A pilot program on small-dollar mortgages may be set up within a year
What the document says“Not later than 1 year after the date of the enactment of this section, the Secretary of Housing and Urban Development, acting through the Federal Housing Commissioner, may establish a pilot program to increase access to small-dollar mortgages for mortgagors, which may include--”
The section lets the Secretary of Housing and Urban Development, acting through the Federal Housing Commissioner, set up a pilot program within a year of enactment to widen access to small-dollar mortgages. The program may include direct payments to lenders, adjusted Federal Housing Administration terms and costs, grants to borrowers for down payments, closing costs, appraisals and title insurance, outreach to borrowers, and technical help for lenders.
What the document actually says“Not later than 1 year after the date of the enactment of this section, the Secretary of Housing and Urban Development, acting through the Federal Housing Commissioner, may establish a pilot program to increase access to small-dollar mortgages for mortgagors, which may include--”
The housing agency may start a test program. It has one year to do it. The point is to help more people get small home loans.
A small-dollar mortgage is a home loan of $100,000 or less. Lenders often skip them because the fee is small. The test program is meant to change that.
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