Sec. 302. FHA small-dollar mortgages
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/bill/119/hr/6644/rh/section-302A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 1 year after the date of the enactment of this section, the Secretary of Housing and Urban Development, acting through the Federal Housing Commissioner, may establish a pilot program to increase access to small-dollar mortgages for mortgagors which may include— authorizing direct payments to mortgagees to incentivize the origination of small-dollar mortgages; adjusting terms and costs imposed by the Federal Housing Administration with respect to small-dollar mortgages; providing direct grants for mortgagors who obtain small-dollar mortgages to cover costs associated with— down payments; closing costs; appraisals; and title insurance; conducting outreach to potential mortgagors about the availability of small-dollar mortgages; and providing technical assistance for mortgagees that originate small-dollar mortgages.
Beginning not later than 1 year after the establishment of the pilot program under subsection
(a)and ending 1 year after the sunset of the pilot program, the Federal Housing Commissioner shall submit to the Congress an annual report that— tracks and evaluates the outcomes of small-dollar mortgages originated by mortgagees as a result of support provided under subsection (a); analyzes risks of the pilot program to the solvency of the Mutual Mortgage Insurance Fund; includes data with respect to— the number of small-dollar mortgages originated in the 10-year period preceding the date of the enactment of this section, including small-dollar mortgages insured or guaranteed by the Federal Government and small-dollar mortgages not insured by the Federal Government; the original principal balance of each small-dollar mortgage identified under subparagraph (A); demographic information about the mortgagors associated with each such small-dollar mortgages; and the number and type of mortgagees that offer small-dollar mortgages; provides a description of the fixed costs that are associated with mortgages and the impact of such costs on the ability of lenders to earn a market rate return on small-dollar mortgages; and includes analysis, by regions of the United States, including rural regions, that identifies regions with the greatest need for, and the highest likelihood of, the origination of small-dollar mortgages and regions that could benefit the most from increased availability of small-dollar mortgages. The pilot program established under subsection
(a)shall terminate on the date that is 4 years after the date on which the pilot program is established under subsection (a). After the expiration of the 3-year period beginning on the date of enactment of this section, neither the Federal Housing Commissioner nor the Secretary of Housing and Urban Development may newly establish a pilot program to increase access to small-dollar mortgages for mortgagors. The term small-dollar mortgage means a mortgage that— has an original principal balance of $100,000 or less; and is secured by a 1- to 4-unit property that is the principal residence of the mortgagor.