H.R. 5931 — what changed

changed affordable homeownership opportunities are being stymied hindered due to the lack of financing available for home purchases under $70,000;

changed 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 these this difference in denial rates were not related to cannot be fully explained by differences in the applicants’ creditworthiness;credit profiles;

changed 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 65 percent increase in origination of mortgages for more than $150,000;

changed although the FHA’s mission is to serve creditworthy borrowers who are underserved, underserved and, according to the Urban Institute Institute, the FHA serves 24 percent of the overall market, but only 19 percent of the small-dollar mortgage market; and

changed the FHA should play a greater role causes behind these variations are not fully understood, but merit study that could assist in supporting affordable homeownership opportunities by reducing barriers to small-dollar lending, as is consistent with 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.

changed 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 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 without adversely affecting the solvency of the Mutual Mortgage Insurance Fund.mortgages.