Under the SAFE Act Final Rule or HUD's response to comments on the Final Rule, what specific seller financing transactions do not require a mortgage loan originator license?

The SAFE Act Final Rule, or HUD’s response to public comments on the Rule, states that a mortgage loan originator license is not required for the following seller financing transactions provided that such activity is not habitual:

• An individual who sells his or her own residence in a seller financed transaction, and pursuant to the transaction, offers or negotiates the terms of a residential mortgage loan;
• An individual who sells his or her vacation home in a seller financed transaction and, pursuant to the transaction, offers or negotiates the terms of a residential mortgage loan;
• An individual who sells an inherited property in a seller financed transaction, and, pursuant to the transaction, offers or negotiates the terms of a residential mortgage loan;
• An individual who sells his or her dwelling to an immediate family member (spouse, child, sibling, parent, grandparent, grandchild, step parent, stepchildren, stepsiblings, and adopted relationships) in a seller financed transaction and, pursuant to the transaction, offers or negotiates the terms of a residential mortgage loan.

DIFS has taken the position that origination of the above-mentioned transactions does not require licensure under the MLOLA unless the number or frequency of the transactions indicates that the individual appears to be engaged in the business of mortgage loan origination. As discussed in the next FAQ, DIFS will presume that an individual is “engaged in the business” of origination if four or more transactions are originated in a calendar year.