Feb. 7, 2013
Dear George: I’m considering buying, fixing up, and selling some homes. If I provide owner financing, do I have to get a license to function as a mortgage originator?
Answer: You are required to have a Residential Mortgage Loan Originators (RMLO) license if you owner-finance more than five properties within a 12-month period. There are also two exceptions to the licensing rule: If you finance mortgages between immediate family members (spouse, child, sibling, parent, grandparent, or grandchild), or if you finance the sale of a home that is your primary homestead property, you don’t need a RMLO.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
