FHA Small-Dollar Mortgages Act

119 HR 6774 IH: FHA Small-Dollar Mortgages Act U.S. House of Representatives 2025-12-17 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 6774 IN THE HOUSE OF REPRESENTATIVES December 17, 2025 Ms. Waters introduced the following bill; which was referred to the Committee on Financial Services A BILL To authorize the Secretary of Housing and Urban Development, acting through the Federal Housing Commissioner, to establish a pilot program to increase access to small-dollar mortgages, and for other purposes. 1. Short title This Act may be cited as the FHA Small-Dollar Mortgages Act . 2. FHA small-dollar mortgages (a) In general Not later than 1 year after the date of the enactment of this section, the Secretary of Housing and Urban Development, acting through the Federal Housing Commissioner, may establish a pilot program to increase access to small-dollar mortgages for mortgagors which may include— (1) authorizing direct payments to mortgagees to incentivize the origination of small-dollar mortgages; (2) adjusting terms and costs imposed by the Federal Housing Administration with respect to small-dollar mortgages; (3) providing direct grants for mortgagors who obtain small-dollar mortgages to cover costs associated with— (A) down payments; (B) closing costs; (C) appraisals; and (D) title insurance; (4) conducting outreach to potential mortgagors about the availability of small-dollar mortgages; and (5) providing technical assistance for mortgagees that originate small-dollar mortgages. (b) Report Beginning not later than 1 year after the establishment of the pilot program under subsection (a) and ending 1 year after the sunset of the pilot program, the Federal Housing Commissioner shall submit to the Congress an annual report that— (1) tracks and evaluates the outcomes of small-dollar mortgages originated by mortgagees as a result of support provided under subsection (a); (2) analyzes risks of the pilot program to the solvency of the Mutual Mortgage Insurance Fund; (3) includes data with respect to— (A) the number of small-dollar mortgages originated in the 10-year period preceding the date of the enactment of this section, including small-dollar mortgages insured or guaranteed by the Federal Government and small-dollar mortgages not insured by the Federal Government; (B) the original principal balance of each small-dollar mortgage identified under subparagraph (A); (C) demographic information about the mortgagors associated with each such small-dollar mortgage; and (D) the number and type of mortgagees that offer small-dollar mortgages; (4) provides a description of the fixed costs that are associated with mortgages and the impact of such costs on the ability of lenders to earn a market rate return on small-dollar mortgages; and (5) includes analysis, by regions of the United States, including rural regions, that identifies regions with the greatest need for, and the highest likelihood of, the origination of small-dollar mortgages and regions that could benefit the most from increased availability of small-dollar mortgages. (c) Sunset The pilot program established under subsection (a) shall terminate on the date that is 4 years after the date on which the pilot program is established under subsection (a). (d) Expiration of authority After the expiration of the 3-year period beginning on the date of enactment of this section, neither the Federal Housing Commissioner nor the Secretary of Housing and Urban Development may newly establish a pilot program to increase access to small-dollar mortgages for mortgagors. (e) Small-Dollar mortgage defined The term small-dollar mortgage means a mortgage that— (1) has an original principal balance of $100,000 or less; and (2) is secured by a 1- to 4-unit property that is the principal residence of the mortgagor.