II 

116TH CONGRESS 

2D SESSION S. 4260 

To promote access to mortgage credit during the COVID–19 pandemic by 

preventing restrictions on providing Federal backing for single-family 

mortgage loans in forbearance, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 22, 2020 

Mr. MENENDEZ introduced the following bill; which was read twice and 

referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To promote access to mortgage credit during the COVID– 

19 pandemic by preventing restrictions on providing Federal backing for single-family mortgage loans in forbearance, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Promoting Access to 

5 Credit for Homebuyers Act of 2020’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) COVERED PERIOD.—The term ‘‘covered pe2 riod’’ means, with respect to a Federally backed 

3 mortgage loan, the period of time during which the 

4 borrower under the loan may request forbearance on 

5 the loan under section 4022(b) of the CARES Act 

6 (15 U.S.C. 9056(b)). 

7 (2) COVID–19 EMERGENCY.—The term 

8 ‘‘COVID–19 emergency’’ has the meaning given the 

9 term in section 4022 of the CARES Act (15 U.S.C. 

10 9056). 

11 (3) DIRECTOR.—The term ‘‘Director’’ means 

12 the Director of the Federal Housing Finance Agen13 cy. 

14 (4) ENTERPRISE.—The term ‘‘enterprise’’ has 

15 the meaning given the term in section 1303 of the 

16 Housing and Community Development Act of 1992 

17 (12 U.S.C. 4502). 

18 (5) FEDERALLY BACKED MORTGAGE LOAN.— 

19 The term ‘‘Federally backed mortgage loan’’ has the 

20 meaning given the term in section 4022 of the 

21 CARES Act (15 U.S.C. 9056). 

22 SEC. 3. FANNIE MAE AND FREDDIE MAC. 

23 (a) PURCHASE REQUIREMENTS.—During the period 

24 beginning on the date that is 5 days after the date of en25 actment of this Act and ending on the date that is 60 


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1 days after the end of the covered period with respect to 

2 the mortgage, notwithstanding any other provision of law, 

3 an enterprise may not refuse to purchase any single-family 

4 mortgage originated on or after February 1, 2020, that 

5 otherwise would have been eligible for purchase by such 

6 enterprise, solely due to the fact that the borrower has, 

7 for the borrower’s previous mortgage or on the mortgage 

8 being purchased— 

9 (1) entered into forbearance as a result of a fi10 nancial hardship due, directly or indirectly, to the 

11 COVID–19 emergency; 

12 (2) requested forbearance as a result of a finan13 cial hardship due, directly or indirectly, to the 

14 COVID–19 emergency; or 

15 (3) inquired as to options related to forbearance 

16 as a result of a financial hardship due, directly or 

17 indirectly, to the COVID–19 emergency. 

18 (b) PROHIBITION ON RESTRICTIONS.—With respect 

19 to purchase of single-family mortgages described in sub20 section (a) and specified in any of paragraphs (1) through 

21 (3) of such subsection, an enterprise may not— 

22 (1) establish additional restrictions that are not 

23 applicable to similarly situated mortgages under 

24 which the borrower is not in forbearance; 


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1 (2) charge a higher guarantee fee (within the 

2 meaning provided the term in section 1327 of the 

3 Housing and Community Development Act of 1992 

4 (12 U.S.C. 4547)), or loan level pricing adjustment, 

5 or otherwise alter pricing for those mortgages, rel6 ative to similarly situated mortgages under which 

7 the borrower is not in forbearance; 

8 (3) apply repurchase requirements to those 

9 mortgages that are more restrictive than repurchase 

10 requirements applicable to similarly situated mort11 gages under which the borrower is not in forbear12 ance; or 

13 (4) require lender indemnification of those 

14 mortgages, solely due to the fact that the borrower 

15 is in forbearance. 

16 (c) FRAUD DETECTION.— 

17 (1) IN GENERAL.—Nothing in this section may 

18 be construed to prevent an enterprise from con19 ducting oversight and review of single-family mort20 gages purchased when a borrower is in forbearance 

21 on the borrower’s previous mortgage, or on the 

22 mortgage being purchased, for purposes of detecting 

23 fraud. 


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1 (2) REQUIREMENT TO REPORT.—An enterprise 

2 shall report any fraud detected as described in para3 graph (1) to the Director. 

4 (d) ENTERPRISE CAPITAL.—During the period be5 ginning on the date that is 5 days after the date of enact6 ment of this Act and ending on the date that is 60 days 

7 after the end of the covered period with respect to the 

8 mortgage, notwithstanding any other provision of law, a 

9 forbearance on the mortgage shall not be considered to 

10 be a delinquency under the mortgage for purposes of cal11 culating capital of an enterprise for any purpose under 

12 title XIII of the Housing and Community Development 

13 Act of 1992 (12 U.S.C. 4501 et seq.). 

14 (e) RULES OF CONSTRUCTION.— 

15 (1) PURCHASE PARAMETERS.—Nothing in this 

16 section may be construed to require an enterprise to 

17 purchase single-family mortgages that do not meet 

18 existing or amended purchase parameters, other 

19 than parameters related to borrower forbearance, es20 tablished by the enterprise. 

21 (2) EMPLOYMENT; INCOME.—Nothing in this 

22 section may be construed to prevent an enterprise 

23 from establishing additional requirements to ensure 

24 that a borrower has not lost their job or income 

25 prior to a mortgage closing. 


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1 (f) IMPLEMENTATION.—The Director may issue any 

2 guidance, orders, and regulations necessary to carry out 

3 this section. 

4 SEC. 4. FHA. 

5 (a) PROHIBITION ON RESTRICTIONS.—During the 

6 period beginning on the date that is 5 days after the date 

7 of enactment of this Act and ending on the date that is 

8 60 days after the end of the covered period with respect 

9 to the mortgage, notwithstanding any other provision of 

10 law, the Secretary of Housing and Urban Development 

11 may not deny the provision of mortgage insurance for a 

12 single-family mortgage originated on or after February 1, 

13 2020, may not implement additional premiums or other14 wise alter pricing for such a mortgage, may not require 

15 mortgagee indemnification, and may not establish addi16 tional restrictions on such a mortgagor, solely due to the 

17 fact that the borrower has— 

18 (1) entered into forbearance as a result of a fi19 nancial hardship due, directly or indirectly, to the 

20 COVID–19 emergency; 

21 (2) requested forbearance as a result of a finan22 cial hardship due, directly or indirectly, to the 

23 COVID–19 emergency; or 


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1 (3) inquired as to options related to forbearance 

2 as a result of a financial hardship due, directly or 

3 indirectly, to the COVID–19 emergency. 

4 (b) RULES OF CONSTRUCTION.— 

5 (1) INSURANCE.—Nothing in this section may 

6 be construed to require the Secretary of Housing 

7 and Urban Development to provide insurance on sin8 gle-family mortgages that do not meet existing or 

9 amended insurance parameters, other than param10 eters related to borrower forbearance, established by 

11 the Secretary of Housing and Urban Development. 

12 (2) EMPLOYMENT; INCOME.—Nothing in this 

13 section may be construed to prevent the Secretary of 

14 Housing and Urban Development from establishing 

15 additional requirements regarding insurance on sin16 gle-family mortgages to ensure that a borrower has 

17 not lost their job or income prior to a mortgage clos18 ing. 

19 SEC. 5. REPORTING REQUIREMENTS. 

20 (a) FHFA ACTIONS.—During the COVID–19 emer21 gency, the Director may not increase guarantee fees, loan 

22 level pricing adjustments, or any other fees or implement 

23 any restrictions on access to credit unless the Director 

24 provides 48-hour advance notice of such increase or re25 strictions to the Committee on Banking, Housing, and 


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1 Urban Affairs of the Senate and the Committee on Finan2 cial Services of the House of Representatives together with 

3 a detailed report of the policy rationale for the decision, 

4 including any and all data considered in making such deci5 sion. 

6 (b) QUARTERLY REPORTS BY ENTERPRISES AND

7 FHA.— 

8 (1) REQUIREMENT.—Each enterprise and the 

9 Secretary of Housing and Urban Development, with 

10 respect to the mortgage insurance programs of the 

11 Federal Housing Administration, shall provide re12 ports to the Congress, and make such reports pub13 licly available, not less frequently than quarterly re14 garding the impact of COVID–19 pandemic on the 

15 such enterprises’ and program’s ability to meet their 

16 charter requirements, civil rights responsibilities, 

17 mandates under the CARES Act (Public Law 116– 

18 136), and other laws enacted in response to the 

19 COVID–19 pandemic, and other requirements under 

20 law. 

21 (2) DEADLINES.—The first report required 

22 under paragraph (1) shall be submitted not later 

23 than 3 months after the date of enactment of this 

24 Act and the requirement under paragraph (1) to 

25 submit those reports shall terminate on the date 


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1 that is 2 years after the date on which the COVID– 

2 19 emergency terminates. 

3 (3) CONTENT.—Each report required under 

4 paragraph (1) shall include the following information 

5 for the most recent quarter for which data is avail6 able: 

7 (A) ENTERPRISES.—For each report re8 quired by an enterprise: 

9 (i) The number of single-family and 

10 multi-family residential mortgage loans 

11 purchased by the enterprise and the un12 paid principal balance of those mortgage 

13 loans purchased, disaggregated by— 

14 (I) mortgage loans made to low15 and moderate-income borrowers; 

16 (II) mortgage loans made for 

17 properties in low- and moderate-in18 come census tracts; and 

19 (III) mortgage loans made for 

20 properties in central cities, rural 

21 areas, and underserved areas. 

22 (ii) In the single-family residential 

23 mortgage market— 

24 (I) the total number, unpaid 

25 principal balance, and length of 


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1 forbearances provided to borrowers, 

2 including whether or not the forbear3 ance was requested by the borrower; 

4 (II) a detailed breakdown of the 

5 loan modifications offered to bor6 rowers and whether the borrowers ac7 cepted the offer, including the total 

8 number and unpaid principal balance 

9 of loan modifications ultimately made 

10 to borrowers; 

11 (III) a detailed breakdown of the 

12 home retention options offered to bor13 rowers and whether the borrowers ac14 cepted the offer, including the total 

15 number and unpaid principal balance 

16 of other home retention options ulti17 mately made to borrowers; and 

18 (IV) the total number of out19 comes that included short-sales, deed20 in-lieu of foreclosure, and foreclosure 

21 sales. 

22 (iii) A description of any efforts by 

23 the enterprise to provide assistance and 

24 support to consumers who are not pro25 ficient in English. 


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1 (iv) A description of any other efforts 

2 by the enterprise to provide assistance to 

3 low- and moderate-income communities, 

4 central cities, rural areas, and other under5 served areas, such as financial literacy and 

6 education or support of fair housing and 

7 housing counseling agencies. 

8 (v) A description of any other assist9 ance provided by the enterprise to con10 sumers in response to the COVID–19 pan11 demic. 

12 (B) FHA.—For each report required with 

13 respect to the mortgage insurance programs of 

14 the Federal Housing Administration: 

15 (i) The number and unpaid principal 

16 balance for all residential mortgage loans, 

17 disaggregated by type, insured under those 

18 programs. 

19 (ii) The total number, unpaid prin20 cipal balance, and length of forbearances 

21 provided to borrowers, including whether 

22 or not the forbearance was requested by 

23 the borrower. 

24 (iii) A detailed breakdown of the loan 

25 modifications offered to borrowers and 


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1 whether the borrowers accepted the offer, 

2 including the total number and unpaid 

3 principal balance of loan modifications ulti4 mately made to borrowers. 

5 (iv) A detailed breakdown of the home 

6 retention options offered to borrowers and 

7 whether the borrowers accepted the offer, 

8 including the total number and unpaid 

9 principal balance of other home retention 

10 options ultimately made to borrowers. 

11 (v) A description of any efforts under 

12 those programs to provide assistance and 

13 support to consumers who are not pro14 ficient in English. 

15 (vi) A description of any other efforts 

16 under those programs to provide assistance 

17 to low- and moderate-income communities, 

18 central cities, rural areas, and other under19 served areas, such as financial literacy and 

20 education or support of fair housing and 

21 housing counseling agencies. 

22 (vii) A description of any other assist23 ance provided under those programs to 

24 consumers in response to the COVID–19 

25 pandemic. 


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1 (C) PROVISIONS TO BE INCLUDED IN ALL

2 REPORTS.—Each report required under para3 graph (1) shall include, to the degree reason4 ably possible, the following information: 

5 (i) An analysis of all loan level data 

6 required by subparagraphs (A) and (B) 

7 disaggregated by race, national origin, gen8 der, disability status, whether or not the 

9 borrower seeking or obtaining assistance 

10 speaks English as a second language, the 

11 preferred language of the borrower, debt12 to-income level of the borrower, loan-to13 value ratio of the loan, and credit score of 

14 the borrower. 

15 (ii) A geographical analysis at the 

16 census tract level, but if information is not 

17 available at the census tract level for any 

18 of the items required by subparagraphs 

19 (A) and (B), the geographical analysis 

20 shall be provided at the zip code level for 

21 the item for which a census tract analysis 

22 was not possible. 

23 (iii) A description of any policy 

24 changes made by the enterprise or Sec25 retary of Housing and Urban DevelopVerDate Sep 11 2014 03:00 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S4260.IS S4260

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1 ment, as appropriate, in response to the 

2 COVID–19 pandemic and analysis of ac3 tions taken to ensure that those policy 

4 changes were in compliance with all rel5 evant civil rights responsibilities, including 

6 the Fair Housing Act (42 U.S.C. 3601 et 

7 seq.), including the Affirmatively Fur8 thering Fair Housing provision, the Equal 

9 Credit Opportunity Act (15 U.S.C. 1691 et 

10 seq.), the Community Reinvestment Act of 

11 1977 (12 U.S.C. 2901 et seq.), the Federal 

12 Housing Enterprises Financial Safety and 

13 Soundness Act of 1992 (12 U.S.C. 4501 et 

14 seq.), the Housing and Economic Recovery 

15 Act of 2008 (Public Law 110–289; 122 

16 Stat. 2654), the Federal Home Loan Bank 

17 Act (12 U.S.C. 1421 et seq.), Executive 

18 Orders 11063 and 12892, the Federal Na19 tional Mortgage Association Charter Act 

20 (12 U.S.C. 1716 et seq.), and the Federal 

21 Home Loan Mortgage Corporation Act (12 

22 U.S.C. 1451 et seq.). 

23 (c) REPORT BY GAO.—Not later than 120 days after 

24 the date on which the COVID–19 emergency terminates, 


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1 the Comptroller General of the United States shall submit 

2 to Congress and make publicly available a report on— 

3 (1) the extent to which the enterprises and the 

4 mortgage insurance programs of the Federal Hous5 ing Administration provided loan products, forbear6 ances, loan modifications, and COVID–19-related 

7 assistance to consumers; 

8 (2) the availability and type of any such assist9 ance provided post-forbearance; and 

10 (3) the overall ability of the enterprises and the 

11 mortgage insurance programs to successfully meet 

12 their charter requirements, civil rights responsibil13 ities, and other requirements under law. 

Æ 


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