1. Short title
This Act may be cited as the “Seller Finance Regulation Reduction Act”.
Seller Finance Regulation Reduction Act
A BILL
To exempt small mortgage originators from certain licensing requirements and debt-to-income requirements for qualified mortgages.
2. Exemptions for seller financers
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 requirements of this title shall not apply to any person (other than a depository institution) who—
“(1) has less than $25,000,000 in assets; and
“(2) only originates residential mortgage loans that—
“(A) are with respect to property that is owned by such person; and
“(B) are in an amount of $150,000 or less.”
Debt-to-Income ratios under qualified mortgages— Section 129C(b)(2)(A) of the Truth in Lending Act (15 U.S.C. 1639c(b)(2)(A)) is amended by inserting at the end the following flush-left text: