H.R. 3472: Housing Stability for Dreamers Act

This bill, titled the Housing Stability for Dreamers Act, aims to amend various housing laws to ensure that individuals who are recipients of Deferred Action for Childhood Arrivals (DACA) are eligible for federal housing assistance, specifically in the context of mortgage insurance and housing loans. Here is a summary of the key points and provisions of the bill:

1. DACA Recipient Eligibility for FHA Loans

The bill proposes that the Federal Housing Administration (FHA) cannot impose restrictions on single-family mortgage insurance based on the DACA status of the borrower. This means:

• Eligibility for FHA loans cannot be denied simply because the applicant is a DACA recipient.
• The FHA cannot issue rules that would limit participation based on DACA status.

2. DACA Recipient Eligibility for Rural Housing Loans

Similarly, under the Housing Act of 1949, the bill stipulates that:

• The Secretary of Agriculture cannot set terms that restrict eligibility for rural housing loans for DACA recipients.

3. DACA Recipient Eligibility for Fannie Mae Loans

The legislation also states that:

• Fannie Mae cannot condition the purchase of single-family mortgages on the borrower's DACA status.

4. DACA Recipient Eligibility for Freddie Mac Loans

In alignment with the previous provisions, the bill specifies that:

• Freddie Mac is prohibited from considering DACA status when purchasing mortgages.

5. Inclusion in Housing and Community Development Act

The bill seeks to amend the Housing and Community Development Act of 1980 to include DACA recipients as eligible participants in certain housing programs.

6. Veterans’ Housing Loans

Lastly, the bill clarifies that if a veteran is a DACA recipient, this status will not affect the veteran's eligibility for housing loans guaranteed by the Secretary of Veterans Affairs.

Overview of DACA Recipient Definition

For the purposes of this bill, a DACA recipient is defined as an individual who has received deferred action under the Department of Homeland Security's memorandum entitled "Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children," which was issued on June 15, 2012.

Relevant Companies

• FNMA (Fannie Mae): May see changes in the criteria for mortgage purchases.
• FMCC (Freddie Mac): Similar to Fannie Mae, will adjust to new eligibility guidelines.