That has been the case with the new rules governing the financial industry implemented over the past few years which were supposed to target Wall Street and big banks. Instead, the Seller Finance industry has taken a direct hit, and our very existence is threatened. Our small business entrepreneurs have been unfairly targeted by the regulations included in the Dodd-Frank bill. Seller finance business owners did not cause the mortgage crisis. We did not receive any government bailouts. We have gotten caught up in the sweeping legislation aimed at the large banks. The phrase “too big to fail” certainly does not apply to us.
The Seller Financing Fix
Small businesses like us that have never been part of the problem but have always been part of the solution continue to be crushed by the burdens the law has put on us. We need help and we need it fast. Many of our members have been forced to exit the business and invest in other type of real estate investments.
The Affordable Homeownership Access Act H.R. 3464 amends the SAFE Act, Dodd-Frank Act and TILA Act to increase the number of allowed transactions on residential properties from three to 24 sales in a 12-month period.
In addition, The Affordable Homeownership Access Act H.R.3464 does not remove any of the safeguards relating that seller financing is governed by each State’s particular real estate and consumer protection laws (including ability to repay, deceptive trade practices, and usury laws), as well as State and Federal housing and equal opportunity laws.
Benefits of seller financing include appreciation of home values, neighborhood stabilization and family wealth creation. According to the latest survey data in the Federal Reserve’s Survey of Consumer Finances, the net worth of a homeowner is over 44 times greater than that of a long term renter.