HR 6774

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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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 2. 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. <all>