[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5931 Referred in Senate (RFS)]

<DOC>
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 insurance policies, 
practices, and products on small-dollar mortgage lending, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improving FHA Support for Small 
Dollar Mortgages Act of 2020''.

SEC. 2. REVIEW OF FHA SMALL-DOLLAR MORTGAGE PRACTICES.

    (a) Congressional Findings.--The Congress finds that--
            (1) affordable homeownership opportunities are being 
        hindered due to the lack of financing available for home 
        purchases under $70,000;
            (2) according to the Urban Institute, small-dollar mortgage 
        loan applications in 2017 were denied by lenders at double the 
        rate of denial for large mortgage loans, and this difference in 
        denial rates cannot be fully explained by differences in the 
        applicants' credit profiles;
            (3) according to data compiled by Attom Data solutions, 
        small-dollar mortgage originations have decreased 38 percent 
        since 2009, while there has been a 65 percent increase in 
        origination of mortgages for more than $150,000;
            (4) the FHA's mission is to serve creditworthy borrowers 
        who are underserved and, according to the Urban Institute, the 
        FHA serves 24 percent of the overall market, but only 19 
        percent of the small-dollar mortgage market; and
            (5) the causes behind these variations are not fully 
        understood, but merit study that could assist in furthering the 
        Department of Housing and Urban Development's mission, 
        including meeting the housing needs of borrowers the program is 
        designed to serve and reducing barriers to homeownership, while 
        protecting the solvency of the Mutual Mortgage Insurance Fund.
    (b) Review.--The Secretary of Housing and Urban Development shall 
conduct a review of its FHA single-family mortgage insurance policies, 
practices, and products to identify any barriers or impediments to 
supporting, facilitating, and making available mortgage insurance for 
mortgages having an original principal obligation of $70,000 or less. 
Not later than the expiration of the 12-month period beginning on the 
date of the enactment of this Act, the Secretary shall submit a report 
to the Congress describing the findings of such review and the actions 
that the Secretary will take, without adversely affecting the solvency 
of the Mutual Mortgage Insurance Fund,


              

 to remove such barriers and impediments to providing mortgage 
insurance for such mortgages.

            Passed the House of Representatives March 2, 2020.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.