seller financing: The Paradigm Shift In Real Estate! Will You Be Left Out? - 12/17/11 07:21 PM
These are precarious times in our country's history. As I reflect on the past year and the coming year, politics have taken the drivers seat to what is happening in our industry. I believe we are on the cusp of a paradigm shift that will forever change how we conduct our Real Estate transactions. Our business as Realtors is at stake. The banking lobby is much stronger than other lobby's including NAR and NAMB. Dodd Frank and the SAFE ACT were supported by big banking interests. Any one of the facts below on it's own may not mean much at face … (1 comments)

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)

seller financing: Many See Dodd Frank As Necessary, But how does it effect Seller Financing? - 11/06/11 01:10 PM
Many See Dodd Frank As Necessary
The collapse of MF Global and its CEO Jon Corzine has once again placed Dodd Frank in the forefront of the news.  Many Democrats have been pushing for the implementation of the law, while Republicans have been pushing for its repeal.  With MF Global in bankruptcy now, this serves as another lesson of Wall Street firms ineptly managing risk.  This has prompted many inquiries from regulatory agencies and comments from lawmakers.  It seems as though the trend is to lean toward more regulation and control over markets and a smaller emphasis on deregulation and free … (0 comments)

HOME LOANS WILL BECOME MORE EXPENSIVE WITHOUT PRIVATE MORTGAGE INSURANCEOn Monday October 24th, it was announced that two PMI insurance companies were taken into conservatorship by the Arizona Department of Insurance. Claim payments will be mad at 50% with the other half deferred as a policy claim. It seems as though things are continuing to get worse for institutions that bet on the mortgage markets and failed to hedge against the possible negative ramifications.Interest rates will be kept low in the near term. Bernanke has stated that the rates will stay low untilsummer 2013. He’s also stated that he will give … (3 comments)

seller financing: California Affordability Index and Seller Financing - 10/20/11 04:16 PM
The data is in from the California Association of Realtors second quarter report on housing affordability. Housing affordability is the best it’s been in the San Diego area since the late 90’s. A family with a minimum income of $47,980 can afford an entry level home. With houses selling at reasonable prices relative to earnings, you would think that institutional lenders would be eager to lend. As we all know, that is not the case. Ridiculously restrictive lending criteria have prohibited buyers from stabilizing most markets and submarkets across the U.S.Note Builders feels that the market is ripe for seller financing. … (0 comments)

seller financing: 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)

seller financing: 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)

seller financing: 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)

seller financing: The SAFE Act. final rule becomes law tomorrow!! Are you aware of the seller financing new rules? - 08/28/11 05:28 PM
SAFE ACT FINAL RULETomorrow, August 29, the SAFE Act final rule goes into effect. Note Builders would like to takeanother look at the final rule and its references to real estate professionals and financing.The final rule, again, clearly states that the financing aspect in a seller financed scenario shouldbe the duty of a MLO. Number 7 at the bottom of the second column on page 37 of the finalrule states that offering or negotiating terms of a residential mortgage loan does not includenegotiations on loan terms done “solely through a licensed mortgage loan originator so long asthe non licensed individual does … (0 comments)

seller financing: 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)

seller financing: 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)

seller financing: Seller Financed Higher Priced Mortgage Loans Require Full Disclosure!! - 08/08/11 01:44 PM
Seller Financed Higher Priced Mortgage Loans Require Full Disclosure!!Effective 4/1/11, the Truth in Lending Act was amended with respect to many items. Among theprovisions amended was section 226.35. 226.35 has to do with higher priced mortgage loans. Whenthe CFPB codifies the final rule, higher priced mortgage loans and seller financing transactions willbecome intertwined.Dodd Frank stipulates that on a consumer credit transaction the seller has to determine that the buyerhas an ability to repay the loan. Higher priced mortgage loans will follow the same premise. Also, ahomeowner, even if meeting all of the other provisions for being exempt from disclosure requirements,will still … (4 comments)

seller financing: 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)

seller financing: 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)

seller financing: "Arranger of Credit" in seller financing California - 07/20/11 07:33 AM
Amended TILA: Sec. 226.36 - Prohibited acts or practices in connection with credit secured by a dwelling. (a) Loan originator and mortgage broker defined. (1) Loan originator. For purposes of this section, the term ‘‘loan originator’’ means with respect to a particular transaction, a person who for compensation or other monetary gain, or in expectation of compensation or other monetary gain, arranges, negotiates, or otherwise obtains an extension of consumer credit for another person. The term ‘‘loan originator’’ includes an employee of the creditor if the employee meets this definition. The term ‘‘loan originator’’ includes the creditor only if the creditor … (0 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.



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