§1715z–24 Pilot Program for Automated Process for Borrowers Without Sufficient Credit History

Summary

The Secretary must run a pilot that gives lenders an automated way to use alternative credit data (like rent, utilities, and insurance payments) for borrowers who do not have enough credit history for 1- to 4-family mortgages the Secretary insures. The pilot can be limited and may focus on first‑time homebuyers. Each year, mortgages insured through the pilot may not exceed 5 percent of the prior year's Secretary‑insured 1- to 4-family mortgages. After the five‑year period beginning July 30, 2008, the Secretary may not make new commitments or newly insure mortgages under this automated process.