How Will the Dodd-Frank Act Affect Us?

 

The Dodd-Frank Act takes effect January 10, 2014 and changes the rules for seller financing for those not qualifying as exempt. The most relevant changes are:

 

  • Requires every lender to consider the borrower’s ability to repay the loan
  • Requires that lenders consider at least 8 factors applied against reasonable underwriting guidelines
  • The Lender must write a “qualified loan”
  • Requires lenders to wait at least 120 days of delinquency before foreclosing
  • Dodd-Frank combined with the SAFE Act in the various states, will require all owner finance transactions (except the exceptions) to be originated by a Residential Mortgage Loan Originator
  • Prohibits builders from selling with owner financing
  • Eliminates balloons and negative amortizing loans and requires fixed rates for 5 years with no prepayment penalties
  • Sellers who sell with owner financing more than 3 times a year will become mortgage originators and must comply with Dodd-Frank
  • No forced arbitration clause is allowed in the buyer’s note

 

Contact Us

Prosperity Through Real Estate
  • (818) 217-4630
  • 8335 Winnetka Ave #103
  • WinnetkaCA  91306

Proud Chapter of National REIA

Newsletter

Stay updated with Prosperity Through Real Estate


Privacy and Security Policies

Your email will never be shared or sold to other members, vendors or any other third party without your consent.
Privacy Policy:   -   Security Policy:

Disclaimer

www.ProsperityThroughRealEstate.com  (Prosperity Through Real Estate) does not give legal, tax, economic, or investment advice. PTRE disclaims all liability for the action or inaction taken or not taken as a result of communications from or to its members, officers, directors, employees and contractors. Each person should consult their own counsel, accountant and other advisors as to legal, tax, economic, investment, and related matters concerning Real Estate and other investments.   

Copyright 2018 © Prosperity Through Real Estate  All rights reserved.

This REIA Website is powered by: Real Estate Promo.