Dodd-Frank Rules' Impact on Seller Financing

By: Michael Polentz

In 2014, new rules implementing amendments to the Federal Truth in Lending Act became effective as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Act"). These much anticipated rules have sparked lively discussion among investors, lenders and private sellers alike on the potential impact on their seller financing practices in connection with multi-family and single family assets. This article addresses two of the more substantive provisions in the Dodd-Frank Act concerning the use of seller financing: (1) the "ability-to-repay" and (2) "loan originator" compensation requirements.

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