Today at about 9:10AM M.T. the Board of Mortgage Loan Originators (under DORA) stated that they do not intend to challenge or appeal the court ruling that stated “……Board exceeded its statutory rule-making authority and Rule 1-1-6 is invalid.”. The Board then voted to repeal Rule 1-1-6.
Rule 1-1-6 essentially said that loans on all residential real estate would be regulated as a consumer “residential mortgage loan”. However the statutes stated a “residential mortgage loan” is for “personal, family or household use”. In essence the Rule would have prevented private lenders and even friends and family from making loans to businesses and people to invest in non-owner occupied residential real estate or at least force them to use a mortgage broker (who in all likelihood would charge fees) and require disclosures, processes and other regulatory acts that were intended for consumer loans and could complicate, increase cost and slow down the loan process.
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