,,ib ,union ,calendar ,no4 #edg #aafth ,,congress #b;d ,session ,h4 ,r4 #abc ,report ,no4 #aaf-ffc ,,in ,,the ,,house ,,of ,,representatives ,january #c1 #bjai,mr4 ,green of ,texas introduced the following bill2 which was referred to the ,committee on ,financial ,services ,december #ag1 #bjbj;,additional sponsors3 ,mr4 ,sherman and ,mr4 ,cleaver ,december #ag1 #bjbj,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed,strike out all after the enacting clause and insert the part printed in italic,for text of introduced bill1 see copy of bill as introduced on ,january #c1 #bjai ,a ,,bill ,to authorize a pilot program under section #beh of the ,national ,housing ,act to establish an automated process for providing additional credit rating information for mortgagors and prospective mortgagors under certain mortgages4 #a4 ,short title ,this ,act may be cited as the ,alternative ,data for ,additional ,credit ,,fha ,pilot ,program ,reauthorization ,act4 #b4 ,pilot program for borrowers without sufficient credit history ,section #beh of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaez-#bd7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking carry out and inserting establish and carry out2 7,b7 by striking establish1 and2 7,c7 by inserting who elect to participate in the pilot program before the second comma2 7,d7 by striking mortgagors and2 7,e7 by inserting after their creditworthiness the following3 and have opted into the use of additional credit information2 and 7,f7 by striking alternative each place such term appears and inserting additional2 7#b7 in subsection 7b71 by adding after the period at the end the following3 ,the pilot program may not be carried out with respect to any mortgagor or prospective mortgagor under a mortgage the proceeds of which are used to prepay or pay off an existing loan secured by the same property42 7#c7 by striking subsection 7c72 7#d7 by redesignating subsections 7b7 7as amended by paragraph 7#b7 of this subsection7 and 7d7 as subsections 7c7 and 7k71 respectively2 7#e7 by inserting after subsection 7a7 the following new subsection3 7b7 ,goal ,the goal of the pilot program under this section shall be to examine and evaluate the benefits of using such a credit scoring model that uses additional data4 2 7#f7 by inserting after subsection 7c7 7as so redesignated by paragraph 7#d7 of this subsection7 the following3 7d7 ,additional credit information ,the ,secretary shall1 after consultation with the ,government ,national ,mortgage ,association and not later than one year after the date of the enactment of this subsection1 select one or more commercially available credit scoring models that will be available under the pilot and that utilize additional data1 as the ,secretary considers appropriate based on the goals of the pilot program4 ,in selecting the model or models to use1 the ,secretary shall consider the criteria under part #abed of the regulations of the ,director of the ,federal ,housing ,finance ,agency 7#ab ,c4,f4,r4 ,part #abed7 to the extent appropriate4 7e7 ,notification 7#a7 ,notice of options ,the ,secretary shall develop a notice for prospective mortgagors1 and require mortgagees to provide such notice to prospective mortgagors1 that informs prospective mortgagors of-- 7,a7 the ability to opt into the use of the credit scoring model selected for use under the pilot program2 7,b7 information on how the pilot program credit scoring model differs from the ,,fha's current credit scoring models1 including the types of additional data that are included in the pilot program model2 and 7,c7 housing counseling agencies in the area that are approved by the ,department of ,housing and ,urban ,development4 7#b7 ,comparison of lending options ,the ,secretary shall require mortgagees participating in the pilot program to provide information to prospective mortgagors sufficient to allow comparison of the mortgagor's lending options using the credit scoring model under the pilot program and using the credit scoring model then in effect for mortgagors not opting into the use of the credit scoring model under the pilot program4 7f7 ,underwriting options ,this section may not be construed to preclude a prospective mortgagor who opts to use an approved credit scoring model under the pilot program under this subsection in connection with underwriting for a mortgage insured under this title from thereafter obtaining a determination of creditworthiness involved in underwriting for such mortgage using information other than that provided under such approved credit scoring model4 7g7 ,protection of proprietary information ,this section may not be construed to require the disclosure or sharing of any proprietary information4 7h7 ,reporting 7#a7 ,in general ,the ,secretary shall submit reports to the ,congress in accordance with paragraph 7#b7 that provide a detailed evaluation of the effectiveness of the pilot1 including data that shows-- 7,a7 the number of mortgagors who had the option to opt into using additional credit information and the number of mortgagors who opted into using additional credit information2 7,b7 the total number and percent of mortgagors who opted into the pilot and were subsequently approved for a mortgage2 7,c7 demographic information about mortgagors who opt into using additional credit information1 compared to demographic information about mortgagors generally1 which shall include race1 ethnicity1 marital status1 sex or gender1 geographic location regarding mortgaged properties1 and any other information the ,secretary deems appropriate2 7,d7 whether or not mortgagors with no or thin credit files benefitted from having this option and how2 7,e7 whether or not other borrowers who did not have thin or no credit files benefitted from this option and how2 7,f7 the effectiveness of the additional credit information in predicting mortgage loan default2 7,g7 the rate of participation of mortgagees in the pilot program2 7,h7 whether or not the pilot program had an impact on the ,mutual ,mortgage ,insurance ,fund1 in general1 and specifically whether it had an impact on the economic net worth ratio of the ,fund2 7,i7 whether or not there was sufficient income from the pilot program to offset the risk posed to such ,fund by the pilot program2 7,j7 whether the pilot program had an impact on the ability of other borrowers not participating in the program to obtain the products and services of the ,,fha2 and 7,k7 any other information the ,secretary determines relevant4 7#b7 ,submission ,the ,secretary shall submit a report described in paragraph 7#a7-- 7,a7 not later than #f months after the conclusion of the #b-year period beginning on the date on which the ,secretary begins accepting the additional credit scores through the pilot program established by the ,secretary pursuant to this section2 and 7,b7 not later than #a year after the conclusion of the #e-year period beginning on the date of the enactment of the ,alternative ,data for ,additional ,credit ,,fha ,pilot ,program ,reauthorization ,act4 7#c7 ,report on selection of additional credit model ,not later than the conclusion of the #f-month period that begins upon the conclusion of the one-year period under subsection 7d71 the ,secretary shall submit to the ,congress a report explaining why the additional credit scoring model or models selected pursuant to subsection 7d7 were selected in lieu of other commercially available credit scoring models4 7#d7 ,public availability of information ,the ,secretary shall make publicly available in an easily accessible location on the website of the ,department-- 7,a7 each report submitted to the ,congress pursuant to this subsection2 and 7,b7 information about the pilot program1 which shall include an up-to-date listing of mortgagees participating in the pilot program4 7i7 ,authority to limit participation ,the ,secretary may establish a limitation to cap participation in the pilot program under this section4 7j7 ,authorization of appropriations ,there is authorized to be appropriated-- 7#a7 #c1jjj1jjj for fiscal year #bjbj for establishing and carrying out the pilot program under this section2 and 7#b7 #a1ejj1jjj for each of fiscal years #bjba through #bjbd for carrying out the pilot program under this section4 2 and 7#g7 in subsection 7k71 as so redesignated by paragraph 7#d71 by striking #e-year period beginning on the date of the enactment of the ,building ,american ,homeownership ,act of #bjjh and inserting #e-year period beginning on the date of the enactment of the ,alternative ,data for ,additional ,credit ,,fha ,pilot ,program ,reauthorization ,act4 ,december #ag1 #bjbj,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed