Owner Financing Update!
Governor Peter Shumlin stands with VAR members and other parties involved in work on H.565. The Governor signed H.565 into law on April 20, 2012.
H.565 Owner Financing: On Friday, April 20 Governor Peter Shumlin signed H.565 into law
Last summer, the Vermont Association of REALTORS® and the Vermont Bar Association worked diligently with the Vermont Department of Financial Regulation to gain consensus on legislation that would allow owner financing again in Vermont.
H.565 will enable property owners to sell to prospective buyers without conventional finance and secondary mortgage underwriting standards. In 2009, the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act was enacted to protect consumers from predatory lenders. This summer, the U.S. Department of Housing and Urban Development (HUD) released the final SAFE Act Rule, which would allow states to create legislation that would enable owner financing.
H.565 includes language which prohibits property owners from making a business of mortgage origination, but allows those to sell properties without a license to lend on a “non-habitual” basis. This law will apply to all residential, commercial, and land transactions that choose to owner finance.
H. 565 is now in effect.
From: VAR Legislative Report.