I 
117TH CONGRESS 
1ST SESSION H. R. 5013 
To exempt small seller financers from certain licensing requirements, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 13, 2021 
Mr. VICENTE GONZALEZ of Texas (for himself 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, and for other purposes. 
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 ‘‘Affordable Homeown-
ership 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 
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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 pro-
vide financing on those properties to underserved 
buyers who cannot or would prefer not to obtain tra-
ditional 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 as-
sist 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, Lease Op-
tions, Lease with Option to Buy and Rent to Own. 
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SEC. 3. EXCEPTION FOR OWNER 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 OWNER FINANCERS.—The re-
quirements of this title shall not apply to any person 
(other than a depository institution) who— 
‘‘(1) extends credit with respect to not more 
than 24 residential mortgage loans in a 12-month 
period; and 
‘‘(2) only extends credit with respect to residen-
tial mortgage loans that are with respect to property 
that is owned by such person.’’. 
SEC. 4. EXCEPTION FOR OWNER FINANCERS IN THE DEFI-
NITION 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 the 
sale of a residential mortgage loan or extension 
of credit relating to a residential property or 
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manufactured home, a person or entity (includ-
ing 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 not more than 24 residential 
mortgage loans or extensions of credit re-
lating to a residential property or manu-
factured home; and 
‘‘(ii) the residential mortgage loan or 
extension of credit [you can’t really own an 
extension of credit] is owned by such a 
person or entity and serves as security for 
the property or manufactured home with 
which the residential mortgage loan or ex-
tension of credit is associated, provided 
that such loan or extension of credit— 
‘‘(I) in the case of a residential 
property, is not made by a person or 
entity that has constructed or acted 
as a general contractor for the con-
struction of a residence on the resi-
dential property which the residential 
mortgage loan is associated in the or-
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dinary course of business of such per-
son or entity; 
‘‘(II) in the case of a manufac-
tured home, is not made by a person 
or entity that has manufactured the 
manufactured home; 
‘‘(III) is fully amortizing; 
‘‘(IV) 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; 
‘‘(V) has a fixed rate or an ad-
justable rate that is adjustable after 5 
or more years, subject to reasonable 
annual and lifetime limitations on in-
terest rate increases; and 
‘‘(VI) meets any other criteria 
the Bureau may prescribe.’’. 
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 residential properties pur-
chased for less than $150,000 or 60 percent of the 
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median home value in a given census tract in the 
United States, whichever is lower, using owner fi-
nancing; 
(2) the number of homes described under para-
graph (1) financed by licensed mortgage brokers; 
(3) the potential number of homes described 
under paragraph (1) which could be sold but have 
not been sold 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 using 
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 Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate containing— 
(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 
owner financing 20 years, 15 years, 10 years, and 
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