H.R. 6774

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6774 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6774

To authorize the Secretary of Housing and Urban Development, acting 
through the Federal Housing Commissioner, to establish a pilot program 
to increase access to small-dollar mortgages, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 17, 2025

Ms. Waters introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To authorize the Secretary of Housing and Urban Development, acting 
through the Federal Housing Commissioner, to establish a pilot program 
to increase access to small-dollar mortgages, 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 ``FHA Small-Dollar Mortgages Act''.

SEC. 2. FHA SMALL-DOLLAR MORTGAGES.

(a) In General.--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--
(1) authorizing direct payments to mortgagees to 
incentivize the origination of small-dollar mortgages;
(2) adjusting terms and costs imposed by the Federal 
Housing Administration with respect to small-dollar mortgages;
(3) providing direct grants for mortgagors who obtain 
small-dollar mortgages to cover costs associated with--
(A) down payments;
(B) closing costs;
(C) appraisals; and
(D) title insurance;
(4) conducting outreach to potential mortgagors about the 
availability of small-dollar mortgages; and
(5) providing technical assistance for mortgagees that 
originate small-dollar mortgages.
(b) Report.--Beginning not later than 1 year after the 
establishment of the pilot program under subsection (a) and ending 1 
year after the sunset of the pilot program, the Federal Housing 
Commissioner shall submit to the Congress an annual report that--
(1) tracks and evaluates the outcomes of small-dollar 
mortgages originated by mortgagees as a result of support 
provided under subsection (a);
(2) analyzes risks of the pilot program to the solvency of 
the Mutual Mortgage Insurance Fund;
(3) includes data with respect to--
(A) the number of small-dollar mortgages originated 
in the 10-year period preceding the date of the 
enactment of this section, including small-dollar 
mortgages insured or guaranteed by the Federal 
Government and small-dollar mortgages not insured by 
the Federal Government;
(B) the original principal balance of each small-
dollar mortgage identified under subparagraph (A);
(C) demographic information about the mortgagors 
associated with each such small-dollar mortgage; and
(D) the number and type of mortgagees that offer 
small-dollar mortgages;
(4) provides a description of the fixed costs that are 
associated with mortgages and the impact of such costs on the 
ability of lenders to earn a market rate return on small-dollar 
mortgages; and
(5) includes analysis, by regions of the United States, 
including rural regions, that identifies regions with the 
greatest need for, and the highest likelihood of, the 
origination of small-dollar mortgages and regions that could 
benefit the most from increased availability of small-dollar 
mortgages.
(c) Sunset.--The pilot program established under subsection (a) 
shall terminate on the date that is 4 years after the date on which the 
pilot program is established under subsection (a).
(d) Expiration of Authority.--After the expiration of the 3-year 
period beginning on the date of enactment of this section, neither the 
Federal Housing Commissioner nor the Secretary of Housing and Urban 
Development may newly establish a pilot program to increase access to 
small-dollar mortgages for mortgagors.
(e) Small-Dollar Mortgage Defined.--The term ``small-dollar 
mortgage'' means a mortgage that--
(1) has an original principal balance of $100,000 or less; 
and
(2) is secured by a 1- to 4-unit property that is the 
principal residence of the mortgagor.
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