Pamela Madore
Keller Williams Realty
Owner Finance Queen
806-290-1920
How Dodd/ Franks Destroyed Owner Financing And My Life
Who are these dudes? Their names are Barney Frank and Chris Dodd.
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| Owner Finance Queen--Pamela Madore |
Barnett "Barney" Frank (born March 31, 1940) is an American politician who served as a member of the U.S. House of Representatives from Massachusetts from 1981 to 2013. A member of the Democratic Party, he served as chairman of the House Financial Services Committee (2007–2011) and was a leading co-sponsor of the 2010 Dodd–Frank Act, a sweeping reform of the U.S. financial industry. Frank, a resident of Newton, Massachusetts, is considered the most prominent gay politician in the United States.[1]
Chris Dodd
Dodd is a Connecticut native and a graduate of Georgetown Preparatory School in Bethesda, Maryland, and Providence College. His father, Thomas J. Dodd, was one of Connecticut's United States Senators from 1959 to 1971. Chris Dodd served in the Peace Corps for two years prior to entering law school at the University of Louisville, and during law school concurrently served in the United States Army Reserve.
You don't have to read any of that because it is very boring. Our president Mr. Obama decided that because of what is known is our mortgage melton in 2007-2010 that we needed new rules. What happened during the mortgage meltdown was simply if you could fog up a mirror you could get a mortgage. Admittedly, that may have been a little lop-sided but in turn the new rules are equally as bad. From one extreme spectrum to another extreme spectrum.
Now, I wasn't in one of the job interviews but I think that two men with a combined 44 years in politics is not going to have a clue how you and I live in the real world. The opposite extreme made it so only the elite could buy a house because they didn't need owner financing. It seems to being settling down a bit now. Home ownership drives our economy. Without it we fall into a recession.
So what does all of that stuff has to do with owner financing. Well, I guess Mr. Dodd and Mr. Frank had never heard of such a thing. I mean, I doubt there are very many people on "The Hill" need owner financing. As a consequence they ignored it. Or just didn't address it because they didn't know that there was such a thing.
Known as the Owner Finance Queen has dropped me down to Cinderella.
Know that there is a distinct difference between owner finance and rent to own. That is a whole other subject.
The first thing that happened in Amarillo was panic. We have (had) a very large owner finance business but now all of a sudden no one knew what to do! The big banks that played a part in some of our owner finance process, slammed the door and locked it leaving lots of you and I out in the wilderness.
Well, this was totally unacceptable to me. I have been a licensed mortgage loan originator and real estate agent for nearly 40 years. So I got on the phone and email and asked anyone and everyone in the high up business what they thought. No one has the correct answer.
Here is the gist of what I have learned. A seller may finance up to three properties without falling into the verification of income,etc. (A QM loan). But what those sellers may not be aware of is that they are still liable to provide you the a Good Faith Estimate, Truth in Lending, Lead Based Paint disclosure and on and on. They should also be aware of a "high cost loan" which is tricky.
From my viewpoint, having a licensed mortgage loan originator is the safest and really only way to keep sellers safe. The Department of Banking and Finance of Texas verified this for me.
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