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<p class="MsoNormal">I just came across this thread. I don’t know if anyone has raised the issue, but attention needs to be paid also to the Washington Consumer Loan Act, RCW 31.04 and WAC 208-620<o:p></o:p></p>
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<p class="MsoNormal">John McCrady<o:p></o:p></p>
<p class="MsoNormal">Counsel<o:p></o:p></p>
<p class="MsoNormal">Puget Sound Title Company<o:p></o:p></p>
<p class="MsoNormal">5350 Orchard Street West<o:p></o:p></p>
<p class="MsoNormal">University Place WA 98467<o:p></o:p></p>
<p class="MsoNormal">253-476-5721<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:j.mccrady@pstitle.com"><span style="color:#0563C1">j.mccrady@pstitle.com</span></a><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:13.0pt;font-family:"Bodoni MT",serif">Beginning July 26, 2021, recording fees for most documents recorded in Washington
</span></b><a href="https://www.piercecountywa.gov/DocumentCenter/View/105275/Recording-Fee-Schedule-Effective-Jul-25-2021-"><b><span style="font-size:13.0pt;font-family:"Bodoni MT",serif;color:#0563C1">will increase by $100</span></b></a><b><span style="font-size:13.0pt;font-family:"Bodoni MT",serif">.
Please be sure to collect recording fees accordingly. Due to the above increase, our Reconveyance fees will also be increased by $100.00</span></b><b><o:p></o:p></b></p>
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<p class="MsoNormal" style="margin-top:6.0pt"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">WARNING-FRAUDULENT FUNDING INSTRUCTIONS
</span></b><b><span style="font-size:4.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-top:6.0pt"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Email hacking and fraud are on the rise to fraudulently misdirect funds. Please call your escrow officer immediately using contact information
found from an independent source, such as the sales contract or internet, to verify any funding instructions received. We are not responsible for any wire sent by you to an incorrect bank account.<o:p></o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Craig Gourley<br>
<b>Sent:</b> Thursday, July 14, 2022 2:35 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Private loans<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Yours is essentially the same problem as mine. Below is an excerpt from an article on Dodd Frank. I am not finding a way for anyone to loan money to any third party that is secured by their residence without being in violation of Dodd
Frank unless it is seller financed at the time of the loan. I figure I must be missing something but so far I am not seeing it.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">The two exceptions are as follows:<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">1. First, there is a
<u>one property exception</u>. Under the first exception, a seller-financer who extends credit to a buyer as defined above, secured by a mortgage encumbering a residential dwelling, is not considered a “loan originator” if:<br>
(a) they are a natural person, estate, or trust;<br>
(b) they provide financing for only one property in a twelve month period;<br>
(c) <u>they own the property securing the financing</u>;<br>
(d) they did not construct or act as the contractor for the construction of a residence on the property;<br>
(e) the financing must have a repayment schedule that does not result in a negative amortization;<br>
(f) balloon payments are allowed (not less than 5 years recommended to be conservative; however, there is apparently a two-year window, and after two years this allowance may terminate);<br>
(g) the financing must have a fixed rate or an adjustable rate that resets after five or more years, and there are restrictions, limitations, and caps on rate changes and lifetime caps of rates; and lastly,<br>
(h) the seller does not have to vet the borrowers or determine the borrower’s ability to repay.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">2. Second, there is a
<u>three property exception</u>. Under this exception, the seller-financer is not considered a “loan originator” if:<br>
(a) they are a natural person, estate, or trust, or an entity;<br>
(b) they provide financing for three properties or less in any twelve month period;<br>
(c) <u>they own the property securing the financing</u>;<br>
(d) they did not construct or act as the contractor for the construction of a residence on the property;<br>
(e) the financing must be fully amortizing and there must be no balloon payments or structures allowed;<br>
(f) the financing must have a fixed rate or an adjustable rate that resets after five or more years, and must have caps on rate changes, and also lifetime caps.<br>
(g) the seller must determine, in good faith, that the consumer has a reasonable ability to repay, and while the sellers are not required to formally document how they made their good faith determination that the buyer had the ability to repay, a prudent seller
should keep records in case the analysis is ever called into question. This could include current or reasonably expected income or assets, income tax returns, employment, monthly payments, debt obligations, debt to income ratios, credit history, etc.</span><o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Athena Dickerson<br>
<b>Sent:</b> Thursday, July 14, 2022 12:48 PM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBARP] Private loans<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Follow up question to this one, kind of related: if a seller of a property sells the property and the buyers gets conventional financing, but seller after closing of the initial sale to buyers, decides to loan money buyers via secured
by a Prom Note and DOT, do they have to follow any special rules since they are not the lender per se just financing loaned money for the buyers. Parties are unrelated but friends.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#C45911">Athena Makratzakis Dickerson<o:p></o:p></span></p>
<p class="MsoNormal"><a href="https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fdetsparlaw.com&c=E,1,3MignbV7JN3fDW35Ex6-X8EUG7nEGjNuKTlfq-Aje1rdb6fDs8Yt68iJDkX__xogulPxvRxqczE1jab42wQRIayCHjlfyP0fLjpZdlZRIPinoeG9OpKmAQ,,&typo=1"><span style="font-size:10.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#C45911;text-decoration:none">DETHLEFS
SPARWASSER</span></a><span style="color:#C45911"><o:p></o:p></span></p>
<p class="MsoNormal"><a href="https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fdetsparlaw.com&c=E,1,bLSaO3IzGA_4xpDLui54w20Gh4qqnIdqihOO9lsFaFpEr3IyQlnxxNFTiURyp45gMfqeZoZNVArN8uCnWCEWoTGD7jQGcUGBlkqV6h6b1rlgrg,,&typo=1"><span style="font-size:10.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#C45911;text-decoration:none">REICH
DICKERSON PLLC</span></a><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#1F3864">100 Second Avenue South, Suite 190 I Edmonds, WA 98020<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#C45911">P
</span><span style="font-size:9.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#1F3864">425.776.1352 I
</span><span style="font-size:9.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#C45911">F</span><span style="font-size:9.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#1F3864"> 425.776.2467<o:p></o:p></span></p>
<p class="MsoNormal"><a href="mailto:athena@detsparlaw.com"><span style="font-size:9.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#1F3864;text-decoration:none">athena@detsparlaw.com</span></a><span style="font-size:9.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#1F3864">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#203864"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify;text-autospace:none"><span style="font-size:8.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#203864">This message and the documents attached to it, if any, contains confidential information from DETHLEFS
SPARWASSER REICH DICKERSON PLLC, is intended only for the use of the addressee and may contain information that is privileged and confidential under applicable law, and/or may contain attorney work product. If you are not the intended recipient, you are hereby
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Mark Anderson<br>
<b>Sent:</b> Thursday, July 14, 2022 12:39 PM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBARP] Private loans<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060">One additional consideration of which I am aware is related to the minimum interest rate to be charged in a situation involving “family loans.” The minimum federal
rate, also known as the “Applicable Federal Rate,” sets the lowest amount of interest that must be charged on a loan. The AFR is published by the IRS every month. If the rate is below this, the risk exists that the IRS will consider the loan a gift and tax
the transaction accordingly.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35">Mark B. Anderson<br>
</span></b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35">ANDERSON LAW FIRM PLLC<br>
821 Dock St Ste 209 PMB 4-12<br>
Tacoma, Washington 98402<br>
+1 253-327-1750<br>
+1 253-327-1751 (fax)<br>
</span><a href="mailto:marka@mbaesq.com"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">marka@mbaesq.com</span></a><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35"><br>
</span><a href="https://d.xdref.com/?enc=b64&verify=c00831d4b5dd1e4690249f2079c2eba6&id=26ELjaXt059727&from=wsbarp-bounces@lists.wsbarppt.com&to=j.mccrady@pstitle.com&url=aHR0cDovL3d3dy5tYmFlc3EuY29tLw"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">www.mbaesq.com</span></a><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35"><o:p></o:p></span></b></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Craig Gourley<br>
<b>Sent:</b> 07/14/2022 12:19 PM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBARP] Private loans<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Listmates. I suddenly have several separate clients wanting to make private loans to refinance home loans for relatives, friends etc. These are NOT seller financing. These are “let me pay off your existing mortgage and you can make payments
to me” cases. I have some knowledge of Dodd Frank and the State regulations and I know that there are exceptions for seller financing. Are there any exceptions for these non-seller financing loans secured by the borrower’s personal residence? Work arounds?
I appreciate any input. Thanks, Craig<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>GOURLEY LAW GROUP</b><o:p></o:p></p>
<p class="MsoNormal"><b>THE EXCHANGE CONNECTION</b><o:p></o:p></p>
<p class="MsoNormal"><b>SNOHOMISH ESCROW </b><o:p></o:p></p>
<p class="MsoNormal">P.O. Box 1091<o:p></o:p></p>
<p class="MsoNormal">Snohomish, WA 98291<o:p></o:p></p>
<p class="MsoNormal">PH: (360) 568-5065 (800) 291-8401<o:p></o:p></p>
<p class="MsoNormal">Fax: (360) 568-8092 <o:p></o:p></p>
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