119-s2719

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2719 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2719

To establish a program to provide low- and moderate-income first-time, 
 first-generation homebuyers with access to affordable and sustainable 
 wealth-building home loans.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 4, 2025

 Mr. Warner (for himself, Mr. Van Hollen, Mr. Kaine, and Mr. Kim) 
introduced the following bill; which was read twice and referred to the 
 Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

 A BILL

To establish a program to provide low- and moderate-income first-time, 
 first-generation homebuyers with access to affordable and sustainable 
 wealth-building home loans.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Low-Income First-Time Homebuyers Act 
of 2025'' or the ``LIFT Homebuyers Act of 2025''.

SEC. 2. WEALTH-BUILDING HOME LOAN PROGRAM.

    (a) Establishment of LIFT HOME Funds.--

    (1) In general.--There is established in each Loan 
 Guarantee Agency a fund to be known as the LIFT HOME Fund, into 
 which amounts made available under this section shall be 
 deposited and which shall be used by each Department for 
 carrying out the purposes of this section.

    (2) Management of fund.--The LIFT HOME Fund of each Loan 
 Guarantee Agency shall be administered and managed by the 
 respective Secretary, who shall establish reasonable and 
 prudent criteria for the management and operation of any 
 amounts in the Fund.

    (b) Use of Funds.--

    (1) Transfer of amounts to treasury.--Such portions of the 
 amount made available to the Secretary of Housing and Urban 
 Development under this section shall be transferred by the 
 Secretary of Housing and Urban Development to the Department of 
 the Treasury in an amount equal to, as determined by the 
 Secretary of the Treasury, in consultation with the Secretary 
 of Housing and Urban Development--
        (A) the amount the Secretary of the Treasury 
 estimates to be necessary for the purchase of 
 securities under the Program during the period for 
 which the funds are intended to be available;
        (B) the difference between--
            (i) the Secretary of the Treasury's 
 receipts from the sale or other disposition of 
 securities acquired under the Program; and
            (ii) the Secretary of the Treasury's costs 
 in purchasing such securities; and
            (C) the Department of the Treasury's administrative 
 expenses related to the Program.

    (2) Credit subsidy.--Such portion of the amount made 
 available to each Secretary under this section as may be 
 necessary may be used for the cost to the respective Loan 
 Guarantee Agency of guaranteed loans under this section. Such 
 costs, including the costs of modifying such loans, shall be as 
 defined in 

section 502 of the Congressional Budget Act of 1974 
 (2 U.S.C. 661a).
            (c) Establishment of the LIFT HOME Program.--Each Secretary shall 
establish, and carry out, with respect to any mortgage with a case 
number issued on or before December 31, 2027, that is subsequently 
insured or guaranteed by such Secretary, a program to make covered 
mortgage loans available to eligible homebuyers to purchase a single-
family residence for use as their principal residence (referred to in 
this section as the ``Program''), under which--

    (1) the Secretary of the Treasury--
        (A) shall act as a purchaser, on behalf of the 
 Secretary of Housing and Urban Development, of 
 securities that are secured by covered mortgage loans;
        (B) may designate financial institutions, including 
 banks, savings associations, trust companies, security 
 brokers or dealers, asset managers, investment 
 advisers, and other institutions and such institutions 
 shall--
            (i) perform all reasonable duties related 
 to this section as a financial agent of the 
 United States as may be required; and
            (ii) be paid for such duties using 
 appropriations available to the Secretary of 
 the Treasury to reimburse financial 
 institutions in their capacity as financial 
 agents of the United States;
            (C) may use the services of any agency or 
 instrumentality of the United States or component 
 thereof on a reimbursable basis, and any such agency or 
 instrumentality or component thereof is authorized to 
 provide services as requested by the Secretary using 
 all authorities vested in or delegated to that agency, 
 instrumentality, or component;
            (D) may manage, and exercise any rights received in 
 connection with, any financial instruments or assets 
 purchased or acquired pursuant to the authorities 
 granted under this section;
        (E) may establish and use vehicles to purchase, 
 hold, and sell financial instruments and other assets; 
 and
        (F) may issue such regulations and other guidance 
 as may be necessary or appropriate to carry out the 
 authorities or purposes of this section;

    (2) each Secretary of a Loan Guarantee Agency shall--
        (A) establish pricing terms for covered mortgage 
 loans such that the covered mortgage loans carry a 
 monthly mortgage payment of principal and interest that 
 is not more than 110 percent and not less than 100 
 percent of the monthly payment of principal, interest, 
 and periodic mortgage insurance premium or loan 
 guarantee fee associated with a newly originated 30-
 year mortgage loan with the same loan balance insured 
 or guaranteed by the Loan Guarantee Agency as 
 determined by each Secretary, or such pricing terms as 
 are determined by each Secretary to be necessary to 
 develop liquidity for securities backed by covered 
 mortgage loans and expand Program participation by 
 eligible homebuyers; and
        (B) establish an outreach and counseling program to 
 increase stakeholder awareness of the Program;

    (3) the Secretary of Housing and Urban Development shall--
        (A) in consultation with the Secretary of the 
 Treasury, establish the pricing terms for the purchase 
 of securities guaranteed by the Association secured by 
 covered mortgage loans such that the covered mortgage 
 loans carry a monthly mortgage payment of principal and 
 interest that is not more than 110 percent and not less 
 than 100 percent of the monthly payment of principal, 
 interest, and periodic mortgage insurance premium or 
 loan guarantee fee associated with a newly originated 
 30-year mortgage loan with the same loan balance 
 insured or guaranteed by the Loan Guarantee Agency, or 
 such pricing terms as are determined by the Secretaries 
 to be necessary to develop liquidity for securities 
 backed by covered mortgage loans and expand Program 
 participation by eligible homebuyers;
        (B) have the authority to designate mortgage 
 bankers, financial institutions, including banks, 
 savings associations, trust companies, security brokers 
 or dealers, asset managers, investment advisers, and 
 other institutions and such institutions shall--
            (i) perform all reasonable duties related 
 to this section as an agent of the United 
 States as may be required; and
            (ii) be paid for such duties using 
 appropriations available under this section to 
 the Secretary of Housing and Urban Development 
 to reimburse these entities in their capacity 
 as agents of the United States;
            (C) have the authority to use the services of any 
 agency or instrumentality of the United States or 
 component thereof on a reimbursable basis, and any such 
 agency or instrumentality or component thereof is 
 authorized to provide services as requested by the 
 Secretary of Housing and Urban Development using all 
 authorities vested in or delegated to that agency, 
 instrumentality, or component;
            (D) operate the Program in coordination with the 
 Association, the Federal Housing Administration, the 
 Rural Housing Service, and the Secretary of the 
 Treasury so as to demonstrate feasibility and 
 workability to market participants, including--
            (i) originators and servicers of mortgages;
            (ii) issuers of mortgage-backed securities; 
 and
            (iii) investors; and
        (E) gain price discovery experience by instructing 
 the Secretary of the Treasury, following consultation 
 with the Secretary of the Treasury to sell acquired 
 securities described in subparagraph
        (A) as soon as 
 practicable, thereby hastening the development of 
 liquidity for securities backed by covered mortgage 
 loans.

    (4) GNMA guarantee authority.--To carry out the purposes of 
 this section, the Association may enter into new commitments to 
 issue guarantees of securities based on or backed by mortgages 
 insured under this section.

    (5) GNMA guaranty fee.--To carry out the purposes of this 
 section, the Association may collect guaranty fees consistent 
 with 

section 306

    (g)

    (1) of the National Housing Act (12 U.S.C. 
 1721

    (g)

    (1) ) that are paid at securitization.
            (d) === Definitions. ===
-In this section:

    (1) Association.--The term ``Association'' means the 
 Government National Mortgage Association.

    (2) Covered mortgage loan.--
        (A) HUD.--The term ``covered mortgage loan'' means, 
 for purposes of the Program established by the 
 Secretary of Housing and Urban Development, a mortgage 
 loan that--
            (i) is insured or guaranteed by the Federal 
 Housing Administration pursuant to 

section 203

    (b) of the National Housing Act (12 U.S.C. 
 1709

    (b) ), subject to the eligibility criteria 
 set forth in this subsection, and has a case 
 number issued on or before December 31, 2027;
            (ii) is made for an original term of 20 
 years or for an original term determined by the 
 Secretary to be necessary to develop liquidity 
 for securities backed by covered mortgage loans 
 and expand Program participation by eligible 
 homebuyers;
            (iii) subject to subparagraph
            (C) of this 
 paragraph and notwithstanding 

section 203

    (b)

    (2)
            (C) of the National Housing Act (12 
 U.S.C. 1709

    (b)

    (2)
            (C) ), has a mortgage insurance 
 premium of not more than 4 percent of the loan 
 balance that is paid at closing, financed into 
 the principal balance of the loan, paid through 
 an annual premium, or a combination thereof;
            (iv) involves a rate of interest that is 
 fixed over the term of the mortgage loan; and
            (v) is secured by a single-family residence 
 that is the principal residence of an eligible 
 homebuyer.
        (B) USDA.--The term ``covered mortgage loan'' 
 means, for purposes of the Program established by the 
 Secretary of Agriculture, a loan guaranteed under 
 

section 502

    (h) of the Housing Act of 1949 (42 U.S.C. 
 1472

    (h) ) that--
            (i) notwithstanding 

section 502

    (h)

    (7)
        (A) of 
 the Housing Act of 1949 (42 U.S.C. 
 1472

    (h)

    (7)
        (A) ), is made for an original term of 
 20 years or for an original term determined by 
 the Secretary to be necessary to develop 
 liquidity for securities backed by covered 
 mortgage loans and expand Program participation 
 by eligible homebuyers; and
            (ii) subject to subparagraph
            (C) of this 
 paragraph and notwithstanding 

section 502

    (h)

    (8)
        (A) of the Housing Act of 1949 (42 
 U.S.C. 1472

    (h)

    (8)
        (A) ), has a loan guarantee fee 
 of not more than 4 percent of the principal 
 obligation of the loan.
            (C) Waiver of mortgage insurance premium 
 requirement.--Each Secretary, in consultation with the 
 Secretary of the Treasury, and notwithstanding 

section 502

    (h)

    (8)
        (A) of the Housing Act of 1949 (42 U.S.C. 
 1472

    (h)

    (8)
        (A) ) for purposes of the Program established 
 by the Secretary of Agriculture, may waive the mortgage 
 insurance premium cap or loan guarantee fee cap under 
 subparagraphs
        (A)
            (iii) and
        (B)
            (ii) with respect to 
 covered mortgage loans insured or guaranteed by the 
 Loan Guarantee Agency of which that Secretary is the 
 head if necessary to protect the solvency of the 
 associated insurance fund.

    (3) Department.--Unless otherwise specified, the term 
 ``Department'' means the Department of Housing and Urban 
 Development or the Department of Agriculture, as appropriate.

    (4) Eligible homebuyer.--The term ``eligible homebuyer'' 
 means an individual who--
        (A) for purposes of the Program established by the 
 Secretary of Housing and Urban Development--
            (i) has an annual household income that is 
 less than or equal to--
            (I) 120 percent of median income 
 for the area, as determined by the 
 Secretary of Housing and Urban 
 Development for--

    (aa) the area in which the 
 home to be acquired using such 
 assistance is located; or

    (bb) the area in which the 
 place of residence of the 
 homebuyer is located; or
            (II) if the homebuyer is acquiring 
 an eligible home that is located in a 
 high-cost area, 140 percent of the 
 median income, as determined by the 
 Secretary, for the area within which 
 the eligible home to be acquired using 
 assistance provided under this section 
 is located;
            (ii) is a first-time homebuyer, as defined 
 in paragraph

    (6) of this subsection; and
            (iii) is a first-generation homebuyer as 
 defined in paragraph

    (5) of this subsection; 
 and
        (B) for purposes of the Program established by the 
 Secretary of Agriculture--
            (i) meets the applicable requirements in 
 

section 502

    (h) of the Housing Act of 1949 (42 
 U.S.C. 1472

    (h) ); and
            (ii) is a first-time homebuyer as defined 
 in paragraph

    (6) of this subsection and a 
 first-generation homebuyer as defined in 
 paragraph

    (5) of this subsection.

    (5) First-generation homebuyer.--The term ``first-
 generation homebuyer'' means a homebuyer that, as attested by 
 the homebuyer, is--
        (A) an individual--
            (i) whose living parents or legal guardians 
 do not, to the best of the individual's 
 knowledge, have any present fee simple 
 ownership interest in a principal residence in 
 any State, excluding ownership of heir 
 property;
            (ii) if no parents or legal guardians are 
 living upon acquisition of the eligible home to 
 be acquired using such assistance, to the best 
 of the individual's knowledge, whose parents or 
 legal guardians did not have any ownership 
 interest in a principal residence in any State 
 at the time of their death, excluding ownership 
 of heir property; and
            (iii) whose spouse, or domestic partner has 
 not, during the 3-year period ending upon 
 acquisition of the eligible home to be acquired 
 using such assistance, had any present 
 ownership interest in a principal residence in 
 any State, excluding ownership of heir 
 property, whether the individual is a co-
 borrower on the loan or not; or
        (B) an individual who has at any time been placed 
 in foster care or institutional care whose spouse or 
 domestic partner has not, during the 3-year period 
 ending upon acquisition of the eligible home to be 
 acquired using such assistance, had any ownership 
 interest in a principal residence in any State, 
 excluding ownership of heir property, whether such 
 individuals are co-borrowers on the loan or not.

    (6) First-time homebuyer.--The term ``first-time 
 homebuyer'' means a homebuyer as defined in 

section 104 of the 
 Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
 12704), except that ownership of heir property shall not be 
 treated as owning a home for purposes of determining whether a 
 borrower qualifies as a first-time homebuyer.

    (7) Heir property.--The term ``heir property'' means 
 residential property for which title passed by operation of law 
 through intestacy and is held by 2 or more heirs as tenants in 
 common.

    (8) Loan guarantee agency.--Unless otherwise specified, the 
 term ``Loan Guarantee Agency'' means the Federal Housing 
 Administration of the Department of Housing and Urban 
 Development or the Rural Housing Service of the Department of 
 Agriculture, as appropriate.

    (9) Secretary.--Unless otherwise specified, the term 
 ``Secretary'' means the Secretary of Housing and Urban 
 Development or the Secretary of Agriculture, as appropriate.

    (e) Reliance on Borrower Attestations.--No additional documentation 
beyond the borrower's attestation shall be required to demonstrate 
eligibility under paragraph

    (4) of subsection
            (d) and no State, 
eligible entity, or creditor shall be subject to liability, including 
monetary penalties or requirements to indemnify a Federal agency or 
repurchase a loan that has been sold or securitized, based on the 
provision of assistance under this section to a borrower who does not 
meet the eligibility requirements under paragraph

    (4) of subsection
            (d) if the creditor does so in good faith reliance on borrower attestations 
of eligibility required under such paragraph.

    (f) Implementation.--The Secretary of Housing and Urban 
Development, the Secretary of Agriculture, and the Secretary of the 
Treasury shall have authority to issue such regulations or other 
notices, guidance, forms, instructions, and publications as may be 
necessary or appropriate to carry out the programs, projects, or 
activities authorized under this section, including to ensure that such 
programs, projects, or activities are completed in a timely and 
effective manner.

    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Housing and Urban Development and the 
Secretary of Agriculture such sums as may be necessary to carry out the 
LIFT HOME Program.
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