IRMPA, Imps, & Oompa Loompa’s
There’s really nothing here about strange mythological characters or singing freaks from Charlie and the Chocolate factory, but it sure does seem like the issues that we face with short sales in Idaho can be a little bit like a circus; and who really knows what they’re talking about when it comes to short sales? Real estate agents, the Idaho Department of Finance, the Idaho Real Estate Commission, or real estate investors??? I don’t think I can answer the million dollar question, but if we can keep this stuff in the open maybe we can come to a common understanding and all be more professional when it comes to serving the needs of homeowners and our communities.
It appears that in response to the “SAFE Mortgage Licensing Act of 2008″ the state of Idaho implemented the “Idaho Residential Mortgage Practices Act” aka IRMPA. To get straight to the point for real estate investors, IRMPA is being interpreted by the Idaho Department of Finance to cover the negotiation of short sales as a modification of a loan and therefore needing a loan originators license, even if you’re negotiating the short sale for your own business.
I’m not clear concerning the point at which this interpretation is in Idaho legal proceedings, but I know that the Deputy Attorney General, A. Rene Martin, has concurred (I always think of that scene in “Catch Me If You Can” when Leo’s pretending to be a doctor when I say or write that word, anyways…) with the Department of Finance’s understanding of IRMPA in relation to short sales and those who engage in the business of negotiating short sales for their own business interests.
This is a great challenge to investors in the state of Idaho who make a living at negotiating short sales. I personally know of real estate investors who have made great financial sacrifices to learn how to effectively negotiate short sales and invest in real estate who have been scared away by the hurdles that we’re facing in the state of Idaho.
These are some of the issues that we deal with on a daily basis in our short sale business, there’s links below if you want to research any of this further. I know for our business it’s always been about helping the homeowner avoid foreclosure and to make an honest living (I’m sure this is the case for the majority of real estate investors). Whatever happens I think it would be extremely unfortunate if laws were put in place that made it more difficult for homeowners to receive help, that helped to foster the loss of more jobs, and that slowed down the process of getting distressed homes into the hands of new homeowners who are starting families, making memories, and spending money in our communities.
LINKS:
1. The full blown version of IRMPA, http://bit.ly/c1NOar
2. Opinion of the Deputy Attorney General, http://bit.ly/d1TvOF
P.S. you can also check out the blog at http://www.shortsalesinidaho.com to stay up to date on this information.
