,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #efad  ,,in ,,the ,,house ,,of  
,,representatives  ,january #ae1        
#bjbj,mr4 ,gonzalez of ,texas 7for      
himself1 ,mr4 ,cuellar1 ,mr4 ,gooden1   
and ,mr4 ,barr7 introduced the following
 bill2 which was referred to the        
,committee on ,financial ,services  ,a  
,,bill  ,to exempt small seller         
financers from certain licensing        
requirements4  #a4 ,short title  ,this  
,act may be cited as the ,affordable    
,homeownership ,access ,act  #b4        
,findings ,congress finds the following3
  7#a7 ,real-estate seller 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 seller and then makes installment
 payments to the seller over a defined  
period of time4  7#b7 ,seller financers 
provide financing in lieu of the buyer  
choosing to obtain a loan from a bank4  
7#c7 ,the seller finance industry       

consists of small business owners who   
own real estate and provide financing on
 those properties to underserved        
borrowers who cannot or would prefer not
 to obtain traditional financing4  7#d7 
,it is recognized that seller financers 
are governed by each ,state's particular
 real estate and consumer protection    
laws 7including ability to repay1       
deceptive trade practices1 and usury    
laws71 as well as ,state and ,federal   
fair housing and equal opportunity laws4
  7#e7 ,neither of those laws described 
under paragraph 7#d71 nor the amendments
 made by this ,act1 are applicable to   
transactions known as contracts for     
deed1 land installment contracts1 lease 
options1 options to buy1 or rent-to-own 
agreements4  #c4 ,exception for seller  
financers with respect to loan          
originator license or registration      
requirements ,section #aejd of the      
,s4,a4,f4,e4 ,mortgage ,licensing ,act  
of #bjjh 7#ab ,u4,s4,c4 #eajc7 is       
amended by adding at the end the        

following3  7c7 ,exception for seller   
financers ,the requirements of this     
title shall not apply to the following3 
7#a7 ,real property seller financers    
,any person 7other than a depository    
institution7 who1 during any #ab-month  
period--  7,a7 originates no residential
 mortgage loan or extension of credit   
secured by real property that 7together 
with any improvements thereto7 has a    
value of more than #bjj1jjj 7as         
calculated based on the principal amount
 of the loan or extension of credit and 
the amount of downpayment1 if any72     
7,b7 originates not more than #bj       
residential mortgage loans or extensions
 of credit1 where-- 7i7 each such       
residential mortgage loan or extension  
of credit is secured by real property   
that 7together with any improvements    
thereto7 has a value of #bjj1jjj or less
 7as calculated based on the principal  
amount of the loan or extension of      
credit and the amount of downpayment1 if
 any72 and  7ii7 at least one of such   

residential mortgage loans or extensions
 of credit is secured by real property  
that 7together with any improvements    
thereto7 has a value of more than       
#ajj1jjj 7as calculated based on the    
principal amount of the loan or         
extension of credit and the amount of   
downpayment1 if any72  7,c7 originates  
not more than #cj residential mortgage  
loans or extensions of credit1 where    
each such residential mortgage loan or  
extension of credit is secured by real  
property that 7together with any        
improvements thereto7 has a value of    
#ajj1jjj or less 7as calculated based on
 principal amount of the loan or        
extension of credit and the amount of   
downpayment1 if any72 and  7,d7 only    
originates residential mortgage loans or
 extensions of credit that are with     
respect to property that is owned by    
such person4  7#b7 ,manufactured home   
seller financers ,any person 7other than
 a depository institution7 who1 during  
any #ab-month period-- 7,a7 originates  

not more than #cj loans or extensions of
 credit that are primarily for personal1
 family1 or household use and that are  
secured by a security interest on a     
manufactured home 7as defined under     
section #fjc of the ,national           
,manufactured ,housing ,construction and
 ,safety ,standards ,act of #aigd72 and 
7,b7 only originates residential        
mortgage loans or extensions of credit  
that are with respect to property that  
is owned by such person4  4  #d4        
,exception for seller financers in the  
definition of mortgage originator       
,subparagraph 7,e7 of section           
#ajc7;dd77#b7 of the ,truth in ,lending 
,act 7#ae ,u4,s4,c4 #afjb7;dd77#b77 is  
amended--  7#a7 by redesignating        
subparagraphs 7,f7 and 7,g7 as          
subparagraphs 7,g7 and 7,h71            
respectively2  7#b7 by amending         
subparagraph 7,e7 to read as follows3   
7,e7 does not include1 with respect to a
 residential mortgage sale1 a person or 
entity 7including a corporation1        

partnership1 proprietorship1            
association1 cooperative1 estate1 or    
trust7 if--  7i7 such a person or entity
 provides seller financing1 in a        
#ab-month period1 for the sale of-- 7,i7
 no property where the loan or extension
 of credit is secured by real property  
that 7together with any improvements    
thereto7 has a value of more than       
#bjj1jjj 7as calculated based on        
principal amount of the loan or         
extension of credit and the amount of   
downpayment1 if any72  7,,ii7 not more  
than #bj properties1 where-- 7aa7 each  
such loan or extension of credit is     
secured by real property that 7together 
with any improvements thereto7 has a    
value of #bjj1jjj or less 7as calculated
 based on principal amount of the loan  
or extension of credit and the amount of
 downpayment1 if any72 and  7bb7 at     
least one such loan or extension of     
credit is secured by real property that 
7together with any improvements thereto7
 has a value of more than #ajj1jjj 7as  

calculated based on principal amount of 
the loan or extension of credit and the 
amount of downpayment1 if any72 and     
7,,iii7 not more than #cj properties1   
where each such loan or extension of    
credit is secured by real property that 
7together with any improvements thereto7
 has a value of #ajj1jjj or less 7as    
calculated based on principal amount of 
the loan or extension of credit and the 
amount of downpayment1 if any72 and     
7ii7 each piece of real property        
described under clause 7i7 is owned by  
such a person or entity and serves as   
security for the loan or extension of   
credit1 provided that such loan or      
extension of credit--  7,i7 is not made 
by a person or entity that has          
constructed1 or acted as a general      
contractor for the construction of1 a   
residence on the property in the        
ordinary course of business of such     
person1 corporation1 association1       
estate1 or trust2  7,,ii7 is fully      
amortizing2  7,,iii7 is with respect to 

a sale for which the seller determines  
in good faith and documents that the    
buyer has a reasonable ability to pay   
the seller2  7,,iv7 has a fixed rate or 
an adjustable rate that is adjustable   
after #e or more years1 subject to      
reasonable annual and lifetime          
limitations on interest rate increases2 
and  7,v7 meets any other criteria the  
,bureau may prescribe2  2 and  7#c7 by  
inserting after subparagraph 7,e7 the   
following3  7,f7 does not include1 with 
respect to a residential mortgage loan  
or extension of credit1 a person or     
entity 7including a corporation1        
partnership1 proprietorship1            
association1 cooperative1 estate1 or    
trust7 if--  7i7 the loan or extension  
of credit is seller financed and is a   
consumer loan or extension of credit    
secured by a security interest on a     
manufactured home 7as defined under     
section #fjc of the ,national           
,manufactured ,housing ,construction and
 ,safety ,standards ,act of #aigd72 and 

7ii7 each home described under clause   
7i7 is owned by such a person or entity 
and serves as security for the loan or  
extension of credit1 provided that such 
loan or extension of credit--  7,i7 is  
not made by a person or entity that has 
manufactured the manufactured home2     
7,,ii7 is fully amortizing2  7,,iii7 is 
with respect to a sale for which the    
seller determines in good faith and     
documents that the buyer has a          
reasonable ability to pay the seller2   
7,,iv7 has a fixed rate or an adjustable
 rate that is adjustable after #e or    
more years1 subject to reasonable annual
 and lifetime limitations on interest   
rate increases2 and  7,v7 meets any     
other criteria the ,bureau may          
prescribe2  4  #e4 ,report on seller    
financing  7a7 ,study ,the ,secretary of
 ,housing and ,urban ,development and   
the ,secretary of the ,treasury shall   
jointly carry out a study on--  7#a7 the
 number of homes bought for under       
#bjj1jjj or #fj percent of the median   

home value in a given community1        
whichever is lower1 in the ,united      
,states by utilizing seller financing   
described under section #b2  7#b7 the   
number of homes described under         
paragraph 7#a7 financed by licensed     
mortgage brokers or depository          
institutions2  7#c7 the potential number
 of homes described under paragraph 7#a7
 which could be financed by licensed    
mortgage brokers or depository          
institutions but are not1 because seller
 financiers are unwilling1 or from a    
practical standpoint unable1 to comply  
with mortgage broker rules2 and  7#d7   
the potential benefit to home values1   
neighborhood stabilization1 and family  
wealth creation through affordable      
homeownership if more homes are able to 
be sold utilizing seller financing4  7b7
 ,report ,not later than the end of the 
#a-year period beginning on the date of 
the enactment of this ,act1 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  
,banking1 ,housing1 and ,urban ,affairs 
of the ,senate containing--  7#a7 all   
findings and determinations made in     
carrying out the study required under   
subsection 7a72 and  7#b7 data on the   
number of transactions utilizing seller 
financing #bj years1 #ae years1 #aj     
years1 and #e years prior to the date of
 the enactment of this ,act4