Doug Foster, Commissioner of the Texas Department of Savings and Mortgage Lending, recently announced that the agency will delay the SAFE Act seller financing requirements until August 31, 2010 for seller/financers.

   This is the first step in Foster's attempt to reinstate the de minimis rule that no license is required to seller finance transactions of five or less in a 12-month period. According to Commissioner Foster, the next steps to reinstate the exception in Texas are as follows:

• During the August meeting, the Texas Finance Commission will consider adoption of a rule to exempt from the SAFE Act seller financers who perform five or less transactions in any rolling 12 month period.
• During the 82nd Texas Legislative session, which convenes in January 2011, legislation will be filed to add the five or less exemption to statute. The statute already exists in Chapter 156, Finance Code, but will need to be added to Chapter 180 (SAFE Act).

  Commissioner Foster has also been in discussions with the Conference of State Bank Supervisors Administrator of the Nationwide Mortgage Licensing System. Seventy-five percent of the comments HUD received regarding their SAFE Act rule-making dealt with the seller-financing issue. Although HUD does not anticipate issuing further clarification or final rules until next year, this step will hopefully not invalidate Texas compliance with federal requirements.