Mortgage Rate Reduction Act
Mortgage Rate Reduction Act
Plain Language Summary
# Mortgage Rate Reduction Act Summary **What it does:** This bill would allow the federal government to guarantee or insure second mortgages on homes that already have federally-backed first mortgages. Specifically, it applies to properties with mortgages insured by the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or the Department of Agriculture. The bill also requires these agencies to publicly publish information about mortgages they guarantee, including the property address and loan date. **Who it affects:** Homeowners with FHA, VA, or USDA-backed mortgages would potentially benefit, as they could access federal backing for second mortgages.
The general public would also be affected through increased transparency about federally-guaranteed mortgage data. Lenders, mortgage servicers, and the federal agencies involved in mortgage programs would need to comply with new requirements. **Current status:** The bill is currently in committee and has not yet been voted on by the full House of Representatives.
CRS Official Summary
Mortgage Rate Reduction ActThis bill authorizes the federal guarantee, or insurance, of certain second mortgages. Specifically, this applies to properties with a first mortgage guaranteed by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). For a second mortgage to qualify, the first mortgage on the property must be guaranteed under the same authority.The bill also requires the publication of mortgage guarantee information by the FHA, VA, and Department of Agriculture. For each mortgage guaranteed, these agencies must publish the address of the property and the date of the loan.
Latest Action
Referred to the Subcommittee on Economic Opportunity.