US Codex
Pub. L.
Notes

Title IV — Accessing the American Dream

119th Congress · Approved Jul 11, 2026 · 140 Stat. 846

TITLE IV Accessing the American Dream

SEC. 401. Creating Incentives for Small-Dollar Loan Originators.

(a)
Definitions.— In this section:
(1)
Director.— The term “Director” means the Director of the Bureau of Consumer Financial Protection.
(2)
Small-dollar mortgage.— The term “small-dollar mortgage” means a mortgage loan having an original principal obligation of not more than $100,000 that is—
(A)
secured by real property designed for 1 to 4 dwelling units; and
(B)
(i)
insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.);
(ii)
made, guaranteed, or insured by the Department of Veterans Affairs;
(iii)
made, guaranteed, or insured by the Department of Agriculture; or
(iv)
eligible to be purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
(b)
Requirement Regarding Loan Originator Compensation Practices.— Not later than 270 days after the date of enactment of this Act, the Director shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on loan originator compensation practices throughout the residential mortgage market, including the relative frequency of loan originators being compensated—
(1)
with a salary;
(2)
with a commission reflecting a fixed percentage of the amount of credit extended;
(3)
with a commission based on a factor other than a fixed percentage of the amount of credit extended;
(4)
with a combination of salary and commission;
(5)
on a loan volume basis; and
(6)
with a commission reflecting a percentage of the amount of credit extended, for which a minimum or maximum compensation amount is set.
(c)
Community Development Financial Institution Loan Originators.— In carrying out the report required under subsection (b), the Secretary shall, in coordination with relevant Federal agencies that regulate federally backed small-dollar mortgages and in consultation with the Director of the Community Development Financial Institutions Fund established under section 104 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4703), give due consideration to the practices for compensating loan originators that are employed by or originate loans on behalf of community development financial institutions.
(d)
Contents.— The report required under subsection (b) shall include—
(1)
data and other analyses regarding the effect of the approaches to loan originator compensation described in subsection (b) on the availability of small-dollar mortgage loans; and
(2)
an analysis and a discussion regarding potential barriers to small-dollar mortgage lending.

SEC. 402. Small-Dollar Mortgage Points and Fees.

(a)
Small-dollar Mortgage Defined.— In this section, the term “small-dollar mortgage” means a mortgage with an original principal obligation of less than $100,000.
(b)
Amendments.— Not later than 270 days after the date of enactment of this Act, the Director of the Bureau of Consumer Financial Protection, in consultation with the Secretary of Housing and Urban Development and the Director of the Federal Housing Finance Agency, shall evaluate the impact of the thresholds under section 1026.43 of title 12, Code of Federal Regulations (as in effect on the date of enactment of this Act), on small-dollar mortgage originations.

SEC. 403. Appraisal Industry Improvement Act.

(a)
Appraisal Standards.—
(1)
Certification or licensing.—
(A)
In general.— Section 202(g)(5) of the National Housing Act (12 U.S.C. 1708(g)(5)) is amended—
(i)
by moving the paragraph two ems to the left; and
(ii)
by striking subparagraphs (A) and (B) and inserting the following:

“(A) be certified or licensed by the State in which the property to be appraised is located, except that a Federal employee who has as their primary duty conducting appraisal-related activities and who chooses to become a State-licensed or certified real estate appraiser need only to be licensed or certified in 1 State or territory to perform appraisals on mortgages insured by the Federal Housing Administration in all States and territories;

“(B) meet the requirements under the competency rule set forth in the Uniform Standards of Professional Appraisal Practice before accepting an assignment; and

“(C) have demonstrated verifiable education in the appraisal requirements established by the Federal Housing Administration under this subsection, which shall include the completion of a course or seminar that educates appraisers on those appraisal requirements, which shall be provided by—

“(i) the Federal Housing Administration; or

“(ii) a third party, if the course is approved by the Secretary or a State appraiser certifying or licensing agency.”

(B)
Application.— Subparagraph (C) of section 202(g)(5) of the National Housing Act (12 U.S.C. 1708(g)(5)), as added by subparagraph (A), shall not apply with respect to any certified appraiser approved by the Federal Housing Administration to conduct appraisals on property securing a mortgage to be insured by the Federal Housing Administration on or before the effective date described in paragraph (3)(C).
(2)
Compliance with verifiable education and competency requirements.— On and after the effective date described in paragraph (3)(C), no appraiser may conduct an appraisal on a property securing a mortgage to be insured by the Federal Housing Administration unless—
(A)
the appraiser is in compliance with the requirements of subparagraphs (A) and (B) of section 202(g)(5) of the National Housing Act (12 U.S.C. 1708(g)(5)), as amended by paragraph (1); and
(B)
if the appraiser was not approved by the Federal Housing Administration to conduct appraisals on mortgages insured by the Federal Housing Administration before the date on which the mortgagee letter or guidance takes effect under paragraph (3)(C), the appraiser is in compliance with subparagraph (C) of such section 202(g)(5).
(3)
Implementation.— Not later than the 240 days after the date of enactment of this Act, the Secretary of Housing and Urban Development shall issue a mortgagee letter or guidance that—
(A)
implements the amendments made by paragraph (1);
(B)
clearly sets forth all of the specific requirements under section 202(g)(5) of the National Housing Act (12 U.S.C. 1708(g)(5)), as amended by paragraph (1), for approval to conduct appraisals on property secured by a mortgage to be insured by the Federal Housing Administration, which shall include—
(i)
providing that, before the effective date of the mortgagee letter or guidance, compliance with the requirements under subparagraphs (A), (B), and (C) of such section 202(g)(5), as amended by paragraph (1), shall be considered to fulfill the requirements under such subparagraphs; and
(ii)
providing a method for appraisers to demonstrate such prior compliance; and
(C)
takes effect not later than the date that is 180 days after the date on which the Secretary issues the mortgagee letter or guidance.
(b)
Annual Registry Fees for Appraisal Management Companies.— Section 1109(a) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338(a)) is amended, in the matter following clause (ii) of paragraph (4)(B), by adding at the end the following: “ Subject to the approval of the Council, the Appraisal Subcommittee may adjust fees established under clause (i) or (ii) to carry out its functions under this Act.”.
(c)
State Credentialed Trainees.—
(1)
Maintenance on national registry.— Section 1103(a) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3332(a)) is amended—
(A)
in paragraph (3)—
(i)
by inserting “ and State credentialed trainee appraisers” after “ licensed appraisers”; and
(ii)
by striking “ and” at the end;
(B)
by striking paragraph (4);
(C)
by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively; and
(D)
in paragraph (4), as so redesignated—
(i)
by striking “ year. The report shall also detail” and inserting “ year, detailing”;
(ii)
by striking “ provide” and inserting “ provides”; and
(iii)
by striking the period at the end and inserting “ ; and”.
(2)
Annual registry fees.—
(A)
In general.— Section 1109 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338) is amended—
(i)
in the section heading, by striking “ certified or licensed” and inserting “ , certified, licensed, and credentialed trainee”; and
(ii)
in subsection (a)—
(I)
in paragraph (1), by inserting “ , and in the case of a State with a supervisory or trainee program, a roster listing individuals who have received a State trainee credential” after “ this title”; and
(II)
by striking paragraph (2) and inserting the following:

“(2) transmit reports on the issuance and renewal of licenses, certifications, credentials, sanctions, and disciplinary actions, including license, credential, and certification revocations, on a timely basis to the national registry of the Appraisal Subcommittee;”

(B)
Rule of construction.— Nothing in the amendments made by subparagraph (A) shall require a State to establish or operate a program for State credentialed trainee appraisers, as defined in paragraph (12) of section 1121 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as added by paragraph (4) of this subsection.
(3)
Transactions requiring the services of a state certified appraiser.— Section 1113 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3342) is amended—
(A)
by striking “ In determining” and inserting “ (a) In General.—In determining”; and
(B)
by adding at the end the following:

“(b) Use of State Credentialed Trainee Appraisers.—In performing an appraisal under this section, a State certified appraiser may use the assistance of a State credentialed trainee appraiser or an unlicensed trainee appraiser, except that the State certified appraiser assisted by a trainee shall be liable for appraisal and valuation work.”

(4)
Definition.— Section 1121 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350) is amended by adding at the end the following:

“(12) State credentialed trainee appraiser.—The term ‘State credentialed trainee appraiser’ means an individual who—

“(A) meets the minimum criteria established by the Appraiser Qualification Board for a trainee appraiser credential; and

“(B) is credentialed by a State appraiser certifying and licensing agency.”

(d)
Grants for Workforce and Training.— Section 1109(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338(b)) is amended—
(1)
in paragraph (5)(B), by striking “ and” at the end;
(2)
in paragraph (6), by striking the period at the end and inserting “ ; and”; and
(3)
by adding at the end the following:

“(7) to make grants to State appraiser certifying and licensing agencies and post-secondary institutions, including trade and polytechnic schools, to support the carrying out of education and training activities or other activities related to addressing appraiser industry workforce needs, including recruiting and retaining workforce talent, such as through scholarship assistance and career pipeline development, and such agencies shall report on the use of funds and outcomes.”

(e)
Appraisal Subcommittee.— Section 1011 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3310) is amended, in the first sentence, by inserting “ the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture, the Department of Housing and Urban Development,” after “ Financial Protection,”.

SEC. 404. Helping More Families Save Act.

Section 23 of the United States Housing Act of 1937 (42 U.S.C. 1437u) is amended by adding at the end the following:

“(p) Escrow Expansion Pilot Program.—

“(1) Definitions.—In this subsection:

“(A) Covered family.—The term ‘covered family’ means a family that receives assistance under section 8 or 9 of this Act and is enrolled in the Pilot Program.

“(B) Eligible entity.—The term ‘eligible entity’ means an entity described in subsection (c)(2).

“(C) Pilot program.—The term ‘Pilot Program’ means the Pilot Program established under paragraph (2).

“(D) Welfare assistance.—The term ‘welfare assistance’ has the meaning given the term in section 984.103 of title 24, Code of Federal Regulations, or any successor regulation.

“(2) Establishment.—The Secretary may establish a pilot program under which the Secretary shall select not more than 25 eligible entities to establish and manage escrow accounts for not more than 5,000 covered families, in accordance with this subsection.

“(3) Escrow accounts.—

“(A) In general.—An eligible entity selected to participate in the Pilot Program—

“(i) shall establish an interest-bearing escrow account and place into the account an amount equal to any increase in the amount of rent paid by each covered family in accordance with the provisions of section 3, 8(o), or 8(y), as applicable, that is attributable to increases in earned income by the covered families during the participation of each covered family in the Pilot Program; and

“(ii) notwithstanding any other provision of law, may use funds it controls under section 8 or 9 for purposes of making the escrow deposit for covered families assisted under, or residing in units assisted under, section 8 or 9, respectively, provided such funds are offset by the increase in the amount of rent paid by the covered family.

“(B) Income limitation.—An eligible entity may not escrow any amounts for any covered family whose adjusted income exceeds 80 percent of the area median income at the time of enrollment.

“(C) Withdrawals.—A covered family may withdraw funds, including interest earned, from an escrow account established by an eligible entity under the Pilot Program—

“(i) after the covered family ceases to receive welfare assistance; and

“(ii)

(I) not earlier than the date that is 5 years after the date on which the eligible entity establishes the escrow account under this subsection;

“(II) not later than the date that is 7 years after the date on which the eligible entity establishes the escrow account under this subsection, if the covered family chooses to continue to participate in the Pilot Program after the date that is 5 years after the date on which the eligible entity establishes the escrow account;

“(III) on the date the covered family ceases to receive housing assistance under section 8 or 9, if such date is earlier than 5 years after the date on which the eligible entity establishes the escrow account;

“(IV) earlier than 5 years after the date on which the eligible entity establishes the escrow account, if the covered family is using the funds to advance a self-sufficiency goal as approved by the eligible entity;

“(V) for any reason listed under section 984.303(k) of title 24, Code of Federal Regulations; or

“(VI) under other circumstances in which the Secretary determines an exemption for good cause is warranted.

“(D) Interim recertification.—For purposes of the Pilot Program, a covered family may recertify the income of the covered family multiple times per year at the request of the participating family, as determined by the Secretary, and not less frequently than once per year, unless the eligible entity has established an alternative rent structure with approval from the Secretary.

“(E) Contract or plan.—A covered family is not required to complete a standard contract of participation or an individual training and services plan in order to participate in the Pilot Program.

“(4) Effect of increases in family income.—Any increase in the earned income of a covered family during the enrollment of the family in the Pilot Program may not be considered as income or a resource for purposes of eligibility of the family for other benefits, or amount of benefits payable to the family, under any program administered by the Secretary.

“(5) Application.—

“(A) In general.—An eligible entity seeking to participate in the Pilot Program shall submit to the Secretary an application—

“(i) at such time, in such manner, and containing such information as the Secretary may require by notice; and

“(ii) that includes the number of proposed covered families to be served by the eligible entity under this subsection.

“(B) Geographic and entity variety.—The Secretary shall ensure that eligible entities selected to participate in the Pilot Program—

“(i) are located across various States and in both urban and rural areas; and

“(ii) vary by size and type, including both public housing agencies and private owners of projects receiving project-based rental assistance under section 8.

“(6) Notification and opt-out.—An eligible entity participating in the Pilot Program shall—

“(A) notify covered families of their enrollment in the Pilot Program;

“(B) provide covered families with a detailed description of the Pilot Program, including how the Pilot Program will impact their rent and finances;

“(C) inform covered families that the families cannot simultaneously participate in the Pilot Program and the Family Self-Sufficiency program under this section; and

“(D) provide covered families with the ability to elect not to participate in the Pilot Program—

“(i) not less than 2 weeks before the date on which the escrow account is established under paragraph (3); and

“(ii) at any point during the duration of the Pilot Program.

“(7) Maximum rents.—During the term of participation by a covered family in the Pilot Program, the amount of rent paid by the covered family shall be calculated under the rental provisions of section 3 or 8(o), as applicable.

“(8) Pilot program timeline.—

“(A) Awards.—Not later than 1 year after establishing the Pilot Program, the Secretary shall select the eligible entities to participate in the Pilot Program.

“(B) Establishment and term of accounts.—An eligible entity selected to participate in the Pilot Program shall—

“(i) not later than 6 months after selection, establish escrow accounts under paragraph (3) for covered families; and

“(ii) maintain those escrow accounts for not less than 5 years, or until a determination is made for termination with FSS escrow disbursement under section 984.303(k) of title 24, Code of Federal Regulations, or until the date the family ceases to receive assistance under section 8 or 9, and, at the discretion of the covered family, not more than 7 years after the date on which the escrow account is established.

“(9) Nonparticipation and housing assistance.—

“(A) In general.—Assistance under section 8 or 9 for a family that elects not to participate in the Pilot Program shall not be delayed or denied by reason of such election.

“(B) No termination.—Housing assistance may not be terminated as a consequence of participating, or not participating, in the Pilot Program under this subsection for any period.

“(10) Study.—Not later than 10 years after the date the Secretary selects eligible entities to participate in the Pilot Program under this subsection, the Secretary shall, if awards were made, conduct a study and submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on outcomes for covered families under the Pilot Program, which shall evaluate the effectiveness of the Pilot Program in assisting families to achieve economic independence and self-sufficiency, and the impact coaching and supportive services, or the lack thereof, had on individual incomes.

“(11) Waivers.—To allow selected eligible entities to effectively administer the Pilot Program and make the required escrow account deposits under this subsection, the Secretary may waive requirements under this section.

“(12) Termination.—The Pilot Program under this subsection shall terminate on the date that is 10 years after the date of enactment of this subsection.

“(13) Eligible uses of appropriations.—Subject to the appropriation of funds, the Secretary may use funds—

“(A) for technical assistance related to implementation of the Pilot Program; and

“(B) to carry out an evaluation of the Pilot Program under paragraph (10).”

SEC. 405. Choice in Affordable Housing Act.

(a)
Satisfaction of Inspection Requirements Through Participation in Other Housing Programs.— Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended by adding at the end the following:

“(I) Satisfaction of inspection requirements through participation in other housing programs.—

“(i) Low-income housing tax credit-financed buildings.—A dwelling unit shall be deemed to meet the inspection requirements under this paragraph if—

“(I) the dwelling unit is in a building, the acquisition, rehabilitation, or construction of which was done by a building owner who may be eligible for low-income housing credits because the building had been allocated a housing credit dollar amount under section 42(h) of the Internal Revenue Code of 1986 or is described in section 42(h)(4) of such Code (concerning buildings that meet a criterion for a certain amount of tax-exempt financing);

“(II) the dwelling unit, during the preceding 12-month period, was physically inspected and satisfied the suitability-for-occupancy requirement in section 42(i)(3)(B)(ii) of such Code; and

“(III) the applicable public housing agency performed the inspection itself or is able to obtain the results of the inspection described in subclause (II).

“(ii) Home investment partnerships program.—A dwelling shall be deemed to meet the inspection requirements under this paragraph if—

“(I) the dwelling unit is assisted under the HOME Investment Partnerships Program under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.);

“(II) the dwelling unit was physically inspected and passed inspection as part of the program described in subclause (I) during the preceding 12-month period; and

“(III) the applicable public housing agency is able to obtain the results of the inspection described in subclause (II).

“(iii) Rural housing service.—A dwelling unit shall be deemed to meet the inspection requirements under this paragraph if—

“(I) the dwelling unit is assisted by the Rural Housing Service of the Department of Agriculture;

“(II) the dwelling unit was physically inspected and passed inspection in connection with the assistance described in subclause (I) during the preceding 12-month period; and

“(III) the applicable public housing agency is able to obtain the results of the inspection described in subclause (II).

“(iv) Remote or video inspections.—When complying with inspection requirements for a housing unit located in a rural or small area using assistance under this section, the Secretary may allow a grantee to conduct a remote or video inspection of a unit if the remote or video inspection—

“(I) is thorough;

“(II) does not misrepresent the condition of the unit; and

“(III) provides the information necessary to fully and accurately evaluate the conditions of the unit to ensure that the unit meets the relevant standards.

“(v) Rule of construction.—Nothing in clause (i), (ii), (iii), or (iv) shall be construed to affect the operation of a housing program described in, or authorized under a provision of law described in, that clause.”

(b)
Pre-approval of Units.— Section 8(o)(8)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(8)(A)) is amended by adding at the end the following:

“(iv) Initial inspection prior to lease agreement.—

“(I) Definition.—In this clause, the term ‘new landlord’ means an owner of a dwelling unit who has not previously entered into a housing assistance payment contract with a public housing agency under this subsection for any dwelling unit.

“(II) Early inspection.—Upon the request of a new landlord, a public housing agency may inspect the dwelling unit owned by the new landlord to determine whether the unit meets the housing quality standards under subparagraph (B) before the unit is selected by a tenant assisted under this subsection.

“(III) Effect.—An inspection conducted under subclause (II) that determines that the dwelling unit meets the housing quality standards under subparagraph (B) shall satisfy this subparagraph and subparagraph (C) if the new landlord enters into a lease agreement with a tenant assisted under this subsection not later than 60 days after the date of the inspection.

“(IV) Information when family is selected.—When a public housing agency selects a family to participate in the tenant-based assistance program under this subsection, the public housing agency shall include in the information provided to the family a list of dwelling units that have been inspected under subclause (II) and determined to meet the housing quality standards under subparagraph (B).”