,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #efad  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,janu>y #ae1 #bjbj,mr4
 ,gonzalez ( ,texas 7= himself1 ,mr4    
,cuell>1 ,mr4 ,good51 & ,mr4 ,b>r7      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,f9ancial ,s]vices  ,a 
,,bill  ,to exempt small sell] f9anc]s f
 c]ta9 lic5s+ requirem5ts4  #a4 ,%ort   
title  ,?is ,act may be cit$ z !        
,af=dable ,home[n]%ip ,access ,act  #b4 
,f9d+s ,congress f9ds ! foll[+3  7#a7   
,real-e/ate sell] f9anc+ is a           
transaction 9 :i* ! own] ( a real e/ate 
prop]ty provides f9anc+ = ! buy] ( t    
prop]ty & ! buy] makes "s =m ( a d[n    
paym5t to ! sell] & !n makes in/allm5t  
paym5ts to ! sell] ov] a def9$ p]iod (  
"t4  7#b7 ,sell] f9anc]s provide f9anc+ 
9 lieu ( ! buy] *oos+ to obta9 a loan f 
a bank4  7#c7 ,! sell] f9ance indu/ry   
consi/s ( small bus9ess own]s :o own    
real e/ate & provide f9anc+ on ^?       
prop]ties to und]s]v$ borr[]s :o _c or  
w\ld pref] n to obta9 traditional       

f9anc+4  7#d7 ,x is recogniz$ t sell]   
f9anc]s are gov]n$ by ea* ,/ate's       
p>ticul> real e/ate & consum] protection
 laws 7includ+ ability to repay1        
deceptive trade practices1 & usury      
laws71 z well z ,/ate & ,f$]al fair h\s+
 & equal opportunity laws4  7#e7 ,nei!r 
( ^? laws describ$ "u p>agraph 7#d71 nor
 ! am5dm5ts made by ?is ,act1 are       
applicable to transactions kn[n z       
contracts = de$1 l& in/allm5t contracts1
 lease options1 options to buy1 or      
r5t-to-own agreem5ts4  #c4 ,exception = 
sell] f9anc]s ) respect to loan         
orig9ator lic5se or regi/ration         
requirem5ts ,section #aejd ( !          
,s4,a4,f4,e4 ,mortgage ,lic5s+ ,act (   
#bjjh 7#ab ,u4,s4,c4 #eajc7 is am5d$ by 
add+ at ! end ! foll[+3  7c7 ,exception 
= sell] f9anc]s ,! requirem5ts ( ?is    
title %all n apply to ! foll[+3 7#a7    
,real prop]ty sell] f9anc]s ,any p]son  
7o!r ?an a depository in/itution7 :o1   
dur+ any #ab-mon? p]iod--  7,a7         
orig9ates no resid5tial mortgage loan or

 ext5sion ( cr$it secur$ by real prop]ty
 t 7toge!r ) any improvem5ts !reto7 has 
a value ( m ?an #bjj1jjj 7z calculat$   
bas$ on ! pr9cipal am\nt ( ! loan or    
ext5sion ( cr$it & ! am\nt ( d[npaym5t1 
if any72  7,b7 orig9ates n m ?an #bj    
resid5tial mortgage loans or ext5sions (
 cr$it1 :]e-- 7i7 ea* su* resid5tial    
mortgage loan or ext5sion ( cr$it is    
secur$ by real prop]ty t 7toge!r ) any  
improvem5ts !reto7 has a value (        
#bjj1jjj or less 7z calculat$ bas$ on ! 
pr9cipal am\nt ( ! loan or ext5sion (   
cr$it & ! am\nt ( d[npaym5t1 if any72 & 
7ii7 at lea/ "o ( su* resid5tial        
mortgage loans or ext5sions ( cr$it is  
secur$ by real prop]ty t 7toge!r ) any  
improvem5ts !reto7 has a value ( m ?an  
#ajj1jjj 7z calculat$ bas$ on ! pr9cipal
 am\nt ( ! loan or ext5sion ( cr$it & ! 
am\nt ( d[npaym5t1 if any72  7,c7       
orig9ates n m ?an #cj resid5tial        
mortgage loans or ext5sions ( cr$it1 :]e
 ea* su* resid5tial mortgage loan or    
ext5sion ( cr$it is secur$ by real      

prop]ty t 7toge!r ) any improvem5ts     
!reto7 has a value ( #ajj1jjj or less 7z
 calculat$ bas$ on pr9cipal am\nt ( !   
loan or ext5sion ( cr$it & ! am\nt (    
d[npaym5t1 if any72 &  7,d7 only        
orig9ates resid5tial mortgage loans or  
ext5sions ( cr$it t are ) respect to    
prop]ty t is own$ by su* p]son4  7#b7   
,manufactur$ home sell] f9anc]s ,any    
p]son 7o!r ?an a depository in/itution7 
:o1 dur+ any #ab-mon? p]iod-- 7,a7      
orig9ates n m ?an #cj loans or ext5sions
 ( cr$it t are prim>ily = p]sonal1      
family1 or h\sehold use & t are secur$  
by a security int]e/ on a manufactur$   
home 7z def9$ "u section #fjc ( !       
,national ,manufactur$ ,h\s+            
,con/ruction & ,safety ,/&>ds ,act (    
#aigd72 &  7,b7 only orig9ates          
resid5tial mortgage loans or ext5sions (
 cr$it t are ) respect to prop]ty t is  
own$ by su* p]son4  4  #d4 ,exception = 
sell] f9anc]s 9 ! def9ition ( mortgage  
orig9ator ,subp>agraph 7,e7 ( section   
#ajc7;dd77#b7 ( ! ,tru? 9 ,l5d+ ,act    

7#ae ,u4,s4,c4 #afjb7;dd77#b77 is       
am5d$--  7#a7 by r$esignat+ subp>agraphs
 7,f7 & 7,g7 z subp>agraphs 7,g7 & 7,h71
 respectively2  7#b7 by am5d+           
subp>agraph 7,e7 to read z foll[s3  7,e7
 does n include1 ) respect to a         
resid5tial mortgage sale1 a p]son or    
entity 7includ+ a corporation1 p>tn]%ip1
 proprietor%ip1 association1 coop]ative1
 e/ate1 or tru/7 if--  7i7 su* a p]son  
or entity provides sell] f9anc+1 9 a    
#ab-mon? p]iod1 = ! sale (-- 7,i7 no    
prop]ty :]e ! loan or ext5sion ( cr$it  
is secur$ by real prop]ty t 7toge!r )   
any improvem5ts !reto7 has a value ( m  
?an #bjj1jjj 7z calculat$ bas$ on       
pr9cipal am\nt ( ! loan or ext5sion (   
cr$it & ! am\nt ( d[npaym5t1 if any72   
7,,ii7 n m ?an #bj prop]ties1 :]e-- 7aa7
 ea* su* loan or ext5sion ( cr$it is    
secur$ by real prop]ty t 7toge!r ) any  
improvem5ts !reto7 has a value (        
#bjj1jjj or less 7z calculat$ bas$ on   
pr9cipal am\nt ( ! loan or ext5sion (   
cr$it & ! am\nt ( d[npaym5t1 if any72 & 

7bb7 at lea/ "o su* loan or ext5sion (  
cr$it is secur$ by real prop]ty t       
7toge!r ) any improvem5ts !reto7 has a  
value ( m ?an #ajj1jjj 7z calculat$ bas$
 on pr9cipal am\nt ( ! loan or ext5sion 
( cr$it & ! am\nt ( d[npaym5t1 if any72 
&  7,,iii7 n m ?an #cj prop]ties1 :]e   
ea* su* loan or ext5sion ( cr$it is     
secur$ by real prop]ty t 7toge!r ) any  
improvem5ts !reto7 has a value (        
#ajj1jjj or less 7z calculat$ bas$ on   
pr9cipal am\nt ( ! loan or ext5sion (   
cr$it & ! am\nt ( d[npaym5t1 if any72 & 
7ii7 ea* piece ( real prop]ty describ$  
"u clause 7i7 is own$ by su* a p]son or 
entity & s]ves z security = ! loan or   
ext5sion ( cr$it1 provid$ t su* loan or 
ext5sion ( cr$it--  7,i7 is n made by a 
p]son or entity t has con/ruct$1 or act$
 z a g5]al contractor = ! con/ruction (1
 a resid5ce on ! prop]ty 9 ! ord9>y     
c\rse ( bus9ess ( su* p]son1            
corporation1 association1 e/ate1 or     
tru/2  7,,ii7 is fully amortiz+2        
7,,iii7 is ) respect to a sale = :i* !  

sell] det]m9es 9 good fai? & docum5ts t 
! buy] has a reasonable ability to pay !
 sell]2  7,,iv7 has a fix$ rate or an   
adju/able rate t is adju/able aft] #e or
 m ye>s1 subject to reasonable annual & 
lifetime limitations on int]e/ rate     
increases2 &  7,v7 meets any o!r crit]ia
 ! ,bureau may prescribe2  2 &  7#c7 by 
ins]t+ aft] subp>agraph 7,e7 ! foll[+3  
7,f7 does n include1 ) respect to a     
resid5tial mortgage loan or ext5sion (  
cr$it1 a p]son or entity 7includ+ a     
corporation1 p>tn]%ip1 proprietor%ip1   
association1 coop]ative1 e/ate1 or tru/7
 if--  7i7 ! loan or ext5sion ( cr$it is
 sell] f9anc$ & is a consum] loan or    
ext5sion ( cr$it secur$ by a security   
int]e/ on a manufactur$ home 7z def9$ "u
 section #fjc ( ! ,national ,manufactur$
 ,h\s+ ,con/ruction & ,safety ,/&>ds    
,act ( #aigd72 &  7ii7 ea* home describ$
 "u clause 7i7 is own$ by su* a p]son or
 entity & s]ves z security = ! loan or  
ext5sion ( cr$it1 provid$ t su* loan or 
ext5sion ( cr$it--  7,i7 is n made by a 

p]son or entity t has manufactur$ !     
manufactur$ home2  7,,ii7 is fully      
amortiz+2  7,,iii7 is ) respect to a    
sale = :i* ! sell] det]m9es 9 good fai? 
& docum5ts t ! buy] has a reasonable    
ability to pay ! sell]2  7,,iv7 has a   
fix$ rate or an adju/able rate t is     
adju/able aft] #e or m ye>s1 subject to 
reasonable annual & lifetime limitations
 on int]e/ rate increases2 &  7,v7 meets
 any o!r crit]ia ! ,bureau may          
prescribe2  4  #e4 ,report on sell]     
f9anc+  7a7 ,/udy ,! ,secret>y ( ,h\s+ &
 ,urban ,developm5t & ! ,secret>y ( !   
,treasury %all jo9tly c>ry out a /udy   
on--  7#a7 ! numb] ( homes b\ght = "u   
#bjj1jjj or #fj p]c5t ( ! m$ian home    
value 9 a giv5 community1 :i*ev] is l[]1
 9 ! ,unit$ ,/ates by utiliz+ sell]     
f9anc+ describ$ "u section #b2  7#b7 !  
numb] ( homes describ$ "u p>agraph 7#a7 
f9anc$ by lic5s$ mortgage brok]s or     
depository in/itutions2  7#c7 ! pot5tial
 numb] ( homes describ$ "u p>agraph 7#a7
 :i* c\ld be f9anc$ by lic5s$ mortgage  

brok]s or depository in/itutions b are  
n1 because sell] f9anci]s are unwill+1  
or f a practical /&po9t unable1 to      
comply ) mortgage brok] rules2 &  7#d7 !
 pot5tial b5efit to home values1        
neighborhood /abilization1 & family     
weal? creation ?r\gh af=dable home[n]%ip
 if m homes are able to be sold utiliz+ 
sell] f9anc+4  7b7 ,report ,n lat] ?an !
 end ( ! #a-ye> p]iod beg9n+ on ! date (
 ! enactm5t ( ?is ,act1 ! ,secret>y (   
,h\s+ & ,urban ,developm5t & ! ,secret>y
 ( ! ,treasury %all jo9tly issue a      
report to ! ,committee on ,f9ancial     
,s]vices ( ! ,h\se ( ,repres5tatives & !
 ,committee on ,bank+1 ,h\s+1 & ,urban  
,affairs ( ! ,s5ate conta9+--  7#a7 all 
f9d+s & det]m9ations made 9 c>ry+ out ! 
/udy requir$ "u subsection 7a72 &  7#b7 
data on ! numb] ( transactions utiliz+  
sell] f9anc+ #bj ye>s1 #ae ye>s1 #aj    
ye>s1 & #e ye>s prior to ! date ( !     
enactm5t ( ?is ,act4