H.R. 4680: Access to Homeownership Act

This bill, known as the Access to Homeownership Act, aims to improve the credit histories of residents living in multifamily properties that have federally backed mortgage loans. Here’s what the bill proposes:

Definition of Federally Backed Multifamily Mortgage Loans

The bill defines certain loans as "federally backed multifamily mortgage loans." These loans must:

• Be secured by a lien on residential properties designed for five or more families.
• Involve loans that might be insured or supported by federal government agencies, or be purchased by federal entities related to housing.

Requirement for Reporting Positive Rental Payments

The bill requires the Director of relevant financial entities to establish and maintain a program for multifamily borrowers (property owners with federally backed loans). This program will:

• Require borrowers to seek consent from residents to report their positive rental payment history to consumer reporting agencies.
• Include a report of positive rent payments for the past 24 months, if such records are available.

Impact on Mortgage Applications

Positive rental payment records collected under this program will be considered when processing applications for insurance under specific mortgage programs. This means that timely rent payments can enhance the creditworthiness of residents applying for mortgages.

Administrative and Reporting Provisions

• The entities involved will cover the administrative costs associated with these reporting requirements.
• The Director is also tasked with providing a report to Congress every five years about the progress and effectiveness of this program.

Funding Authorization

The bill authorizes the allocation of necessary funds to implement its provisions, ensuring that it has the financial backing to be put into effect.

Relevant Companies

• FNMA (Federal National Mortgage Association): This company may be impacted as it is involved in purchasing and securitizing loans that fall under this bill’s definition.
• FMCC (Federal Home Loan Mortgage Corporation): Similar to FNMA, this entity could see a direct impact due to the bill’s requirements on federally backed loans.