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 study up on these laws before giving advice to make sure they are not engaging in MLO activity. Fore sure any agent or seller engaged in the business of offering seller financing (Business not defined), needs to have an MLO endorsement. NAR's opinion is if you are negotiating the seller financing in the normal course of business you are probably ok.
The point is with the passage of the SAFE Act and Dodd Frank. the line is very Grey on offering advice and negotiating terms to these types of transactions. There is also a higher standard of care that has been incorporated into these laws under the guise of "consumer protection" As an agent there is no more room for error or ignorance. The NAR final rule opinion letter is on the link below.
http://www.docstoc.com/docs/92444238/Seller-Financing-Safe-Act-Final-rule-and-Dodd-Frank
Note Builders, Inc. Is a licensed MLO Mortgage Loan Originator specializing in compliant seller financing transactions in California. Notebuilders.com
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