Finance
A Virginia seller is offering 'owner financing' at 5% for 5 years with a balloon payment. The federal law that may apply to the seller's financing activity if they do this repeatedly is:
ARESPA
BThe SAFE Act (if seller is in the business of making mortgage loans)✓ Correct
CTILA only if there are more than 5 transactions per year
DVirginia Mortgage Act for all transactions
Explanation
The SAFE Act may apply to seller-financed transactions if the seller is in the 'business' of making residential mortgage loans. Sellers who do more than a few transactions per year may need to comply with SAFE Act licensing.
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