Access to Homeownership Act
Summary
The Access to Homeownership Act aims to improve access to homeownership by requiring multifamily borrowers with federally backed mortgages to report residents' positive rental payments to consumer reporting agencies, with resident consent. This reporting would include up to 24 months of prior payments. The bill also mandates that these payments be considered in mortgage insurance applications under the National Housing Act and requires the Director to report to Congress every 5 years on the programs established.
Expected Effects
The bill's primary effect would be to potentially improve credit scores for renters with consistent payment histories, making them more eligible for mortgages. It also places administrative and reporting requirements on enterprises and the Director. The bill authorizes appropriations to carry out the section.
Potential Benefits
- Increased access to credit for renters with positive rental payment histories.
- Potential for improved credit scores, leading to better mortgage rates.
- Consideration of rental payment history in mortgage insurance applications.
- Encourages responsible rental payment behavior.
- May help individuals with limited credit history establish creditworthiness.
Potential Disadvantages
- Administrative costs for enterprises to implement and maintain the reporting program.
- Potential privacy concerns related to reporting rental payment data, even with consent.
- Possible burden on multifamily borrowers to obtain resident consent and report data.
- The effectiveness depends on resident participation and consent.
- The impact on homeownership rates may be limited.
Constitutional Alignment
The bill appears to align with the spirit of promoting the general welfare, as mentioned in the Preamble of the US Constitution, by attempting to expand access to homeownership. Congress's power to regulate activities related to housing and urban development programs falls under its enumerated powers, particularly the power to regulate commerce (Article I, Section 8). The requirement for enterprises to report positive rental payments does not appear to infringe on any specific constitutional right.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).