H.R. 695 – Reading Mode

112th CONGRESS

1st Session

H. R. 695

IN THE HOUSE OF REPRESENTATIVES

February 14, 2011

Mr. Marchant (for himself, Ms. Foxx, Mr. Flores, Mr. Neugebauer, Mrs. Lummis, Mr. Posey, Mr. Carter, and Mr. Nugent) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Veterans’ Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To require each applicant for a home mortgage to be insured under the FHA mortgage insurance program of the Department of Housing and Urban Development, held by Fannie Mae or Freddie Mac, or made, insured, or guaranteed by the Secretary of Veterans Affairs or any other agency or entity of the Federal Government, to provide to the lender information sufficient to perform a verification of the applicant through the E-Verify program.

Short title

This Act may be cited as the Legal Eligibility for Granting A Loan Act of 2011.

Requirement to provide e-verify form with mortgage application

(a)

Requirement

Notwithstanding any other provision of law—

(1)

the Secretary of Housing and Urban Development may not newly insure, under the National Housing Act (12 U.S.C. 1701 et seq.) or any other provision of law, any single-family housing mortgage,

(2)

the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation may not newly purchase any single-family housing mortgage,

(3)

the Secretary of Veterans Affairs may not newly make, guarantee, or insure any single-family housing mortgage, and

(4)

no other agency or entity of the Federal Government may not newly make, guarantee, insure, or otherwise provide assistance for any single-family housing mortgage,

unless, at the time the mortgagor submitted an application for the extension of credit under the mortgage to the lender or creditor, the applicant also submitted to the lender or creditor information sufficient for the lender or creditor to obtain a verification of identity and work eligibility of the mortgagor under such mortgage through the basic pilot program under section 403(a) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note; commonly referred to as the E-Verify program).

(b)

Submission of E-Verify inquiries

Notwithstanding any other provision of law, lenders and creditors for single-family housing mortgages may submit inquiries regarding the identities and work eligibility of mortgagors under such mortgages through such basic pilot program, and may be provided confirmations and nonconfirmations pursuant to such inquiries under such basic pilot program.

(c)

Definition of single-Family housing mortgage

For purposes of this paragraph, the term single-family housing mortgage means a mortgage that is secured by a 1- to 4-family residence.

(d)

Applicability

This section shall apply with respect to any single-family housing mortgage for which an application for the extension of credit under the mortgage is submitted to a lender or creditor after the date of the enactment of this Act.