SEC. 2. PILOT PROGRAM FOR BORROWERS WITHOUT SUF-
FICIENT CREDIT HISTORY. 
Section 258 of the National Housing Act (12 U.S.C. 
1715z–24) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘carry out’’ and inserting 
‘‘establish and carry out’’; 
(B) by striking ‘‘establish, and’’; 
(C) by inserting ‘‘who elect to participate 
in the pilot program’’ before the second comma; 
(D) by striking ‘‘mortgagors and’’; 
(E) by inserting after ‘‘their creditworthi-
ness’’ the following: ‘‘and have opted into the 
use of additional credit information’’; and 
(F) by striking ‘‘alternative’’ each place 
such term appears and inserting ‘‘additional’’; 
(2) in subsection (b), by adding after the period 
at the end the following: ‘‘The pilot program may 
not be carried out with respect to any mortgagor or 
prospective mortgagor under a mortgage the pro-
ceeds of which are used to prepay or pay off an ex-
isting loan secured by the same property.’’; 
(3) by striking subsection (c); 
(4) by redesignating subsections (b) (as amend-
ed by paragraph (2) of this subsection) and (d) as 
subsections (c) and (k), respectively; 
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(5) by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b) GOAL.—The goal of the pilot program under 
this section shall be to examine and evaluate the benefits 
of using such a credit scoring model that uses additional 
data.’’; 
(6) by inserting after subsection (c) (as so re-
designated by paragraph (4) of this subsection) the 
following: 
‘‘(d) ADDITIONAL CREDIT INFORMATION.—The Sec-
retary shall, after consultation with the Government Na-
tional Mortgage Association and not later than one year 
after the date of the enactment of this subsection, select 
one or more commercially available credit scoring models 
that will be available under the pilot and that utilize addi-
tional data, as the Secretary considers appropriate based 
on the goals of the pilot program. In selecting the model 
or models to use, the Secretary shall consider the criteria 
under part 1254 of the regulations of the Director of the 
Federal Housing Finance Agency (12 C.F.R. Part 1254) 
to the extent appropriate. 
‘‘(e) NOTIFICATION.— 
‘‘(1) NOTICE OF OPTIONS.—The Secretary shall 
develop a notice for prospective mortgagors, and re-
quire mortgagees to provide such notice to prospec-
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tive mortgagors, that informs prospective mortga-
gors of— 
‘‘(A) the ability to opt into the use of the 
credit scoring model selected for use under the 
pilot program; 
‘‘(B) information on how the pilot program 
credit scoring model differs from the FHA’s 
current credit scoring models, including the 
types of additional data that are included in the 
pilot program model; and 
‘‘(C) housing counseling agencies in the 
area that are approved by the Department of 
Housing and Urban Development. 
‘‘(2) COMPARISON OF LENDING OPTIONS.—The 
Secretary shall require mortgagees participating in 
the pilot program to provide information to prospec-
tive mortgagors sufficient to allow comparison of the 
mortgagor’s lending options using the credit scoring 
model under the pilot program and using the credit 
scoring model then in effect for mortgagors not opt-
ing into the use of the credit scoring model under 
the pilot program. 
‘‘(f) UNDERWRITING OPTIONS.—This section may 
not be construed to preclude a prospective mortgagor who 
opts to use an approved credit scoring model under the 
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pilot program under this subsection in connection with un-
derwriting for a mortgage insured under this title from 
thereafter obtaining a determination of creditworthiness 
involved in underwriting for such mortgage using informa-
tion other than that provided under such approved credit 
scoring model. 
‘‘(g) PROTECTION
OF
PROPRIETARY
INFORMA-
TION.—This section may not be construed to require the 
disclosure or sharing of any proprietary information. 
‘‘(h) REPORTING.— 
‘‘(1) IN GENERAL.—The Secretary shall submit 
reports to the Congress in accordance with para-
graph (2) that provide a detailed evaluation of the 
effectiveness of the pilot, including data that 
shows— 
‘‘(A) the number of mortgagors who had 
the option to opt into using additional credit in-
formation and the number of mortgagors who 
opted into using additional credit information; 
‘‘(B) the total number and percent of 
mortgagors who opted into the pilot and were 
subsequently approved for a mortgage; 
‘‘(C) demographic information about mort-
gagors who opt into using additional credit in-
formation, compared to demographic informa-
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tion about mortgagors generally, which shall in-
clude race, ethnicity, marital status, sex or gen-
der, geographic location regarding mortgaged 
properties, and any other information the Sec-
retary deems appropriate; 
‘‘(D) whether or not mortgagors with no or 
thin credit files benefitted from having this op-
tion and how; 
‘‘(E) whether or not other borrowers who 
did not have thin or no credit files benefitted 
from this option and how; 
‘‘(F) the effectiveness of the additional 
credit information in predicting mortgage loan 
default; 
‘‘(G) the rate of participation of mortga-
gees in the pilot program; 
‘‘(H) whether or not the pilot program had 
an impact on the Mutual Mortgage Insurance 
Fund, in general, and specifically whether it 
had an impact on the economic net worth ratio 
of the Fund; 
‘‘(I) whether or not there was sufficient in-
come from the pilot program to offset the risk 
posed to such Fund by the pilot program; 
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‘‘(J) whether the pilot program had an im-
pact on the ability of other borrowers not par-
ticipating in the program to obtain the products 
and services of the FHA; and 
‘‘(K) any other information the Secretary 
determines relevant. 
‘‘(2) SUBMISSION.—The Secretary shall submit 
a report described in paragraph (1)— 
‘‘(A) not later than 6 months after the 
conclusion of the 2-year period beginning on the 
date on which the Secretary begins accepting 
the additional credit scores through the pilot 
program established by the Secretary pursuant 
to this section; and 
‘‘(B) not later than 1 year after the con-
clusion of the 5-year period beginning on the 
date of the enactment of the Alternative Data 
for Additional Credit FHA Pilot Program Re-
authorization Act. 
‘‘(3) REPORT ON SELECTION OF ADDITIONAL 
CREDIT MODEL.—Not later than the conclusion of 
the 6-month period that begins upon the conclusion 
of the 1-year period under subsection (d), the Sec-
retary shall submit to the Congress a report explain-
ing why the additional credit scoring model or mod-
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