Improving FHA Support for Small-Dollar Mortgages Act of 2021

Floor Speech

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Ms. TLAIB. Madam Speaker, I rise in support of my bill, the Improving FHA Support for Small-Dollar Mortgages Act.

Housing is one of the most vital ways families have a shot at financial stability and freedom. However, affordable homeownership opportunities are being denied to my residents because of the lack of financing available for home purchases under $70,000.

In fact, small-dollar mortgage loan applications in 2017 were denied by lenders at double the rate of denial for large mortgage loans. This is largely because the banks have decided that small-dollar mortgages are riskier because they rely on bogus credit score thresholds and the loans don't give them enough profit.

This impacts majority Black and Brown communities, as well as low- income communities that are unbanked and underbanked.

Madam Speaker, in my district alone, 68,000--or nearly 50 percent--of our owner-occupied homes are valued under $70,000. Think about that for a second. Almost half of the homes in my district stand little chance of getting financing from a bank.

My bill directs the Department of Housing to report on barriers to making small-dollar mortgage insurance available for mortgages under $70,000. It also requires HUD to report on policies, practices, and actions that will be taken to remove such barriers, to making available mortgage insurance for mortgages of $70,000 or less.

Madam Speaker, I urge my colleagues to please vote in support of my bill to ensure that every family has access to homeownership.

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