IIB 
116TH CONGRESS 
2D SESSION 
H. R. 5931 
IN THE SENATE OF THE UNITED STATES 
MARCH 3, 2020 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To require a review of the effects of FHA mortgage insur-
ance policies, practices, and products on small-dollar 
mortgage lending, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Improving FHA Sup-
port for Small Dollar Mortgages Act of 2020’’. 
SEC. 2. REVIEW OF FHA SMALL-DOLLAR MORTGAGE PRAC-
TICES. 
(a) CONGRESSIONAL FINDINGS.—The Congress finds 
that— 
(1) affordable homeownership opportunities are 
being hindered due to the lack of financing available 
for home purchases under $70,000; 
(2) according to the Urban Institute, small-dol-
lar mortgage loan applications in 2017 were denied 
by lenders at double the rate of denial for large 
mortgage loans, and this difference in denial rates 
cannot be fully explained by differences in the appli-
cants’ credit profiles; 
(3) according to data compiled by Attom Data 
solutions, small-dollar mortgage originations have 
decreased 38 percent since 2009, while there has 
been a 65 percent increase in origination of mort-
gages for more than $150,000; 
(4) the FHA’s mission is to serve creditworthy 
borrowers who are underserved and, according to the 
Urban Institute, the FHA serves 24 percent of the 
overall market, but only 19 percent of the small-dol-
lar mortgage market; and 
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(5) the causes behind these variations are not 
fully understood, but merit study that could assist in 
furthering the Department of Housing and Urban 
Development’s mission, including meeting the hous-
ing needs of borrowers the program is designed to 
serve and reducing barriers to homeownership, while 
protecting the solvency of the Mutual Mortgage In-
surance Fund. 
(b) REVIEW.—The Secretary of Housing and Urban 
Development shall conduct a review of its FHA single- 
family mortgage insurance policies, practices, and prod-
ucts to identify any barriers or impediments to supporting, 
facilitating, and making available mortgage insurance for 
mortgages having an original principal obligation of 
$70,000 or less. Not later than the expiration of the 12- 
month period beginning on the date of the enactment of 
this Act, the Secretary shall submit a report to the Con-
gress describing the findings of such review and the ac-
tions that the Secretary will take, without adversely affect-
ing the solvency of the Mutual Mortgage Insurance Fund, 
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to remove such barriers and impediments to providing 
mortgage insurance for such mortgages. 
Passed the House of Representatives March 2, 
2020. 
Attest: 
CHERYL L. JOHNSON, 
Clerk. 
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