Dr. Daniels and Son Investment Real Estate Capital43902 Woodward Ave., Ste. 20, Bloomfield Hills, MI 48302 P: 248-335-6166 | F: 248-335-5436 Allan@DrDanielsAndSon.com | DrDanielsAndSon.com Michigan Licensed Real Estate Broker | NMLS 138110

October 6, 2016, 3:15pm – 4:55pm Michigan REALTORS® Presents: Guest Speaker: Allan D. Daniels

Hardcore Regulations: Land Contracts & Seller Financing 2-hour Michigan Real Estate Continuing Education (legal course C000839)

Soaring Eagle Casino & Resort, Mt. Pleasant, MI To register go to: http://www.mirealtors.com/Convention

Real estate investors, brokers and other industry participants have repeatedly sought confirmation that they can engage in activities or transactions that are prohibited by the SAFE Act, Dodd-Frank Act, or a myriad of other laws.

Allan will discuss Michigan and Federal Regulations covering Seller Financing/Land Contracts. What’s the same? What’s changed? What will happen?

Attempts to interpret the SAFE Act and the Michigan Mortgage Loan Originator Licensing Act (MLOLA), and even the 29-year-old Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act sections applicable to Land Contracts have been complicated by a disjointed law-making process, numerous sets of federal and state laws, the involvement of multiple state and federal governmental agencies, and different and sometimes conflicting rules and regulations. The Consumer Financial Protection Bureau finalized regulations under the Dodd-Frank Act on January 20, 2013 that further complicate and restrict seller financing. These regulations took effect on January 10, 2014.

To make matters worse, purveyors of the legal equivalent of snake oil are offering real estate training based on land contracts. These legal gurus and their disciples have been spreading bad information to the real estate community. When one combines wishful thinking, bad advice from both lawyers and non-lawyers, and the confusing law-making process involving an alphabet soup of state and federal agencies, the result is incomprehension and non-compliance.

Even some of the most well-intentioned, knowledgeable, ethical, and law-abiding persons (including some who even teach the law), have been stumped in their efforts to navigate through this bewildering maze.

Neither wishful thinking nor hiding one’s head in the sand can change laws or make prohibited activities lawful.

Allan will focus on what vital information you need to know, and why you need to know it RIGHT NOW!

“I knew I could always look to Allan because of his vast knowledge…. He was tremendously helpful to me when I chaired the Senate Banking committee. He was the one person I depended on the most.” ~ Senator Valde Garcia

“I have worked collaboratively with Allan in addressing many legislative issues of mutual concern to MMBA and MMLA, including predatory lending legislation. His level of commitment and involvement in developing legislative policy both at the state and federal levels sets a new standard of participation and leadership for trade associations…” ~ Murray Brown, former Deputy Commissioner, Michigan Financial Institutions Bureau

Dr. Daniels and Son Investment Real Estate Capital 43902 Woodward Ave., Ste. 20, Bloomfield Hills, MI 48302 P: 248-335-6166 | F: 248-335-5436 Allan@DrDanielsAndSon.com | DrDanielsAndSon.com Michigan Licensed Real Estate Broker | NMLS 138110

Dr. Daniels and Son Investment Real Estate Capital offers direct, private money for real estate investments. The Daniels family has been investing in real estate and purchasing Land Contracts and private (seller-held) notes and mortgages for three generations. Allan Daniels has been licensed in Michigan Real Estate since 1988. In addition to being a 3rd generation real estate investor, Allan has served in many key leadership positions within real estate and mortgage trade associations on the local, state, and national level. In Michigan, Allan served as President of the Michigan Mortgage Brokers Association (MMBA) in 2000, was named MMBA Broker of the Year for 2001, 2002, and 2003, and was the first recipient of the MMBA Lifetime Achievement Award in 2004. In addition to his work within Michigan, Allan previously served in the National Association of Mortgage Brokers (NAMB) Treasurer, Director, and Regional Vice Chair of the NAMB Legislative Committee for the Midwest Region. Allan served five terms as Chairman of the State of Michigan Mortgage Industry Advisory Board, that makes recommendations to the Director of the Department of Insurance and Financial Services (DIFS), the state agency that regulates mortgages and land contracts. In 2011 and 2012, Allan served on the Insurance and Finance Advisory Rules Committee to produce proposals to the state Office of Regulatory Reinvention (ORR) to recommend changes to Michigan’s regulatory climate help ensure that Michigan’s regulatory environment is simple, fair, efficient, and conducive to business growth and job creation. In 2016, Governor Snyder appointed Allan to the Michigan Board of Real Estate Brokers and Salespersons. Housed within the Michigan Department of Licensing and Regulatory Affairs, the nine-member board oversees the licensure and practice of real estate brokers and salespersons in Michigan. Allan also serves on the Board of Governors of the Michigan Mortgage Lenders Association, the Public Policy Committee for the Michigan REALTORS®, the CE Marketplace Content Review Task Force, Chairs the Michigan REALTORS® Real Estate Licensing Task Force, serves on the Conventional Financing and Public Policy Coordinating Committees of the National Association of REALTORS®, and is the 2017 Vice Chair of NAR’s Regulatory Issues Forum. Allan is an approved real estate and mortgage continuing education instructor, has frequently testified as an industry expert before Committees of the Michigan Senate and House of Representatives, and has been published in numerous mortgage and real estate trade journals and media outlets including The Washington Times, Bloomberg, NPR-Michigan Radio, and The Wall Street Journal. Allan is a lifelong resident of Bloomfield Township, where he resides with his wife, Kelly, his son, Michael, and daughter, Leah. Allan is a graduate of the University of Michigan in Ann Arbor. “I knew I could always look to Allan because of his vast knowledge…. He was tremendously helpful to me when I chaired the Senate Banking committee. He was the one person I depended on the most.” ~ Senator Valde Garcia “I have worked collaboratively with Allan in addressing many legislative issues of mutual concern to MMBA and MMLA, including predatory lending legislation. His level of commitment and involvement in developing legislative policy both at the state and federal levels sets a new standard of participation and leadership for trade associations…” ~ Murray Brown, former Deputy Commissioner, Michigan Financial Institutions Bureau

Dr. Daniels and Son Investment Real Estate Capital 43902 Woodward Ave., Ste. 20, Bloomfield Hills, MI 48302 P: 248-335-6166 | F: 248-335-5436 Allan@DrDanielsAndSon.com | DrDanielsAndSon.com Michigan Licensed Real Estate Broker | NMLS 138110 HardcoreRegulations:LandContracts&SellerFinancing

2-hourMichiganRealEstateContinuingEducation(legalcourseC000839)

HistoryLesson–

• Whywouldoneexitamarketwhenthereisgreatdemandforaproduct?• Answer–______________________________________

LawsoftheLand– • MichiganLawsandRules• FederalLawsandRegulations

o What’sthesame?o What’schanged?o Whatwillhappen?

BriefHistory– • Pre1987Michigan• MIUsuryLaws(CivilandCriminal)• EquitableMortgageDoctrine(CaseLaw)• FederalLaws• Article25

o RELicenseLawo Priorto1987:onlyaRELicensewasrequiredo RELicensestillrequiredforCommercialandnon-consumerresidentialmortgages

MajorLaws– • Article25• MBLSLAFirstMortgageAct(MIDIFSfkaOFIR)• SAFEAct(HUDandCFPB)• MLOLA(MIDIFS)• TILA(CFPB)

o ResidentialMortgagedefinition• Dodd-FrankAct• CFPBAuthority&EnforcementPowers

Dodd-FrankAct–

• CFPBRegulations• GeneralAbilitytoRepay(ATR)FinalRule–8FactorsusedtoDetermineAbilitytoRepay(ATR)• Dodd-FrankSellerFinancingRestrictions

o 2categorieso Category3o Category1o NARGuidanceo MichiganRealtors®SellerFinancingAddendum

• CFPBEnforcementAuthority• CIRCUMVENTIONISACRIME

Whatwillhappen? IsBigBrotherwatchingyou?FederalHousingFinanceAgency&CFPB-NationalDatabaseQ&A Ifthereisnotenoughtimeforyourquestion,pleasesendemailtoAllan@DrDanielsAndSon.comorcall248-335-6166