Original Alternative Data for Additional Credit FHA Pilot Program Reauthorization Act

Key Points

• This bill continues a program that helps people with little to no credit history qualify for FHA home loans. It allows the government to look at extra data, like rent or utility payments, to see if a person is likely to pay back a loan.
• Homebuyers must choose to join this program. Lenders must explain how this new credit scoring works and give buyers a list of local housing counselors who can help them understand their choices.
• This program is only for buying a new home. It cannot be used by people who want to change the terms of a loan they already have or pay off an existing debt on their house.
• The government will track how well the program works by looking at who uses it and if they keep up with their payments. They will also check if the program helps people of different races and backgrounds fairly.
• The bill sets aside 1.5 million dollars each year through 2027 to run the program. This money pays for the technology and staff needed to manage the new credit scoring system.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.