If you buy an existing mortgage from an investor, would the mortgage fall under the Dodd Frank Act or The Safe Act? Well, first you need to determine whether or not it is an exempt transaction from Dodd Frank and under The Safe Act. But you have to look at the loan at the time of its inception and do not believe that you would be able to say, “Well I purchased it from an investor and therefore Dodd Frank or The Safe Act does not apply.” So it is my opinion, that you have to look at the loan at its inception to determine whether or not it is governed by Dodd Frank or The Safe Act and if it is, you are also going to be subject to all the defenses of the borrower and that that’s the purpose of these acts is to protect a person who is buying the home and you will not be insulated as a result of buying these loans from an investor.
If you have any other questions, I will try and answer those as far as Dodd Frank since it’s relatively new and there is a thousand-page act and I have not read the whole act, but basically talk about what loans are exempt from Dodd Frank.
Give me a call if you have any questions at 727-847-2288. Thank you.