Hello Everyone,
URGENT!!
URGENT!!
URGENT!!
TAKE ACTION NOW! DON’T WAIT!
READ THIS & TAKE ACTION By Tuesday 2/16/10!
Complete BOTH Steps Below To Make A HUGE Difference!
Many of you may already have heard that there is a new bill out there that will eliminate Owner Financing as we know it. For those of us Owner Financing homes we BUY, we are providing an valuable service to put people in homes when bank are turning them down.
I have just followed the instructions I have copied below to make my voice heard! Congress is once again trying to regulate things that they don’t fully understand. Your time and voice in this matter is critical and you must act before it goes to vote early NEXT WEEK!
Your voice is extremely important. If only half of the people on my PERSONAL LIST THIS IS BEING SENT TO took action below, we would run a phenomenal chance of defeating this bill. Every comment from very person counts. Click below and forward this email to every investor you know! Get the word out by this Tuesday! Forward this email to everyone you know who will be affected!
Get involved in the process or have the process control you!
They are trying to regulate our industry more and more because of a few unscrupulous lenders and investors.
My comment to this bill and my Senator is this:
It was licensed brokers and banks that provided high interest, confusing loans to people that they knew could not afford the loan payments. These highly regulated groups made bad loans and these groups need to be prosecuted before more laws are created to regulate those of us that are providing owner financing.We as investors many times use our retirements to invest in real estate and assist in the Owner Financing transaction. How many licensed brokers and banks invest their personal retirement in securing the loans the originate? Prosecute the originators of these bad/toxic loans that are now in massive default. Do not persecute investors that are providing good homes to good people when no one else will!
FOLLOW THESE STEPS NOW AND LETS YOUR VOICE BE HEARD BEFORE TUESDAY 2/16/10
STEP 1
PLEASE TAKE ACTION!
URGENT CALL TO ACTION: DEADLINE 2/16/2010
SELLER FINANCING THREATENS TO BE BANNED ALL TOGETHER
The following information is extremely important!
HUD Issues Problematic Rules Interpreting SAFE Mortgage Licensing ACT
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 mortgage". 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."
History:
As you may recall, we lobbied hard in North Carolina last year to maintain the right for individuals to make up to five seller financed transactions per year before being subject to mortgage originator licensing, etc... However, that law was passed subject to the Department of Housing and Urban Development's (HUD) approval of the law as "compliant" with the intention of the federal law. If any state does not have a compliant law, the SAFE act allows HUD to implement licensing for the state. HUD has since issued proposed rules. In a nutshell, seller financing would no longer be allowed for non-owner occupied homes.
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 on February 16. However, we 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 only four days left to flood this system with comments.
Follow these simple steps:
1. Log on 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..."
To read the rules: click on the blue title FR-5271-P-01 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. If you want to submit a comment after reading the document, use your back button to return to the search results and then move on to #5 below.
5. To submit a comment: On the right of the screen, across from FR-5271-P-01, click on "submit a comment"
6. Complete the form providing required information with blue asterisks and your comments and then submit. (Note: you do not need to fill in the blanks for organization name, government agency type, or government agency)
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:
The SAFE Mortgage Licensing Act was intended to regulate the mortgage industry, not private individuals. If I own my own properties and want to sell them to someone and let them pay me, I should have the right to do this without being a licensed mortgage broker
Many properties have special circumstances where full bank financing is not possible.
Vacant residential lots, investment homes, homes in flood areas, etc. may not be eligible for traditional financing. Individuals who own their own properties have always been able to offer other private parties the option to pay them directly.
These rules would prohibit that for all properties which are not owner occupied.
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.
TAKE ACTION NOW!
STEP 2
URGENT!!! Stop HR 4173 from Regulating Seller Financing!!!
Please send to your senator ASAP and forward to other real estate professionals. This bill has passed the House and is now in the Senate.
You can find your senator's contact info here:
http://www.senate.gov/general/contact_information/senators_cfm.cfm
Below is a sample letter you can send:
Dear Senator (name);
My name is (name) and I have been a resident of (state) since (year).
I am writing to encourage you to vote NO on HR 4173, the “Mortgage Reform and Anti-Predatory Lending Act”.
While many of the provisions of the act are positive steps toward mortgage reform, the inclusion of private property owners in the Act (see section 101(3)(e)) will enormously reduce the housing choices of (state) residents and the ability of homeowners to sell properties in a market already languishing from an abundance of unsold properties.
As someone who is a real estate investor, I encounter hundreds of instances every year where home sellers and buyers came to an agreement for an installment sale on a property that the owner desperately needed to sell (often to avoid foreclosure) and the buyer desperately wanted to buy, but did not have the credit and cash for conventional financing or an FHA loan.
In every situation, these sales were win-win deals for the buyer and seller: The seller was able to get rid of an unwanted property to a buyer who loved it, and the buyer was able to get a new home at an affordable payment and interest rate with none of the usual costs (points, application fees etc) inherent in conventional mortgage transactions.
In (state), both the buyer and seller are protected by other regulations at the state level.
In defense of private property rights, owners should be exempted from the burdensome and unnecessary rules that this law foists upon them. In its current form, it would all but shut off the “owner financing” market, which is often the only option for many sellers to sell and buyers to buy right now.
PLEASE DO NOT LET THIS RESTRICTION ON PRIVATE PROPERTY RIGHTS PASS THE SENATE. It is unnecessary to stop private buyers and sellers from transacting business that is beneficial to both of them – they do not cause the problems this bill seeks to solve. They do not originate these notes to sell to government-sponsored entities (Fannie Mae, Freddie Mac, FHA, etc.), but instead hold them as investments, often as a source of long-term income. HR 4173 would be extremely harmful to thousands of your constituents if passed as currently worded.
This legislation will exacerbate the problem OF foreclosure, as fewer sellers will be able to sell their homes to avoid it, and CAUSED BY foreclosure, as fewer buyers who have recently experienced foreclosure will be able to re-start the process of home ownership inexpensively and easily by negotiating owner financing.
Thank you for your consideration.
Respectfully,
(Name and Contact Information)
Make your voice heard and get involved in the solution! Forward this email to everyone you know! Take action right now!
Sincerely,
Curt Maly
Director
Endurable Investments LLC
Curt@EndurableInvestments.com
512-843-0031 Office/Cell
512-501-6278 Fax
Austin TX
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