---
kind: "diff"
citation: "H.R. 5931"
bill: "116-hr-5931"
heading: "Improving FHA Support for Small Dollar Mortgages Act of 2020"
from: "ih"
from_label: "Introduced in House"
to: "eh"
to_label: "Engrossed in House"
sections_amended: 1
sections_added: 0
sections_removed: 0
url: "https://uscodex.org/bills/116/hr/5931/changes/eh"
---

# H.R. 5931 — what changed

H.R. 5931, Improving FHA Support for Small Dollar Mortgages Act of 2020 — 1 section amended between Introduced in House and Engrossed in House.

Edits are marked `<del>struck</del>` and `<ins>inserted</ins>`.

## Sec. 2 Review of FHA small-dollar mortgage practices

- (a) Congressional findings— The Congress finds that—
  - (1) affordable homeownership opportunities are being <del>stymied </del><ins>hindered </ins>due to the lack of financing available for home purchases under $70,000;
  - (2) 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 <del>these </del><ins>this difference in </ins>denial rates <del>were not related to </del><ins>cannot be fully explained by differences in the </ins>applicants’ <del>creditworthiness;</del><ins>credit profiles;</ins>
  - (3) according to data compiled by Attom Data solutions, small-dollar mortgage originations have decreased 38 percent since 2009, while there has been a <del>65-percent </del><ins>65 percent </ins>increase in origination of mortgages for more than $150,000;
  - (4) <del>although </del>the FHA’s mission is to serve creditworthy borrowers who are <del>underserved, </del><ins>underserved and, </ins>according to the Urban <del>Institute </del><ins>Institute, </ins>the FHA serves 24 percent of the overall market, but only 19 percent of the small-dollar mortgage market; and
  - (5) the <del>FHA should play a greater role </del><ins>causes behind these variations are not fully understood, but merit study that could assist </ins>in <del>supporting affordable homeownership opportunities by reducing barriers to small-dollar lending, as is consistent with </del><ins>furthering </ins>the Department of Housing and Urban Development’s mission, including meeting the housing needs of borrowers the program is designed to serve and <ins>reducing barriers to homeownership, while </ins>protecting the solvency of the Mutual Mortgage Insurance Fund.
- (b) 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 <del>take </del><ins>take, without adversely affecting the solvency of the Mutual Mortgage Insurance Fund, </ins>to remove such barriers and impediments to providing mortgage insurance for such <del>mortgages without adversely affecting the solvency of the Mutual Mortgage Insurance Fund.</del><ins>mortgages.</ins>