Promoting Access to Credit for Homebuyers Act of 2021
Bill: H.R.618 | Sponsor: Rep. Vargas, Juan (D-CA)
Policy area: Housing and Community Development

Summary:
Promoting Access to Credit for Homebuyers Act of 2021
This bill requires Freddie Mac, Fannie Mae, and the Department of Housing and Urban Development to purchase or insure single-family mortgages originated on or after February 1, 2020, on the same terms as they otherwise would despite a borrower entering into, or inquiring about, forbearance due to a COVID-19 (i.e., coronavirus disease 2019) related hardship. This requirement begins 5 days after enactment of this bill and ends 60 days after the end of the period of time a borrower may request a COVID-19 related forbearance.
The Federal Housing Finance Agency may not increase fees or otherwise restrict access to credit during the COVID-19 emergency without congressional notice.
The Government Accountability Office must report on COVID-19-related assistance to consumers by Freddie Mac, Fannie Mae, and the Federal Housing Administration mortgage insurance programs.

To promote access to mortgage credit during the COVID-19 pandemic by 
preventing restrictions on providing Federal backing for single-family 
         mortgage loans in forbearance, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Access to Credit for 
Homebuyers Act of 2021''.

SEC. 2. FANNIE MAE AND FREDDIE MAC.

    (a) Purchase Requirements.--During the period that begins 5 days 
after the date of the enactment of this Act and ends 60 days after the 
covered period with respect to the mortgage, notwithstanding any other 
provision of law, an enterprise may not refuse to purchase any single-
family mortgage originated on or after February 1, 2020, that otherwise 
would have been eligible for purchase by such enterprise, solely due to 
the fact that the borrower has, for the borrower's previous mortgage or 
on the mortgage being purchased--
            (1) entered into forbearance as a result of a financial 
        hardship due, directly or indirectly, to the COVID-19 
        emergency;
            (2) requested forbearance as a result of a financial 
        hardship due, directly or indirectly, to the COVID-19 
        emergency; or
            (3) inquired as to options related to forbearance as a 
        result of a financial hardship due, directly or indirectly, to 
        the COVID-19 emergency.
    (b) Prohibition on Restrictions.--With respect to purchase of 
single-family mortgages described in subsection (a) and specified in 
any of paragraphs (1) through (3) of such subsection, an enterprise may 
not--
            (1) establish additional restrictions that are not 
        applicable to similarly situated mortgages under which the 
        borrower is not in forbearance;
            (2) charge a higher guarantee fee (within the meaning 
        provided such term in section 1327 of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 4547)), or loan level 
        pricing adjustment, or otherwise alter pricing for such 
        mortgages, relative to similarly situated mortgages under which 
        the borrower is not in forbearance;
            (3) apply repurchase requirements to such mortgages that 
        are more restrictive than repurchase requirements applicable to 
        similarly situated mortgages under which the borrower is not in 
        forbearance; or
            (4) require lender indemnification of such mortgages, 
        solely due to the fact that the borrower is in forbearance.
    (c) Fraud Detection.--This section may not be construed to prevent 
an enterprise from conducting oversight and review of single-family 
mortgages purchased when a borrower is in forbearance on the borrower's 
previous mortgage, or on the mortgage being purchased, for purposes of 
detecting fraud. An enterprise shall report any fraud detected to the 
Director.
    (d) Enterprise Capital.--During the period that begins 5 days after 
the date of the enactment of this Act and ends 60 days after the 
covered period with respect to a mortgage, notwithstanding any other 
provision of law, a forbearance on such mortgage shall not be 
considered to be a delinquency under such mortgage for purposes of 
calculating capital of an enterprise for any purpose under title XIII 
of the Housing and Community Development Act of 1992 (12 U.S.C. 4501 et 
seq.).
    (e) Rules of Construction.--
            (1) Purchase parameters.--This section may not be construed 
        to require an enterprise to purchase single-family mortgages 
        that do not meet existing or amended purchase parameters, other 
        than parameters related to borrower forbearance, established by 
        such enterprise.
            (2) Employment; income.--This section may not be construed 
        to prevent an enterprise from establishing additional 
        requirements to ensure that a borrower has not lost their job 
        or income prior to a mortgage closing.
    (f) Implementation.--The Director may issue any guidance, orders, 
and regulations necessary to carry out this section.

SEC. 3. FHA.

    (a) Prohibition on Restrictions.--During the period that begins 5 
days after the date of the enactment of this Act and ends 60 days after 
the covered period with respect to the mortgage, notwithstanding any 
other provision of law, the Secretary of Housing and Urban Development 
may not deny the provision of mortgage insurance for a single-family 
mortgage originated on or after February 1, 2020, may not implement 
additional premiums or otherwise alter pricing for such a mortgage, may 
not require mortgagee indemnification, and may not establish additional 
restrictions on such a mortgagor, solely due to the fact that the 
borrower has--
            (1) entered into forbearance as a result of a financial 
        hardship due, directly or indirectly, to the COVID-19 
        emergency;
            (2) requested forbearance as a result of a financial 
        hardship due, directly or indirectly, to the COVID-19 
        emergency; or
            (3) inquired as to options related to forbearance as a 
        result of a financial hardship due, directly or indirectly, to 
        the COVID-19 emergency.
    (b) Rules of Construction.--
            (1) Insurance.--This section may not be construed to 
        require the Secretary of Housing and Urban Development to 
        provide insurance on single-family mortgages that do not meet 
        existing or amended insurance parameters, other than parameters 
        related to borrower forbearance, established by the Secretary.
            (2) Employment; income.--This section may not be construed 
        to prevent the Secretary of Housing and Urban Development from 
        establishing additional requirements regarding insurance on 
        single-family mortgages to ensure that a borrower has not lost 
        their job or income prior to a mortgage closing.

SEC. 4. REPORTING REQUIREMENTS.

    (a) FHFA Actions.--During the COVID-19 emergency, the Director may 
not increase guarantee fees, loan level pricing adjustments, or any 
other fees or implement any restrictions on access to credit unless the 
Director provides 48-hour advance notice of such increase or 
restrictions to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate together with a detailed report of the policy 
rationale for the decision, including any and all data considered in 
making such decision.
    (b) Quarterly Reports by Enterprises and FHA.--
            (1) Requirement.--Each enterprise and the Secretary of 
        Housing and Urban Development, with respect to the FHA mortgage 
        insurance programs, shall provide reports to the Congress, and 
        make such reports publicly available, not less frequently than 
        quarterly regarding the impact of COVID-19 pandemic on the such 
        enterprises' and program's ability to meet their charter 
        requirements, civil rights responsibilities, mandates under the 
        CARES Act (Public Law 116-136), and other laws enacted in 
        response to the COVID-19 pandemic, and other requirements under 
        law. The first such report shall be submitted not later than 
        the expiration of the 3-month period beginning upon the date of 
        the enactment of this Act and the requirement under this 
        paragraph to submit such reports shall terminate upon the 
        expiration of the 2-year period beginning upon the termination 
        of the COVID-19 emergency.
            (2) Content.--Each report required under paragraph (1) 
        shall include the following information for the most recent 
        quarter for which data is available:
                    (A) Enterprises.--For each report required by an 
                enterprise:
                            (i) The number of single-family and multi-
                        family residential mortgage loans purchased by 
                        the enterprise and the unpaid principal balance 
                        of such mortgage loans purchased, disaggregated 
                        by--
                                    (I) mortgage loans made to low- and 
                                moderate-income borrowers;
                                    (II) mortgage loans made for 
                                properties in low- and moderate-income 
                                census tracts; and
                                    (III) mortgage loans made for 
                                properties in central cities, rural 
                                areas, and underserved areas.
                            (ii) In the single-family residential 
                        mortgage market--
                                    (I) the total number, unpaid 
                                principal balance, and length of 
                                forbearances provided to borrowers, 
                                including whether or not the 
                                forbearance was requested by the 
                                borrower;
                                    (II) a detailed breakdown of the 
                                loan modifications offered to borrowers 
                                and whether the borrowers accepted the 
                                offer including the total number and 
                                unpaid principal balance of loan 
                                modifications ultimately made to 
                                borrowers;
                                    (III) a detailed breakdown of the 
                                home retention options offered to 
                                borrowers and whether the borrowers 
                                accepted the offer including the total 
                                number and unpaid principal balance of 
                                other home retention options ultimately 
                                made to borrowers;
                                    (IV) the total number of outcomes 
                                that included short-sales, deed-in-lieu 
                                of foreclosure, and foreclosure sales; 
                                and
                                    (V) the total number of delinquent 
                                mortgage loans.
                            (iii) A description of any efforts by the 
                        enterprise to provide assistance and support to 
                        consumers who are not proficient in English.
                            (iv) A description of any other efforts by 
                        the enterprise to provide assistance to low- 
                        and moderate-income communities, central 
                        cities, rural areas, and other underserved 
                        areas, such as financial literacy and education 
                        or support of fair housing and housing 
                        counseling agencies.
                            (v) A description of any other assistance 
                        provided by the enterprise to consumers in 
                        response to the COVID-19 pandemic.
                    (B) FHA.--For each report required with respect to 
                the FHA mortgage insurance programs:
                            (i) The number and unpaid principal balance 
                        for all residential mortgage loans, 
                        disaggregated by type, insured under such 
                        programs.
                            (ii) The total number, unpaid principal 
                        balance, and length of forbearances provided to 
                        borrowers, including whether or not the 
                        forbearance was requested by the borrower.
                            (iii) A detailed breakdown of the loan 
                        modifications offered to borrowers and whether 
                        the borrowers accepted the offer including the 
                        total number and unpaid principal balance of 
                        loan modifications ultimately made to 
                        borrowers.
                            (iv) A detailed breakdown of the home 
                        retention options offered to borrowers and 
                        whether the borrowers accepted the offer 
                        including the total number and unpaid principal 
                        balance of other home retention options 
                        ultimately made to borrowers.
                            (v) A description of any efforts under such 
                        programs to provide assistance and support to 
                        consumers who are not proficient in English.
                            (vi) A description of any other efforts 
                        under such programs to provide assistance to 
                        low- and moderate-income communities, central 
                        cities, rural areas, and other underserved 
                        areas, such as financial literacy and education 
                        or support of fair housing and housing 
                        counseling agencies.
                            (vii) A description of any other assistance 
                        provided under such programs to consumers in 
                        response to the COVID-19 pandemic.
                            (viii) The total number of delinquent 
                        mortgage loans.
                    (C) Provisions to be included in all reports.--Each 
                report required under paragraph (1) shall include, to 
                the degree reasonably possible, the following 
                information:
                            (i) An analysis of all loan level data 
                        required by subparagraphs (A) and (B) 
                        disaggregated by race, national origin, gender, 
                        disability status, whether or not the borrower 
                        seeking or obtaining assistance speaks English 
                        as a second language, the preferred language of 
                        the borrower, debt-to-income level of the 
                        borrower, loan-to-value ratio of the loan, and 
                        credit score of the borrower.
                            (ii) A geographical analysis at the census 
                        tract level, but if information is not 
                        available at the census tract level for any of 
                        the items required by subparagraphs (A) and 
                        (B), the geographical analysis shall be 
                        provided at the zip code level for the item for 
                        which a census tract analysis was not possible.
                            (iii) A description of any policy changes 
                        made by the enterprise or Secretary of Housing 
                        and Urban Development, as appropriate, in 
                        response to the COVID-19 pandemic and analysis 
                        of actions taken to ensure that such policy 
                        changes were in compliance with all relevant 
                        civil rights responsibilities, including the 
                        Fair Housing Act, including the Affirmatively 
                        Furthering Fair Housing provision, the Equal 
                        Credit Opportunity Act, the Community 
                        Reinvestment Act of 1977, the Federal Housing 
                        Enterprises Financial Safety and Soundness Act 
                        of 1992, the Housing and Economic Recovery Act 
                        of 2008, Federal Home Loan Bank Act, Executive 
                        Orders 11063 and 12892, the Federal National 
                        Mortgage Association Charter Act, and the 
                        Federal Home Loan Mortgage Corporation Act.
    (c) Report by GAO.--Not later than the expiration of the 120-day 
period that begins upon the termination of the COVID-19 emergency, the 
Comptroller General of the United States shall submit to the Congress 
and make publicly available a report on--
            (1) the extent to which the enterprises and the FHA 
        mortgage insurance programs provided loan products, 
        forbearances, loan modifications, and COVID-19-related 
        assistance to consumers and the total number of delinquent 
        mortgage loans under such programs;
            (2) the availability and type of any such assistance 
        provided post-forbearance; and
            (3) the overall ability of the enterprises and the FHA 
        mortgage insurance programs to successfully meet their charter 
        requirements, civil rights responsibilities, and other 
        requirements under law.
The report shall also include an analysis of all loan level data 
required by this subsection disaggregated by race, national origin, 
gender, disability status, whether or not the borrower seeking or 
obtaining assistance speaks English as a second language, the preferred 
language of the borrower, debt-to-income level of the borrower, loan-
to-value ratio of the loan, and credit score of the borrower.

SEC. 5. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Covered period.--The term ``covered period'' means, 
        with respect to a federally backed mortgage loan, the period of 
        time during which the borrower under such loan may request 
        forbearance on the loan under section 4022(b) of the CARES Act 
        (15 U.S.C. 9056; Public Law 116-136; 134 Stat. 490).
            (2) COVID-19 emergency.--The term ``COVID-19 emergency'' 
        has the meaning given such term in section 4022 of the CARES 
        Act (15 U.S.C. 9056; Public Law 116-136; 134 Stat. 490).
            (3) Director.--The term ``Director'' means the Director of 
        the Federal Housing Finance Agency.
            (4) Enterprise.--The term ``enterprise'' has the meaning 
        given such term in section 1303 of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 4502).
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