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HB 3088 is one of a number of bills targeting scams associated with wraparound mortgages which are a legal but very risky (both for the buyer and seller) form of mortgage financing. Sellers who agree to this type of financing are usually desperate to sell their house and unable to do so under traditional finance arrangements. Buyers who use this type of financing are usually unable to obtain less risky traditional mortgage financing. While there are legitimate lenders who serve the unique needs of these buyers and sellers, others skirt the intent of the law to perpetrate wraparound lending scams in a way that is technically legal but clearly outside of the intent of the law. This bill would make it more difficult for predatory lenders to successfully run these scams.