Sen. Schumer Introduces Resolution to Restore Protections for Home Buyers Using Land Contracts
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".
This bill is currently in the early stages of the legislative process. It has been sent to the Senate Committee on Banking, Housing, and Urban Affairs for review. No further actions are scheduled at this time.
Passage Likelihood
Legislative Progress
Key Points
- This resolution uses the Congressional Review Act to block the CFPB's decision to withdraw consumer protections for home sales financed through contracts for deed (also called land contracts). If passed, the original protections from 2024 would be restored.
From policy text
“Congress disapproves 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 (89 Fed. Reg. 68086 (August 23, 2024))'' (90 Fed. Reg. 20084 (May 12, 2025)), and such rule shall have no force or effect.”
View in full text - Contracts for deed are home purchase agreements where the seller keeps the legal title until the buyer finishes paying off the full price. Buyers in these deals often lack the protections that come with traditional mortgages, such as clear cost disclosures and ability-to-repay checks.
- The resolution was introduced by Sen. Schumer and referred to the Senate Committee on Banking, Housing, and Urban Affairs. As a Congressional Review Act resolution, it follows a special fast-track process if it gains enough support.
From policy text
“Mr. Schumer introduced the following joint resolution; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs”
View in full text - If enacted, sellers financing home sales through contracts for deed would need to follow Truth in Lending Act rules, including disclosing the full cost of the deal and verifying that buyers can afford the payments before finalizing the agreement.
Impact Analysis
Personal Impact
Milestones
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Source Information
Document Type
Congressional Bill
Official Title
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".
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