Key Takeaways
- Most states require lending licenses after 1-5 loans per year; exemptions vary by state and loan purpose.
- Usury laws vary dramatically by state; violations can void the loan and trigger treble damages.
- Dodd-Frank ATR/QM rules exempt business-purpose loans but apply to consumer-purpose residential loans.
- A business purpose affidavit should be obtained at origination to document the loan's exempt status.
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Test Your Knowledge
1.Do hard money lenders need a mortgage lending license?
2.What is a usury limit?
3.How does Dodd-Frank affect hard money lending on investment properties?