Finance
In a Tennessee seller-financed transaction, the seller acting as lender must be aware that certain federal lending laws such as Dodd-Frank may apply if:
AThe property is commercial
BThe seller originates more than a specified number of seller-financed loans per year✓ Correct
CThe interest rate exceeds the market rate
DThe buyer has poor credit
Explanation
Dodd-Frank's mortgage lending rules (including ability-to-repay requirements) may apply to private sellers who originate multiple seller-financed residential mortgage loans per year. Sellers who regularly provide seller financing may be subject to licensing requirements as mortgage loan originators.
Related Tennessee Finance Questions
- In Tennessee, a lender's 'underwriting' process involves:
- A borrower's loan-to-value (LTV) ratio on a purchase is 95%. This is significant because:
- The secondary mortgage market includes institutions such as Fannie Mae and Freddie Mac, which primarily:
- An 'origination fee' paid to a mortgage lender is compensation for:
- A Tennessee lender providing a mortgage must comply with the Homeowner Protection Act of 1998, which requires automatic cancellation of PMI when:
- A home equity loan differs from a HELOC in that a home equity loan:
- The Federal Reserve's primary tool for influencing mortgage interest rates is:
- A bridge loan (swing loan) is typically used to:
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