It has been eighteen months since the government first stepped in to save Goldman Sachs . We were told at the time that such government intervention was a necessary step to keep all of the domino's upright, and to prevent a disastrous economic free fall. Since that time we have seen any number of government sponsored bailouts, buyouts, and "clunker" deals designed to stimulate the economy.

The first time home buyer tax credit, expiring next month, has been only a short term government band aid applied to a housing market hemorrhaging foreclosures and short sales. Now, at a time when we most need creative ideas and sound fiscal practices, our government again gets in the way with shortsighted and ill conceived gimmicks.

This "clunker" is called the SAFE Mortgage Licensing Act. This act is part of the continuing fallout from failed lending institutions, and is designed to protect us from unscrupulous lenders. I am certainly in favor of extending consumer protections, but, like most government initiatives, this well intentioned effort has moved a long ways away from its original intent.

The effect of the SAFE act, if adopted in it's present form, will be to destroy the only segment of the residential real estate market that continues to work well, an offers real hope of reducing the glut of inventory choking the housing market. I'm speaking of the owner finance market. Provisions in these regulations proposed by HUD will require that those owner financing homes will be required to be licensed mortgage brokers. The only exception being the sale of ones personal residence. This is a perfect example of regulation just for the sake of regulation.

I am horrified at these proposed infringements on our personal property rights, and am compelled to ask a few questions. Those toxic loans that are at the root of all of our troubles, were they not underwritten by licensed loan originators ? The other question that comes to mind is, just how big is this problem of fraud in the owner finance real estate market that the government should go to the extreme step of shutting it down? To answer this question, I encourage you to google "owner finance", "seller finance" and the word Fraud. I was amazed at the lack of relevant returns detailing specific acts of fraud in the owner finance business, and I suspect that you will be as well. So, it is apparent to me that HUD's Safe act provisions are offering solutions that don't work, to problems that don't exist.

Why does owner financing continue to thrive in spite of massive real estate road kill all around them? It's simple. The owner finance real estate market is built upon free markets, personal property rights, and an unfettered ability to invest ones money. The answer to our real estate woes is not another government bail out or gimmick. The solution is simple. Let the markets work as they should without government intervention. Why would we want to discourage investors from investing in distressed neighborhoods, creating jobs, and home ownership opportunity for families that would otherwise not qualify for conventional financing ?

Let's tell HUD to get out of our way with their SAFE act proposals, and let free markets and free enterprise work as they should. Owner financing is an age old tradition based on private property rights. Any threat to those rights infringes upon our rights as citizens, and further threatens an already weak housing market.