Bill Summary
This joint resolution is a formal disapproval by Congress of a rule issued by the Bureau of Consumer Financial Protection (CFPB) concerning the withdrawal of specific consumer protection regulations related to "Truth in Lending" under Regulation Z. The rule in question pertains to consumer protections for home sales that are financed through contracts for deed. By passing this resolution, Congress asserts that the withdrawal of the existing protections is not acceptable, thereby ensuring that the rule remains in effect and continues to provide safeguards for consumers involved in such financial transactions.
Possible Impacts
The legislation as described provides for congressional disapproval of a rule by the Bureau of Consumer Financial Protection that relates to consumer protections for home sales financed under contracts for deed. Here are three examples of how this disapproval could affect people:
1. **Increased Risk for Consumers**: By disapproving the rule that enhances consumer protections under Regulation Z, individuals who engage in home sales financed through contracts for deed may face increased risks. This can lead to situations where buyers are not adequately informed about the terms of their agreements, resulting in potential financial exploitation or unfavorable loan conditions.
2. **Reduced Transparency in Home Financing**: The absence of the protections that the rule aimed to provide could lead to a lack of transparency in financial transactions related to home sales. Consumers may not receive clear disclosures regarding interest rates, fees, and other critical terms of the contract, making it difficult for them to make informed decisions when purchasing a home.
3. **Impact on Housing Stability**: The disapproval of the rule might contribute to housing instability for low- to moderate-income families who often rely on contracts for deed as an avenue to homeownership. Without the regulatory protections, these families could face increased foreclosure risks or unfair eviction practices, jeopardizing their housing security and overall financial well-being.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S.J. Res. 149 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. J. RES. 149
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''.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 26, 2026
Mr. Schumer introduced the following joint resolution; which was read
twice and referred to the Committee on Banking, Housing, and Urban
Affairs
_______________________________________________________________________
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''.
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That 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.
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