ATTENTION:

The following information is extremely important!

HUD extends timeframe for comments regarding proposed SAFE Mortgage Licensing ACT Rules

HUD has proposed to eliminate ALL seller financing unless the seller lives in the home or becomes a licensed mortgage originator. The proposed HUD Rules interpreting the federal SAFE mortgage act can be viewed at www.regulations.gov  Use the search parameter "HUD" and the keyword “safe”.  Please review and comment regarding the impact of this broad interpretation of the law. 

“In addition to establishing HUD’s responsibilities under the SAFE Act, through this rule, HUD proposes to clarify or interpret certain statutory provisions that pertain to the scope of the SAFE Act licensing requirements, and other requirements that pertain to the implementation, oversight, and enforcement responsibilities of the States. HUD solicits comment on the proposed clarifications and on the regulations proposed to be codified."

How YOU can help:
We learned about the publishing of the rules very late in the process... and the deadline for comment is upon us. The deadline was originally today, February 16th, but was just extended to March 5th.  We still desperately need for thousands of REIA members across the country to go on record with HUD on this issue.  We will be working to try to affect this law in other legislative ways, but cannot hope to gain traction unless our members have clearly communicated that they are opposed to this portion of the rules. This is your chance to be counted on this issue.
 
PLEASE SUBMIT YOUR COMMENTS TO HUD!  We have very little time to flood this system with comments.
 
Follow these simple steps:

1.  Logon to www.regulations.gov   You will see two white boxes for searching
2.  On the left box labeled "Document Type", pull the menu down and select "proposed rules"
3.  On the right box labeled "Enter keyword or ID", enter "safe mortgage".  Then, press search
4.  Locate the blue search result "FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities Under ...." To read the rules, click on this title.  You will be taken to another page. You will see "views".  You can click on PDF file or another symbol which will show you the rule document online. 
5.  On the right of the screen, click on "submit comment"
6.  Complete the form providing required information and your comments and then submit

What do you say?
Say what you feel, but say it politely!   The message should include that you would like the definitions in the proposed rules to be changed so that private individuals can originate and service loans on properties they personally own.  Some ideas from others:

• bank loans are not available on some types of properties
• the tight lending climate has made bank financing "out of reach" for many
• seller financing is an "age old" tradition based on private property rights
• these rules would prohibit even partial seller financing - i.e. a "seller second"
• according to HUD's "Residential Finance Survey" in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear
• an estimated 6 million Americans own a property other than their own primary residence
• an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties
• 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing
• approximately 5% of homes in US are for sale or for lease... seller financing may be key to liquidating this inventory
 

The continued success of our industry as we know it is threatened by these proposed regulatory changes. Please do not hesitate to follow the steps above and make your voice heard.

To review the Proposed Rules, please visit the National REIA Library or Click HERE.

View a sample letter written by a REIA Member HERE.