II 

117TH CONGRESS 

1ST SESSION S. 2797 

To establish a program to provide low- and moderate-income first-time, firstgeneration homebuyers with access to affordable and sustainable wealthbuilding home loans. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 22 (legislative day, SEPTEMBER 21), 2021 

Mr. WARNER (for himself, Mr. VAN HOLLEN, Mr. WARNOCK, Mr. KAINE, and 

Mr. OSSOFF) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To establish a program to provide low- and moderate-income 

first-time, first-generation homebuyers with access to affordable and sustainable wealth-building home loans. 

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 ‘‘Low-Income First5 Time Homebuyers Act of 2021’’ or the ‘‘LIFT Home6 buyers Act of 2021’’. 

7 SEC. 2. WEALTH-BUILDING HOME LOAN PROGRAM. 

8 (a) ESTABLISHMENT OF LIFT HOME FUNDS.— 


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1 (1) IN GENERAL.—There is established in each 

2 Loan Guarantee Agency a fund to be known as the 

3 LIFT HOME Fund, into which amounts made 

4 available under this section shall be deposited and 

5 which shall be used by each Department for carrying 

6 out the purposes of this section. 

7 (2) MANAGEMENT OF FUND.—The LIFT 

8 HOME Fund of each Loan Guarantee Agency shall 

9 be administered and managed by the respective Sec10 retary, who shall establish reasonable and prudent 

11 criteria for the management and operation of any 

12 amounts in the Fund. 

13 (b) USE OF FUNDS.— 

14 (1) TRANSFER OF AMOUNTS TO TREASURY.— 

15 Such portions of the amount made available to the 

16 Secretary of Housing and Urban Development under 

17 this section shall be transferred by the Secretary of 

18 Housing and Urban Development to the Department 

19 of the Treasury in an amount equal to, as deter20 mined by the Secretary of the Treasury, in consulta21 tion with the Secretary of Housing and Urban De22 velopment— 

23 (A) the amount the Secretary of the Treas24 ury estimates to be necessary for the purchase 

25 of securities under the Program during the peVerDate Sep 11 2014 20:20 Sep 27, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2797.IS S2797

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1 riod for which the funds are intended to be 

2 available; 

3 (B) the difference between— 

4 (i) the Secretary of the Treasury’s re5 ceipts from the sale or other disposition of 

6 securities acquired under the Program; 

7 and 

8 (ii) the Secretary of the Treasury’s 

9 costs in purchasing such securities; and 

10 (C) the Department of the Treasury’s ad11 ministrative expenses related to the Program. 

12 (2) CREDIT SUBSIDY.—Such portion of the 

13 amount made available to each Secretary under this 

14 section as may be necessary may be used for the 

15 cost to the respective Loan Guarantee Agency of 

16 guaranteed loans under this section. Such costs, in17 cluding the costs of modifying such loans, shall be 

18 as defined in section 502 of the Congressional Budg19 et Act of 1974 (2 U.S.C. 661a). 

20 (c) ESTABLISHMENT OF THE LIFT HOME PRO21 GRAM.—Each Secretary shall establish, and carry out, 

22 with respect to any mortgage with a case number issued 

23 on or before December 31, 2025, that is subsequently in24 sured or guaranteed by such Secretary, a program to 

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1 buyers to purchase a single-family residence for use as 

2 their principal residence (referred to in this section as the 

3 ‘‘Program’’), under which— 

4 (1) the Secretary of the Treasury— 

5 (A) shall act as a purchaser, on behalf of 

6 the Secretary of Housing and Urban Develop7 ment, of securities that are secured by covered 

8 mortgage loans; 

9 (B) may designate financial institutions, 

10 including banks, savings associations, trust 

11 companies, security brokers or dealers, asset 

12 managers, investment advisers, and other insti13 tutions and such institutions shall— 

14 (i) perform all reasonable duties re15 lated to this section as a financial agent of 

16 the United States as may be required; and 

17 (ii) be paid for such duties using ap18 propriations available to the Secretary of 

19 the Treasury to reimburse financial insti20 tutions in their capacity as financial agents 

21 of the United States; 

22 (C) may use the services of any agency or 

23 instrumentality of the United States or compo24 nent thereof on a reimbursable basis, and any 

25 such agency or instrumentality or component 


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1 thereof is authorized to provide services as re2 quested by the Secretary using all authorities 

3 vested in or delegated to that agency, instru4 mentality, or component; 

5 (D) may manage, and exercise any rights 

6 received in connection with, any financial in7 struments or assets purchased or acquired pur8 suant to the authorities granted under this sec9 tion; 

10 (E) may establish and use vehicles to pur11 chase, hold, and sell financial instruments and 

12 other assets; and 

13 (F) may issue such regulations and other 

14 guidance as may be necessary or appropriate to 

15 carry out the authorities or purposes of this 

16 section; 

17 (2) each Secretary of a Loan Guarantee Agency 

18 shall— 

19 (A) establish pricing terms for covered 

20 mortgage loans such that the covered mortgage 

21 loans carry a monthly mortgage payment of 

22 principal and interest that is not more than 110 

23 percent and not less than 100 percent of the 

24 monthly payment of principal, interest, and 

25 periodic mortgage insurance premium or loan 


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1 guarantee fee associated with a newly origi2 nated 30-year mortgage loan with the same 

3 loan balance insured or guaranteed by the Loan 

4 Guarantee Agency as determined by each Sec5 retary, or such pricing terms as are determined 

6 by each Secretary to be necessary to develop li7 quidity for securities backed by covered mort8 gage loans and expand Program participation 

9 by eligible homebuyers; and 

10 (B) establish an outreach and counseling 

11 program to increase stakeholder awareness of 

12 the Program; and 

13 (3) the Secretary of Housing and Urban Devel14 opment shall— 

15 (A) in consultation with the Secretary of 

16 Treasury, establish the pricing terms for the 

17 purchase of securities guaranteed by the Asso18 ciation secured by covered mortgage loans such 

19 that the covered mortgage loans carry a month20 ly mortgage payment of principal and interest 

21 that is not more than 110 percent and not less 

22 than 100 percent of the monthly payment of 

23 principal, interest, and periodic mortgage insur24 ance premium or loan guarantee fee associated 

25 with a newly originated 30-year mortgage loan 


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1 with the same loan balance insured or guaran2 teed by the Loan Guarantee Agency, or such 

3 pricing terms as are determined by the Secre4 taries to be necessary to develop liquidity for 

5 securities backed by covered mortgage loans 

6 and expand Program participation by eligible 

7 homebuyers; 

8 (B) have the authority to designate mort9 gage bankers, financial institutions, including 

10 banks, savings associations, trust companies, 

11 security brokers or dealers, asset managers, in12 vestment advisers, and other institutions and 

13 such institutions shall— 

14 (i) perform all reasonable duties re15 lated to this section as an agent of the 

16 United States as may be required; and 

17 (ii) be paid for such duties using ap18 propriations available under this section to 

19 the Secretary of Housing and Urban De20 velopment to reimburse these entities in 

21 their capacity as agents of the United 

22 States; 

23 (C) have the authority to use the services 

24 of any agency or instrumentality of the United 

25 States or component thereof on a reimbursable 


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1 basis, and any such agency or instrumentality 

2 or component thereof is authorized to provide 

3 services as requested by the Secretary of Hous4 ing and Urban Development using all authori5 ties vested in or delegated to that agency, in6 strumentality, or component; 

7 (D) operate the Program in coordination 

8 with the Association, the Federal Housing Ad9 ministration, the Rural Housing Service, and 

10 the Secretary of the Treasury so as to dem11 onstrate feasibility and workability to market 

12 participants, including— 

13 (i) originators and servicers of mort14 gages; 

15 (ii) issuers of mortgage-backed securi16 ties; and 

17 (iii) investors; and 

18 (E) gain price discovery experience by in19 structing the Secretary of the Treasury, fol20 lowing consultation with the Secretary of Treas21 ury to sell acquired securities described in sub22 paragraph (A) as soon as practicable, thereby 

23 hastening the development of liquidity for secu24 rities backed by covered mortgage loans. 


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1 (3) GNMA GUARANTEE AUTHORITY.—To carry 

2 out the purposes of this section, the Association may 

3 enter into new commitments to issue guarantees of 

4 securities based on or backed by mortgages insured 

5 under this section. 

6 (4) GNMA GUARANTY FEE.—To carry out the 

7 purposes of this section, the Association may collect 

8 guaranty fees consistent with section 306(g)(1) of 

9 the National Housing Act (12 U.S.C. 1721(g)(1)) 

10 that are paid at securitization. 

11 (d) DEFINITIONS.—In this section: 

12 (1) ASSOCIATION.—The term ‘‘Association’’ 

13 means the Government National Mortgage Associa14 tion. 

15 (2) COVERED MORTGAGE LOAN.— 

16 (A) IN GENERAL.—The term ‘‘covered 

17 mortgage loan’’ means, for purposes of the Pro18 gram established by the Secretary of Housing 

19 and Urban Development, a mortgage loan 

20 that— 

21 (i) is insured or guaranteed by the 

22 Federal Housing Administration pursuant 

23 to section 203(b) of the National Housing 

24 Act, subject to the eligibility criteria set 

25 forth in this subsection, and has a case 


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1 number issued on or before December 31, 

2 2025; 

3 (ii) is made for an original term of 20 

4 years or for an original term determined 

5 by the Secretary to be necessary to develop 

6 liquidity for securities backed by covered 

7 mortgage loans and expand Program par8 ticipation by eligible homebuyers; 

9 (iii) subject to subparagraph (C) of 

10 this paragraph and notwithstanding sec11 tion 203(b)(2)(C) of the National Housing 

12 Act (12 U.S.C. 1709(b)(2)(C)), has a 

13 mortgage insurance premium of not more 

14 than 4 percent of the loan balance that is 

15 paid at closing, financed into the principal 

16 balance of the loan, paid through an an17 nual premium, or a combination thereof; 

18 (iv) involves a rate of interest that is 

19 fixed over the term of the mortgage loan; 

20 and 

21 (v) is secured by a single-family resi22 dence that is the principal residence of an 

23 eligible homebuyer. 

24 (B) The term ‘‘covered mortgage loan’’ 

25 means, for purposes of the Program established 


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1 by the Secretary of Agriculture, a loan guaran2 teed under section 502(h) of the Housing Act 

3 of 1949 (42 U.S.C. 1472(h)) that— 

4 (i) notwithstanding section 

5 502(h)(7)(A) of the Housing Act of 1949 

6 (42 U.S.C. 1472(h)(7)(A)), is made for an 

7 original term of 20 years or for an original 

8 term determined by the Secretary to be 

9 necessary to develop liquidity for securities 

10 backed by covered mortgage loans and ex11 pand Program participation by eligible 

12 homebuyers; and 

13 (ii) subject to subparagraph (C) of 

14 this paragraph and notwithstanding sec15 tion 502(h)(8)(A) of the Housing Act of 

16 1949 (42 U.S.C. 1472(h)(8)(A)), has a 

17 loan guarantee fee of not more than 4 per18 cent of the principal obligation of the loan. 

19 (C) WAIVER OF MORTGAGE INSURANCE

20 PREMIUM REQUIREMENT.—Each Secretary, in 

21 consultation with the Secretary of the Treasury, 

22 and notwithstanding section 502(h)(8)(A) of 

23 the Housing Act of 1949 (42 U.S.C. 

24 1472(h)(8)(A)) for purposes of the Program es25 tablished by the Secretary of Agriculture, may 


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1 waive the mortgage insurance premium cap or 

2 loan guarantee fee cap under subparagraphs 

3 (A)(iii) and (B)(ii) with respect to covered 

4 mortgage loans insured or guaranteed by the 

5 Loan Guarantee Agency of which that Sec6 retary is the head if necessary to protect the 

7 solvency of the associated insurance fund. 

8 (3) DEPARTMENT.—Unless otherwise specified, 

9 the term ‘‘Department’’ means the Department of 

10 Housing and Urban Development or the Department 

11 of Agriculture, as appropriate. 

12 (4) ELIGIBLE HOMEBUYER.—The term ‘‘eligible 

13 homebuyer’’ means an individual who— 

14 (A) for purposes of the Program estab15 lished by the Secretary of Housing and Urban 

16 Development— 

17 (i) has an annual household income 

18 that is less than or equal to— 

19 (I) 120 percent of median income 

20 for the area, as determined by the 

21 Secretary of Housing and Urban De22 velopment for— 

23 (aa) the area in which the 

24 home to be acquired using such 

25 assistance is located; or 


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1 (bb) the area in which the 

2 place of residence of the home3 buyer is located; or 

4 (II) if the homebuyer is acquiring 

5 an eligible home that is located in a 

6 high-cost area, 140 percent of the me7 dian income, as determined by the 

8 Secretary, for the area within which 

9 the eligible home to be acquired using 

10 assistance provided under this section 

11 is located; 

12 (ii) is a first-time homebuyer, as de13 fined in paragraph (6) of this subsection; 

14 and 

15 (iii) is a first-generation homebuyer as 

16 defined in paragraph (5) of this subsection; 

17 (B) for purposes of the Program estab18 lished by the Secretary of Agriculture— 

19 (i) meets the applicable requirements 

20 in section 502(h) of the Housing Act of 

21 1949 (42 U.S.C. 1472(h)); and 

22 (ii) is a first-time homebuyer as de23 fined in paragraph (6) of this subsection 

24 and a first-generation homebuyer as de25 fined in paragraph (5) of this subsection. 


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1 (5) FIRST-GENERATION HOMEBUYER.—The 

2 term ‘‘first-generation homebuyer’’ means a home3 buyer that, as attested by the homebuyer, is— 

4 (A) an individual— 

5 (i) whose living parents or legal 

6 guardians do not, to the best of the indi7 vidual’s knowledge, have any present fee 

8 simple ownership interest in a principal 

9 residence in any State, excluding owner10 ship of heir property; 

11 (ii) if no parents or legal guardians 

12 are living upon acquisition of the eligible 

13 home to be acquired using such assistance, 

14 to the best of the individual’s knowledge, 

15 whose parents or legal guardians did not 

16 have any ownership interest in a principal 

17 residence in any State at the time of their 

18 death, excluding ownership of heir prop19 erty; and 

20 (iii) whose spouse, or domestic part21 ner has not, during the 3-year period end22 ing upon acquisition of the eligible home to 

23 be acquired using such assistance, had any 

24 present ownership interest in a principal 

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1 ship of heir property, whether the indi2 vidual is a co-borrower on the loan or not; 

3 or 

4 (B) an individual who has at any time 

5 been placed in foster care or institutional care 

6 whose spouse or domestic partner has not, dur7 ing the 3-year period ending upon acquisition of 

8 the eligible home to be acquired using such as9 sistance, had any ownership interest in a prin10 cipal residence in any State, excluding owner11 ship of heir property, whether such individuals 

12 are co-borrowers on the loan or not. 

13 (6) FIRST-TIME HOMEBUYER.—The term ‘‘first14 time homebuyer’’ means a homebuyer as defined in 

15 section 104 of the Cranston-Gonzalez National Af16 fordable Housing Act (42 U.S.C. 12704), except 

17 that ownership of heir property shall not be treated 

18 as owning a home for purposes of determining 

19 whether a borrower qualifies as a first-time home20 buyer. 

21 (7) HEIR PROPERTY.—The term ‘‘heir prop22 erty’’ means residential property for which title 

23 passed by operation of law through intestacy and is 

24 held by two or more heirs as tenants in common. 


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1 (8) LOAN GUARANTEE AGENCY.—Unless other2 wise specified, the term ‘‘Loan Guarantee Agency’’ 

3 means the Federal Housing Administration of the 

4 Department of Housing and Urban Development or 

5 the Rural Housing Service of the Department of Ag6 riculture, as appropriate. 

7 (9) SECRETARY.—Unless otherwise specified, 

8 the term ‘‘Secretary’’ means the Secretary of Hous9 ing and Urban Development or the Secretary of Ag10 riculture, as appropriate. 

11 (e) RELIANCE ON BORROWER ATTESTATIONS.—No 

12 additional documentation beyond the borrower’s attesta13 tion shall be required to demonstrate eligibility under 

14 paragraph (4) of subsection (e) and no State, eligible enti15 ty, or creditor shall be subject to liability, including mone16 tary penalties or requirements to indemnify a Federal 

17 agency or repurchase a loan that has been sold or 

18 securitized, based on the provision of assistance under this 

19 section to a borrower who does not meet the eligibility re20 quirements under paragraph (4) of subsection (e) if the 

21 creditor does so in good faith reliance on borrower attesta22 tions of eligibility required under such paragraph. 

23 (f) IMPLEMENTATION.—The Secretary of Housing 

24 and Urban Development, the Secretary of Agriculture, 

25 and the Secretary of Treasury shall have authority to issue 


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1 such regulations or other notices, guidance, forms, in2 structions, and publications as may be necessary or appro3 priate to carry out the programs, projects, or activities au4 thorized under this section, including to ensure that such 

5 programs, projects, or activities are completed in a timely 

6 and effective manner. 

7 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to the Secretary of 

9 Housing and Urban Development and the Secretary of 

10 Agriculture such sums as may be necessary to carry out 

11 the LIFT HOME Program. 

Æ 


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