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
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
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.
Housing Communities Association online at www.wma.org.
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