Posted by John Merchant on August 27, 2009 at 10:31:22:
First find the PA statutes then check its index for mtg brokering to see PA’s statutory law on mtg brokering, licensing, etc.
Likely this law would have no bearing or meaning to you on your little deal as a borrower has every right, everywhere, in any state, to have a direct relationship with his/her lender and the state is normally not concerned with such direct dealings.
As for your lender friend making a direct loan to you to be secured by the house, she should be having her lawyer do the loan docs so she’s protected as much as possible with mtg or deed of trust(if PA is DOT state)that then becomes part of recorded record against the title to the house and would let her foreclose if you didn’t pay as agreed.
If you were to help her find this lawyer and go with your lender friend to talk to him/her yourself, this would likely put the lawyer in a position where he/she couldn’t sue you or foreclose on you later on.
I’ve recommended and seen this work out in a number of cases so as to keep that particular lawyer from later suing or otherwise getting involved.
That lawyer then has a conflict of interest from the beginning that will forever preclude his/her getting involved or representing either one of you against the other.