In the sphere of owner financing, the RMLO acts as a loan processor for informational gathering services. Their job is to obtain financial information on the consumer so that the seller/lender has the ability to ensure they can afford the home, to ensure the seller is providing proper disclosures under RESPA, and to help the seller comply with the SAFE ACT as well as the DODD FRANK ACT when its applicable.
The Owner Finance Network always recommends the use of a RMLO even if the seller may be exempt. Using a RMLO ensures compliance with all state and federal regulations, it tends to make the buyer more comfortable with the process, and it takes the guess work out of each transaction on behalf of the seller.
It is important to remember that the RMLO simply gathers information, they do not substitute for the seller’s decision and approval process for their perspective buyer.
Another benefit to creating an RMLO loan package is if one of your exit strategies is selling the mortgage. This creates a fully documented, pretty packaged loan which could sell at a higher rate if your note buyer feels comfortable that the transaction was properly originated.
At the Owner Finance Network, we hope you will always consider the use of an RMLO.
If you would like to get into contact with us about your RMLO needs, fill out the form!