Finance
A Colorado seller wants to provide 'seller financing.' To avoid the SAFE Act's mortgage loan originator licensing requirements, seller financing must meet certain exemptions. One key exemption requires:
AThe seller to charge below-market interest rates
BThe seller to have owned and occupied the property and the loan to have a fixed rate or adjustable rate meeting specific criteria✓ Correct
CThe seller to use a licensed attorney for all paperwork
DThe seller to make no profit on the financing
Explanation
Under the SAFE Act's seller financing exemption, sellers can provide financing without an MLO license if they meet specific criteria, including having owned and occupied the property (for personal residences) and the loan must meet Dodd-Frank ability-to-repay requirements.
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