe, (no pun intended) from Mortgage Loan Originator (MLO) licensing requirements in the S.A.F.E. Act. The letter encourages HUD to allow sellers a, (5 transactions per 12 months) exemption to the MLO licensing requirements. However, the letter requests new requirements. All loan activity be registered regardless of MLO licensing requirements with the NMLS registry. Necessitating a registration requirement for all private loans. This is a new twist to the whole  seller financing scenario. In Note Builders opinion this … (0 comments)

safe act: Safe Act Final Rule, Licensing and Seller Financing: - 07/24/11 04:01 PM
On June 30, 2011 the Department of Housing and Urban Development released the Safe Act Final Rule. Thisdocument clarifies many potential issues on seller financing and licensing and goes into effect on August29, 2011. HUD is interpreting the issue of Brokers and seller financing transactions very broadly. BrokersShould not be involved in these transactions without a licensed MLO to participate in drafting theappropriate paperwork to ensure compliance and the retention of value of the note.Offering or negotiating the terms of a loan, whether transferring legal or equitable title, will result in aviolation of the Safe Act without a MLO according to … (1 comments)

Terry Lewis, Seller Financing, Lending, Broker (Note Builders, Inc. Keller Williams)

Terry Lewis

Seller Financing, Lending, Broker

La Jolla, CA

More about me…

Note Builders, Inc. Keller Williams

Address: P.O. Box 2365, La Jolla, CA, 92038

Office: (855) 366-6837

Mobile: (858) 224-3139

Note Builders is a MLO, licensed in California. Specializing in seller financed compliant transactions. Dodd Frank and the S.A.F.E. Act require a MLO to sign off on many of owner carry transactions.



RSS 2.0 Feed for this blog