It’s been four year since the Dodd-Frank Wall Street Reform and Consumer Protection Act took effect. If you’re a loan officer, a lender or a even a borrower, you’re probably familiar with this law to some degree, at least by name. Below are some of the most important points on this gigantic piece of financial reform legislation.
FACTS ABOUT DODD-FRANK
It was passed in 2010 by the Obama administration after the meltdown of the housing industry.
It established new government agencies to monitor the performance of corporate companies in order to prevent large scale financial crisis.
It introduced stringent rules on the policies and procedures of financial corporations.
It created a new Consumer Financial Protection Bureau that’s in charge of protecting the interests of consumers by cracking down on shady mortgage lending and correcting misleading or confusing loan paperwork.
WHAT DODD-FRANK MEANS FOR YOU
This is just a very small portion of what the Dodd-Frank Act entails. For borrowers, the important thing to note is that the difficulty in getting qualified for a loan increased exponentially with this new legislation. Limits were put on loan terms and rules were made that require lenders to implement harsh credit standards and strict loan eligibility. All this in effect makes it harder for borrowers to get approved for the loans they so desperately need.
THE GOOD NEWS
It’s still possible to get a loan, even without jumping through a ring of fire or trading in your firstborn. Through private lenders such as Hanson Capital Group, you can avoid almost all of the hassles associated with the Dodd-Frank Act. Since our hard money loans are collateral-based and used strictly for investment properties, borrowers need not worry about the Dodd-Frank Act prohibiting their deal.
Here’s what real estate investors need to know about Dodd-Frank:
The Dodd-Frank Act does not apply in any way for investors looking to buy a property.
The Dodd-Frank Act does not apply to sellers who are selling to investors or someone who will not live in the property.
The Dodd-Frank Act does apply when selling a property to a buyer who intends to occupy the property as their main residence.
If you’re an investor who doesn’t want to waste precious time filling out complicated paperwork or spending agonizing weeks wondering if (not when) you’ll get approved, why not consider working with a hard money lender like Hanson Capital Group? We make the process smooth, fast, and anything but complicated. No mountain of paperwork, no wasted time, and no way we’ll say no.
Related: When Other Banks Say No, We Say Yes