Unknowingly you may be violating state and federal regulations when you decide to lend on your own, without going through a licensed lender, broker or servicer. I'm sure you're familiar with the phrase "ignorance of the law is no excuse", well here is one law that you may be unaware of, servicing. When you collect payments on a loan in the state of Michigan you must be a licensed servicer if you are servicing more than 10 loans. During a discussion with a private lender, the individual was trying to convey to me how much knowledge and experience he had. Come to find out he had more than 30 loans that he was collecting payments on and he was not a licensed servicer. I asked him if he knew that he was in violation of the state's servicing laws and he replied that he was not aware of that regulation. He went on to say that these were his personal loans and that how would he know of that requirement. My point being that if he had gone through a licensed lender and or servicer he would have been made aware of the regulation. There is an excellent web-site that lists all of the state's regulations at www.michigan.gov/dleg and click on financial and insurance regulation on the left of the page. So if you're thinking about lending and collecting your own payments make sure you go through a licensed lender and or servicer first then check out the above web-site.
Trent Dalrymple - Trent@metro-mi.com
Metro Mortgage Investments
26711 Woodward Ave., Suite 301
Huntington Woods, MI 48070
(248) 547-3006
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