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Seller Financing can raise liability under federal statutes and regulations governing Residential Mortgage Loan Origination. Complying with the labyrinth of federal mortgage loan origination regulations can pose challenges to any lender, even a large bank with significant resources and a compliance department. Despite exceptions for small lenders and parties offering seller financing, any lender, even one that finances only a single seller-financed transaction , can trigger liability. Federal statutes that raise concerns for parties offering seller financing, including: •The Truth in Lending Act (15 U.S.C. § 1601 et seq.) •The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) –and– •Sections of the Dodd-Frank Wall Street Reform and Consumer Protection Act addressing unfair, deceptive, or abusive acts or practices (12 U.S.C. § 5531)
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