An Update on the SAFE Act for Real Estate Investors
It’s been a while since the SAFE Act passed under the Dodd-Frank Consumer Protection Act became law and there a few updates real estate investors need to know about.
The SAFE Act goes into effect on Tomorrow January 1, 2014. And the regulations are muddy and this affects those who are looking at seller or owner financing for their deals.
In a nutshell, the regulations require that if you sell more than your primary residence with seller financing or do more than three deals with seller financing a year, you need to be a mortgage loan originator or have one involved in the transaction.
This is easy enough to set up, but it’s an inconvenience to have to involve another person in the long list of paperwork required to follow the rules.