Title 12 — Banks and BankingRelease 119-73

§1715z–24 Pilot program for automated process for borrowers without sufficient credit history

Title 12 › Chapter CHAPTER 13— - NATIONAL HOUSING › Subchapter SUBCHAPTER II— - MORTGAGE INSURANCE › § 1715z–24

Last updated Apr 6, 2026|Official source

Summary

The Secretary must run a pilot program that gives lenders an automated way to use other kinds of credit information for people who do not have enough credit history for mortgages on 1- to 4-family homes. The alternative information can include rent, utilities, and insurance payment records and any other data the Secretary thinks is appropriate. The Secretary may limit the program or make it only for first-time buyers. Each fiscal year, loans insured through this automated process cannot be more than 5 percent of the total 1- to 4-family mortgages the Secretary insured in the previous fiscal year. After the 5-year period that began on July 30, 2008 ends, the Secretary may not make any new commitments to insure, or newly insure, mortgages under this process.

Full Legal Text

Title 12, §1715z–24

Banks and Banking — Source: USLM XML via OLRC

(a)The Secretary shall carry out a pilot program to establish, and make available to mortgagees, an automated process for providing alternative credit rating information for mortgagors and prospective mortgagors under mortgages on 1- to 4-family residences to be insured under this subchapter who have insufficient credit histories for determining their creditworthiness. Such alternative credit rating information may include rent, utilities, and insurance payment histories, and such other information as the Secretary considers appropriate.

(b)The Secretary may carry out the pilot program under this section on a limited basis or scope, and may consider limiting the program to first-time homebuyers.

(c)In any fiscal year, the aggregate number of mortgages insured pursuant to the automated process established under this section may not exceed 5 percent of the aggregate number of mortgages for 1- to 4-family residences insured by the Secretary under this subchapter during the preceding fiscal year.

(d)After the expiration of the 5-year period beginning on July 30, 2008, the Secretary may not enter into any new commitment to insure any mortgage, or newly insure any mortgage, pursuant to the automated process established under this section.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1715z–24

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73