H.R. 6774 – Reading Mode

119th CONGRESS

1st Session

H. R. 6774

IN THE HOUSE OF REPRESENTATIVES

December 17, 2025

Ms. Waters introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To authorize the Secretary of Housing and Urban Development, acting through the Federal Housing Commissioner, to establish a pilot program to increase access to small-dollar mortgages, and for other purposes.

Short title

This Act may be cited as the FHA Small-Dollar Mortgages Act.

FHA small-dollar mortgages

(a)

In general

Not later than 1 year after the date of the enactment of this section, the Secretary of Housing and Urban Development, acting through the Federal Housing Commissioner, may establish a pilot program to increase access to small-dollar mortgages for mortgagors which may include—

(1)

authorizing direct payments to mortgagees to incentivize the origination of small-dollar mortgages;

(2)

adjusting terms and costs imposed by the Federal Housing Administration with respect to small-dollar mortgages;

(3)

providing direct grants for mortgagors who obtain small-dollar mortgages to cover costs associated with—

(A)

down payments;

(B)

closing costs;

(C)

appraisals; and

(D)

title insurance;

(4)

conducting outreach to potential mortgagors about the availability of small-dollar mortgages; and

(5)

providing technical assistance for mortgagees that originate small-dollar mortgages.

(b)

Report

Beginning not later than 1 year after the establishment of the pilot program under subsection (a) and ending 1 year after the sunset of the pilot program, the Federal Housing Commissioner shall submit to the Congress an annual report that—

(1)

tracks and evaluates the outcomes of small-dollar mortgages originated by mortgagees as a result of support provided under subsection (a);

(2)

analyzes risks of the pilot program to the solvency of the Mutual Mortgage Insurance Fund;

(3)

includes data with respect to—

(A)

the number of small-dollar mortgages originated in the 10-year period preceding the date of the enactment of this section, including small-dollar mortgages insured or guaranteed by the Federal Government and small-dollar mortgages not insured by the Federal Government;

(B)

the original principal balance of each small-dollar mortgage identified under subparagraph (A);

(C)

demographic information about the mortgagors associated with each such small-dollar mortgage; and

(D)

the number and type of mortgagees that offer small-dollar mortgages;

(4)

provides a description of the fixed costs that are associated with mortgages and the impact of such costs on the ability of lenders to earn a market rate return on small-dollar mortgages; and

(5)

includes analysis, by regions of the United States, including rural regions, that identifies regions with the greatest need for, and the highest likelihood of, the origination of small-dollar mortgages and regions that could benefit the most from increased availability of small-dollar mortgages.

(c)

Sunset

The pilot program established under subsection (a) shall terminate on the date that is 4 years after the date on which the pilot program is established under subsection (a).

(d)

Expiration of authority

After the expiration of the 3-year period beginning on the date of enactment of this section, neither the Federal Housing Commissioner nor the Secretary of Housing and Urban Development may newly establish a pilot program to increase access to small-dollar mortgages for mortgagors.

(e)

Small-Dollar mortgage defined

The term small-dollar mortgage means a mortgage that—

(1)

has an original principal balance of $100,000 or less; and

(2)

is secured by a 1- to 4-unit property that is the principal residence of the mortgagor.