Navigating owner-financed sales can be challenging

Home sold sign

It all began following the collapse of the housing market. The same Congress that over the years systematically deregulated the financial industry to the point where underqualified buyers were allowed to purchase homes they couldn’t afford spun a 180 and imposed new regulations designed to prevent similar occurrences in the future. The legislation, formally known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, was signed into law on July 21, 2010.

The act placed substantial regulations on the entire financial industry, including the mortgage lending sector. In an effort to prevent homebuyers from once again getting in over their heads, the legislation amended the Truth in Lending Act in 2014 to require that mortgage loan originators, commonly referred to as loan officers, make absolutely sure that the homebuyers they make loans to demonstrate the ability to pay for the homes they purchase. Significant penalties hang over the heads of originators and their companies who fail to do their “ability-to-repay” due diligence.

https://www.lcsun-news.com/story/money/business/2022/03/06/navigating-owner-financed-sales-can-challenging/9346344002/

Next Post

Advertising Acts as Another Vehicle of Protest to Ukraine War

Sun Mar 6 , 2022
But Madison Avenue was also skittish in some ways. Companies faced conflicting advice to pause marketing campaigns out of respect for Ukraine, but also to speak out in support of the country. Executives were pressured to pause their advertising campaigns and instead gift their marketing budgets to humanitarian aid organizations […]