Stopping Wall Street From Competing With Main Street Homebuyers Act

This bill amends the Investment Company Act of 1940 to restrict certain large investment entities from acquiring single-family homes, aiming to prevent significant financial institutions from competing with individual homebuyers in the housing market. Specifically, the legislation prohibits "covered funds" from purchasing single-family homes starting 90 days after its enactment. A covered fund includes registered investment companies, real estate investment trusts, or private funds with over $500 million in assets under management , or those that previously owned 100 or more single-family homes or purchased more than five in a 30-day period. Furthermore, the bill mandates that these covered funds must divest all single-family homes they currently hold within 10 years of the bill's enactment. This divestment must occur in a phased manner, requiring at least 10 percent of their holdings to be sold annually over the decade.