This past July, the Dodd-Frank Act “celebrated” its 5th birthday. A lot of critics did not attend the party!
The pages and pages devoted to cleaning up the abuses in the financial and mortgage markets also included provisions affecting totally innocent bystanders – namely, folks like you and me selling a property, using an installment sale, and carrying a note. The Act established rules of conduct for us, and limited how many transactions we can do before the Act says we have to become licensed Mortgage Originators.
If you read an article posted by Core Logic – CoreLogic.com, Insights Blog, Entry for August 13, 2105 – the very first paragraph lists all the new offices created by the Act. If you like strong, central government with a lot of bureaucracy, you will like what you read. If not, you’ll get frustrated, as I did.
Regardless, I suggest you visit savesellerfinancing.org. This is a group essentially formed to protect our right to engage in seller carry transactions, and try to educate the Consumer Financial Protection Bureau about our business, how we operate, the role we play in the housing market, and most importantly, how we did not cause the mortgage meltdown. Go to the site, read, sign the petition, and contribute if you can.
By the way. I have spoken to an attorney at the CFPB on 2 occasions with questions about transactions and whether they were in violation of the rules. The answer was No in both cases, and they were very helpful.
