Plain English summary not yet available
The full original text is available below. Check back soon as we process this bill.
I
117TH CONGRESS
1ST SESSION H. R. 3861
To amend the National Housing Act to revise the treatment of student
loan debt in the underwriting of FHA loans, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 14, 2021
Mr. MEEKS (for himself and Ms. WILLIAMS of Georgia) introduced the
following bill; which was referred to the Committee on Financial Services
A BILL
To amend the National Housing Act to revise the treatment
of student loan debt in the underwriting of FHA loans,
and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Making FHA Work
4
for Borrowers with Student Debt Act of 2021’’.
5
SEC. 2. TREATMENT OF STUDENT LOAN DEBT BEING RE-
6
PAID.
7
Section 203 of the National Housing Act (12 U.S.C.
8
1709) is amended by inserting after subsection (r) the fol-
9
lowing new subsection:
10
VerDate Sep 11 2014
17:43 Jun 30, 2021
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3861.IH
H3861
lotter on DSK11XQN23PROD with BILLS
2
•HR 3861 IH
‘‘(s) TREATMENT OF STUDENT LOAN DEBT BEING
1
REPAID.—
2
‘‘(1) IN GENERAL.—In determining eligibility of
3
single-family mortgages, and mortgagors under such
4
mortgages, for insurance under this title, for pur-
5
poses of any calculation of the amount of liabilities
6
of a mortgagor, or comparison of the amount of
7
such liabilities to the income of the mortgagor, the
8
Secretary shall consider a covered educational liabil-
9
ity to be—
10
‘‘(A) except as provided in subparagraph
11
(B), in the same monthly amount as the
12
amount that the mortgagor is actually required
13
to pay on a monthly basis in connection with
14
such liability; or
15
‘‘(B) in the case of a mortgagor whose re-
16
quired monthly payment under such liability is
17
$0, the amount equal to 0.5 percent of the out-
18
standing balance of the loan in connection with
19
such liability.
20
‘‘(2) COVERED EDUCATIONAL LIABILITY.—For
21
purposes of this subsection, the term ‘covered edu-
22
cational liability’ means a liability—
23
‘‘(A) that is a student loan incurred for
24
educational purposes;
25
VerDate Sep 11 2014
17:43 Jun 30, 2021
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3861.IH
H3861
lotter on DSK11XQN23PROD with BILLS
3
•HR 3861 IH
‘‘(B) that is required to be repaid through
1
payments made on a regular basis; and
2
‘‘(C) for which documentation has been
3
provided that is sufficient, in the determination
4
of the Secretary, to demonstrate that the liabil-
5
ity complies with the requirements under sub-
6
paragraphs (A) and (B).’’.
7
Æ
VerDate Sep 11 2014
17:43 Jun 30, 2021
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6301
E:\BILLS\H3861.IH
H3861
lotter on DSK11XQN23PROD with BILLS