Re: Safe Act - Posted by Jack
Posted by Jack on July 02, 2010 at 09:11:08:
This is a good idea in theroy.
Re: Safe Act - Posted by Woody
Posted by Woody on July 01, 2010 at 22:11:34:
Simple really 
…and pass the fee to the buyer.
the Federal requirements include - Posted by David Krulac
Posted by David Krulac on June 30, 2010 at 07:05:28:
FBI background checks, no criminals can be MO
20 hours classes pre-licensing
pass test with 75% score
8 hrs continuing ed every yesr
state fees for licensing
so there is a cost in time and money to get licensed.
at this site, I don’t see where there are any exemptions for seller finacing
http://www.kfi.ky.gov/NR/rdonlyres/3C72D379-0BC4-4B28-80D3-371066104DEB/0/SAFEAct2008.pdf
Re: Buying and selling of existing mtgs - Posted by redave
Posted by redave on June 30, 2010 at 19:04:27:
Here’s first tuesday’s interpretation:
http://firsttuesdayjournal.com/don’t-be-caught-unprepared-new-licensing-requirements-for-mortgage-lenders/
It pretty much confirms what you already observed…exemption for business/commercial buyers and brokers acting soley as a real estate broker unless receiving compensation.
huh ? - Posted by William Scofield
Posted by William Scofield on June 30, 2010 at 15:16:45:
What’s a criminal? That information is UN-TRUE!
If you have been convicted of a crime, (like shoplifting) you can get your license. I have a friend who was convicted of possession of cocaine (nearly 1 ounce) was sent to prison…and later got his Series 7 license to sell stocks and bonds.
There’s no way they would Deny someone a mortgage brokers or lenders license because they got convicted of a Minor offense.
I would say…As long as your offense is not financial (where you ripped someone off or stole some little old ladies money) you must disclose what happened and probably appear before some panel for approval.
Re: the Federal requirements include - Posted by Kristine-CA
Posted by Kristine-CA on June 30, 2010 at 10:41:59:
Hi David. The CA bill has stricter requirements for MOs in some ways,
and looser ones in the other. Since the states were required to
implement their own program, they had to interpret the federal bill and
write their own bill.
The CA Dept. of RE is telling agents they do not need to be an MO to
negotiate seller carry backs. They are telling CA agents they can lend
money, without a fee to the borrower, without becoming an MO. To
me that says that they are using the fed’s definition of a mortgage
originator as someone who is compensated when
arranging/originating the loan. If you are not compensated, it’s not
that you are “exempt” but the law simply doesn’t apply. I sure wish
there was language that stated seller financing as an exemption
though.
I think you might surprised… - Posted by JT-IN
Posted by JT-IN on June 30, 2010 at 16:09:30:
By the new guidelines. Even things such as negatives on credit reports, Bk, or any other behavior that can be construed as irresponsible will be grounds to deny the issuance of a license. The same standards will hold true at the RENEWAL of existing licenses, so just because someone has a license now, doesn’t mean they get to keep the license if negatives pop-up.
Now I am not speaking for FINRA licensing, (Series, 6, 7, 8, 66, etc), but for standardized mtg broker licensing and similar related fields of employment only.
yes, but as a lender (like a seler) then - Posted by David Krulac
Posted by David Krulac on June 30, 2010 at 14:42:12:
you are compensated by charging interest.
Unless of course you don’t charge interest then you run afoul of the IRS and imputed interest.
So if you charge interest, you are compensated and run afoul of FHA, with their $25,000 fine
or
you don’t charge interest or any other fee and therefore run afoul of the IRS.
They got you coming and going as the old saying goes.
I doubt it…Seriously - Posted by William Scofield
Posted by William Scofield on June 30, 2010 at 17:33:56:
-
A feral license is much more difficult to pass a background check on. Just ask any Federal employee if they had to give blood to get certified or licensed.
-
You cannot deny someone a license, unless they were convicted of a crime that was related to the license they are seeking (and even then its open for discussion). How many disbarred attorney’s have regained their license? Numerous! Google it.
-
Read the details of that link that was posted. It specifies 7 yrs for felonies, and no mention of misdemeanors. That means if Sally was busted for possession of POT when she was 19, and now at 26 she’s so ambitious that she wants to become a Mortgage broker-lender,…she will be able to.
Most States are Right to work States and they want their citizens to work and pay taxes…otherwise they become a burden.
More over, America has long been known as a Second Chance Country. Lots of people do stupid things in their youth…and then turn their lives around.
NOTE
I don’t think Bernie Madoff will be able to get his Series 7 license back because of the crimes he was convicted of are directly related to the Series 7 license. HOWEVER, if Bernie wanted to become a practicing Psychologist, he would not be denied that licensed (provided he meet all the credentials required by the state).
MORE
If we were to make crimes retroactive, We could fire 75% of the Senators and about 90% of the congress. They are the worse kind of convicted criminals…the ones with no-conscience.
Google that too !
Fee vs. interest - Posted by Kristine-CA
Posted by Kristine-CA on June 30, 2010 at 15:29:46:
I’m only going by one state’s guidelines. The CA DRE. specifically says
that lending your own money and not charging the borrower a “fee”
exempts one from needing to become a LMO. Now, if fee means
interest…boy what a mess.
But let’s say, in the worst cases scenario, that the law is all inclusive
and you can’t charge a fee or interest. Wouldn’t we just do installment
sales that don’t charge fees or interest? So that we aren’t being
“compensented” or “gaining” anything. What’s the IRS issue, and can it
be worked around?
This is all academic, for now anyway. There will be revised guidelines
from the feds at the end of the year and the states are
waiting…hoping certain issues will be addressed directly.
LOL… - Posted by acw
Posted by acw on June 30, 2010 at 20:37:19:
This reminds of me of my adventures as a mortgage company owner (with great luck i sold it before the crash).
I can’t tell you how many Cops, Federal Agents, Judges and Clergy who i had come to my office seeking RE loans. These people invariably had some of the WORST CREDIT i had ever seen…it was dumbfounding!
I remember going to court once, and fighting a small claims court challenge because we were unable to obtain financing for one borrower. We charged them an application fee of $350 for 3 properties they were trying to get.
We underwrote the loan and found great desceptacy with the income stated and actual “verifyable” income. Because of this, we won the case because our contract clearly says we can’t gurantee you will get funding based on your credit, stated income and collateral, etc.
After we adjourned and everyone had left the room, the judge preceding over the case called me to the bench and whispered to me…he asked me “if i could get him a loan?”
I said “sure Judge…i’ll call your office this afternoon and we’ll see what we can do” (i gave him my short elevator speech on how we funded 10 million dollars last yr, etc.)
When i got back to my office, i was excited by the fact that “a judge” had thought enough of my presence in court to ask for a loan. I called him and got the background info…and then “Pulled his Credit.”
LOL…i couldn’t believe what i saw!
A judge with credit scores in the low 500’s…and collections up the Arse!
LOL…i also looked at the inquiries and my ego was immediately deflated. He had already shopped with 3 or 4 other lenders.
When i spoke with the judge, he gave me some story about how his girlfriend went crazy with his credit card…and how she had a purchased a Car on his credit (which was repoed)…He failed to take RESPONSIBILITY for his Credit Score.
AFTER READING THIS post…i had to add my comments about the Hypocrites who write these laws.
All that gliters is not Gold. You think these people who run our government are clean and without reproach…THINK AGAIN!
They are some of the BIGGEST HYPOCRITES you will ever meet…and YET…these people are elected to office, offered law enforcement jobs where they are responsible for apprehending and sentencing “Criminals.”
IN summary, i could not get the judge a loan (his ltv was too high and his credit was so BAD that i couldn’t get any Wholesalers to buy it).
I thought i would add this story to the thread…
~T
IRS I,puted Interest - Posted by David Krulac
Posted by David Krulac on June 30, 2010 at 20:10:08:
the IRS doesn’t want people charging zero interest and iflating the sale price to compensate for no interest. The issue is that capital gains could be taxed at 15% (at least until Jan 1, 2011) and interest could be taxed higher as ordinary income up to 36%.
So its paying 15% tax versus paying 36% tax. The IRS wants to make sure that you are paying the proper tax (the higher tax for example.)
This has been Federal law at least 25 or 30 years that I can remember.
Re: LOL… - Posted by Tom Thumb
Posted by Tom Thumb on July 10, 2010 at 07:34:36:
desceptacy? Now there’s a word nobody will ever see again. A
combination of deception and discrepancies? Only the author knows for
sure. Aside from that, nice tale.
YEP…that’s Correct ! ! ! - Posted by William Scofield
Posted by William Scofield on July 01, 2010 at 21:35:03:
At one time, i worked for the state as a support team lawyer for the Real Estate commission (i cannot mention which state). I witnessed extreme incompetence on both the prosecution and defense side at hearings of agents and brokers.
In some cases they castrated the agents in others they let them pay penance and probation. I have seen cases where people were convicted of armed robbery years before and went on to get their RE license (mind you with an RE license you can hold enormous amounts of money in your escrow account). These hearings are preceded over by a small group of Representative peers for each profession and they can be extremely capricious and whimsical.
I can tell you this…if you are politically connected, a lot of sins can be forgiven.
The old saying “you get as much justice as you can afford” is never appropriate characterized than conditions in the administrative law courts.
Re: IRS I,puted Interest - Posted by Kristine-CA
Posted by Kristine-CA on June 30, 2010 at 23:28:17:
David: thanks for the info. How do people do interest free loans legally
then? Is it just a matter of not getting caught, or doing very few? Lots of
balloon notes are interest free. Thanks again for the info, I’ll be thinking
about it.