A federal judge has ruled that the Consumer Financial Protection Bureau has the authority to investigate seller installment home sales (a.k.a. seller carry backs).
Judge Nancy G. Edmunds of Federal District Court in Detroit has ruled that one of the nation’s largest providers of seller-financed homes must comply with a demand for documents and other information from the CFPB.
The bureau has been looking into whether the terms of some of these contract for deed sales violated federal truth-in-lending laws as private investment firms have stepped in to offer alternative financing since banks often will not lend to them.
