,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #ceaa  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #bf1 #bjai,ms4  
,kaptur 7= h]self1 ,mr4 ,clay1 ,mrs4    
,axne1 & ,ms4 ,jayapal7 introduc$ !     
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,f9ancial ,s]vices  ,a    
,,bill  ,to direct ! ,secret>y ( !      
,dep>tm5t ( ,h\s+ & ,urban ,developm5t &
 ! ,director ( ! ,f$]al ,h\s+ ,f9ance   
,ag5cy to develop a program to provide  
assi/ance to cr$itwor?y borr[]s ) ,f$]al
 /ud5t debt 9 pur*as+ c]ta9 =eclos$     
homes own$ by ! ,f$]al ,gov]nm5t1 !     
,f$]al ,national ,mortgage ,association1
 ! ,f$]al ,home ,loan ,mortgage         
,corporation1 & local l& banks1 & = o!r 
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,trans=m+ ,/ud5t ,debt to  
,home ,equity ,act ( #bjai4  #b4 ,f9d+s 
,congress f9ds ! foll[+3  7#a7 ,9 ! fir/
 qu>t] ( #bjai1 ov] #af1hjj1jjj homes   
rema9 vacant 9 ! ,unit$ ,/ates4  7#b7   
,^! ext5d$ vacancies depress            
neighborhood prop]ty values & create a  

d[nw>d spiral 9 neighborhood /ability 9 
already tr\bl$ communities4  7#c7       
,mean:ile1 due to climb+ exp5ses ( high]
 education1 ! total ,f$]al /ud5t debt   
ow$ equals #a1efj1jjj1jjj1jjj4  7#d7 ,m 
?an #dd1gjj1jjj ,am]icans h at lea/ "o  
out/&+ /ud5t loan1 up dramatically f    
#cg1jjj1jjj ,am]icans j #g ye>s ago4    
7#e7 ,/ud5t loan repaym5ts are =c+      
millions ( "y families out ( pur*as+ _! 
fir/ home1 z !y _c af=d to save = a d[n 
paym5t or qualify = a mortgage4  7#f7   
,data f ! ,unit$ ,/ates ,c5sus ,bureau  
%[s t non-,hispanic ,:ite h\seholds h an
 av]age net wor? ( #acj1hjj1 :ile ,black
 h\seholds h an av]age net wor? ( #i1eij
 & ,hispanic h\seholds h #ag1ecj2       
provid+ innovative f9ancial products w  
all[ ! ,unit$ ,/ates to close ! racial  
weal? gap & to ensure equitable access  
to h\s+ & economic mobility4  7#g7      
,accord+ to a report f ,pew ,rese>*     
,c5t]1 ! m$ian income (                 
,african-,am]ican h\seholds decreas$ by 
#ec p]c5t betwe5 #bjjh & #bjac4 ,9 !    

same "t p]iod1 ! income gap betwe5 ,:ite
 h\seholds & ,african-,am]ican h\seholds
 wid5$2 increas+ f #ac times great] to  
#ag times great]4  7#h7 ,x is imp]ative 
to create a demon/ration program to     
design f9ancial pa?ways to1 :]e         
possible1 to sy/ematically conv]t "s    
/ud5t debt /reams into equity /reams    
?r\gh negotiation ( mortgages2 o!rwise  
h\s+ pur*ases w cont9ue to be sluggi%   
among fir/ "t home-buy]s & ?\s&s m      
,am]icans w ent] _! midye>s saddl$ )    
/ud5t loan debt nev] hav+ _h !          
opportunity to accumulate equity4  7#i7 
,x is 9 ! int]e/ ( ! ,f$]al ,gov]nm5t to
 use ! res\rces at its disposal1 includ+
 bo? h\s+ prop]ties held 9 tru/ & /ud5t 
debt obligations1 to put rev]se pressure
 on ^! d[nw>d tr5ds4  7#aj7 ,by arrang+ 
f9anc+ t recalculates t]ms1             
debt-to-income ratios1 mortgage int]e/  
rates1 & o!r factors1 %ort-t]m /ud5t    
debt c\ld transition into long] t]m home
 own]%ip4  7#aa7 ,! goal is to connect  
cr$itwor?y ,f$]al /ud5t debt hold]s )   

h\s+ prop]ties = sale & held by ! ,f$]al
 ,gov]nm5t & local l& banks4  7#ab7 ,ov]
 "t1 p>ticipants c help re/ore          
neighborhoods1 trans=m _! debt to       
equity1 & /abilize secur$ prop]ty values
 locally & on ! ,f$]al l$g] by ma9ta9+ &
 inve/+ 9 a home mortgage4  #c4 ,program
 to exp& access to mortgages to eligible
 cr$itwor?y homebuy]s ) f$]al /ud5t loan
 debt  7a7 ,e/abli%m5t ,f am\nts        
appropriat$ pursuant to subsection 7g71 
! ,secret>y ( ! ,dep>tm5t ( ,h\s+ &     
,urban ,developm5t & ! ,director ( !    
,f$]al ,h\s+ ,f9ance ,ag5cy %all e/abli%
 & c>ry out a pilot demon/ration program
 to--  7#a7 provide assi/ance to        
eligible applicants 9 pur*as+ eligible  
prop]ties2 &  7#b7 subsequ5tly analyze !
 results ( ! provision ( su* assi/ance4 
7b7 ,consultation ,9 e/abli%+ & c>ry+   
out ! program pursuant to subsection    
7a71 ! ,secret>y ( ! ,dep>tm5t ( ,h\s+ &
 ,urban ,developm5t & ! ,director ( !   
,f$]al ,h\s+ ,f9ance ,ag5cy %all consult
 )--  7#a7 ! ,director ( ! ,consum]     

,f9ancial ,protection ,bureau2  7#b7 !  
,secret>y ( ,agriculture2  7#c7 !       
,secret>y ( ,vet]an ,affairs2  7#d7 !   
,secret>y ( ,education2 &  7#e7 !       
,secret>y ( ! ,treasury4  7c7 ,eligible 
applicants ,to be eligible = ! program  
e/abli%$ pursuant to subsection 7a71 an 
applicant--  7#a7 %all h an out/&+      
balance ( pr9cipal or int]e/ ow+ on a   
,f$]al loan made1 insur$1 or gu>ante$ "u
 title ,,iv ( ! ,high] ,education ,act (
 #aife 7#bj ,u4,s4,c4 #ajgj et seq472   
7#b7 may n be subject to a judgm5t      
secur$ ?r\gh litigation ) respect to su*
 a loan "u title ,,iv ( ! ,high]        
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgj et seq471 may n be subject to an  
ord] = wage g>ni%m5t "u section #dhh;,a 
( su* ,act 7#bj ,u4,s4,c4 #ajie;a71 & at
 ! "t ( application = p>ticipation 9 !  
program "u ?is section--  7,a7 su* a    
loan %all be 9 repaym5t /atus z det]m9$ 
"u section #dbh7;b77#g77;,a7 ( su* ,act 
7#bj ,u4,s4,c4 #ajgh7;b77#g77;,a772 or  
7,b7 su* a loan %all be 9 a grace p]iod 

prec$+ repaym5t2  7#c7 may n h own$ a   
home dur+ ! #c-ye> p]iod imm$iately be=e
 ! applicant pur*ases an eligible       
prop]ty ) assi/ance provid$ "u ?is      
section2  7#d7 %all complete a program (
 c\nsel+ ) respect to ! responsibilities
 & f9ancial managem5t involv$ 9         
home[n]%ip t is approv$ by ! ,secret>y2 
7#e7 %all be cr$itwor?y1 z det]m9$ by ! 
,secret>y & ! ,director2  7#f7 %all     
agree to use an eligible prop]ty pur*as$
 ) assi/ance provid$ "u ?is section z ! 
applicant's prim>y resid5ce = n less ?an
 ! #c-ye> p]iod beg9n+ on ! date ( su*  
pur*ase2 &  7#g7 %all be employ$ & e>n+ 
suffici5t income to repay a mortgage    
loan1 z det]m9$ by ! ,secret>y & !      
,director = ! purposes ( ?is program4   
7d7 ,types ( assi/ance  7#a7 ,9 g5]al ,a
 program e/abli%$ "u ?is section may    
provide = any "o or m ( ! foll[+        
options3 7,a7 ,a disc\nt on ! apprais$  
value ( an eligible prop]ty4  7,b7      
,flexibility 9 und]writ+ /&>ds relat$ to
 ! pur*ase ( eligible prop]ties =       

mortgages insur$ "u title ,,ii ( !      
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agjg et seq47 or own$ or gu>ante$ by ! 
,f$]al ,national ,mortgage ,association 
or ! ,f$]al ,home ,loan ,mortgage       
,corporation4  7,c7 ,! developm5t ( new 
mortgage products specifically t>get$ to
 eligible applicants4  7,d7 ,any o!r    
assi/ance t ! ,secret>y & ,director     
jo9tly deem appropriate4  7#b7 ,repaym5t
 integration ,a program e/abli%$ "u ?is 
section %all provide = ! developm5t ( a 
program t w use actu>ial in=mation to   
det]m9e h[ ! repaym5t ( loans describ$ 9
 subsection 7c77#a7 may be integrat$    
into a mortgage repaym5t s*$ule to all[ 
an eligible applicant to accumulate     
equity 9 ! eligible prop]ty1 includ+ by 
reason ( meet+ ! eligible applicant's   
obligations "u su* /ud5t loan4  7#c7    
,collaboration ,9 provid+ assi/ance     
describ$ "u p>agraph 7#a71 ! ,secret>y &
 ! ,director may collaborate )--  7,a7  
community banks hav+ less ?an           
#aj1jjj1jjj1jjj 9 total assets2  7,b7   

cr$it unions 7z def9$ 9 section #aja ( !
 ,f$]al ,cr$it ,union ,act72  7,c7 &    
local fair h\s+ organizations2 &  7,d7  
local l& banks4  7e7 ,geographical      
div]sity ,9 select+ eligible applicants 
to receive assi/ance "u ?is section1 !  
,secret>y & ! ,director %all1 to ! ext5t
 practicable1 consid] ! location ( !    
eligible prop]ty to be pur*as$ by !     
eligible applicant1 includ+ :e!r !      
eligible prop]ty is locat$ 9 a rural or 
urban area1 to ensure geographic        
div]sity ( su* eligible prop]ties4  7f7 
,reports  7#a7 ,int]im report ,n lat]   
?an #ij days aft] ! date ( ! enactm5t ( 
?is section1 ! ,secret>y & ! ,director  
%all submit to ,congress an int]im      
report describ+ ! type ( assi/ance !    
,secret>y & ! ,director %all provide "u 
! program e/abli%$ "u ?is section4  7#b7
 ,f9al report ,n lat] ?an #c ye>s aft] !
 date ( ! enactm5t ( ?is section1 !     
,secret>y & ! ,director %all submit to  
,congress a f9al report t--  7,a7       
evaluates ! impact ( ! program c>ri$ out

 "u ?is section & describes any f9d+s2  
7,b7 id5tifies o!r types ( assi/ance !  
,secret>y & ! ,director may (f]2 &  7,c7
 includes any recomm5dations ! ,secret>y
 & ,director may h = improv+ ! program4 
7g7 ,def9itions ,9 ?is section3  7#a7   
,director ,! t]m ,director means !      
,director ( ! ,f$]al ,h\s+ ,f9ance      
,ag5cy4  7#b7 ,secret>y ,! t]m ,secret>y
 means ! ,secret>y ( ! ,dep>tm5t ( ,h\s+
 & ,urban ,developm5t4  7#c7 ,eligible  
prop]ty ,! t]m eligible prop]ty means a 
prop]ty t is design$ z a dwell+ =       
occupancy by #a to #d families-- 7,a7 t 
is safe & habitable1 z def9$ by !       
,secret>y & ! ,director2  7,b7 = :i*1 z 
det]m9$ by ! ,secret>y & ! ,director1 ! 
occupancy ( :i* w promote community     
revitalization2 &  7,c7 t-- 7i7 0       
previ\sly subject to a mortgage loan    
insur$ by ! ,f$]al ,h\s+ ,adm9i/ration  
"u title ,,ii ( ! ,national ,h\s+ ,act  
7#ab ,u4,s4,c4 #agjg et seq47 & is own$ 
by ! ,secret>y pursuant to ! paym5t (   
insurance b5efits "u su* ,act2  7ii7 is 

a real e/ate own$ prop]ty ( ! ,f$]al    
,national ,mortgage ,association or !   
,f$]al ,home ,loan ,mortgage            
,corporation2 or  7iii7 is own$ by a    
local l& bank4  7#d7 ,local l& bank ,!  
t]m local l& bank means--  7,a7 a       
gov]nm5tal or nongov]nm5tal nonpr(it    
entity e/abli%$1 at lea/ 9 "p1 to       
assemble1 tempor>ily manage1 & dispose (
 vacant l& = ! purpose ( /abiliz+       
neighborhoods & enc\rag+ re-use or      
r$evelopm5t ( urban prop]ty2 or  7,b7   
su* o!r gov]nm5tal or nongov]nm5tal     
entity z ! ,secret>y & ! ,director may  
det]m9e appropriate4  7h7 ,au?orization 
( appropriations ,!re are au?oriz$ to be
 appropriat$ su* sums z necess>y to c>ry
 out ?is section = fiscal ye>s #bjba1   
#bjbb1 & #bjbc4