To amend the Housing Act of 1949 to permit the assumption of loans under the Doug Bereuter Section 502 Single Family Housing Loan Guarantee Program.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
Allows qualified borrowers to assume USDA Section 502 guaranteed rural housing loans when the property transfers, releases transferors and related parties from liability, and permits rules for related transaction fees.
Who Benefits and How
Qualified rural homebuyers could assume existing guaranteed loans rather than refinance from scratch, and existing borrowers could be released from liability once an approved assumption occurs.
Who Bears the Burden and How
USDA and servicers would need to administer loan assumptions and any associated transaction-fee rules.
Key Provisions
- Authorizes the Secretary to permit a qualified individual to assume a current Section 502 guaranteed loan upon property transfer.
- Releases the transferor and related co-borrowers or guarantors from liability when the assumption occurs.
- Allows the Secretary of Agriculture to issue a rule permitting servicers to charge fees for transaction costs.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Allows qualified borrowers to assume USDA Section 502 guaranteed rural housing loans when the property transfers, releases transferors and related parties from liability, and permits rules for related transaction fees.
Key Policy Areas
Housing, Finance, Government Operations
Primary Purpose
Allows qualified borrowers to assume USDA Section 502 guaranteed rural housing loans when the property transfers, releases transferors and related parties from liability, and permits rules for related transaction fees.
Policy Domains
Main Provisions
Identified Gains
Contextual inference, no direct clause citation- Qualified rural homebuyers who can assume existing USDA-guaranteed mortgages
- Existing borrowers and related parties released from liability after a qualifying assumption
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- USDA officials and servicers that must administer the new assumption process and related fees
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMr. Costa (for himself, Mr. Bacon, Mr. LaMalfa, Ms. Balint, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Qualified rural homebuyers able to assume an existing USDA-guaranteed mortgage after a property transfer, Transferors, co-borrowers, and guarantors released from liability after an approved assumption
USDA officials and servicers administering loan assumptions and transaction-fee rules
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of Agriculture
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology