Original Additional Credit FHA Pilot Program Authorization Act

Key Points

• This bill creates a test program to help people get FHA home loans even if they do not have a traditional credit score. It allows the government to look at extra information, like rent or utility payments, to see if a person is likely to pay back a loan.
• Home buyers must choose to participate in this program. Lenders are required to explain how this new credit check works and show the buyer how it compares to a regular credit check before they sign anything.
• The program is specifically for people buying a home, not for people looking to refinance a loan they already have. It aims to help those with thin credit files who are often turned away by traditional banks.
• The Department of Housing and Urban Development will pick the credit models used and must report back to Congress. They will track if the program helps more people get homes and if those borrowers are able to keep up with their payments.
• The bill sets aside 1.5 million dollars per year through 2027 to run the program. It also requires the government to list which lenders are participating on a public website so buyers can find them easily.

Impact Analysis

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