The final SAFE Act regulations appear to exempt seller carry back
loans if the individual is not engaged in the “business” of a
Mortgage Loan Originator. In the appendix, page 146, (b) the
regulations say:
Not Engaged in the Business of a Mortgage Loan
Originator. The following examples illustrate when an
individual generally does not “engage in the business of loan
originator”:
WMA has been informed by the California Department of
Corporations that parkowners do not need to be licensed by the
Department of Corporations or have a Mortgage Loan Originator
(MLO) license to service chattel loans in California. This is
indeed very good news. Please note, however, that a parkowner who
negotiates or makes chattel loans on a mobilehome will need to be
licensed as a consumer finance lender under the Department of
Corporations and secure a MLO license from the Nationwide
Mortgage Licensing System NMLS.
