Bill > HR5728

This bill amends the Housing Act of 1949 to modify the Doug Bereuter Section 502 Single Family Housing Loan Guarantee Program, which provides home loans to rural residents. Specifically, the bill allows for loan assumptions, meaning that when a property with a guaranteed loan is transferred to a new owner who qualifies for the loan, the original borrower and any co-borrowers can be fully released from their loan liability. The bill requires the Secretary of Agriculture to establish procedures for these loan assumptions, ensuring that the new borrower takes on all the original loan obligations, rights, and interests. Additionally, the bill grants the Secretary of Agriculture the authority to create rules allowing loan servicers to charge borrowers transaction fees associated with the loan assumption process. The changes would apply to loans guaranteed under this program on or after the date of the Act's enactment, providing more flexibility for rural homeowners who wish to transfer their properties while relieving the original borrowers of ongoing financial responsibility.

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https://www.congress.gov/bill/119th-congress/house-bill/5728/all-info