What This Bill Does
This bill prevents four federal mortgage programs from denying eligibility based on whether someone is a DACA recipient. DACA (Deferred Action for Childhood Arrivals) is an immigration status program. The bill allows these borrowers to get mortgages if they meet all other standard requirements.
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Who It Affects
- DACA recipients seeking mortgages
- The Department of Housing and Urban Development (through FHA mortgages)
- The Department of Agriculture (through Rural Housing Service mortgages)
- Fannie Mae (a government-sponsored mortgage company)
- Freddie Mac (a government-sponsored mortgage company)
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Key Provisions
- The FHA cannot deny mortgage insurance or create special rules based on DACA status if all other eligibility requirements are met (Sec. 2(a))
- The Rural Housing Service cannot limit single-family mortgage eligibility based on DACA status (Sec. 2(b))
- Fannie Mae cannot refuse to buy mortgages based on a borrower's DACA status (Sec. 2(c))
- Freddie Mac cannot refuse to buy mortgages based on a borrower's DACA status (Sec. 2(d))
- Mortgage programs can still deny applicants who fail to meet valid eligibility requirements unrelated to DACA status (Sec. 2(a)(3))
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What Changes
If this bill becomes law, DACA recipients who meet standard mortgage requirements cannot be automatically rejected based solely on their DACA immigration status. However, programs can still deny mortgages for traditional reasons like insufficient income or credit problems.
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Important Definitions
- DACA recipient: An immigrant with deferred action status under the Deferred Action for Childhood Arrivals program announced on June 15, 2012
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Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 2397
To clarify that eligibility of certain mortgages with Federal credit enhance-
ment may not be conditioned on the status of a mortgagor as a DACA
recipient if all other eligibility criteria are satisfied, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
MARCH 29, 2023
Mr. VARGAS (for himself, Mr. AGUILAR, and Ms. GARCIA of Texas) introduced
the following bill; which was referred to the Committee on Financial Services
A BILL
To clarify that eligibility of certain mortgages with Federal
credit enhancement may not be conditioned on the status
of a mortgagor as a DACA recipient if all other eligibility
criteria are satisfied, 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 ‘‘Homeownership for
4
DREAMers Act’’.
5
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•HR 2397 IH
SEC. 2. DACA RECIPIENT ELIGIBILITY.
1
(a) FHA.—Section 203 of the National Housing Act
2
(12 U.S.C. 1709) is amended by inserting after subsection
3
(h) the following:
4
‘‘(i) DACA RECIPIENT ELIGIBILITY.—
5
‘‘(1) IN GENERAL.—The Secretary may not—
6
‘‘(A) prescribe terms that limit the eligi-
7
bility of a single family mortgage for insurance
8
under this title because of the status of the
9
mortgagor as a DACA recipient; or
10
‘‘(B) issue any limited denial of participa-
11
tion in the program for such insurance because
12
of the status of the mortgagor as a DACA re-
13
cipient.
14
‘‘(2) DACA RECIPIENT
DEFINED.—For the
15
purposes of this subsection, the term ‘DACA recipi-
16
ent’ means an alien who, at any time before, on, or
17
after the date of the enactment of this subsection,
18
is or was in deferred action status pursuant to the
19
Deferred Action for Childhood Arrivals (‘DACA’)
20
Program announced by the Secretary of Homeland
21
Security on June 15, 2012.
22
‘‘(3) EXEMPTION.—
23
‘‘(A) DENIAL
FOR
FAILURE
TO
SATISFY
24
VALID
ELIGIBILITY
REQUIREMENTS.—Nothing
25
in this title prohibits the denial of insurance
26
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•HR 2397 IH
based on failure to satisfy valid eligibility re-
1
quirements.
2
‘‘(B)
INVALID
ELIGIBILITY
REQUIRE-
3
MENTS.—Valid eligibility requirements do not
4
include criteria that were adopted with the pur-
5
pose of denying eligibility for insurance because
6
of race, color, religion, sex, familial status, na-
7
tional origin, disability, or the status of a mort-
8
gagor as a DACA recipient.’’.
9
(b) RURAL HOUSING SERVICE.—Section 501 of the
10
Housing Act of 1949 (42 U.S.C. 1472) is amended by
11
adding at the end the following:
12
‘‘(k) DACA RECIPIENT ELIGIBILITY.—
13
‘‘(1) IN
GENERAL.—The Secretary may not
14
prescribe terms that limit eligibility for a single fam-
15
ily mortgage made, insured, or guaranteed under
16
this title because of the status of the mortgagor as
17
a DACA recipient.
18
‘‘(2) DACA RECIPIENT
DEFINED.—For the
19
purposes of this paragraph, the term ‘DACA recipi-
20
ent’ means an alien who, at any time before, on, or
21
after the date of the enactment of this paragraph,
22
is or was in deferred action status pursuant to the
23
Deferred Action for Childhood Arrivals (‘DACA’)
24
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•HR 2397 IH
Program announced by the Secretary of Homeland
1
Security on June 15, 2012.’’.
2
(c) FANNIE MAE.—Section 302(b) of the National
3
Housing Act (12 U.S.C. 1717(b)) is amended by adding
4
at the end the following:
5
‘‘(8) DACA RECIPIENT ELIGIBILITY.—
6
‘‘(A) IN GENERAL.—The corporation may
7
not condition purchase of a single-family resi-
8
dence mortgage by the corporation under this
9
subsection on the status of the borrower as a
10
DACA recipient.
11
‘‘(B) DACA RECIPIENT
DEFINED.—For
12
the purposes of this paragraph, the term
13
‘DACA recipient’ means an alien who, at any
14
time before, on, or after the date of the enact-
15
ment of this paragraph, is or was in deferred
16
action status pursuant to the Deferred Action
17
for Childhood Arrivals (‘DACA’) Program an-
18
nounced by the Secretary of Homeland Security
19
on June 15, 2012.’’.
20
(d) FREDDIE MAC.—Section 305(a) of the Federal
21
Home Loan Mortgage Corporation Act (12 U.S.C. 1454)
22
is amended by adding at the end the following:
23
‘‘(6) DACA RECIPIENT ELIGIBILITY.—
24
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•HR 2397 IH
‘‘(A) IN GENERAL.—The Corporation may
1
not condition purchase of a single-family resi-
2
dence mortgage by the corporation under this
3
subsection on the status of the borrower as a
4
DACA recipient.
5
‘‘(B) DACA RECIPIENT
DEFINED.—For
6
the purposes of this subsection, the term
7
‘DACA recipient’ means an alien who, at any
8
time before, on, or after the date of the enact-
9
ment of this subsection, is or was in deferred
10
action status pursuant to the Deferred Action
11
for Childhood Arrivals (‘DACA’) Program an-
12
nounced by the Secretary of Homeland Security
13
on June 15, 2012.’’.
14
Æ
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