Members of Congress want to make a new law that stops big investment companies, known as hedge funds, from buying and owning houses. They introduced a bill called the End Hedge Fund Control of American Homes Act of 2023. This law says that hedge funds must sell the houses they have owned for over 10 years and can’t own any more after that. During this time, there will be big fines, and the money from these fines will help people buy homes.

If this law passes, it could change how the housing market works and make it easier for regular people to buy houses. Right now, it’s hard for people because home prices and loan rates are very high.

The people introducing this law, like Senator Jeff Merkley and Representative Adam Smith, say it’s important because regular people are competing with rich investors, making homes more expensive. They believe this law can make it fairer for everyone.

There’s another law called the American Neighborhoods Protection Act, which wants big companies owning many houses to pay money to help families buy homes.

But, because there are different opinions in Congress, these laws might not become actual laws this time. The lawmakers still want to talk about these issues, though.

This idea comes after a news story about how big investors are buying lots of houses in cash, especially in places like Charlotte, N.C. This makes it tough for regular people to buy homes.

Some people, like David Howard from the National Rental Home Council, think the real problem is not enough new houses being built. He says we need 2 to 6.5 million new homes. Others, though, think these laws can help by stopping big investors from making housing just a way to make money.

In this discussion, professionals like Scott Wenhe with Wenhe Mortgage and Realty can help people understand what’s happening in the mortgage market. As this debate goes on, people in the real estate industry, like Scott Wenhe, share important information to help everyone find a good balance between solving housing problems and building more homes.