[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4573 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 4573
To establish a program to provide low- and moderate-income first-time,
first-generation homebuyers with access to affordable and sustainable
wealth-building home loans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 12, 2023
Mr. Cleaver (for himself, Ms. Williams of Georgia, Mr. Green of Texas,
Mr. Vargas, Mr. Lynch, and Mrs. Beatty) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To establish a program to provide low- and moderate-income first-time,
first-generation homebuyers with access to affordable and sustainable
wealth-building home loans.
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 ``Low-Income First-Time Homebuyers Act
of 2023'' or the ``LIFT Homebuyers Act of 2023''.
SEC. 2. WEALTH-BUILDING HOME LOAN PROGRAM.
(a) Establishment of LIFT HOME Funds.--
(1) In general.--There is established in each Loan
Guarantee Agency a fund to be known as the LIFT HOME Fund, into
which amounts made available under this section shall be
deposited and which shall be used by each Department for
carrying out the purposes of this section.
(2) Management of fund.--The LIFT HOME Fund of each Loan
Guarantee Agency shall be administered and managed by the
respective Secretary, who shall establish reasonable and
prudent criteria for the management and operation of any
amounts in the Fund.
(b) Use of Funds.--
(1) Transfer of amounts to treasury.--Such portions of the
amount made available to the Secretary of Housing and Urban
Development under this section shall be transferred by the
Secretary of Housing and Urban Development to the Department of
the Treasury in an amount equal to, as determined by the
Secretary of the Treasury, in consultation with the Secretary
of Housing and Urban Development--
(A) the amount the Secretary of the Treasury
estimates to be necessary for the purchase of
securities under the Program during the period for
which the funds are intended to be available;
(B) the difference between--
(i) the Secretary of the Treasury's
receipts from the sale or other disposition of
securities acquired under the Program; and
(ii) the Secretary of the Treasury's costs
in purchasing such securities; and
(C) the Department of the Treasury's administrative
expenses related to the Program.
(2) Credit subsidy.--Such portion of the amount made
available to each Secretary under this section as may be
necessary may be used for the cost to the respective Loan
Guarantee Agency of guaranteed loans under this section. Such
costs, including the costs of modifying such loans, shall be as
defined in section 502 of the Congressional Budget Act of 1974
(2 U.S.C. 661a).
(c) Establishment of the LIFT HOME Program.--Each Secretary shall
establish, and carry out, with respect to any mortgage with a case
number issued on or before December 31, 2025, that is subsequently
insured or guaranteed by such Secretary, a program to make covered
mortgage loans available to eligible homebuyers to purchase a single-
family residence for use as their principal residence (referred to in
this section as the ``Program''), under which--
(1) the Secretary of the Treasury--
(A) shall act as a purchaser, on behalf of the
Secretary of Housing and Urban Development, of
securities that are secured by covered mortgage loans;
(B) may designate financial institutions, including
banks, savings associations, trust companies, security
brokers or dealers, asset managers, investment
advisers, and other institutions and such institutions
shall--
(i) perform all reasonable duties related
to this section as a financial agent of the
United States as may be required; and
(ii) be paid for such duties using
appropriations available to the Secretary of
the Treasury to reimburse financial
institutions in their capacity as financial
agents of the United States;
(C) may use the services of any agency or
instrumentality of the United States or component
thereof on a reimbursable basis, and any such agency or
instrumentality or component thereof is authorized to
provide services as requested by the Secretary using
all authorities vested in or delegated to that agency,
instrumentality, or component;
(D) may manage, and exercise any rights received in
connection with, any financial instruments or assets
purchased or acquired pursuant to the authorities
granted under this section;
(E) may establish and use vehicles to purchase,
hold, and sell financial instruments and other assets;
and
(F) may issue such regulations and other guidance
as may be necessary or appropriate to carry out the
authorities or purposes of this section;
(2) each Secretary of a Loan Guarantee Agency shall--
(A) establish pricing terms for covered mortgage
loans such that the covered mortgage loans carry a
monthly mortgage payment of principal and interest that
is not more than 110 percent and not less than 100
percent of the monthly payment of principal, interest,
and periodic mortgage insurance premium or loan
guarantee fee associated with a newly originated 30-
year mortgage loan with the same loan balance insured
or guaranteed by the Loan Guarantee Agency as
determined by each Secretary, or such pricing terms as
are determined by each Secretary to be necessary to
develop liquidity for securities backed by covered
mortgage loans and expand Program participation by
eligible homebuyers; and
(B) establish an outreach and counseling program to
increase stakeholder awareness of the Program; and
(3) the Secretary of Housing and Urban Development shall--
(A) in consultation with the Secretary of the
Treasury, establish the pricing terms for the purchase
of securities guaranteed by the Association secured by
covered mortgage loans such that the covered mortgage
loans carry a monthly mortgage payment of principal and
interest that is not more than 110 percent and not less
than 100 percent of the monthly payment of principal,
interest, and periodic mortgage insurance premium or
loan guarantee fee associated with a newly originated
30-year mortgage loan with the same loan balance
insured or guaranteed by the Loan Guarantee Agency, or
such pricing terms as are determined by the Secretaries
to be necessary to develop liquidity for securities
backed by covered mortgage loans and expand Program
participation by eligible homebuyers;
(B) have the authority to designate mortgage
bankers, financial institutions, including banks,
savings associations, trust companies, security brokers
or dealers, asset managers, investment advisers, and
other institutions and such institutions shall--
(i) perform all reasonable duties related
to this section as an agent of the United
States as may be required; and
(ii) be paid for such duties using
appropriations available under this section to
the Secretary of Housing and Urban Development
to reimburse these entities in their capacity
as agents of the United States;
(C) have the authority to use the services of any
agency or instrumentality of the United States or
component thereof on a reimbursable basis, and any such
agency or instrumentality or component thereof is
authorized to provide services as requested by the
Secretary of Housing and Urban Development using all
authorities vested in or delegated to that agency,
instrumentality, or component;
(D) operate the Program in coordination with the
Association, the Federal Housing Administration, the
Rural Housing Service, and the Secretary of the
Treasury so as to demonstrate feasibility and
workability to market participants, including--
(i) originators and servicers of mortgages;
(ii) issuers of mortgage-backed securities;
and
(iii) investors; and
(E) gain price discovery experience by instructing
the Secretary of the Treasury, following consultation
with the Secretary of the Treasury to sell acquired
securities described in subparagraph (A) as soon as
practicable, thereby hastening the development of
liquidity for securities backed by covered mortgage
loans.
(4) GNMA guarantee authority.--To carry out the purposes of
this section, the Association may enter into new commitments to
issue guarantees of securities based on or backed by mortgages
insured under this section.
(5) GNMA guaranty fee.--To carry out the purposes of this
section, the Association may collect guaranty fees consistent
with section 306(g)(1) of the National Housing Act (12 U.S.C.
1721(g)(1)) that are paid at securitization.
(d) Definitions.--In this section:
(1) Association.--The term ``Association'' means the
Government National Mortgage Association.
(2) Covered mortgage loan.--
(A) In general.--The term ``covered mortgage loan''
means, for purposes of the Program established by the
Secretary of Housing and Urban Development, a mortgage
loan that--
(i) is insured or guaranteed by the Federal
Housing Administration pursuant to section
203(b) of the National Housing Act (12 U.S.C.
1709(b)), subject to the eligibility criteria
set forth in this subsection, and has a case
number issued on or before December 31, 2025;
(ii) is made for an original term of 20
years or for an original term determined by the
Secretary to be necessary to develop liquidity
for securities backed by covered mortgage loans
and expand Program participation by eligible
homebuyers;
(iii) subject to subparagraph (C) of this
paragraph and notwithstanding section
203(b)(2)(C) of the National Housing Act (12
U.S.C. 1709(b)(2)(C)), has a mortgage insurance
premium of not more than 4 percent of the loan
balance that is paid at closing, financed into
the principal balance of the loan, paid through
an annual premium, or a combination thereof;
(iv) involves a rate of interest that is
fixed over the term of the mortgage loan; and
(v) is secured by a single-family residence
that is the principal residence of an eligible
homebuyer.
(B) The term ``covered mortgage loan'' means, for
purposes of the Program established by the Secretary of
Agriculture, a loan guaranteed under section 502(h) of
the Housing Act of 1949 (42 U.S.C. 1472(h)) that--
(i) notwithstanding section 502(h)(7)(A) of
the Housing Act of 1949 (42 U.S.C.
1472(h)(7)(A)), is made for an original term of
20 years or for an original term determined by
the Secretary to be necessary to develop
liquidity for securities backed by covered
mortgage loans and expand Program participation
by eligible homebuyers; and
(ii) subject to subparagraph (C) of this
paragraph and notwithstanding section
502(h)(8)(A) of the Housing Act of 1949 (42
U.S.C. 1472(h)(8)(A)), has a loan guarantee fee
of not more than 4 percent of the principal
obligation of the loan.
(C) Waiver of mortgage insurance premium
requirement.--Each Secretary, in consultation with the
Secretary of the Treasury, and notwithstanding section
502(h)(8)(A) of the Housing Act of 1949 (42 U.S.C.
1472(h)(8)(A)) for purposes of the Program established
by the Secretary of Agriculture, may waive the mortgage
insurance premium cap or loan guarantee fee cap under
subparagraphs (A)(iii) and (B)(ii) with respect to
covered mortgage loans insured or guaranteed by the
Loan Guarantee Agency of which that Secretary is the
head if necessary to protect the solvency of the
associated insurance fund.
(3) Department.--Unless otherwise specified, the term
``Department'' means the Department of Housing and Urban
Development or the Department of Agriculture, as appropriate.
(4) Eligible homebuyer.--The term ``eligible homebuyer''
means an individual who--
(A) for purposes of the Program established by the
Secretary of Housing and Urban Development--
(i) has an annual household income that is
less than or equal to--
(I) 120 percent of median income
for the area, as determined by the
Secretary of Housing and Urban
Development for--
(aa) the area in which the
home to be acquired using such
assistance is located; or
(bb) the area in which the
place of residence of the
homebuyer is located; or
(II) if the homebuyer is acquiring
an eligible home that is located in a
high-cost area, 140 percent of the
median income, as determined by the
Secretary, for the area within which
the eligible home to be acquired using
assistance provided under this section
is located;
(ii) is a first-time homebuyer, as defined
in paragraph (6) of this subsection; and
(iii) is a first-generation homebuyer as
defined in paragraph (5) of this subsection;
(B) for purposes of the Program established by the
Secretary of Agriculture--
(i) meets the applicable requirements in
section 502(h) of the Housing Act of 1949 (42
U.S.C. 1472(h)); and
(ii) is a first-time homebuyer as defined
in paragraph (6) of this subsection and a
first-generation homebuyer as defined in
paragraph (5) of this subsection.
(5) First-generation homebuyer.--The term ``first-
generation homebuyer'' means a homebuyer that, as attested by
the homebuyer, is--
(A) an individual--
(i) whose living parents or legal guardians
do not, to the best of the individual's
knowledge, have any present fee simple
ownership interest in a principal residence in
any State, excluding ownership of heir
property;
(ii) if no parents or legal guardians are
living upon acquisition of the eligible home to
be acquired using such assistance, to the best
of the individual's knowledge, whose parents or
legal guardians did not have any ownership
interest in a principal residence in any State
at the time of their death, excluding ownership
of heir property; and
(iii) whose spouse, or domestic partner has
not, during the 3-year period ending upon
acquisition of the eligible home to be acquired
using such assistance, had any present
ownership interest in a principal residence in
any State, excluding ownership of heir
property, whether the individual is a co-
borrower on the loan or not; or
(B) an individual who has at any time been placed
in foster care or institutional care whose spouse or
domestic partner has not, during the 3-year period
ending upon acquisition of the eligible home to be
acquired using such assistance, had any ownership
interest in a principal residence in any State,
excluding ownership of heir property, whether such
individuals are co-borrowers on the loan or not.
(6) First-time homebuyer.--The term ``first-time
homebuyer'' means a homebuyer as defined in section 104 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12704), except that ownership of heir property shall not be
treated as owning a home for purposes of determining whether a
borrower qualifies as a first-time homebuyer.
(7) Heir property.--The term ``heir property'' means
residential property for which title passed by operation of law
through intestacy and is held by 2 or more heirs as tenants in
common.
(8) Loan guarantee agency.--Unless otherwise specified, the
term ``Loan Guarantee Agency'' means the Federal Housing
Administration of the Department of Housing and Urban
Development or the Rural Housing Service of the Department of
Agriculture, as appropriate.
(9) Secretary.--Unless otherwise specified, the term
``Secretary'' means the Secretary of Housing and Urban
Development or the Secretary of Agriculture, as appropriate.
(e) Reliance on Borrower Attestations.--No additional documentation
beyond the borrower's attestation shall be required to demonstrate
eligibility under paragraph (4) of subsection (d) and no State,
eligible entity, or creditor shall be subject to liability, including
monetary penalties or requirements to indemnify a Federal agency or
repurchase a loan that has been sold or securitized, based on the
provision of assistance under this section to a borrower who does not
meet the eligibility requirements under paragraph (4) of subsection (d)
if the creditor does so in good faith reliance on borrower attestations
of eligibility required under such paragraph.
(f) Implementation.--The Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary of the
Treasury shall have authority to issue such regulations or other
notices, guidance, forms, instructions, and publications as may be
necessary or appropriate to carry out the programs, projects, or
activities authorized under this section, including to ensure that such
programs, projects, or activities are completed in a timely and
effective manner.
(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Housing and Urban Development and the
Secretary of Agriculture such sums as may be necessary to carry out the
LIFT HOME Program.
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