I was just forwarded an email from one of the Top Real Estate attorneys here in Georgia that says they will no longer be processing short sales because it is now illegal for them or the agents to do so without a loan originator license! See copied email below. Has anyone else heard about this? The last I heard we had won this battle and it is legal. I don't know what to make of this. :-(
We have just been informed that the Georgia Department of Banking and Finance’s current interpretation of the law is that law firms may no longer provide short sale assistance to sellers. The Department is taking the position that law firms cannot do this work without being licensed as a mortgage loan originator. We, nor any other law firm, are so licensed.