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#1940746 - 07/14/14 09:04 PM Mortgage Company
LizzyP Offline
Junior Member
Joined: Jul 2006
Posts: 48
TX
Our Financial Institution is no longer completing 1 to 4 Mortgage Loans due to the requirements of Dodd Frank but now our bank wants to go in with a Mortgage Company to process the loans. The Mortgage Company wants us to take the application and gather other documents and refer the customer to them to complete the transaction. I know this is very risky and has the potential for a Section 8 violation. What are some of the other "YOU DO NOT WANT TO DO THIS" reasons that I can tell the Bank President!
HELP
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Lending Compliance
#1940774 - 07/14/14 10:10 PM Re: Mortgage Company LizzyP
Still Smiling Offline
Platinum Poster
Joined: Nov 2007
Posts: 767
Lizzy, I believe you would have to perform more that take the application and gather information to avoid Section 8 violation. This link might help...

http://www.hud.gov/offices/hsg/ramh/res/resp0222.cfm
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#1940818 - 07/15/14 01:16 PM Re: Mortgage Company LizzyP
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,951
Bloomington, IN
So now you are going to act as a broker and have to deal with compensation rules, anti-steering rules and other rules that may apply to brokers under Dodd Frank. Not to mention any broker registration and licensing that may be required by your state.

Sounds to me like you're jumping out of the frying pan and into the fire.
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The opinions expressed are mine and they are not to be taken as legal advice.

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