Posted by David Butler on March 03, 2004 at 19:40:46:
Hello bc,
Not entirely clear what you are asking for here, exactly - but here’s a couple of things to consider.
One… buying and selling notes is quite different in both function, and in regulation - as distinguished from making loans.
Licensing related to note buying and selling has been discussed extensively here in the Forum previously, and you are likely to gain a better handle on your own situation by first exploring exactly what it is we do in the note business, then comparing that to the previous discussions on licensing… then applying that to your own state.
The following thread would be a great place to start with regard to the “licensing” issue itself (Illinois or elsewhere)…
http://www.creonline.com/cashflow/wwwboard3/messages/15602.html
As to Illinois specifically, the last time I looked, though a Residential Mortgage License is required when selling a note encumbering residential property located in Illinois, IF a conventional or gov’t insured loan; the sale of private seller-carryback purchase money mortgage notes does not require license. Residential property defined as 1 to 4 units, owner-occupied.
Other exceptions include: selling notes secured by commercial properties; notes secured by properties outside Illinois; up to 10 residential notes per year including conventional/gov’t loans, so long as notes were acquired by your own funds for your own investment, and you held each note for at least one year.
By the way, almost none of us in the note business are involved in the last activity, as it relates to buying and selling of conventional or government (FHA; VA) loans! That’s an activity that is pretty much monopolized by the traditional mortgage lending industry, and Wall Street investment bankers… and is a whole other ball game!
Spend an hour or two with the recommending reading above, and where it leads too elsewhere in this web site, and you’ll have a good handle on what you are seeking here. Hope that helps, and best wishes for your success!
David P. Butler