H.R. 6511

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6511 Introduced in House (IH)]

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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.
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