Join SFC Leadership on April 30th and May 1st as we head to Capitol Hill to discuss the Seller Finance Enhancement Act in the 115th Congress. To sign up, please click here and enter your information.
SFC Leadership headed to the Hill to discuss our reintroduced Seller Finance Enhancement Act HR 1360
Bob Repass, Jeff Watson, Charles Tassell, and Kristin Repass met with lead sponsor Congressman Williams, along with many other members to discuss our bill HR 1360. Contact your Congress member and ask to cosponsor HR 1360!
We are excited to announce that our bill: HR 5301 The Seller Finance enhancement act has been officially introduced to the floor of the 114th United States Congress.
The National Real Estate Investors Association has expressed its support for the bill in the following statement that can be viewed HERE
But we still have a long way to go, and we need your help! Contact your member of Congress and urge them to cosponsor HR 5301!
May 24th: Check out this Article by XHEVRIJE WEST: Are Small Loans a thing of the Past?
Seller Finance Coalition attends NoteSchool Summer Summit
July 7, 2014
As a general rule of thumb, when you're working with relatively good quality data, it takes a minimum of six to ten data points before you can reasonably identify if a statistically significant trend exists within the data you might be following.
Looking at the most recent data for the developing trend of median new home sale prices with respect to median household incomes in the U.S., we're about one month shy of the minimum threshold we need to tell if a new linear trend has become established in the U.S. real estate market following the end of 2013.
Although technically, we could probably make that determination with the data we have today, where it initially appears that the data from January 2014 through May 2014 is close to parallel with the stable trend that existed from December 2010 through July 2012, prior to the inflation of the second US housing bubble. If a new stable trend develops, it would be a very positive development for the US housing market, as another major collapse in home prices would be unlikely.
By: James Hart in Community Investor
A coalition of lenders and note traders is trying to reverse overregulation by educating elected officials.
When Congress passed the Dodd-Frank Act and the SAFE Act, the stated goal was to protect the average homebuyer and rein in the bad actors who helped cause the financial crisis of 2008.
Unfortunately, those regulations have had a major impact on private lenders, note traders and others who work with seller-financed mortgage notes—people who didn’t have anything to do with the economic meltdown.
“We just got kind of sucked up into the vacuum,” said Bob Repass, managing director at Colonial Funding Group in Dallas. “We’re following the same rules that some of the big banks are having to follow, and we’re not part of that world.”
WASHINGTON, March 3, 2014 – Leaders in seller financing from around the country have formed a new coalition to advocate for changes in federal financial regulation law that threaten their industry. The Seller Finance Coalition (SFC) was created to protect the seller finance industry from overregulation from Washington and to undo the unintended consequences stemming from both the Secure and Fair Enforcement for Licensing (SAFE) Act and the Wall Street Reform and Consumer Protection (Dodd-Frank) Act that threaten the seller finance industry. While this type of lending is a simple, private treaty loan between two parties requiring no fiduciary involvement, this vital financing mechanism has been under attack from Washington over the past 6 years.
The initial blow to the seller-finance industry came in 2008 with the SAFE Act, which set forth stringent national guidelines for states licensing mortgage originators. Although they don’t originate Fannie Mae, Freddie Mac, VA, FHA or Reverse Mortgage loans, members of the seller finance industry were suddenly required to take national licensing tests. Not surprisingly, the failure rate for these individuals has been astoundingly high on the 100-question tests designed for mainstream mortgage businesses. With the denial of a license, seller-financiers were left with two unappealing options: restrict the number of transactions to fewer than five per-year, or hire a licensed mortgage originator to process the application process – essentially eliminating the inexpensive and simplistic attraction of seller financing.
The Dodd-Frank reforms that went into effect in January of 2014 further reduce the number of transactions allowed for unlicensed seller-finance to three per year. These new restrictions erode the opportunities for seller-lenders thus eliminating a key financing option for would-be homeowners.
“These sweeping financial laws were supposedly designed to target Wall Street, big banks and large financial institutions,” said Glenn Lee, President of Texas Funding, a founding member of the SFC who led the visits on Capitol Hill last month. “Seller financing plays a critical role in the commercial and residential real estate markets, which are foundational to the U.S. economy. The new burdensome regulations threaten the entire seller finance industry and must be changed.”
Bob Repass, Managing Director of Colonial Funding Group added, “If these regulations are not changed or eliminated, our businesses as well as our customers will suffer. Let us not forget the effect the law is having on those that we serve; folks that desire to purchase the properties from us by having us provide the financing on properties we own. Very often, we are the only source of financing because persons can't qualify through traditional financing. If regulations severely limit or possibly eliminate financing by us, the owner of the property, it hurts not only us doing the business but also those who would be losing the financing we provide. After all, our customers ARE our business.”
Founders of the Seller Finance Coalition (SFC) visited Washington, D.C. in February to educate lawmakers on the unintended consequences of the sweeping financial regulatory laws that have gone into effect over the past 6 years. Bob Repass, Managing Director of Colonial Funding Group and Scot Campbell of S.R. Campbell Properties joined Lee on SFC’s maiden voyage to Washington. The group met with over a dozen congressional offices, mostly Texas-based Representatives. The reaction was unanimously positive, with each Member of Congress expressing a desire to help the industry.
“Our purpose is to educate lawmakers about the important role that seller financing plays in our economy and how this law is threatening to run us out of business,” said Repass. “The positive response we received from the lawmakers we visited was encouraging for a first-step in the process of cutting the red tape that is forcefully constricting our industry.”
The SFC is working with the Keelen Group, a top Washington, D.C. public affairs firm, on a comprehensive outreach, education and advocacy campaign. In the coming weeks, the SFC will work to create bipartisan support for legislative solutions to the congressionally-created crisis the seller finance community faces today.