The final SAFE Act regulations appear to exempt seller carry back loans if the individual is not engaged in the “business” of a Mortgage Loan Originator. In the appendix, page 146, (b) the regulations say:
Not Engaged in the Business of a Mortgage Loan Originator. The following examples illustrate when an individual generally does not “engage in the business of loan originator”:
WMA has been informed by the California Department of Corporations that parkowners do not need to be licensed by the Department of Corporations or have a Mortgage Loan Originator (MLO) license to service chattel loans in California. This is indeed very good news. Please note, however, that a parkowner who negotiates or makes chattel loans on a mobilehome will need to be licensed as a consumer finance lender under the Department of Corporations and secure a MLO license from the Nationwide Mortgage Licensing System NMLS.
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