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Code · BILL · 118th Congress · S. 2860 (Introduced in Senate) — To create protections for financial institutions that provide financial services to State-sanctioned marijuana busine... · Sec. 9

Sec. 9. Treatment of income derived from a State-sanctioned marijuana business for qualification for a covered mortgage loan

496 words·~2 min read·/bill/118/s/2860/is/section-9

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In this section, the term covered mortgage loan means any loan secured by a first or subordinate lien on residential real property, including individual units of condominiums and cooperatives, designed principally for the occupancy of 1 to 4 families that is— insured by the Federal Housing Administration under title I or title II of the National Housing Act (12 U.S.C. 1702 et seq., 1707 et seq.); insured under section 255 of the National Housing Act (12 U.S.C. 1715z–20); guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b); guaranteed, insured, or made by the Department of Veterans Affairs; guaranteed, insured, or made by the Department of Agriculture; purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association; or acquired or purchased by a Federal Home Loan Bank or pledged as collateral for an advance from a Federal Home Loan Bank.
Income derived from a State-sanctioned marijuana business that operates within a State, an Indian Tribe, or a political subdivision of a State that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of marijuana pursuant to a law or regulation of the State, Indian Tribe, or political subdivision, as applicable, or a service provider (wherever located), shall be considered in the same manner as any other legal income for purposes of determining eligibility for a covered mortgage loan for a 1- to 4-unit property that is the principal residence of the mortgagor.
The mortgagee or servicer of a covered mortgage loan described in paragraph (1), or any Federal agency, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation, may not be held liable pursuant to any Federal law or regulation solely for— providing, insuring, guaranteeing, purchasing, or securitizing a mortgage to an otherwise qualified borrower on the basis of the income described in paragraph (1); or accepting the income described in paragraph
(1)as payment on the covered mortgage loan. Not later than 180 days after the date of enactment of this Act— the Federal Housing Administration shall implement subsection (b)— by notice or mortgagee letter for loans insured under title I, title II, or section 255 of the National Housing Act (12 U.S.C. 1702 et seq., 1707 et seq., 1715z–20); and by lender letter for loans guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b); the Department of Veterans Affairs shall implement subsection
(b)by circular or handbook for loans guaranteed, insured, or made by the Department; the Department of Agriculture shall implement subsection
(b)by bulletin for loans guaranteed or made by the Department; the Federal Home Loan Mortgage Corporation shall implement subsection
(b)by updating its Single-Family Seller/Servicer Guide for loans purchased or securitized by the Corporation; and the Federal National Mortgage Association shall implement subsection
(b)by updating its Single Family Selling Guide for loans purchased or securitized by the Association.
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  • 12 USC 1715z–20
  • 12 USC 1715z–13a
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Sec. 9
Treatment of income derived from a State-sanctioned marijuana business for qualification for a covered mortgage loan
Cite12 USC 1715z–20
Cite12 USC 1715z–13a
Cites 3Cited by 0 across 0 sources
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