It was another busy housing policy week. NHC was proud to support two housing legislations, engage with our members and partners on calling for changes regarding the treatment of mortgages and more. Below is a recap on updates impacting housing.
Calling for HUD and FHFA to reverse recent policy changes regarding the treatment of mortgages
On June 24, NHC joined a coalition of housing and civil rights organizations to express deep concern over recent policy changes regarding the treatment of mortgages that have closed but entered forbearance prior to being sold to the Government Sponsored Enterprises or insured by the Federal Housing Administration. The group points out that the changes would further reduce access to credit for borrowers of color and those living in communities hardest hit by the Coronavirus.
Supporting H.J.Res.90, the Congressional Review Act of disapproval of the Community Reinvestment Act (CRA) final rule
On June 11, House Financial Services Committee Chairwoman Maxine Waters introduced H.J.Res.90 in response to the Office of the Comptroller of the Currency’s final CRA rule, which was issued amid the one of the nation’s worst health and economic crises. On June 22, NHC President and CEO David M. Dworkin sent a letter of support to House Speaker Nancy Pelosi that stated, “This rule eliminates the fundamental value of CRA.”
Supporting the Neighborhood Homes Investment Act
On June 25, Senators Ben Cardin (D-Md.) and Rob Portman (R-Ohio) introduced S. 4073, the Neighborhood Homes Investment Act (NHIA), which is co-sponsored by Senators Chris Coons (D-Del.), Sherrod Brown (D-Ohio), Todd Young (R-Ind.) and Tim Scott (R-S.C.). The NHIA would encourage private investment in an estimated 500,000 homes that currently cannot be developed or rehabilitated because the costs to do so exceed the value of the home. NHC joined over 20 organizations, including housing and community development nonprofits, financial institutions, and related trade associations, to support enactment of the NHIA.
Supporting the Moving Forward Act
On June 22, House Democratic leadership released the text of a $1.5 trillion infrastructure proposal – H.R. 2, the Moving Forward Act. The bill provides important measures that will facilitate the production of affordable housing across the country, including $100 billion in new funding for affordable housing, a new Neighborhood Investment tax credit, and an increase in the Low-Income Housing Tax Credit allocation by more than 60 percent.
“With millions of Americans facing unprecedented unemployment and housing insecurity as a result of the COVID-19 pandemic, any attempt to address America’s crumbling infrastructure must include measures to build and preserve high-quality affordable housing,” said Dworkin in a statement.
Consumer Financial Protection Bureau issues two Notices of Proposed Rulemaking (NPR) to address the impending expiration qualified mortgage Qualified Mortgage patch
The two NPRs were announced on June 22, and one of the NPRs proposes removing the debt-to-income requirement (DTI) from qualified mortgage. NHC previously joined a coalition of housing and banking organizations to call for elimination of DTI, which the group pointed out “would preserve access to sustainable credit for the new generation of first-time homebuyers in a safe and sustainable way and in accordance with the fundamental ATR requirements.” We are looking forward to working with our members like you and partners to provide detailed comments on the NPRs.