Licensing


#1

Had a talk with an attorney today who was talking of new laws, at least here in OH, or regs going into effect soon covering financing mobile homes.

The way I took it was that they were saying you needed to be licensed as a mortgage broker to provide or broker financing for the mobile homes themselves, and possibly the investor providing the original funds may need to be licensed somehow as well.

Any clarity on these and how they would affect Lonnie dealers in general?

John Hyre, I may need to become a client here brotha, how do I go about doing that?


#2

I hear ya brother. This directly impacts the way we do our investor deals. Looks like we have 2 months to get a partner in the mortgage business, a license or figure out another way.

Does anyone know if this would impact us if we created a seller financed note and then sold the note to and investor outright?

Ken R, John, Karl, anyone else have any thoughts on the recent OMHA, SAFE ACT news and licensing requirements in OHIO?

Brian


#3

I’ve been frantically trying to read and understand the SAFE act and everything, and if I’m reading everything correctly than this is a national thing, not just in OH. It seems to me that it affects everyone who has ever had anything to do with financing mobile homes.

The gist of it appears to be that anyone lending on anything will have to be licensed and regulated as a finance company.

Wondering how this is going to affect the loans I have in process right now. And if this is true, does it make all of the paper we have on previous deals worthless?

I’m looking at the solution as being that I should run out and get licensed as a mortgage broker as quickly as possible. The problem is that in OH you have to show 3 yrs. experience working for a financial lending instuitution as a loan officer. I’m guessing that is going to take me approximately…3 yrs. to comply with. So what do I do in the interim?

I talked to a couple of mortgage brokers about possibly partnering up or hiring them, but it appears that any mortgage broker worth his salt, is not going to come near a used mobile home broker who has been writing notes basically out of the back of his car…

I wonder if the answer is to switch all of my paperwork to a Rent to Own with 100% of their payment going toward the purchase. Then I guess you could make the argument that I am not lending, but renting. This would open the door to some liability issues, but i wonder if it could be used as a band aid while we sort this whole thing out…

Any suggestions?