John A. Meenan
Gatesville, Texas 76528

Dear Sen. John Cornyn,

Texas legislation is known for swift and strong decisions in matters of law for the benefit of its residents and it’s people like you who make that happen, so as one of your constituents, I want to thank you for your service. It is because of this reputation that I write you with matters of the Utmost Urgency.

As a member of the Seller Finance Coalition (SFC), I believe we are creating the perfect storm to Prevent Low-Income, Middle and Working Class people from home ownership permanently in the state of Texas by introducing the Residential Mortgage Loan Company Licensing and Registration Act Bill (H.B. 2656).

Current Federal regulations such as the Dodd Frank Act have virtually eliminated the financing of homes less than $80,000 by banks and other financial institutions because of the cost of compliance. Those wishing to own a home especially in this price-band are left to buy them for cash (nearly impossible for working class) or obtain seller financing.

With Seller Financing, Investors must hire, Residential Mortgage Loan Originators (RMLOs) when originating loans to home buyers to comply with Dodd Frank. Texas is #1 in the Country, providing seller financing to approx. 50,000 home owners per year, so RMLOs are hired FREQUENTLY, for their services.

The bill as it stands only includes exemptions to hire Loan Originators on vacant lots.

In the interest of providing home ownership to the working class, we ask you:

  • Oppose H.B. 2656, the Residential Mortgage Loan Company Licensing and Registration Act Bill
  • Propose an amendment to include exemptions for residential homes, allowing 3rd party RMLOs to be hired when offering seller financing to home buyers

Without the ability to hire 3rd party RMLOs for the creation of loans on lower price-band homes, seller financing is ALL but ELIMINATED and leaves thousands without the privilege of home ownership and the seeds of wealth that come with it.

Thank you for your attention to these important matters.


John Meenan