Bill > HR6511

This bill aims to provide an exemption for small-scale property owners who engage in owner financing from certain mortgage lending regulations. Specifically, the bill would exempt individuals who provide owner financing (a transaction where the property owner directly finances the sale of their property to a buyer) from loan originator licensing requirements if they sell 24 or fewer residential properties in a 12-month period. The bill includes several important protections, such as requiring that the financed properties be owned by the seller, that the loans be fully amortizing, and that the seller determines in good faith that the buyer has a reasonable ability to repay the loan. The legislation also excludes certain types of transactions like Contracts for Deed and Lease Options. Additionally, the bill mandates a study by the Secretaries of Housing and Urban Development and the Treasury to examine the impact of owner financing on home sales, particularly for lower-priced properties, and to assess the potential benefits of owner financing for home values and wealth creation. The study would provide data on owner financing transactions over the past 20 years and report findings to congressional committees, with the goal of understanding how these alternative financing methods might help underserved buyers access homeownership.

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https://www.congress.gov/bill/119th-congress/house-bill/6511/all-info