Our friend and fellow investor, Lisa Moren Bromma, shared this very important information below with us today.  Anyone who is in the note business needs to be very concerned about this legislation.  We are fortunate enough to be having Lisa as our guest speaker tomorrow, and she is participating in conference calls early tomorrow regarding this legislation, and will share up-to-the minute information on what we need to know.  This is really important for investors to understand so come join us tomorrow night for the straignt scoop!

The Federal Reserve, which received sweeping new authority under the Obama regulatory reauthorization, wants to effectively eliminate seller-held (a.k.a. purchase money) mortgages. It will do this by enacting a rule for the Dodd-Frank Act prohibiting property sellers from taking back a mortgage unless the buyer essentially can qualify for conventional financing!

What’s more, Ma and Pa Homeowner, who create 95% of seller-held mortgages, won’t be able to qualify buyers under the same underwriting standards that banks are required to perform, and therefore the cash flow notes won’t be created.

If this is enacted it also will remove access to housing for millions of Americans, because seller “financing” is the only way people who can’t qualify for conventional loans can buy a house.

We have precious little time to try to stop this. The deadline to comment is FRIDAY, July 22.

Go to:  http://snipurl.com/t2cfq
Then go to snipurl.com/AbilityToRepay to submit your comment to the Federal Reserve.

Moreover, it would allow a buyer a three year right of rescission (they can cancel the sale) if the seller did not properly qualify them. The right of rescission also applies to anyone who buys the note.