On Wednesday, July 24, 2013, Congressman Al Green (TX-09) introduced two bills: the FHA Alternative Credit Pilot Program Reauthorization Act of 2013 and the FHA In-Person Servicing Improvement Act of 2013 in the House of Representatives.
The FHA Alternative Credit Pilot Program Reauthorization Act of 2013 would extend the authority of the Secretary of the Department of Housing and Urban Development (HUD) to carry out a pilot program to determine if applicants for Federal Housing Administration (FHA)-insured loans who lack “sufficient” credit history for determining their creditworthiness can be scored using an automated process. The authority was originally established in the Housing and Economic Recovery Act of 2008.
The automated process could include rent, utilities, and insurance payment histories, and such other information that the Secretary deems appropriate. Certain groups, such as African Americans, Hispanics, low-income households, the elderly, and those under 25 years of age, are disproportionately affected by having a limited credit history making it more difficult for them to apply and be approved for FHA-insured loans.
“This critical legislation represents one more step forward in responsibly expanding access to homeownership to hardworking persons who pay all of their bills in a timely manner, including rent which often exceeds a mortgage,” Congressman Al Green said. “Homeownership is essential to moving our economic recovery forward and expanding our middle class.”
The FHA In-Person Servicing Improvement Act of 2013would authorize a pilot program in which FHA will use a qualified firm or firms to conduct in-person contact with FHA borrowers who are late on their loans by more than 60 days. The program would provide more information and transparency to FHA borrowers who are in danger of losing their homes due to being late on loan payments.
“This common-sense legislation gives those people who have sought to own a home through FHA loans, all the information and assistance necessary for them to meet their obligations as well as remain responsible homeowners,” Congressman Al Green said. “Our economic recovery will be better furthered by operating our federal programs proactively to prevent foreclosure rather than reactively, which can prolong foreclosure.”
Office of Congressman Al Green (TX-09)
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