SEC. 8. BANKING SERVICES FOR HEMP-RELATED LEGITI-
MATE 
BUSINESSES 
AND 
HEMP-RELATED 
SERVICE PROVIDERS. 
(a) FINDINGS.—Congress finds that— 
(1) section 12619 of the Agriculture Improve-
ment Act of 2018 (Public Law 115–334; 132 Stat. 
5018) legalized hemp by removing it from the defini-
tion of marihuana under section 102 of the Con-
trolled Substances Act (21 U.S.C. 802); 
(2) despite the legalization of hemp, some hemp 
businesses (including producers, manufacturers, and 
retailers) continue to have difficulty gaining access 
to banking products and services; and 
(3) businesses involved in the sale of hemp-de-
rived CBD products are particularly affected, due to 
confusion about the legal status of such products. 
(b) DEFINITION.—In this section, the term ‘‘financial 
institution’’— 
(1) has the meaning given the term in section 
5312(a) of title 31, United States Code; and 
(2) includes a bank holding company, as de-
fined in section 2(a) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1841(a)). 
(c) FEDERAL BANKING REGULATORS’ HEMP BANK-
ING GUIDANCE.—Not later than the end of the 90-day pe-
riod beginning on the date of enactment of this Act, each 
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Federal banking regulator shall update guidance, as in ef-
fect on the date of enactment of this Act, regarding pro-
viding financial services to hemp-related legitimate busi-
nesses and hemp-related service providers to address— 
(1) compliance with obligations of financial in-
stitutions, as of the date of enactment of this Act, 
under Federal laws (including regulations) deter-
mined relevant by the Federal banking regulator and 
the Department of the Treasury, including sub-
chapter II of chapter 53 of title 31, United States 
Code, and its implementing regulation in conformity 
with this Act and the regulations relating to domes-
tic hemp production under part 990 of title 7, Code 
of Federal Regulations; and 
(2) best practices for financial institutions to 
follow when providing financial services, including 
processing payments, to hemp-related legitimate 
businesses and hemp-related service providers. 
SEC. 9. TREATMENT OF INCOME DERIVED FROM A STATE- 
SANCTIONED 
MARIJUANA 
BUSINESS 
FOR 
QUALIFICATION FOR A FEDERALLY BACKED 
SINGLE-FAMILY MORTGAGE LOAN. 
(a) DEFINITION.—In this section, the term ‘‘federally 
backed mortgage loan’’ means any loan secured by a first 
or subordinate lien on residential real property, including 
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individual units of condominiums and cooperatives, de-
signed principally for the occupancy of 1 to 4 families that 
is— 
(1) insured by the Federal Housing Administra-
tion under title I or title II of the National Housing 
Act (12 U.S.C. 1702 et seq., 1707 et seq.); 
(2) insured under section 255 of the National 
Housing Act (12 U.S.C. 1715z–20); 
(3) guaranteed under section 184 or 184A of 
the Housing and Community Development Act of 
1992 (12 U.S.C. 1715z–13a, 1715z–13b); 
(4) guaranteed, insured, or made by the De-
partment of Veterans Affairs; 
(5) guaranteed, insured, or made by the De-
partment of Agriculture; or 
(6) purchased or securitized by the Federal 
Home Loan Mortgage Corporation or the Federal 
National Mortgage Association. 
(b) TREATMENT OF INCOME.— 
(1) IN
GENERAL.—Income derived from a 
State-sanctioned marijuana business that operates 
within a State, an Indian Tribe, or a political sub-
division of a State that allows the cultivation, pro-
duction, manufacture, sale, transportation, display, 
dispensing, distribution, or purchase of marijuana 
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pursuant to a law or regulation of the State, Indian 
Tribe, or political subdivision, as applicable, or a 
service provider (wherever located), shall be consid-
ered in the same manner as any other legal income 
for purposes of determining eligibility for a federally 
backed mortgage loan for a 1- to 4-unit property 
that is the principal residence of the mortgagor. 
(2) LIABILITY.—The mortgagee or servicer of a 
federally backed mortgage loan described in para-
graph (1), or any Federal agency, the Federal Na-
tional Mortgage Association, or the Federal Home 
Loan Mortgage Corporation, may not be held liable 
pursuant to any Federal law or regulation solely 
for— 
(A) providing, insuring, guaranteeing, pur-
chasing, or securitizing a mortgage to an other-
wise qualified borrower on the basis of the in-
come described in paragraph (1); or 
(B) accepting the income described in 
paragraph (1) as payment on the federally 
backed mortgage loan. 
(c) IMPLEMENTATION.—Not later than 180 days 
after the date of enactment of this Act— 
(1) the Federal Housing Administration shall 
implement subsection (b)— 
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(A) by notice or mortgagee letter for loans 
insured under title I, title II, or section 255 of 
the National Housing Act (12 U.S.C. 1702 et 
seq., 1707 et seq., 1715z–20); and 
(B) by lender letter for loans guaranteed 
under section 184 or 184A of the Housing and 
Community Development Act of 1992 (12 
U.S.C. 1715z–13a, 1715z–13b); 
(2) the Department of Veterans Affairs shall 
implement subsection (b) by circular or handbook 
for loans guaranteed, insured, or made by the De-
partment; 
(3) the Department of Agriculture shall imple-
ment subsection (b) by bulletin for loans guaranteed 
or made by the Department; 
(4) the Federal Home Loan Mortgage Corpora-
tion shall implement subsection (b) by updating its 
Single-Family Seller/Servicer Guide for loans pur-
chased or securitized by the Corporation; and 
(5) the Federal National Mortgage Association 
shall implement subsection (b) by updating its Sin-
gle Family Selling Guide for loans purchased or 
securitized by the Association. 
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