National REIA June 2016
Seller Finance: HR 5301 has been introduced in the US House of Representatives by Rep. Roger Williams (R-TX) and Rep. Henry Cuellar (D-TX). Titled as the Seller Finance Enhancement Act, the bill will increase the ability of seller-financed properties from 3 per year to 24 per year. The 2 per month average was considered a reasonable request to the excessive restriction put in place by Dodd/Frank legislation during the recession. Additionally, HR 5301 would require the Treasury Department to study the housing finance market over the next 3 years and report back to Congress with suggestions for steps to improve the sales and financing of these homes, especially those with valuations below $150,000 or 60% of the regional median housing value.
HR 5301 keeps in place key consumer safeguards set in place by Dodd-Frank such as limits on interest and balloon payments. The Seller Financing Coalition , which National REIA is a member has been working diligently to see this bill come forward and will continue to grow the number of sponsors as passage is ultimately sought.
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