Everything Real Estate Investors Need to Know about Seller Financing Regulations, but are afraid to ask!
Real estate investors, brokers and other industry participants have repeatedly sought confirmation that they can engage in activities or transactions that are prohibited by the SAFE Act, Dodd-Frank Act, or a myriad of other laws.
Many wonder if there is someone who can discuss Michigan and Federal Regulations covering Seller Financing and Land Contracts and answer questions. What’s the same? What’s changed? What will happen?
Attempts to interpret the SAFE Act and the Michigan Mortgage Loan Originator Licensing Act (MLOLA), and even the 29-year-old Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act sections applicable to Land Contracts have been complicated by a disjointed law-making process, numerous sets of federal and state laws, the involvement of multiple state and federal governmental agencies, and different and sometimes conflicting rules and regulations. The Consumer Financial Protection Bureau finalized regulations under the Dodd-Frank Act on January 20, 2013 that further complicate and restrict seller financing. These regulations took effect on January 10, 2014.
To make matters worse, purveyors of the legal equivalent of snake oil are offering real estate training based on land contracts. These legal gurus and their disciples have been spreading bad information to the real estate community.
When one combines wishful thinking, bad advice from both lawyers and non-lawyers, and the confusing law-making process involving an alphabet soup of state and federal agencies, the result is incomprehension and non-compliance.
Even some of the most well-intentioned, knowledgeable, ethical, and law-abiding persons (including some who even teach the law), have been stumped in their efforts to navigate through this bewildering maze.
Neither wishful thinking nor hiding one’s head in the sand can change laws or make prohibited activities lawful.
Contact Allan Daniels to learn what vital information Michigan Real Estate Investors need to know, and why they need to know about these laws (and more) RIGHT NOW!
- Article 25 – Michigan Occupational Code (MI LARA)
- Michigan Usury Laws (Civil and Criminal)
- Michigan’s Equitable Mortgage Doctrine (Case Law)
- MBLSLA First Mortgage Act (MI DIFS)
- SAFE Act (HUD and CFPB)
- MLOLA (MI DIFS)