WE NEED YOUR HELP! Only You Can Save Owner Financing in Texas

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This is the no Closer show where you get the latest developments in distressed note investing and learn the secrets of how you can control millions of dollars worth of property. For panties on the dollar, get educated and entertained by someone who has closed thousands of deals and lives to support you in achieving the same. Now, here's your host CEO of We Close nodes, Scott Carson.

Good morning, good afternoon and good evening, everybody. Hey, welcome to this episode of the Note Closure. Scott Carson with you today. And I want to get straight to the point. We need your help. And by we, I mean we as note investors need your help. If you're listening this episode, I need you to take about five minutes and follow my instructions specifically because registered mortgage loan originators, RMLOs who help originate owner finance notes all across the country but also here in Texas are under attack here in the Lone Star State. Now, I love Texas. Don't get me wrong. Texas is a very great state for lending. It's a great state if you're a landlord. If you're a property owner. We really proud of our property rights here in Texas. Property tax may be a little high compared to others, but we don't have a state income tax and a lot of other freedoms. But the owner financing right now in Texas is under attack not by the legislators, not by those in Austin, not by the national people in D.C. it is being attacked by the Texas Savings and Mortgage Lending. This is a regulatory industry that regulates the licensing for people doing business in Texas or originating loans or, you know, lending in Texas. Basically whether you live here or you're out of state land, Texas, you got to be registered with the state to do that. The only exception of that is these big banks that have a federal charter. Like when I was a mortgage bank for JP Morgan Chase, I didn't have to have a loan officer's license in Texas because I under a bank, you know. Well, I need you to take like five minutes to send an email and help unite with us. If you're a property owner here in Texas, if you are looking to buy property here in Texas, if you're investing in Texas residential commercial raw land, if you've ever wanted to buy a property on owner financing. This episode is very important. And what's going on basically is the Texas Savings and Mortgage Lending department is changing up some of their rules about licensing where they want to require that all RMLOs in the state of Texas have to be employed by a bank. That's right. They can no longer be self employed or run their own RMLO business. They have to Work for a bank. Well, we know what's going to happen with that. The next banker. Banks did not want to do loan loans below really a hundred thousand, really below 120,000 because they can't make any money. And when you start looking at originating loans, loans that small basically break even. There might be a couple hundred bucks here and there, but you're limited on what you can do because you can't charge extra points, you can't charge extra fees because we're very limited like a 4% fee structure and when you have an appraisal and other things that eats into that 4%. So they're wanting all our MLOs to be working with a bank. That's a big, big no no. Because here's the thing, like I give our buddy Max over at called the underwriter, he's our melo. It's out of state, he is self employed. He does all sorts of transactions all across the country, including here in Texas. Now Texas leads the nation in owner finance. I mean there's basically, I don't have any recent numbers from 2023, but we do have 2022 numbers. And there was basically 80 over 86,000 seller finance transactions all across the country. And 25% of those year in, year out take place here in Texas. That's over 20,000 people sold their property, their land, their house on terms the owner financed it to somebody who couldn't go get traditional finance in the bank because A their credit wasn't good enough, B they didn't have enough down. Maybe there's an issue with the property. Maybe it was a vacant land deal which banks didn't want to find us. Maybe it was a mobile home on land and the bank didn't like the value. There's a whole variety of reasons, a lot of reasons that banks won't do a loan. Right. First and foremost you got to jump through to be credit worthiness. That's the biggest thing you got to, you know, check all these boxes. As a previous mortgage banker, we really only want to deal with people that had good credit and a sizable down payment that fit into our box. Now if the state gets away with this and the reason we need to take action immediately is we have to get emails and notices into them by 5 o' clock this Friday, the 12th, no later than that. And I'll put a link, there's a link below here in the description where you can go do that. The seller Finance coalition has done a really good job of putting together the email to Senate to we need you to bcc, the Seller Finance Coalition, so we can keep track of the responses. And they've put together an email outlining the points of why we are against them changing the regulation like this. Now here's the thing. It's already difficult to get financing out there. I mean, we've never had a, a higher rate of unaffordability in the country. The Mortgage bank association came out and said on average you need 40 to 50% of your income to pay for housing. Okay. Now if we start requiring people to go through an armload with a bank, that's going to reduce a lot of availability for financing to credit challenge low income folks that you just can't, you know, fit in the box that banks want. And look here, I'm going to tell you right now, as a bank, as an ex banker employee, they wouldn't let you refer it up. They wouldn't let you do stuff just for the fun of it, to make sure somebody could qualify. No, they don't want you to do that. Like I, when I was a banker at Chase, I couldn't even refer people to other people that were outside the bank, not for banking instructions. Like they didn't want me to give referrals to anybody. It was against their chart. Oh no. If it's not something we can do, we don't give outside referrals to anybody of anything. Like that's, that's a horse's ass mindset. And if banks aren't lending and the only way to get things done is to owner finance it, now you're putting this back in the hands of banks that they're not going to do these deals. So not only are you affecting people, you're really affecting housing and making it more difficult. And what they're asking for too is it's more strict than what took place with Dodd Frank. Dodd Frank, we all, nobody likes that. As an ex mortgage broker, I don't like Dodd Frank. I think it's a big crock of crap. And I'm trying to figure out how we can afford property in three years now or a loan in three years. But Dodd Frank, basically, you know, it's there to protect. And that's a, okay, well if, if you can't get it done and then you're gonna start trying to go do this yourself, you may violate Dodd Frank because you don't have our RMLO that can do this for you. You may violate fair housing. Maybe a bad, you may get unscrupulous people coming and offering owner financing on stuff that they have no recourse. Okay. If you're a private individual you mean a lot of commercial properties are sold on owner financing they're not done with bank. Businesses are sold on owner financing not done for real bank. Okay, we need you to reach out to make sure that a they don't go through with this stuff, they don't over regulate. I mean like I said it's not the capital, it's not their state senators, state representatives. This is just the Texas Sims and mortgage lending who can enact this kind of stuff without having get a legislative approval. So we need to make a ruckus. We need you to share this episode or this video with anybody out there. And like I said if you're a realtor, loan officer, somebody buying property who maybe does can't qualify now but would love to buy an owner financed house. A business owner is planning on selling their business. We need you to reach out to the Texas savings mortgage lending and you can do so by going here to the link I'll provide there in the description. Go there, go down here and literally just follow. You can watch the video Jeff Watson put together prepare an email send us to rules.comments.texas.gov your subject is my comments regarding the SML's draft rules averse to Texans, RMLs and home buyers. Add a BC supporteller finance coalition.org and then number three is copy the sample text in the email, tweak it, customize it. Don't just copy paste and send copy paste and then edit it for yourself. Tweak it, tell the reason why you this is important to you. I mean we've helped thousands of people over the years getting to homes with seller financing by structuring deals. I didn't work for a bank in a lot of those cases just helping people structure stuff. This is before Dodd Frank. If I had to be at a bank and like a lot of this stuff would not be done. So this is detrimental to note investors, note buyers, real estate agents, realtors, loan officers, home property owners, business owners, landowners. We need you to reach out and take 5 minutes your time to copy paste what they've done here and get the word out. So seller financing armor are under attack here in Texas. We need this done immediately. Like I said this has got to be in by 5pm on Friday the 12th. So you got just basically 48 hours to get stuff done from the time I'm recording it. So go out, take some action please. Ladies and gentlemen, if you have any questions feel free to reach out to me. But if you put the link if you go in the description and either the video or the podcast below, you'll see the link to this website that will help you take it to the next step. So go out, take some action and we will see you at the top of Bye Sam. It.