Promoting Access to Credit for Homebuyers Act of 2021
This bill requires Freddie Mac, Fannie Mae, and the Department of Housing and Urban Development to purchase or insure single-family mortgages originated on or after February 1, 2020, on the same terms as they otherwise would despite a borrower entering into, or inquiring about, forbearance due to a COVID-19 (i.e., coronavirus disease 2019) related hardship. This requirement begins 5 days after enactment of this bill and ends 60 days after the end of the period of time a borrower may request a COVID-19 related forbearance.
The Federal Housing Finance Agency may not increase fees or otherwise restrict access to credit during the COVID-19 emergency without congressional notice.
The Government Accountability Office must report on COVID-19-related assistance to consumers by Freddie Mac, Fannie Mae, and the Federal Housing Administration mortgage insurance programs.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 618 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 618
To promote access to mortgage credit during the COVID-19 pandemic by
preventing restrictions on providing Federal backing for single-family
mortgage loans in forbearance, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 28, 2021
Mr. Vargas (for himself, Ms. Waters, Ms. Velazquez, Mr. Cleaver, Ms.
Lee of California, Mrs. Hayes, Mr. Evans, and Ms. Barragan) introduced
the following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To promote access to mortgage credit during the COVID-19 pandemic by
preventing restrictions on providing Federal backing for single-family
mortgage loans in forbearance, 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 ``Promoting Access to Credit for
Homebuyers Act of 2021''.
SEC. 2. FANNIE MAE AND FREDDIE MAC.
(a) Purchase Requirements.--During the period that begins 5 days
after the date of the enactment of this Act and ends 60 days after the
covered period with respect to the mortgage, notwithstanding any other
provision of law, an enterprise may not refuse to purchase any single-
family mortgage originated on or after February 1, 2020, that otherwise
would have been eligible for purchase by such enterprise, solely due to
the fact that the borrower has, for the borrower's previous mortgage or
on the mortgage being purchased--
(1) entered into forbearance as a result of a financial
hardship due, directly or indirectly, to the COVID-19
emergency;
(2) requested forbearance as a result of a financial
hardship due, directly or indirectly, to the COVID-19
emergency; or
(3) inquired as to options related to forbearance as a
result of a financial hardship due, directly or indirectly, to
the COVID-19 emergency.
(b) Prohibition on Restrictions.--With respect to purchase of
single-family mortgages described in subsection (a) and specified in
any of paragraphs (1) through (3) of such subsection, an enterprise may
not--
(1) establish additional restrictions that are not
applicable to similarly situated mortgages under which the
borrower is not in forbearance;
(2) charge a higher guarantee fee (within the meaning
provided such term in section 1327 of the Housing and Community
Development Act of 1992 (12 U.S.C. 4547)), or loan level
pricing adjustment, or otherwise alter pricing for such
mortgages, relative to similarly situated mortgages under which
the borrower is not in forbearance;
(3) apply repurchase requirements to such mortgages that
are more restrictive than repurchase requirements applicable to
similarly situated mortgages under which the borrower is not in
forbearance; or
(4) require lender indemnification of such mortgages,
solely due to the fact that the borrower is in forbearance.
(c) Fraud Detection.--This section may not be construed to prevent
an enterprise from conducting oversight and review of single-family
mortgages purchased when a borrower is in forbearance on the borrower's
previous mortgage, or on the mortgage being purchased, for purposes of
detecting fraud. An enterprise shall report any fraud detected to the
Director.
(d) Enterprise Capital.--During the period that begins 5 days after
the date of the enactment of this Act and ends 60 days after the
covered period with respect to a mortgage, notwithstanding any other
provision of law, a forbearance on such mortgage shall not be
considered to be a delinquency under such mortgage for purposes of
calculating capital of an enterprise for any purpose under title XIII
of the Housing and Community Development Act of 1992 (12 U.S.C. 4501 et
seq.).
(e) Rules of Construction.--
(1) Purchase parameters.--This section may not be construed
to require an enterprise to purchase single-family mortgages
that do not meet existing or amended purchase parameters, other
than parameters related to borrower forbearance, established by
such enterprise.
(2) Employment; income.--This section may not be construed
to prevent an enterprise from establishing additional
requirements to ensure that a borrower has not lost their job
or income prior to a mortgage closing.
(f) Implementation.--The Director may issue any guidance, orders,
and regulations necessary to carry out this section.
SEC. 3. FHA.
(a) Prohibition on Restrictions.--During the period that begins 5
days after the date of the enactment of this Act and ends 60 days after
the covered period with respect to the mortgage, notwithstanding any
other provision of law, the Secretary of Housing and Urban Development
may not deny the provision of mortgage insurance for a single-family
mortgage originated on or after February 1, 2020, may not implement
additional premiums or otherwise alter pricing for such a mortgage, may
not require mortgagee indemnification, and may not establish additional
restrictions on such a mortgagor, solely due to the fact that the
borrower has--
(1) entered into forbearance as a result of a financial
hardship due, directly or indirectly, to the COVID-19
emergency;
(2) requested forbearance as a result of a financial
hardship due, directly or indirectly, to the COVID-19
emergency; or
(3) inquired as to options related to forbearance as a
result of a financial hardship due, directly or indirectly, to
the COVID-19 emergency.
(b) Rules of Construction.--
(1) Insurance.--This section may not be construed to
require the Secretary of Housing and Urban Development to
provide insurance on single-family mortgages that do not meet
existing or amended insurance parameters, other than parameters
related to borrower forbearance, established by the Secretary.
(2) Employment; income.--This section may not be construed
to prevent the Secretary of Housing and Urban Development from
establishing additional requirements regarding insurance on
single-family mortgages to ensure that a borrower has not lost
their job or income prior to a mortgage closing.
SEC. 4. REPORTING REQUIREMENTS.
(a) FHFA Actions.--During the COVID-19 emergency, the Director may
not increase guarantee fees, loan level pricing adjustments, or any
other fees or implement any restrictions on access to credit unless the
Director provides 48-hour advance notice of such increase or
restrictions to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate together with a detailed report of the policy
rationale for the decision, including any and all data considered in
making such decision.
(b) Quarterly Reports by Enterprises and FHA.--
(1) Requirement.--Each enterprise and the Secretary of
Housing and Urban Development, with respect to the FHA mortgage
insurance programs, shall provide reports to the Congress, and
make such reports publicly available, not less frequently than
quarterly regarding the impact of COVID-19 pandemic on the such
enterprises' and program's ability to meet their charter
requirements, civil rights responsibilities, mandates under the
CARES Act (Public Law 116-136), and other laws enacted in
response to the COVID-19 pandemic, and other requirements under
law. The first such report shall be submitted not later than
the expiration of the 3-month period beginning upon the date of
the enactment of this Act and the requirement under this
paragraph to submit such reports shall terminate upon the
expiration of the 2-year period beginning upon the termination
of the COVID-19 emergency.
(2) Content.--Each report required under paragraph (1)
shall include the following information for the most recent
quarter for which data is available:
(A) Enterprises.--For each report required by an
enterprise:
(i) The number of single-family and multi-
family residential mortgage loans purchased by
the enterprise and the unpaid principal balance
of such mortgage loans purchased, disaggregated
by--
(I) mortgage loans made to low- and
moderate-income borrowers;
(II) mortgage loans made for
properties in low- and moderate-income
census tracts; and
(III) mortgage loans made for
properties in central cities, rural
areas, and underserved areas.
(ii) In the single-family residential
mortgage market--
(I) the total number, unpaid
principal balance, and length of
forbearances provided to borrowers,
including whether or not the
forbearance was requested by the
borrower;
(II) a detailed breakdown of the
loan modifications offered to borrowers
and whether the borrowers accepted the
offer including the total number and
unpaid principal balance of loan
modifications ultimately made to
borrowers;
(III) a detailed breakdown of the
home retention options offered to
borrowers and whether the borrowers
accepted the offer including the total
number and unpaid principal balance of
other home retention options ultimately
made to borrowers;
(IV) the total number of outcomes
that included short-sales, deed-in-lieu
of foreclosure, and foreclosure sales;
and
(V) the total number of delinquent
mortgage loans.
(iii) A description of any efforts by the
enterprise to provide assistance and support to
consumers who are not proficient in English.
(iv) A description of any other efforts by
the enterprise to provide assistance to low-
and moderate-income communities, central
cities, rural areas, and other underserved
areas, such as financial literacy and education
or support of fair housing and housing
counseling agencies.
(v) A description of any other assistance
provided by the enterprise to consumers in
response to the COVID-19 pandemic.
(B) FHA.--For each report required with respect to
the FHA mortgage insurance programs:
(i) The number and unpaid principal balance
for all residential mortgage loans,
disaggregated by type, insured under such
programs.
(ii) The total number, unpaid principal
balance, and length of forbearances provided to
borrowers, including whether or not the
forbearance was requested by the borrower.
(iii) A detailed breakdown of the loan
modifications offered to borrowers and whether
the borrowers accepted the offer including the
total number and unpaid principal balance of
loan modifications ultimately made to
borrowers.
(iv) A detailed breakdown of the home
retention options offered to borrowers and
whether the borrowers accepted the offer
including the total number and unpaid principal
balance of other home retention options
ultimately made to borrowers.
(v) A description of any efforts under such
programs to provide assistance and support to
consumers who are not proficient in English.
(vi) A description of any other efforts
under such programs to provide assistance to
low- and moderate-income communities, central
cities, rural areas, and other underserved
areas, such as financial literacy and education
or support of fair housing and housing
counseling agencies.
(vii) A description of any other assistance
provided under such programs to consumers in
response to the COVID-19 pandemic.
(viii) The total number of delinquent
mortgage loans.
(C) Provisions to be included in all reports.--Each
report required under paragraph (1) shall include, to
the degree reasonably possible, the following
information:
(i) An analysis of all loan level data
required by subparagraphs (A) and (B)
disaggregated by race, national origin, gender,
disability status, whether or not the borrower
seeking or obtaining assistance speaks English
as a second language, the preferred language of
the borrower, debt-to-income level of the
borrower, loan-to-value ratio of the loan, and
credit score of the borrower.
(ii) A geographical analysis at the census
tract level, but if information is not
available at the census tract level for any of
the items required by subparagraphs (A) and
(B), the geographical analysis shall be
provided at the zip code level for the item for
which a census tract analysis was not possible.
(iii) A description of any policy changes
made by the enterprise or Secretary of Housing
and Urban Development, as appropriate, in
response to the COVID-19 pandemic and analysis
of actions taken to ensure that such policy
changes were in compliance with all relevant
civil rights responsibilities, including the
Fair Housing Act, including the Affirmatively
Furthering Fair Housing provision, the Equal
Credit Opportunity Act, the Community
Reinvestment Act of 1977, the Federal Housing
Enterprises Financial Safety and Soundness Act
of 1992, the Housing and Economic Recovery Act
of 2008, Federal Home Loan Bank Act, Executive
Orders 11063 and 12892, the Federal National
Mortgage Association Charter Act, and the
Federal Home Loan Mortgage Corporation Act.
(c) Report by GAO.--Not later than the expiration of the 120-day
period that begins upon the termination of the COVID-19 emergency, the
Comptroller General of the United States shall submit to the Congress
and make publicly available a report on--
(1) the extent to which the enterprises and the FHA
mortgage insurance programs provided loan products,
forbearances, loan modifications, and COVID-19-related
assistance to consumers and the total number of delinquent
mortgage loans under such programs;
(2) the availability and type of any such assistance
provided post-forbearance; and
(3) the overall ability of the enterprises and the FHA
mortgage insurance programs to successfully meet their charter
requirements, civil rights responsibilities, and other
requirements under law.
The report shall also include an analysis of all loan level data
required by this subsection disaggregated by race, national origin,
gender, disability status, whether or not the borrower seeking or
obtaining assistance speaks English as a second language, the preferred
language of the borrower, debt-to-income level of the borrower, loan-
to-value ratio of the loan, and credit score of the borrower.
SEC. 5. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Covered period.--The term ``covered period'' means,
with respect to a federally backed mortgage loan, the period of
time during which the borrower under such loan may request
forbearance on the loan under section 4022(b) of the CARES Act
(15 U.S.C. 9056; Public Law 116-136; 134 Stat. 490).
(2) COVID-19 emergency.--The term ``COVID-19 emergency''
has the meaning given such term in section 4022 of the CARES
Act (15 U.S.C. 9056; Public Law 116-136; 134 Stat. 490).
(3) Director.--The term ``Director'' means the Director of
the Federal Housing Finance Agency.
(4) Enterprise.--The term ``enterprise'' has the meaning
given such term in section 1303 of the Housing and Community
Development Act of 1992 (12 U.S.C. 4502).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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