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HAS DODD-FRANK MOVED MY CHEESE?
BY KEVIN W. HARDIN, JD, CMB, CMC, CMPS & KEVIN FALLON MCCARTHY, ESQ.
This article is an in-depth look at the Seller Carryback
Financing components of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Dodd-Frank Act). In it, the
authors detail the issues a seller must be aware of before
completing a carryback financing transaction. These include:
• Understanding what properties are covered
by the Secure and Fair Enforcement for
Mortgage Licensing Act (SAFE);
• The two exemptions available for sellers and real estate
agents: the One in One Year Rule, wherein financing
is provided for one property in a 12-month period and
the Three in One Year Rule wherein the seller finances
three or fewer properties in any 12-month period.
• The role of licensed real estate agents and
brokers in these transactions. Specifically, what
actions cross the line between performing
a sale and becoming a loan originator.