The Texas Department of Savings & Mortgage Lending made the following announcement today (8/12/10) regarding the impact of the SAFE Act on the Texas statutory de minimis exemption from licensing for seller finance. The de minimis exemption allows a seller to carry back notes on up to five property sales per 12 months without having to be licensed as a mortgage lender. Here is part of the announcement. Emphasis is added:
“We have been trying to select the best way to reconcile 1) the silence on this issue under the Texas SAFE Act Chapter 180, 2) the statutory exemption still in place under the licensing Chapter 156, and 3) the repeal of Rule Chapter 80 back in April.
“Attached you will find a document that will be posted on our website today offering a continuation of the five or fewer de minimis transactions until such time as the legislature or HUD provide further clarification. Our prior action was only to delay licensing from the May 31, 2010 deadline for mortgage bankers and other who were not licensed and to move the seller finance group to an August 31, 2010 licensing deadline that applies to mortgage brokers. This action officially provides a continuing safe harbor from licensing until the actions described may occur for those individuals who meet both the spirit and the letter of the de minimis exemption.”
For more information: Residential Mortgage Loan Originators – News and Information
