I own a few communities, and we have a Dodd Frank compliant mortgage originating business doing installment sales to residents in each community
Lately I have been approached by friends who want to step into my shoes and do some chattel lending. I'd backstop the loans to entice their involvement. I'd also handle the screening and repo actions if we get some defaults.
My question is - provided they invest into my licensed entity, what pitfalls should I be aware of?
Any help/guidance would be appreciated - thank you!