NAR Support Letter to Representative Waters Regarding the Improving FHA Support for Small Dollar Mortgages Act
Issue Date: February 21, 2020
US HR 5931 - Improving FHA Support for Small Dollar Mortgages Act of 2020
On February 21, NAR sent a letter to Chairwoman Waters of the House Committee on Financial Services. The FHA mortgage insurance program was designed to serve creditworthy borrowers who are being left behind by the private market. The National Association of REALTORS® (NAR) is pleased to support the “Improving FHA Support for Small Dollar Mortgages Act.” NAR believes this legislation will help increase opportunities for homeownership across America. Research has shown that homebuyers in lower cost communities, rural areas, or those purchasing low value homes (small-dollar mortgage loans) are denied at double the rate of large mortgage loans, with no connection to the risk of the borrower. This legislation will urge the Department of Housing and Urban Development (HUD) to review FHA's policies to ensure borrowers are not negatively impacted by procedures they have in place.