IIB 116TH CONGRESS 2D SESSION H. R. 5931 IN THE SENATE OF THE UNITED STATES MARCH 3, 2020 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To require a review of the effects of FHA mortgage insur- ance policies, practices, and products on small-dollar mortgage lending, 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 VerDate Sep 11 2014 23:02 Mar 03, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5931.RFS H5931 pamtmann on DSKBC07HB2PROD with BILLS 2 HR 5931 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Improving FHA Sup- 2 port for Small Dollar Mortgages Act of 2020’’. 3 SEC. 2. REVIEW OF FHA SMALL-DOLLAR MORTGAGE PRAC- 4 TICES. 5 (a) CONGRESSIONAL FINDINGS.—The Congress finds 6 that— 7 (1) affordable homeownership opportunities are 8 being hindered due to the lack of financing available 9 for home purchases under $70,000; 10 (2) according to the Urban Institute, small-dol- 11 lar mortgage loan applications in 2017 were denied 12 by lenders at double the rate of denial for large 13 mortgage loans, and this difference in denial rates 14 cannot be fully explained by differences in the appli- 15 cants’ credit profiles; 16 (3) according to data compiled by Attom Data 17 solutions, small-dollar mortgage originations have 18 decreased 38 percent since 2009, while there has 19 been a 65 percent increase in origination of mort- 20 gages for more than $150,000; 21 (4) the FHA’s mission is to serve creditworthy 22 borrowers who are underserved and, according to the 23 Urban Institute, the FHA serves 24 percent of the 24 overall market, but only 19 percent of the small-dol- 25 lar mortgage market; and 26 VerDate Sep 11 2014 23:02 Mar 03, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5931.RFS H5931 pamtmann on DSKBC07HB2PROD with BILLS 3 HR 5931 RFS (5) the causes behind these variations are not 1 fully understood, but merit study that could assist in 2 furthering the Department of Housing and Urban 3 Development’s mission, including meeting the hous- 4 ing needs of borrowers the program is designed to 5 serve and reducing barriers to homeownership, while 6 protecting the solvency of the Mutual Mortgage In- 7 surance Fund. 8 (b) REVIEW.—The Secretary of Housing and Urban 9 Development shall conduct a review of its FHA single- 10 family mortgage insurance policies, practices, and prod- 11 ucts to identify any barriers or impediments to supporting, 12 facilitating, and making available mortgage insurance for 13 mortgages having an original principal obligation of 14 $70,000 or less. Not later than the expiration of the 12- 15 month period beginning on the date of the enactment of 16 this Act, the Secretary shall submit a report to the Con- 17 gress describing the findings of such review and the ac- 18 tions that the Secretary will take, without adversely affect- 19 ing the solvency of the Mutual Mortgage Insurance Fund, 20 VerDate Sep 11 2014 23:02 Mar 03, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5931.RFS H5931 pamtmann on DSKBC07HB2PROD with BILLS 4 HR 5931 RFS to remove such barriers and impediments to providing 1 mortgage insurance for such mortgages. 2 Passed the House of Representatives March 2, 2020. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 23:02 Mar 03, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5931.RFS H5931 pamtmann on DSKBC07HB2PROD with BILLS