FHA SMALL-DOLLAR MORTGAGES.

SEC. 105. [12 U.S.C. 1708 note] 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 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 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 mortgages; 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.