Here’s some information the Texas Association of Realtors released regarding the Texas SAFE Act. Looks like good news for investors.
According to Texas Association of Realtors,
“Doug Foster, the Commissioner of the Texas Department of Savings and Mortgage Lending, announced that his agency is delaying the SAFE Act seller financing requirements until August 31, 2010.”
This is the first step in his attempt to reinstate the de minimis rule (no license required to seller finance 5 or less in a 12 month period) Texans have for so long enjoyed.
Next steps per Commissioner Foster to reinstate the exception in Texas:
- At its August meeting, the Texas Finance Commission will consider adoption of a rule to exempt from the SAFE Act seller financers who do five or less transactions in a 12 month period.
- Legislation will be sought next session to put the five or less exemption in statute. (It is already in Ch. 156, Finance Code, but it needs to be added to Ch. 180 (Safe Act) which trumps Ch. 156.) He will need our help on this.
Commissioner Foster has been in verbal discussion with HUD on this issue, although HUD has not provided anything in writing at this point. While Commissioner Foster is awaiting written confirmation, he stated he is confident that this step will not invalidate Texas compliance with the federal requirements. 75% of all comments HUD received on their rule-making regarding the SAFE Act dealt with the seller-financing issue.
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