Newly introduced legislation aimed at improving the state of the nation’s housing marketplace is gaining support from the mortgage sector. The “Renewing Opportunity in the American Dream (ROAD) to Housing Act” proposes a broad set of changes meant to make homeownership more affordable for borrowers and improve the lending environment for institutions.
The legislation outlines policy reforms intended to increase manufactured housing construction, small-dollar mortgage lending, construction grants, building or preservation of housing in Opportunity Zones, and to promote regular, sustainable dialogue between federal agencies and Congress.
It also includes measures designed to enhance housing counseling and financial literacy services for borrowers as well.
The bill was introduced by Senate Banking Committee Ranking Member Tim Scott (R-S.C.), with expressed support from seven other Republican committee members. In a prepared statement, Scott lamented many of the reforms described in the bill were discussed by the committee a year earlier but no action was taken.
“One of the things I like to say as I think this through a little bit – so many people have good intentions on solving the problem surrounding housing,” Scott said. “But the truth is when you look back 15, 16 years ago to the financial crisis of folks providing more down payment resources, more assistance to become a first-time homeowner – without any financial literacy or financial education as it relates to how to own a home or how to take care of a home – being prepared for planned obsolescence – things just become obsolete.
“Without that education you’re simply renting the home that you think you own and then during the crisis what we saw was some of the highest levels of foreclosures for those folks that were induced to make a decision to buy a home that they could not afford because they thought they could afford the mortgage payment and not all the incidentals that come along with being a homeowner.”
Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit released a statement endorsing the legislation.
“Housing supply and affordability is a national problem that demands the focused attention of Congress and federal housing agencies. We are encouraged that housing is a major policy discussion this election cycle, including the airing of many proposals that require congressional action,” Broeksmit said. “We are particularly pleased by the introduction of Sen. Scott’s comprehensive bill that contains provisions MBA believes will help to make housing more affordable and available.”
He closed by noting MBA’s continued support of legislative efforts to make homeownership more accessible and the organization’s hope that policymakers on both sides of the aisle will work to “build consensus and promote the enactment of workable solutions like those proposed in this bill.”
The legislation is cosponsored by Sens. Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Katie Britt (R-Ala.), Kevin Cramer (R-N.D.), and Steve Daines (R-Mont.).