Affordable Homeownership Access Act
- Bill Number
- H.R. 6511
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-12-09: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-02-11T09:06:12Z
AI-Generated Summary
Purpose
The Affordable Homeownership Access Act aims to promote affordable homeownership by exempting small-scale owner financers—individuals or entities that sell their own properties and provide financing to buyers—from certain federal licensing requirements for mortgage originators. This is intended to help underserved buyers who cannot easily obtain traditional bank loans, while ensuring basic consumer protections remain in place.
Key Provisions
- Exemptions from Licensing Requirements:
- Under the S.A.F.E. Mortgage Licensing Act of 2008, individuals or entities (excluding banks) are exempt if they finance no more than 24 residential mortgage loans in a 12-month period and only for properties they own.
- Under the Truth in Lending Act, the definition of a "mortgage originator" excludes small owner financers for residential property sales or manufactured home sales, provided:
- They finance no more than 24 properties in a 12-month period.
- The properties are owned by the financer and serve as loan security.
- Loans are fully amortizing (paid off over time with regular payments reducing principal).
- The owner documents in good faith that the buyer has a reasonable ability to repay.
- Interest rates are fixed or adjustable only after 5+ years, with reasonable limits on increases.
- The financer is not a builder, general contractor, or manufacturer involved in constructing or making the property/home.
- Additional criteria may be set by the Consumer Financial Protection Bureau (CFPB) through rules.
- Scope Limitations: Exemptions do not apply to risky arrangements like unrecorded Contracts for Deed, Lease Options, or Rent-to-Own deals.
- Study and Report Requirement: The Secretary of Housing and Urban Development (HUD) and the Secretary of the Treasury must jointly study owner financing for low-cost homes (under $150,000 or 60% of local median value). The study covers current usage, barriers due to licensing, and potential benefits for home values and wealth-building. A report with findings and historical data (from 5, 10, 15, and 20 years prior) must be submitted to relevant congressional committees within one year of enactment.
Significant Changes to Existing Law
- Amends the S.A.F.E. Mortgage Licensing Act by adding a new exception (Section 1504(c)) for small owner financers, removing the need for loan originator licenses or registrations.
- Modifies the Truth in Lending Act's definition of "mortgage originator" (15 U.S.C. 1602(dd)(2)) by expanding exclusions for owner-financed deals, including a new subparagraph for manufactured homes. This shifts some regulatory oversight to state laws on consumer protection, fair housing, and usury (limits on interest rates).
- Introduces federal requirements for documentation and loan terms in exempted transactions, balancing deregulation with safeguards not previously mandated for these small-scale activities.
Potential Impacts
- On Citizens: Could increase access to homeownership for low-income or credit-challenged buyers by making owner financing more viable, potentially boosting family wealth and neighborhood stability through higher home sales and values. However, it relies on state laws for protections against unfair practices.
- On Government Agencies: HUD and Treasury face a one-time study obligation, which may inform future housing policy. The CFPB gains authority to add rules, potentially increasing administrative workload. No direct international relations impacts.
- On the Economy/Market: May encourage more sales of affordable homes that might otherwise sit unsold due to financing hurdles, supporting small real estate businesses without overburdening federal regulators.
Main Stakeholders Affected
- Small Owner Financers: Primarily small business owners or individuals selling their own properties, who benefit from reduced licensing costs and paperwork.
- Home Buyers: Underserved groups (e.g., those unable to qualify for bank loans) who gain easier access to financing options.
- Real Estate Industry: Includes sellers, brokers, and communities in low-income areas, potentially seeing more transactions and stabilization.
- Regulators and Government: HUD, Treasury, CFPB, and state agencies handling consumer protection, fair housing, and real estate laws.
- Excluded Parties: Builders, contractors, and manufacturers cannot use exemptions, preserving scrutiny on larger-scale operations.
Notable Legal, Constitutional, or Political Implications
- Legal: Maintains core consumer safeguards (e.g., ability-to-repay checks) while easing federal burdens on small actors, potentially reducing litigation over licensing compliance. Relies on states for enforcement, which could lead to varying protections across the U.S.
- Constitutional: No direct challenges; aligns with Congress's commerce clause authority over lending and housing markets, promoting equal access without infringing on due process or equal protection.
- Political: Introduced bipartisans (by Reps. Barr and Vicente Gonzalez), it addresses housing affordability—a key issue—by deregulating small transactions to aid wealth-building in underserved communities, though critics might argue it risks weaker oversight compared to traditional mortgages. The required report could shape future bipartisan housing reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Rep. Gonzalez, Vicente [D-TX-34], Rep. Alford, Mark [R-MO-4], Rep. Webster, Daniel [R-FL-11], Rep. Houchin, Erin [R-IN-9]
Recent Actions
- 2025-12-09: Referred to the House Committee on Financial Services.
- 2025-12-09: Introduced in House
- 2025-12-09: Introduced in House
Bill Versions
- Affordable Homeownership Access Act — issued 2025-12-09 — PDF (7 pages)