,i #aag? ,,congress #b;d ,session ,h4 ,r4 #gcfh ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #a1 #bjbb,ms4 ,kaptur 7= h]self1 ,ms4 ,norton1 & ,mrs4 ,axne7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to direct ! ,secret>y ( ,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 ( #bjbb4 #b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,9 ! ?ird qu>t] ( #bjba1 ov] #ae1ahe1jjj 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 #a1gej1jjj1jjj1jjj4 7#d7 ,m ?an #dd1gjj1jjj ,am]icans h at lea/ "o out/&+ /ud5t loan4 7#e7 ,/ud5t loan repaym5ts are =c+ millions ( "y families to delay pur*as+ _! fir/ home1 z !y _c af=d to save = a d[npaym5t or qualify = a mortgage :ile also pay+ (f /ud5t debt4 7#f7 ,data f ! ,f$]al ,res]ve %[s t non-,hispanic ,:ite h\seholds h a m$ian net wor? ( #aha1ddj1 :ile ,black h\seholds h a m$ian net wor? ( #bj1gcj & ,hispanic h\seholds h #cf1ahj2 provid+ innovative f9ancial products w all[ ! ,unit$ ,/ates to r$uce ! racial weal? gap & to ensure equitable access to h\s+ & economic mobility4 7#g7 ,! ,,covid-#ai p&emic has exac]bat$ ! racial weal? gap by increas+ unemploym5t )9 already disadvantag$ communities & fur!r r$uc+ access to home[n]%ip & increas+ ! burd5 ( /ud5t debt4 7#h7 ,accord+ to a report f ! ,jo9t ,c5t] = ,h\s+ ,/udies ( ,h>v>d ,univ]sity1 ,black & ,hispanic h\seholds are m likely to h _! h\sehold income decl9e & to face h>d%ip 9 pay+ r5t & o!r mon?ly h\s+ co/s due to ! ,,covid-#ai p&emic4 7#i7 ,x is imp]ative to create a demon/ration program to design f9ancial pa?ways to1 :]e possible1 sy/ematically conv]t "s /ud5t debt /reams into equity /reams ?r\gh negotiation ( mortgages2 o!rwise h\s+ pur*ases w cont9ue to be sluggi% among fir/-"t home buy]s & ?\s&s m ,am]icans w ent] _! midye>s saddl$ ) /ud5t loan debt nev] hav+ _h ! opportunity to accumulate equity4 7#aj7 ,x is 9 ! int]e/ ( ! ,f$]al ,gov]nm5t to use ! res\rces at its disposal1 includ+ bo? h\s+ prop]ties held 9 tru/ & /ud5t debt obligations1 to put rev]se pressure on ^! d[nw>d tr5ds4 7#aa7 ,by arrang+ f9anc+ t recalculates t]ms1 debt-to-income ratios1 mortgage int]e/ rates1 & o!r factors1 %ort-t]m /ud5t debt c\ld transition into long]-t]m home own]%ip4 7#ab7 ,! goal is to connect cr$itwor?y ,f$]al /ud5t debt hold]s ) h\s+ prop]ties = sale & held by ! ,f$]al ,gov]nm5t & local l& banks4 7#ac7 ,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$itwor?y home buy]s ) f$]al /ud5t loan debt 7a7 ,e/abli%m5t ,f am\nts appropriat$ pursuant to subsection 7g71 ! ,secret>y ( ,h\s+ & ,urban ,developm5t & ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy %all e/abli% & c>ry out a pilot demon/ration program to-- 7#a7 provide assi/ance to eligible applicants 9 pur*as+ eligible prop]ties2 & 7#b7 subsequ5tly analyze ! results ( ! provision ( su* assi/ance4 7b7 ,consultation ,9 e/abli%+ & c>ry+ out ! program pursuant to subsection 7a71 ! ,secret>y & ! ,director %all consult )-- 7#a7 ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau2 7#b7 ! ,secret>y ( ,agriculture2 7#c7 ! ,secret>y ( ,vet]ans ,affairs2 7#d7 ! ,secret>y ( ,education2 & 7#e7 ! ,secret>y ( ! ,treasury4 7c7 ,eligible applicants ,to be eligible = ! program e/abli%$ 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 %all h an area m$ian income at or bel[ #abj p]c5t2 7#c7 may n be subject to a judgm5t secur$ ?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$+ repaym5t2 7#d7 may n h own$ 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#e7 %all complete a program ( c\nsel+ ) respect to ! responsibilities & f9ancial managem5t involv$ 9 home[n]%ip t is approv$ by ! ,secret>y2 7#f7 %all be cr$itwor?y1 z det]m9$ by ! ,secret>y & ! ,director2 7#g7 %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#h7 %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 ,d[npaym5t & private mortgage assi/ance to eligible applicants4 7,e7 ,pre-pur*ase c\nsel+ includ+ relat$ cr$it & f9ancial coa*+ to eligible applicants4 7,f7 ,provision ( a l[- or no-int]e/ mortgage rate4 7,g7 ,any o!r assi/ance t ! ,secret>y & ,director jo9tly deem appropriate4 7#b7 ,repaym5t integration ,! ,secret>y %all e/abli% a program t w integrate repaym5t ( loans describ$ 9 subsection 7c77#a7 into a mortgage repaym5t s*$ule to all[ an eligible applicant to accumulate equity 9 ! eligible prop]ty4 ,! ,secret>y %all use actu>ial data & risk assessm5ts to collat]alize ! mortgage provid$ ?r\gh ,f$]al funds4 7#c7 ,collaboration ,9 provid+ assi/ance describ$ "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 #ahj 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 ! occupancy ( :i*1 z det]m9$ by ! ,secret>y & ! ,director1 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 7iii7 is own$ by a local l& bank2 7iv7 is own$ by ! ,dep>tm5t ( ,agriculture2 or 7v7 is own$ by ! ,dep>tm5t ( ,vet]ans ,affairs4 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 #bjbc1 #bjbd1 & #bjbe4