Bill > HR6774

This bill, titled the "FHA Small-Dollar Mortgages Act," authorizes the Secretary of Housing and Urban Development, through the Federal Housing Commissioner, to create a pilot program aimed at improving access to small-dollar mortgages, which are defined as loans with an original principal balance of $100,000 or less secured by a 1- to 4-unit property that serves as the borrower's primary residence. The pilot program, which will run for four years, may include incentives for lenders to originate these smaller loans, adjustments to Federal Housing Administration (FHA) terms and costs, direct grants to borrowers for down payments, closing costs, appraisals, and title insurance, as well as outreach to potential borrowers and technical assistance for mortgagees. The Federal Housing Commissioner is required to submit annual reports to Congress detailing the program's outcomes, risks to the FHA's Mutual Mortgage Insurance Fund, data on past small-dollar mortgages, lender costs, and regional needs and benefits. Importantly, after three years from the bill's enactment, no new pilot programs for small-dollar mortgages can be established.