HR4680-119

What This Bill Does

The Access to Homeownership Act adds section 1355A to the Federal Housing Enterprises Financial Safety and Soundness Act. Federally backed multifamily mortgage loans include non-construction loans secured by multifamily properties with five or more families if made, insured, guaranteed, supplemented, assisted, purchased, or securitized by a federal agency, HUD program, Fannie Mae, or Freddie Mac. The FHFA Director must require each enterprise, by order or regulation, to establish and maintain a program requiring multifamily borrowers with federally backed multifamily mortgage loans to ask residents for consent to report positive rent payments directly to nationwide consumer reporting agencies under the Fair Credit Reporting Act, including up to 24 months of prior positive rent payments if available. If a resident consents, the multifamily borrower must report those positive payments. Positive rent payments must be considered in applications to insure mortgages under FHA section 203. Fannie Mae and Freddie Mac must cover administrative costs, FHFA must report to Congress every five years on the programs, and such sums as necessary are authorized.

Who Benefits and How

Renters in federally backed multifamily properties benefit from optional reporting of positive rent payments to credit bureaus. First-time homebuyers with rental payment histories benefit because FHA mortgage insurance applications must consider positive rent payments. Fannie Mae multifamily borrowers benefit from an enterprise-run program and covered administrative costs. Freddie Mac multifamily borrowers benefit from the same positive-rent-payment reporting framework.

Who Bears the Burden and How

Federal Housing Finance Agency must issue orders or regulations and report to Congress every five years. Fannie Mae must cover administrative costs for positive rent payment reporting programs. Freddie Mac must cover parallel administrative costs. Multifamily borrowers with federally backed loans must request resident consent and report positive payments when consent is given.

Key Provisions

• Requires Fannie Mae and Freddie Mac programs for positive rent payment reporting by federally backed multifamily borrowers.
• Requires borrowers to request resident consent and report positive rent payments when consent is given.
• Authorizes reporting of up to 24 months of prior positive rent payments if available.
• Requires positive rent payments to be considered in FHA section 203 mortgage insurance applications.
• Requires enterprise payment of administrative costs and FHFA reports to Congress every five years.