I 
116TH CONGRESS 
2D SESSION 
H. R. 5931 
To require a review of the effects of FHA mortgage insurance policies, 
practices, and products on small-dollar mortgage lending, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 21, 2020 
Mr. CLAY (for himself and Mr. STIVERS) introduced the following bill; which 
was referred to the Committee on Financial Services 
A BILL 
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, 
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— 
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(1) affordable homeownership opportunities are 
being stymied 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 these denial rates were not re-
lated to applicants’ creditworthiness; 
(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) although the FHA’s mission is to serve 
creditworthy borrowers who are underserved, accord-
ing to the Urban Institute the FHA serves 24 per-
cent of the overall market, but only 19 percent of 
the small-dollar mortgage market; and 
(5) the FHA should play a greater role in sup-
porting affordable homeownership opportunities by 
reducing barriers to small-dollar lending, as is con-
sistent with the Department of Housing and Urban 
Development’s mission, including meeting the hous-
ing needs of borrowers the program is designed to 
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serve and protecting the solvency of the Mutual 
Mortgage Insurance 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 to remove such barriers 
and impediments to providing mortgage insurance for 
such mortgages without adversely affecting the solvency 
of the Mutual Mortgage Insurance Fund. 
Æ 
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