The Secure and Fair Endorsement for Mortgage Licensing Act (also known as SAFE Act), signed by President Bush in 2008, places minimum licensure requirements on all mortgage loan originators, this includes seller financing. To seller finance a one-to-four family residential transaction involving property other that the seller’s primary residence, the seller must now be a licensed as a residential mortgage loan originator (RMLO).
In the Texas Legislation, there was an exemption allowing sellers of a one-to-four family residence to seller finance up to 5 transactions in a single year without being licensed, but this will expire August 31st 2010.
Source: Anderson Edra, Texas Realtor Magazine, May 2010
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