Legislation Search

H.R. 2094: Homes for Every Local Protector, Educator, and Responder Act of 2025

The bill titled "Homes for Every Local Protector, Educator, and Responder Act of 2025" aims to create a mortgage insurance program specifically for first responders, which includes law enforcement officers, firefighters, paramedics, and certain educators. The following outlines the key components of the bill:

Definitions

The bill defines "first responders" as individuals employed full-time in various capacities, including:

Law enforcement agencies (Federal, State, Tribal, or local government).
Fire departments or emergency medical services.
Teachers at State-accredited public or private schools providing direct services to students in pre-kindergarten through 12th grade.

Mortgage Insurance Program

The bill proposes amendments to the National Housing Act to establish a Federal Housing Administration (FHA) mortgage insurance program for eligible first responders under specific conditions. Here are the notable points regarding the mortgage insurance program:

Eligibility: To qualify for the mortgage insurance, the applicant must be a first-time homebuyer who has been a first responder for at least 4 of the last 5 years or has left their first responder job due to a work-related disability.
Mortgage Details: Mortgages can cover up to 100% of the appraised value of the property without requiring a down payment. This is particularly aimed at making homeownership more accessible to first responders.
Insurance Premiums: The bill allows for an upfront insurance premium set by the Secretary of Housing and Urban Development, which can exceed 3% of the mortgage amount. However, there will be no monthly premiums attached to these insured mortgages.

Requirements for First-time Homebuyers

In addition to being a first responder, applicants must meet several criteria:

Complete housing counseling through an authorized agency.
Be in good standing as a first responder with no pending disciplinary actions.
Intend to continue their employment as a first responder for at least a year after the mortgage is finalized.

Funding and Duration

The bill includes provisions for funding the program, with an authorization of:

$660,000 for the fiscal year 2026.
$160,000 for each fiscal year from 2027 to 2032.

The mortgage insurance program will be active for a period of five years from the date of implementation, after which it would need to be reauthorized to continue.

Implementation Authority

The Secretary of Housing and Urban Development (HUD) will have the authority to insure eligible mortgages and establish the terms and conditions under which the insurance will be offered.

Conclusion

The bill is designed to provide financial assistance and encourage homeownership among first responders by facilitating access to mortgage insurance that mitigates the financial burden typically associated with home buying.

Relevant Companies

FNMA (Fannie Mae) - As a significant entity in the mortgage market, changes in mortgage insurance programs could impact its operations and the way it works with lenders and borrowers.
FHFA (Federal Housing Finance Agency) - Any new insurance programs or changes could also draw the attention of the FHFA, which oversees entities like Fannie Mae and Freddie Mac, impacting how they operate within the mortgage insurance framework.

This is an AI-generated summary of the bill text. There may be mistakes.