"S.A.F.E." Mortgage Program - Anywhere in Texas
For Owner/Seller Financed Transactions

"Let Us Keep You In Compliance"

Origination - Loan docs - Servicing

Confused about licensure and the new SAFE Mortgage Act laws for Seller Financed transactions?

The SAFE Act requires licensed origination for seller financed transactions to be in compliance. However, there is no need for you, the seller, to obtain a license. Texas allows a third party licensed originator to satisfy the requirement. We are licensed originators that can handle the origination requirements of your transaction on a flat fee basis. Our low flat fee is an affordable way for you to be in compliance and add the element of security to your buyer by having transaction oversight and disclosure by a licensed Residential Mortgage Loan Originator.

If you plan to sell your mortgage note, we can help you structure your loan for purchase by our company.

NEW!!!: We now offer a package that includes origination and legal document preparation (Warranty Deed, Note, Deed of Trust) as a one-stop shop for your transaction.  Our package fee is $750.00 per transaction (payment can be by buyer, seller  or split). Call for details!

NEW!!! We now offer servicing for your loans! Our services include escrow disbursements to Insurance and Tax Agencies, Monthly and Annual reporting, Reporting to Credit Agencies.... And much more!  Call for details and price sheet.

 
We can walk your buyers through the process and keep you in compliance. We properly disclose all documents necessary to complete the existing and new State requirements and maintain all of the compliance records for three years as required. You can continue to do business as normal without the worry of improperly disclosing a transaction that could lead to a lawsuit or in some cases, fines or having the transaction become reversed or invalid.

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Info for Real Estate Agents click here. 

Important Update for Real Estate Agents click here.

FAQ'S:

When does the new law take effect? The SAFE Act is now in effect. We recommend that every owner financed transaction be originated by an RMLO to be surely in compliance.

UPDATE FROM TSDML: "In connection with the notice concerning the de minimis exemption for seller financed transactions issued on August 12, 2010, this notice is issued to clarify questions which have risen concerning compliance with federal regulations.
The position expressed in the notice is that an individual who engages in no more than five mortgage loans in a rolling twelve month period is exempt from the Department’s licensing requirements. The Department holds the position that exemption from licensing does not relieve that individual from complying with all applicable laws and rules pertaining to disclosures required by RESPA, new GFE, TILA, APR, new HOEPA, High Priced Loans, etc and the timing of each disclosure and rules.
August 17, 2010
Douglas B. Foster
Commissioner”

Does a seller who, with his or her own funds, finances the sale of a property to a consumer for use as a residence and takes a security interest in the property need to be licensed?  It depends.  The Texas SAFE Act exempts an individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that serves as the individual’s residence.  An exemption is also granted for a person who offers or negotiates terms of a residential mortgage loan on behalf of a person if there is a direct familial relationship. If the dwelling does not serve as the individual’s primary residence or on direct behalf of a direct familial relative, then the individual is acting in the capacity of a residential mortgage loan originator and must be licensed . (Answer provided by: Texas Department of Savings and Mortgage Lending. Click here for more FAQ's)

Suppose a  seller makes a loan to an entity on a property that is not the seller’s residence and the entity is a single member LLC or a trust. The member of the LLC or the beneficiary of the trust intends to live in the property. Is the seller required to be licensed or not? Yes, the seller is required to be licensed because the purpose of the loan is for personal, family or household use. (Answer provided by: Texas Department of Savings and Mortgage Lending.)

Can an owner/seller financing a home for a buyer use a third party to originate a mortgage loan? Yes, if that third party is a properly licensed individual or entity (RMLO). Under this scenario, the seller financer should make sure to avoid all activities that would require a license, including taking an application. For transactions where the seller financer engages a licensed RMLO to conduct the loan origination, it is recommeded that sufficient documentation is retained to confirm that an RMLO conducted all loan origination activities.

Can I quote interest rate and terms to a prospective buyer? You may advertise that your home has seller financing, but advertising or mentioning rates and terms to a prospective buyer requires licensure. Contact us when you put your home on the market and we can produce a flyer that will set out proposed terms with proper disclosure of APR and other laws for such advertising. This flyer will be under our name and license and can be distributed to prospective buyers along with our contact information for further lending information. Cost: $25.00/home. (see sample here)

What is the cost for you to originate the owner/seller financing loan for me? We offer flat rate services for application and processing the required documents for compliance. Our fee is $450.00 per transaction. For a discount fee schedule for 5 + transactions per year, click here.

Can the fee be charged to the Buyer? Yes! We have priced our services to be affordable to the buyer or the seller.

Does the buyer or seller need to visit your office? No, we use all forms of electronic communication in order to make the process convenient to both the seller and buyer. Sometimes we may use over night service if necessary.

How is the fee paid? The flat fee for our service is paid at closing if you are using a title company or attorney settlement agent. Other arrangements require prior approval.

Why do you charge the fee? We initiate a very thorough process of application and processing the GFE, TIL and disclosures and are required to keep records on every application - whether it ultimately closes or not. Declines and non-closes are audited by the State and we must keep the compliance records.

Do you have an order form to get things started? Yes, you can download our order form in a .pdf file, print, fill out and send back to us for immediate processing. Please have your buyer fill out our info sheet and include it with the order form. Download order form here.

What geographical area do you cover? We are licensed to originate loans anywhere in Texas.

How long has your company been in business? We have been in the mortgage business since 1992. Official licensing started in 2000. We have been licensed mortgage brokers and RMLO's since that time.

How can I get more information? Please contact us at the phone number below, or, fill out our easy contact form and we will contact you as soon as possible.