RV Dealers - are you up to speed on the SAFE Act?
Do you sell Recreation Vehicles? If you answered yes, how much do you know about the SAFE Act? Hopefully, quite a bit!
Here are some brief highlights, and you can see some commentary from RV Daily Report here:
- Signed into legislation in 2008 and will become effective potentially on July 10, 2010.
- Intent is to enhance consumer protection by implementing a nationwide standardized mortgage licensing system which
includes a formal registration process to track anyone involved in any aspect of residential financing. The intent was to minimize instances where consumers are being lead to loans they could not afford.
- Applies to loans for dwellings, which under current interpretations includes a house, apartment, condominium, mobile home, boat, vacation home, or similar property. It also includes all structures or other property belonging to the dwelling unit. A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities.
- Fines for making an unlicensed loan - $25,000 per incident - OUCH!!!
So just as the industry starts to rebound....no one can afford a $25,000 per incident fine. I just urge everyone to get up to speed quickly with the requirements and how they affect you!
I encourage anyone with feedback about this subject to please chime in. I would love to hear your thoughts.
Sharon Robbins is the National RV Manager for Manheim Specialty Auctions