Real Estate Note Buyers

Real Estate Note Buyers and Seller Carry Consultants

  • Home
    • About
      • About Our Company
      • Client Testimonials
      • About Dave Franecki
      • Contact Us
  • NOTE | PROPERTY VAULT
  • NOTE INVESTING
    • Why Invest In Performing Notes OR Partials?
    • Buying Non-Peforming Notes
    • Reperforming Real Estate Notes
    • Note Investors Forum
  • Get a Quick Note Quote
  • Seller Carry | Consulting
    • Seller Carry Consulting
    • Real Estate Brokers
    • Property Owners
    • FAQ
    • Videos
    • Contact us for Consultation
  • FREE INFO
    • Free Downloads
    • TIPS – HOW TO SELL MY NOTE
      • How to Sell your mortgage note
      • Learn the value of your mortgage note
      • PROTECT YOUR MORTGAGE WITH
    • BLOG
You are here: Home / Protecting Mortgage Note Values / Dodd-Frank Gotchas

Dodd-Frank Gotchas

February 4, 2014 By Dave Franecki

Over the last few weeks, I have been paying attention to some of the new Dodd-Frank rules that have come out.  I have read some summaries and have attended a couple of lectures on the issue, but I have yet to sit down and read the regulations word for word.  I expect the regulations will provide insights that some of the summaries glossed over.

At the same time in which I was reviewing the Dodd-Frank summaries, a case came across my desk in which I had to do some additional research.  It involved discrimination issues in consumer lending on a residential mortgage.

My eyes were opened by some

of the things out there of which

I had been previously unaware.

One of the biggest “ah-ha” moments came when reading a portion of the CFR (Code of Federal  Regulations) which indicated that a lender did not need to have the intent to discriminate in order to be guilty of committing discrimination in a residential lending situation.  If they caused the “discriminatory effects,” then that was enough.

 

regulatory-compliance-banner

 

Although there has been some variation in the application of the discriminatory effects’ standard, neither HUD nor any federal court has ever determined that liability under the Act requires a finding of discriminatory intent.

 

 

 

The foregoing statements should cause all real estate investors who deal with residential end-buyer, owner-occupants to pause and reconsider everything they are

doing in their businesses to see if what they are doing is having

a discriminatory effect.

            This is by no means the complete solution, and it is not enough to fix every situation, but the first thing to remember is that EVERYONE wanting to apply for a rent-to-own, lease option, “Lonnie deal”, owner finance, or loan modification should be permitted to complete the application whenever they ask to do so.

Secondly, EVERYONE should be given the same type of application for the same type of transaction.

Bottom line, be careful of how you approach any transaction. Treat everyone the same. If needed use a licensed loan originator as needed and……..check with counsel . to make sure you are doing it in a systematic, consistent way.

Filed Under: Protecting Mortgage Note Values Tagged With: Dodd-Frank Gotchas

109 E 17th St #63 Cheyenne, WY 82001 | (888)-387-2956