The Seller Finance Coalition (SFC) is excited to announce the introduction of H.R.5301, The Seller Finance Relief Act. We thank our Co-Leaders, Rep. Roger Williams (TX-25) and Rep. Henry Cuellar (TX-28), as well as original co-sponsors Rep. Jim Bridenstine (OK -1), Rep. Alan Grayson (FL- 9) Rep. Mick Mulvaney (SC -5), Rep. Randy Neugebauer (TX-19), and Rep. Bobby Rush (IL-1). We look forward to working with Congress to enact this legislation into law this Congress.
The Seller Finance Coalition was formed in February of 2014 to advance the interest of the seller finance industry and to promote home ownership for consumers. The SFC was founded by Glenn Lee of Texas Funding, Bob Repass and Eddie Speed of Colonial Funding Group, Scot Campbell of S.R. Campbell Properties, and Doug Smith of My House Deals, and quickly grew to include other prominent members. Last year the National Real Estate Investment Association joined as our largest member bringing with it over 40,000 members nationwide.
This bill makes minor changes to the rules governing this market to allow for more flexibility and greater dynamism. Below is information on HR 5301:
• HR 5301 amends the Dodd/Frank to allow up to 2 seller-financed transactions per month (24/yr.) without the need for the seller to be licensed as a mortgage originator.
• HR 5301 requires the Treasury Department to study the LVH market over the next 3 years and report back to Congress with suggestions for steps to improve the sales and financing of these homes.
• HR 5301 does not remove any of the safeguards related to these transactions. Seller financiers must still comply with “ability-to-pay” portions of Dodd-Frank, as well as interest rate rules and the ban on balloon payments.
HR 5301 helps ease the credit crunch in the LVH market by giving seller financiers the opportunity to provide this much-needed service to underserved buyers and small businesses.