,,ii #aagth ,,congress #ast ,session ,s4 #bgig ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bb 7legislative day1 ,september #ba71 #bjba,mr4 ,warner 7for himself1 ,mr4 ,van ,hollen1 ,mr4 ,warnock1 ,mr4 ,kaine1 and ,mr4 ,ossoff7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to establish a program to provide low- and moderate-income first-time1 first-generation homebuyers with access to affordable and sustainable wealth-building home loans4 #a4 ,short title ,this ,act may be cited as the ,low-,income ,first-,time ,homebuyers ,act of #bjba or the ,,lift ,homebuyers ,act of #bjba4 #b4 ,wealth-building home loan program 7a7 ,establishment of ,,lift ,,home funds 7#a7 ,in general ,there is established in each ,loan ,guarantee ,agency a fund to be known as the ,,lift ,,home ,fund1 into which amounts made available under this section shall be deposited and which shall be used by each ,department for carrying out the purposes of this section4 7#b7 ,management of ,fund ,the ,,lift ,,home ,fund of each ,loan ,guarantee ,agency shall be administered and managed by the respective ,secretary1 who shall establish reasonable and prudent criteria for the management and operation of any amounts in the ,fund4 7b7 ,use of funds 7#a7 ,transfer of amounts to ,treasury ,such portions of the amount made available to the ,secretary of ,housing and ,urban ,development under this section shall be transferred by the ,secretary of ,housing and ,urban ,development to the ,department of the ,treasury in an amount equal to1 as determined by the ,secretary of the ,treasury1 in consultation with the ,secretary of ,housing and ,urban ,development-- 7,a7 the amount the ,secretary of the ,treasury estimates to be necessary for the purchase of securities under the ,program during the period for which the funds are intended to be available2 7,b7 the difference between-- 7i7 the ,secretary of the ,treasury's receipts from the sale or other disposition of securities acquired under the ,program2 and 7ii7 the ,secretary of the ,treasury's costs in purchasing such securities2 and 7,c7 the ,department of the ,treasury's administrative expenses related to the ,program4 7#b7 ,credit subsidy ,such portion of the amount made available to each ,secretary under this section as may be necessary may be used for the cost to the respective ,loan ,guarantee ,agency of guaranteed loans under this section4 ,such costs1 including the costs of modifying such loans1 shall be as defined in section #ejb of the ,congressional ,budget ,act of #aigd 7#b ,u4,s4,c4 #ffa;a74 7c7 ,establishment of the ,,lift ,,home program ,each ,secretary shall establish1 and carry out1 with respect to any mortgage with a case number issued on or before ,december #ca1 #bjbe1 that is subsequently insured or guaranteed by such ,secretary1 a program to make covered mortgage loans available to eligible homebuyers to purchase a single-family residence for use as their principal residence 7referred to in this section as the ,program71 under which-- 7#a7 the ,secretary of the ,treasury-- 7,a7 shall act as a purchaser1 on behalf of the ,secretary of ,housing and ,urban ,development1 of securities that are secured by covered mortgage loans2 7,b7 may designate financial institutions1 including banks1 savings associations1 trust companies1 security brokers or dealers1 asset managers1 investment advisers1 and other institutions and such institutions shall-- 7i7 perform all reasonable duties related to this section as a financial agent of the ,united ,states as may be required2 and 7ii7 be paid for such duties using appropriations available to the ,secretary of the ,treasury to reimburse financial institutions in their capacity as financial agents of the ,united ,states2 7,c7 may use the services of any agency or instrumentality of the ,united ,states or component thereof on a reimbursable basis1 and any such agency or instrumentality or component thereof is authorized to provide services as requested by the ,secretary using all authorities vested in or delegated to that agency1 instrumentality1 or component2 7,d7 may manage1 and exercise any rights received in connection with1 any financial instruments or assets purchased or acquired pursuant to the authorities granted under this section2 7,e7 may establish and use vehicles to purchase1 hold1 and sell financial instruments and other assets2 and 7,f7 may issue such regulations and other guidance as may be necessary or appropriate to carry out the authorities or purposes of this section2 7#b7 each ,secretary of a ,loan ,guarantee ,agency shall-- 7,a7 establish pricing terms for covered mortgage loans such that the covered mortgage loans carry a monthly mortgage payment of principal and interest that is not more than #aaj percent and not less than #ajj percent of the monthly payment of principal1 interest1 and periodic mortgage insurance premium or loan guarantee fee associated with a newly originated #cj-year mortgage loan with the same loan balance insured or guaranteed by the ,loan ,guarantee ,agency as determined by each ,secretary1 or such pricing terms as are determined by each ,secretary to be necessary to develop liquidity for securities backed by covered mortgage loans and expand ,program participation by eligible homebuyers2 and 7,b7 establish an outreach and counseling program to increase stakeholder awareness of the ,program2 and 7#c7 the ,secretary of ,housing and ,urban ,development shall-- 7,a7 in consultation with the ,secretary of ,treasury1 establish the pricing terms for the purchase of securities guaranteed by the ,association secured by covered mortgage loans such that the covered mortgage loans carry a monthly mortgage payment of principal and interest that is not more than #aaj percent and not less than #ajj percent of the monthly payment of principal1 interest1 and periodic mortgage insurance premium or loan guarantee fee associated with a newly originated #cj-year mortgage loan with the same loan balance insured or guaranteed by the ,loan ,guarantee ,agency1 or such pricing terms as are determined by the ,secretaries to be necessary to develop liquidity for securities backed by covered mortgage loans and expand ,program participation by eligible homebuyers2 7,b7 have the authority to designate mortgage bankers1 financial institutions1 including banks1 savings associations1 trust companies1 security brokers or dealers1 asset managers1 investment advisers1 and other institutions and such institutions shall-- 7i7 perform all reasonable duties related to this section as an agent of the ,united ,states as may be required2 and 7ii7 be paid for such duties using appropriations available under this section to the ,secretary of ,housing and ,urban ,development to reimburse these entities in their capacity as agents of the ,united ,states2 7,c7 have the authority to use the services of any agency or instrumentality of the ,united ,states or component thereof on a reimbursable basis1 and any such agency or instrumentality or component thereof is authorized to provide services as requested by the ,secretary of ,housing and ,urban ,development using all authorities vested in or delegated to that agency1 instrumentality1 or component2 7,d7 operate the ,program in coordination with the ,association1 the ,federal ,housing ,administration1 the ,rural ,housing ,service1 and the ,secretary of the ,treasury so as to demonstrate feasibility and workability to market participants1 including-- 7i7 originators and servicers of mortgages2 7ii7 issuers of mortgage-backed securities2 and 7iii7 investors2 and 7,e7 gain price discovery experience by instructing the ,secretary of the ,treasury1 following consultation with the ,secretary of ,treasury to sell acquired securities described in subparagraph 7,a7 as soon as practicable1 thereby hastening the development of liquidity for securities backed by covered mortgage loans4 7#c7 ,,gnma guarantee authority ,to carry out the purposes of this section1 the ,association may enter into new commitments to issue guarantees of securities based on or backed by mortgages insured under this section4 7#d7 ,,gnma guaranty fee ,to carry out the purposes of this section1 the ,association may collect guaranty fees consistent with section #cjf7;g77#a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agba7;g77#a77 that are paid at securitization4 7d7 ,definitions ,in this section3 7#a7 ,association ,the term ,association means the ,government ,national ,mortgage ,association4 7#b7 ,covered mortgage loan 7,a7 ,in general ,the term covered mortgage loan means1 for purposes of the ,program established by the ,secretary of ,housing and ,urban ,development1 a mortgage loan that-- 7i7 is insured or guaranteed by the ,federal ,housing ,administration pursuant to section #bjc7;b7 of the ,national ,housing ,act1 subject to the eligibility criteria set forth in this subsection1 and has a case number issued on or before ,december #ca1 #bjbe2 7ii7 is made for an original term of #bj years or for an original term determined by the ,secretary to be necessary to develop liquidity for securities backed by covered mortgage loans and expand ,program participation by eligible homebuyers2 7iii7 subject to subparagraph 7,c7 of this paragraph and notwithstanding section #bjc7;b77#b77;,c7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agji7;b77#b77;,c771 has a mortgage insurance premium of not more than #d percent of the loan balance that is paid at closing1 financed into the principal balance of the loan1 paid through an annual premium1 or a combination thereof2 7iv7 involves a rate of interest that is fixed over the term of the mortgage loan2 and 7v7 is secured by a single-family residence that is the principal residence of an eligible homebuyer4 7,b7 ,the term covered mortgage loan means1 for purposes of the ,program established by the ,secretary of ,agriculture1 a loan guaranteed under section #ejb7;h7 of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adgb7;h77 that-- 7i7 notwithstanding section #ejb7;h77#g77;,a7 of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adgb7;h77#g77;,a771 is made for an original term of #bj years or for an original term determined by the ,secretary to be necessary to develop liquidity for securities backed by covered mortgage loans and expand ,program participation by eligible homebuyers2 and 7ii7 subject to subparagraph 7,c7 of this paragraph and notwithstanding section #ejb7;h77#h77;,a7 of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adgb7;h77#h77;,a771 has a loan guarantee fee of not more than #d percent of the principal obligation of the loan4 7,c7 ,waiver of mortgage insurance premium requirement ,each ,secretary1 in consultation with the ,secretary of the ,treasury1 and notwithstanding section #ejb7;h77#h77;,a7 of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adgb7;h77#h77;,a77 for purposes of the ,program established by the ,secretary of ,agriculture1 may waive the mortgage insurance premium cap or loan guarantee fee cap under subparagraphs 7,a77iii7 and 7,b77ii7 with respect to covered mortgage loans insured or guaranteed by the ,loan ,guarantee ,agency of which that ,secretary is the head if necessary to protect the solvency of the associated insurance fund4 7#c7 ,department ,unless otherwise specified1 the term ,department means the ,department of ,housing and ,urban ,development or the ,department of ,agriculture1 as appropriate4 7#d7 ,eligible homebuyer ,the term eligible homebuyer means an individual who-- 7,a7 for purposes of the ,program established by the ,secretary of ,housing and ,urban ,development-- 7i7 has an annual household income that is less than or equal to-- 7,i7 #abj percent of median income for the area1 as determined by the ,secretary of ,housing and ,urban ,development for-- 7aa7 the area in which the home to be acquired using such assistance is located2 or 7bb7 the area in which the place of residence of the homebuyer is located2 or 7,,ii7 if the homebuyer is acquiring an eligible home that is located in a high-cost area1 #adj percent of the median income1 as determined by the ,secretary1 for the area within which the eligible home to be acquired using assistance provided under this section is located2 7ii7 is a first-time homebuyer1 as defined in paragraph 7#f7 of this subsection2 and 7iii7 is a first-generation homebuyer as defined in paragraph 7#e7 of this subsection2 7,b7 for purposes of the ,program established by the ,secretary of ,agriculture-- 7i7 meets the applicable requirements in section #ejb7;h7 of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adgb7;h772 and 7ii7 is a first-time homebuyer as defined in paragraph 7#f7 of this subsection and a first-generation homebuyer as defined in paragraph 7#e7 of this subsection4 7#e7 ,first-generation homebuyer ,the term first-generation homebuyer means a homebuyer that1 as attested by the homebuyer1 is-- 7,a7 an individual-- 7i7 whose living parents or legal guardians do not1 to the best of the individual's knowledge1 have any present fee simple ownership interest in a principal residence in any ,state1 excluding ownership of heir property2 7ii7 if no parents or legal guardians are living upon acquisition of the eligible home to be acquired using such assistance1 to the best of the individual's knowledge1 whose parents or legal guardians did not have any ownership interest in a principal residence in any ,state at the time of their death1 excluding ownership of heir property2 and 7iii7 whose spouse1 or domestic partner has not1 during the #c-year period ending upon acquisition of the eligible home to be acquired using such assistance1 had any present ownership interest in a principal residence in any ,state1 excluding ownership of heir property1 whether the individual is a co-borrower on the loan or not2 or 7,b7 an individual who has at any time been placed in foster care or institutional care whose spouse or domestic partner has not1 during the #c-year period ending upon acquisition of the eligible home to be acquired using such assistance1 had any ownership interest in a principal residence in any ,state1 excluding ownership of heir property1 whether such individuals are co-borrowers on the loan or not4 7#f7 ,first-time homebuyer ,the term first-time homebuyer means a homebuyer as defined in section #ajd of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7#db ,u4,s4,c4 #abgjd71 except that ownership of heir property shall not be treated as owning a home for purposes of determining whether a borrower qualifies as a first-time homebuyer4 7#g7 ,heir property ,the term heir property means residential property for which title passed by operation of law through intestacy and is held by two or more heirs as tenants in common4 7#h7 ,loan guarantee agency ,unless otherwise specified1 the term ,loan ,guarantee ,agency means the ,federal ,housing ,administration of the ,department of ,housing and ,urban ,development or the ,rural ,housing ,service of the ,department of ,agriculture1 as appropriate4 7#i7 ,secretary ,unless otherwise specified1 the term ,secretary means the ,secretary of ,housing and ,urban ,development or the ,secretary of ,agriculture1 as appropriate4 7e7 ,reliance on borrower attestations ,no additional documentation beyond the borrower's attestation shall be required to demonstrate eligibility under paragraph 7#d7 of subsection 7e7 and no ,state1 eligible entity1 or creditor shall be subject to liability1 including monetary penalties or requirements to indemnify a ,federal agency or repurchase a loan that has been sold or securitized1 based on the provision of assistance under this section to a borrower who does not meet the eligibility requirements under paragraph 7#d7 of subsection 7e7 if the creditor does so in good faith reliance on borrower attestations of eligibility required under such paragraph4 7f7 ,implementation ,the ,secretary of ,housing and ,urban ,development1 the ,secretary of ,agriculture1 and the ,secretary of ,treasury shall have authority to issue such regulations or other notices1 guidance1 forms1 instructions1 and publications as may be necessary or appropriate to carry out the programs1 projects1 or activities authorized under this section1 including to ensure that such programs1 projects1 or activities are completed in a timely and effective manner4 7g7 ,authorization of appropriations ,there are authorized to be appropriated to the ,secretary of ,housing and ,urban ,development and the ,secretary of ,agriculture such sums as may be necessary to carry out the ,,lift ,,home ,program4