A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Truth in lending (Regulation Z); Consumer Protections for Home Sales Financed Under Contracts for Deed".

Plain-English Summary

This bill is a "resolution of disapproval," which is a tool Congress can use to cancel or reverse a rule that a federal agency has already put in place. Specifically, this resolution targets a decision made by the Consumer Financial Protection Bureau (CFPB) to withdraw an existing consumer protection rule related to "contracts for deed" — a particular type of home financing arrangement. In other words, the CFPB previously decided to pull back a rule that had been designed to protect home buyers who use contracts for deed, and this congressional resolution is attempting to reverse that withdrawal and effectively restore those protections.

A contract for deed (sometimes called a land contract or installment sale agreement) is a way of buying a home where the seller, rather than a bank, finances the purchase. The buyer makes payments directly to the seller but does not officially receive the deed or legal ownership of the home until the loan is fully paid off. This arrangement is often used by buyers who cannot qualify for traditional mortgages, and critics have raised concerns that it can leave buyers vulnerable to unfair terms or losing their home and payments if they miss even one payment.

The original CFPB rule that was withdrawn would have required sellers using contracts for deed to provide buyers with clear, standardized disclosures about loan terms — similar to the protections borrowers get with traditional mortgages under federal Truth in Lending laws. This bill would tell the CFPB its decision to withdraw those protections was unacceptable, and would reinstate the requirement for those disclosures. It would primarily affect lower-income home buyers, sellers who finance home purchases directly, and communities where contracts for deed are commonly used.

The bill was introduced in the Senate and has been referred to the Senate Committee on Banking, Housing, and Urban Affairs, which will decide whether to advance it further.