Statutory relief for the Seller Financing community could soon be on the way. In late September Congressman Roger Williams (R-TX) plans to introduce the “Seller Finance Regulation Reduction Act.” You may recall that Rep. Williams introduced similar legislation in 2014 after hearing from many small business owners and real estate investors being hit by the unintended consequences of Dodd-Frank. This legislation amends the S.A.F.E. Mortgage Licensing Act of 2008 and the Truth in Lending Act. The proposal will change the language in both laws so it no longer applies to Seller Financers who have less than $2 billion in assets and originate less than 2k residential mortgage loans per year. The proposal also makes it a point to emphasize that “the seller finance community consists of small business owners who own real estate and provide financing on those properties to underserved borrowers who cannot obtain traditional financing” MAREI as a very small member of the Seller Financing Coalition, will be monitoring this legislation closely and will update MAREI members accordingly.
The Seller Finance Coalition recently released the below Press Release:
Press Release from the Seller Finance Coalition:
The Seller Finance Coalition is proud to announce that we expect The Seller Finance Regulation Reduction Act to be introduced in Congress by Congressmen Roger Williams (R-TX) and Henry Cuellar (D-TX). The Seller Finance Regulation Reduction Act will protect our industry against the over-regulation by the federal bureaucracy. The Bill has been sent to the House Committee on Financial Services for review.
“It is extremely important for everyone involved in the seller finance industry, from the small business owner to the potential homeowner whose only path to homeownership is through seller financing, that we all join together to make a concerted effort to achieve regulatory relief from the burdens, a lot of them as a result of unintended consequences, from Dodd-Frank and CFPB legislation. The introduction and passage of this bill will have an immediate impact on all of us working hard every day to improve homeownership opportunities in neighborhoods across our country.”
-Bob Repass, Managing Director of The Colonial Funding Group
The Seller Finance Regulation Reduction Act would exempt any person, who has less than $2,000,000 in assets and originates less than 2,000 residential mortgage loans a year with respect to property that is owned by the person, from the SAFE Mortgage Licensing Act of 2008.
It would also amend the Truth in Lending Act with respect to minimum standards for residential mortgage loans, to prohibit, in determining whether a residential mortgage loan is a qualified mortgage, from applying to loans originated by such a person certain guidelines and regulations relating to ratios of total monthly debt to monthly income.
The Seller Finance Coalition would like to thank Congressman Williams, Congressman Cuellar and both of their staffs for introducing the bill and continuing their advocacy on behalf of the small business community.
We urge all members of the Seller Finance Coalition to contact their representative and support this bill. If you need help finding your representative or have any other questions, please visit our websitewww.sellerfinancecoalition.org
Find your member of Congress: https://www.govtrack.us/congress/members