Original Additional Credit FHA Pilot Program Authorization Act
Sponsored By: Representative Green, Al [D-TX-9]
Introduced
Summary
A pilot to use additional credit data in Federal Housing Administration mortgage scores. This bill would create an opt-in program that tests commercially available credit-scoring models that include nontraditional data to see if they improve access and risk prediction for FHA borrowers.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Opt-in FHA credit pilot for borrowers
If enacted, this bill would create an opt-in FHA pilot that tests credit scoring models using extra data. HUD would, after consulting Ginnie Mae, pick one or more commercially available models within one year. Participating lenders would have to notify applicants about the opt-in and explain how the pilot model differs. Lenders would also have to give HUD-approved housing counseling information and let applicants compare pilot and normal loan options. The pilot would exclude loans used to prepay or pay off an existing loan on the same property, and HUD could cap participation. HUD would protect proprietary model data, report results to Congress, post the reports and a list of participating lenders, and the five-year pilot would start on the law's enactment date. The bill would authorize $3 million for FY2023 and $1.5 million per year for FY2024–2027 to run the pilot.
Sponsors & CoSponsors
Sponsor
Green, Al [D-TX-9]
TX • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov