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The Empire State Mortgage Bankers Association would like to inform our members that the U.S. Senate has passed the “21st Century ROAD to Housing Act” (Renewing Opportunity in the American Dream to Housing Act) with strong bipartisan support. The legislation represents one of the most comprehensive federal housing policy packages in years and is aimed primarily at addressing housing affordability and the national housing supply shortage.
The bill contains numerous provisions that may impact the mortgage, housing finance, and development industries. While the legislation has passed the Senate, it must still be considered by the U.S. House of Representatives before it can become law.
Several areas within the legislation are particularly relevant to mortgage lenders and housing professionals:
Small-Dollar Mortgage Access
The bill directs regulators to study barriers to originating smaller balance mortgages (generally defined as $100,000 or less) and consider regulatory adjustments that could improve the economics of making these loans. If implemented through rulemaking, this could expand financing options for borrowers purchasing lower-cost homes.
Manufactured and Modular Housing Financing
Provisions in the bill are intended to encourage the development and financing of manufactured and modular housing. These measures are designed to support additional housing supply and improve access to more affordable housing options.
FHA Multifamily Loan Limits
The legislation proposes increases to certain FHA multifamily loan limits, which could facilitate additional development and financing of multifamily housing in higher-cost markets.
Appraisal Modernization
The bill includes appraisal-related provisions that seek to expand the appraiser pipeline and establish clearer processes for reconsideration of value (ROV) requests on federally related mortgage transactions.
Institutional Investor Restrictions
The legislation includes provisions that would place limits on large institutional investors acquiring single-family homes above certain thresholds. Supporters believe this may increase homeownership opportunities for individuals, while critics have raised concerns about potential impacts on housing investment and supply.
Next Steps
The House of Representatives will now determine whether to take up the Senate version of the bill or pursue its own housing legislation. If the House passes a different version, the two chambers would reconcile the differences before a final bill is sent to the President.
ESMBA will continue to monitor developments closely and will keep members informed as the legislation moves through the legislative process. As always, we remain committed to advocating for policies that support responsible homeownership, a healthy housing market, and a strong mortgage industry in New York and across the country.
Empire State Mortgage Bankers Association
Advocating for the Mortgage Industry and Homeownership
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