I 
115TH CONGRESS 
1ST SESSION H. R. 1360 
To exempt small seller financers from certain licensing requirements. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 2, 2017 
Mr. WILLIAMS (for himself, Mr. CUELLAR, and Mr. BARR) 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Seller Finance En-
hancement Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Real-estate seller 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 
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seller and then makes installment payments to the 
seller over a defined period of time. 
(2) Seller financers provide financing in lieu of 
the buyer choosing to obtain a loan from a bank. 
(3) The seller finance industry consists of small 
business owners who own real estate and provide fi-
nancing on those properties to underserved bor-
rowers who cannot or would prefer not to obtain tra-
ditional financing. 
SEC. 3. EXCEPTION FOR SELLER FINANCERS WITH RE-
SPECT 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 SELLER FINANCERS.—The re-
quirements of this title shall not apply to any person 
(other than a depository institution) who— 
‘‘(1) originates not more than 24 residential 
mortgage loans in a 12-month period; and 
‘‘(2) only originates residential mortgage loans 
that are with respect to property that is owned by 
such person.’’. 
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SEC. 4. REPORT ON SELLER 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 seller financing; 
(2) the number of homes described under para-
graph (1) sold by licensed mortgage brokers; 
(3) the potential number of homes described 
under paragraph (1) which could be sold but aren’t, 
because seller financiers are unwilling, or from a 
practical standpoint unable, to comply with mort-
gage broker rules; and 
(4) the potential benefit to home values and 
wealth creation if more homes are able to be sold 
utilizing seller 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 Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate containing— 
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(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) data on the number of transactions utilizing 
seller financing 20 years, 15 years, 10 years, and 5 
years prior to the date of the enactment of this Act. 
Æ 
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