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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6511 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6511
To exempt small seller financers from certain licensing requirements.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 9, 2025
Mr. Barr (for himself and Mr. Vicente Gonzalez of Texas) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To exempt small seller financers from certain licensing requirements.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Affordable Homeownership Access
Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Real-estate owner financing is a transaction in which
the owner of a real estate property provides financing for the
buyer of that property and the buyer makes some form of a down
payment to the owner, receives the deed or title to the home
and then makes installment payments to the owner over a defined
period of time.
(2) Owner financers provide financing in lieu of the buyer
choosing to obtain a loan from a bank.
(3) The owner finance industry consists of small business
owners who own real estate and provide financing on those
properties to underserved buyers who cannot or would prefer not
to obtain traditional bank or loan based financing.
(4) Owner financers are governed by real estate and
consumer protection laws (including, but not limited to,
ability to repay, deceptive trade practices, and usury laws) of
each State, as well as State and Federal fair housing and equal
opportunity laws.
(5) Using owner financing will benefit home values,
increase neighborhood stabilization, and assist with family
wealth creation through increased homeownership as more homes
are sold with owner financing.
(6) None of the amendments made by this Act, are applicable
to transactions known as Contracts for Deed or Land Installment
Contracts that are not lawfully recorded, Lease Options, Lease
with Option to buy and Rent to Own.
SEC. 3. EXCEPTION FOR OWNER FINANCERS WITH RESPECT TO LOAN ORIGINATOR
LICENSE OR REGISTRATION REQUIREMENTS.
Section 1504 of the S.A.F.E. Mortgage Licensing Act of 2008 (12
U.S.C. 5103) is amended by adding at the end the following:
``(c) Exception for Owner Financers.--The requirements of this
title shall not apply to any person (other than a depository
institution) who--
``(1) extend credit with respect to not more than 24
residential mortgage loans in a 12-month period; and
``(2) only extend credit with respect to residential
mortgage loans that are with respect to property that is owned
by such person.''.
SEC. 4. EXCEPTION FOR OWNER FINANCERS IN THE DEFINITION OF MORTGAGE
ORIGINATOR.
Subparagraph (E) of section 103(dd)(2) of the Truth in Lending Act
(15 U.S.C. 1602(dd)(2)) is amended--
(1) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively;
(2) by amending subparagraph (E) to read as follows:
``(E) does not include, with respect to a
residential mortgage sale, a person or entity
(including a corporation, partnership, proprietorship,
association, cooperative, estate, or trust) if--
``(i) such a person or entity provides
owner financing, in a 12-month period, for the
sale of 24 properties; and
``(ii) each piece of real property
described under clause (i) is owned by such a
person or entity and serves as security for the
loan or extension of credit, provided that such
loan or extension of credit--
``(I) is not made by a person or
entity that has constructed, or acted
as a general contractor for the
construction of, a residence on the
property in the ordinary course of
business of such person, corporation,
association, estate, or trust;
``(II) is fully amortizing;
``(III) is with respect to a sale
for which the owner determines in good
faith and documents that the buyer has
a reasonable ability to pay the owner;
``(IV) has a fixed rate or an
adjustable rate that is adjustable
after 5 or more years, subject to
reasonable annual and lifetime
limitations on interest rate increases;
and
``(V) meets any other criteria the
Bureau may prescribe by rule;''; and
(3) by inserting after subparagraph (E) the following:
``(F) does not include, with respect to a
residential mortgage loan or extension of credit, a
person or entity (including a corporation, partnership,
proprietorship, association, cooperative, estate, or
trust) if--
``(i) the loan or extension of credit is
owner financed and is a consumer loan or
extension of credit secured by a security
interest on a manufactured home (as defined
under section 603 of the National Manufactured
Housing Construction and Safety Standards Act
of 1974); and
``(ii) each home described under clause (i)
is owned by such a person or entity and serves
as security for the loan or extension of
credit, provided that such loan or extension of
credit--
``(I) is not made by a person or
entity that has manufactured the
manufactured home;
``(II) is fully amortizing;
``(III) is with respect to a sale
for which the owner determines in good
faith and documents that the buyer has
a reasonable ability to pay the owner;
``(IV) has a fixed rate or an
adjustable rate that is adjustable
after 5 or more years, subject to
reasonable annual and lifetime
limitations on interest rate increases;
and
``(V) meets any other criteria the
Bureau may prescribe by rule;''.
SEC. 5. REPORT ON OWNER FINANCING.
(a) Study.--The Secretary of Housing and Urban Development and the
Secretary of the Treasury shall jointly carry out a study on--
(1) the number of homes bought for under $150,000 or 60
percent of the median home value in a given community,
whichever is lower, in the United States by utilizing owner
financing;
(2) the number of homes described under paragraph (1)
financed by licensed mortgage brokers;
(3) the potential number of homes described under paragraph
(1) which could be sold but aren't, because owner financiers
are unwilling, or from a practical standpoint unable, to comply
with mortgage broker rules; and
(4) the potential benefit to home values and wealth
creation if more homes were to be sold utilizing owner finance.
(b) Report.--Not later than the end of the 1-year period beginning
on the date of the enactment of this Act, the Secretary of Housing and
Urban Development and the Secretary of the Treasury shall jointly issue
a report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate containing--
(1) all findings and determinations made in carrying out
the study required under subsection (a); and
(2) data on the number of transactions utilizing owner
financing 20 years, 15 years, 10 years, and 5 years prior to
the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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