Exception for owner financers in the definition of mortgage originator

Subparagraph (E) of section 103(dd)(2) of the Truth in Lending Act (15 U.S.C. 1602(dd)(2)) is amended— (1) by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively; (2) by amending subparagraph (E) to read as follows: (E) 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— (i) such a person or entity provides owner financing, in a 12-month period, for the sale of 24 properties; and (ii) 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— (I) 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; (II) is fully amortizing; (III) is with respect to a sale for which the owner determines in good faith and documents that the buyer has a reasonable ability to pay the owner; (IV) 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 (V) meets any other criteria the Bureau may prescribe by rule;; and (3) by inserting after subparagraph (E) the following: (F) 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— (i) the loan or extension of credit is owner 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 (ii) 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— (I) is not made by a person or entity that has manufactured the manufactured home; (II) is fully amortizing; (III) is with respect to a sale for which the owner determines in good faith and documents that the buyer has a reasonable ability to pay the owner; (IV) 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 (V) meets any other criteria the Bureau may prescribe by rule;.