December 17, 2025
Ms. Waters introduced the following bill; which was referred to the Committee on Financial Services
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.
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.