Origination

The Dodd-Frank Financial Reform Bill of 2010 radically changed the mortgage lending market. Some seller financiers are pulled under the purview of this new law and the newly created Consumer Financial Protection Bureau. The SAFE Act of 2008 defined a loan originator as anyone who “for compensation or gain takes an application for a closed-end real estate transaction.” Real Estate contracts fall under this broad definition.

If you are someone who makes and negotiates real estate contracts, these laws could apply to YOU!

Contract Exchange has responded in kind by hiring a licensed loan originator and becoming licensed as a Mortgage Banker in the State of Iowa, regulated by the State Banking Division. We will handle taking buyer applications, underwriting, and verification of income and employment. We can guide you in setting terms that comply with the new regulations and leave you in a defensible legal position.

There is a nominal fee for each loan originated and our service is provided with the understanding that Contract Exchange will service any contracts it originates for you— ensuring continued compliance with Iowa Code.