Title 12, Banks and BankingRelease 119-110
§1715z–24 Pilot Program for Automated Process for Borrowers Without Sufficient Credit History
Title 12 › CHAPTER 13 — NATIONAL HOUSING › SUBCHAPTER II — MORTGAGE INSURANCE › § 1715z–24
Summary
Secretary must run a pilot letting lenders use an automated system to find alternative credit information for borrowers who lack enough credit history for 1- to 4-family mortgages insured under this subchapter. It may use rent, utility, and insurance payments and other information. The pilot may be limited to first-time buyers. Each year use is capped at 5% of the prior fiscal year’s insured mortgages. No new commitments after the 5-year period beginning July 30, 2008.
Full Legal Text
Title 12, §1715z–24
Banks and Banking, Source: USLM XML via OLRC
(a)Establishment
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)Scope
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)Limitation
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)Sunset
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
Sep 22, 2026
Release point: 119-110