Sec. 4. Exception for seller financers in the definition of mortgage originator
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Subparagraph
(E)of section 103(dd)(2) of the Truth in Lending Act ( 15 U.S.C. 1602(dd)(2) ) is amended— by redesignating subparagraphs
(F)and
(G)as subparagraphs
(G)and (H), respectively; by amending subparagraph
(E)to read as follows: does not include, with respect to a residential mortgage sale, a person or entity (including a corporation, partnership, proprietorship, association, cooperative, estate, or trust) if— such a person or entity provides seller financing, in a 12-month period, for the sale of— no property where the loan or extension of credit is secured by real property that (together with any improvements thereto) has a value of more than $200,000 (as calculated based on principal amount of the loan or extension of credit and the amount of downpayment, if any); not more than 20 properties, where— each such loan or extension of credit is secured by real property that (together with any improvements thereto) has a value of $200,000 or less (as calculated based on principal amount of the loan or extension of credit and the amount of downpayment, if any); and at least one such loan or extension of credit is secured by real property that (together with any improvements thereto) has a value of more than $100,000 (as calculated based on principal amount of the loan or extension of credit and the amount of downpayment, if any); and not more than 30 properties, where each such loan or extension of credit is secured by real property that (together with any improvements thereto) has a value of $100,000 or less (as calculated based on principal amount of the loan or extension of credit and the amount of downpayment, if any); and each piece of real property described under clause
(i)is owned by such a person or entity and serves as security for the loan or extension of credit, provided that such loan or extension of credit— is not made by a person or entity that has constructed, or acted as a general contractor for the construction of, a residence on the property in the ordinary course of business of such person, corporation, association, estate, or trust; is fully amortizing; is with respect to a sale for which the seller determines in good faith and documents that the buyer has a reasonable ability to pay the seller; has a fixed rate or an adjustable rate that is adjustable after 5 or more years, subject to reasonable annual and lifetime limitations on interest rate increases; and meets any other criteria the Bureau may prescribe; ; and by inserting after subparagraph
(E)the following: does not include, with respect to a residential mortgage loan or extension of credit, a person or entity (including a corporation, partnership, proprietorship, association, cooperative, estate, or trust) if— the loan or extension of credit is seller financed and is a consumer loan or extension of credit secured by a security interest on a manufactured home (as defined under section 603 of the National Manufactured Housing Construction and Safety Standards Act of 1974); and each home described under clause
(i)is owned by such a person or entity and serves as security for the loan or extension of credit, provided that such loan or extension of credit— is not made by a person or entity that has manufactured the manufactured home; is fully amortizing; is with respect to a sale for which the seller determines in good faith and documents that the buyer has a reasonable ability to pay the seller; has a fixed rate or an adjustable rate that is adjustable after 5 or more years, subject to reasonable annual and lifetime limitations on interest rate increases; and meets any other criteria the Bureau may prescribe; .
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Sec. 4
Exception for seller financers in the definition of mortgage originator
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