,,ii  #aahth ,,congress  #b;d ,session  
,s4 #cgbj  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,february #a1  
#bjbd,ms4 ,smith 7for herself and ,ms4  
,lummis7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,banking1 ,housing1 and  
,urban ,affairs  ,a ,,bill  ,to amend   
the ,consumer ,credit ,protection ,act  
to provide for additional requirements  
for land installment contract           
transactions4  #a4 ,short title ,this   
,act may be cited as the ,preserving    
,pathways to ,homeownership ,act of     
#bjbd4  #b4 ,land installment contracts 
,the ,consumer ,credit ,protection ,act 
7#ae ,u4,s4,c4 #afja et seq47 is amended
 by adding at the end the following3  ,x
 ,land installment contracts  #ajja4    
,findings and purposes  7a7 ,findings   
,congress finds the following3 7#a7     
,land installment contracts1 when used  
to purchase a home1 are a form of       
consumer credit transaction under the   
,truth in ,lending ,act 7#ae ,u4,s4,c4  

#afja et seq47 in that the contracts    
create a debt1 which is the purchase    
price1 and defer the payment of the     
debt4  7#b7 ,the lack of recordation of 
land installment contracts in real      
estate records subjects buyers to the   
risk of other creditors superseding     
their interest in the land despite the  
extensive investment of the buyer in the
 home4  7#c7 ,the frequency of use of   
land installment contracts varies by    
region4 ,states differ in treatment of  
how the contracts are recorded and the  
use of forfeiture and foreclosure to    
terminate the contracts4 ,buyers1       
therefore1 are afforded different       
protections because of the location of  
the property they purchase1 making this 
an issue that ,congress must address4   
7#d7 ,land installment contracts involve
 interstate commerce because credit is  
often extended across ,state lines by   
the sellers or to the sellers to finance
 the acquisition of the home in order to
 offer it for sale through a land       

installment contract4 ,buyers entering  
into land installment contracts are     
frequently solicited over the phone1    
through the mails1 through internet     
advertisements1 and through other       
electronic communications4 ,buyers use  
interstate commerce to enter into the   
transaction1 to make payments on the    
transaction1 and to obtain parts and    
services required to make repairs to the
 home as contemplated by the            
transaction4  7b7 ,purposes ,the        
purposes of this title are-- 7#a7 to    
ensure basic consumer protections in    
land installment contract transactions  
to ensure that buyers have their        
interests in the home protected from    
other creditors or claimants in the real
 estate market2 and  7#b7 to protect    
consumers against unfair forfeitures of 
equity after making payments through a  
consumer credit transaction4  #ajjb4    
,definitions ,in this title3 7#a7       
,covered land installment contract      
transaction ,the term covered land      

installment contract transaction means a
 sale of residential real property      
involving a land installment contract1  
if the residential real property has not
 been the principal place of residence  
of the seller during the preceding #b   
years4  7#b7 ,land installment contract 
,the term land installment contract     
means an agreement under which-- 7,a7 a 
seller agrees to sell an interest in    
real property to a purchaser2  7,b7 the 
purchaser agrees to pay the purchase    
price in installments2 and  7,c7 the    
seller retains title to the real        
property as security for the obligation 
of the purchaser under the agreement4   
7#c7 ,seller ,the term seller means--   
7,a7 an individual or entity selling an 
interest in residential real property2  
7,b7 any party related to the seller1 as
 defined by section #bfg7;b7 of the     
,internal ,revenue ,code of #aihf2 and  
7,c7 any assignee or transferee of a    
seller not described in subparagraph    
7,b74  #ajjc4 ,governance of land       

installment contract transactions  7a7  
,in general ,the ,states shall1 not     
later than #b years after the date of   
enactment of this title1 enhance        
consumer protection for covered land    
installment contract transactions by    
enacting the requirements described in  
subsections 7b7 and 7c74  7b7           
,recordation  7#a7 ,in general ,the     
seller in a covered land installment    
contract transaction shall record the   
executory contract with the office where
 deeds are recorded not later than #e   
days after the date on which the        
contract is executed4  7#b7 ,states     
7,a7 ,in general ,the ,states shall1 by 
law 7including regulations7 deter       
noncompliance with the recordation      
requirement by-- 7i7 prohibiting the    
seller from compelling performance of   
the land installment contract or        
exercising remedies pursuant to the     
contract if the contract is not recorded
 in accordance with paragraph 7#a72     
7ii7 providing the buyer the right to   

rescind the land installment contract   
and receive a refund for any payments   
made to the seller in connection with   
the land installment contract           
transaction2  7iii7 providing that any  
violation of the requirements imposed in
 compliance with this paragraph shall   
give rise to liability in the same      
manner and by the same means as under   
paragraphs 7#a7 and 7#b7 of section     
#adj7;a7 of the ,truth in ,lending ,act 
7#ae ,u4,s4,c4 #afdj7;a772 and  7iv7    
providing authority to enforce          
compliance with the recordation         
requirement to an appropriate           
enforcement body4  7,b7 ,additional     
penalties for noncompliance ,nothing in 
subparagraph 7,a7 shall prevent a ,state
 from imposing additional penalties for 
noncompliance if the penalties are      
greater than the potential harm a       
purchaser may suffer1 or the gain a     
seller may realize1 as a result of the  
failure of the seller to record a       
contract in accordance with paragraph   

7#a74  7c7 ,protection of purchaser's   
equity ,if a purchaser defaults1 the    
seller may liquidate the interest of the
 purchaser in the property pursuant to  
the residential mortgage foreclosure law
 of the ,state1 including all notice and
 curative requirements therein4 ,the    
seller may not enforce the remedy of    
rescission or forfeiture and no such    
remedy within a land installment        
contract shall be binding on the        
purchaser4  7d7 ,regulations ,if the    
,director of the ,bureau of ,consumer   
,financial ,protection determines that a
 ,state does not have the requirements  
described in subsections 7b7 and 7c7 in 
effect by law 7including regulations7 on
 the date that is #b years after the    
date of enactment of this title1 the    
,director shall adopt rules applicable  
to that ,state that achieve the purposes
 of subsection 7a7 that are consistent  
with the standards adopted in the       
,states that have the requirements of   
subsections 7b7 and 7c7 in effect4 ,the 

,director may extend the deadline under 
this subsection for not more than #a    
year if a ,state has shown a good faith 
effort towards implementation4 ,the     
,director may promulgate regulations to 
monitor ,state compliance with this     
section4  7e7 ,applicability ,the       
requirements described in subsections   
7b7 and 7c7 shall only apply to covered 
land contract transactions entered into 
after such requirements are in effect by
 law 7including regulations74  4