Fischer’s bipartisan, bicameral bill simplifies paperwork for nonprofit-provided housing loans

U.S. Sen. Deb Fischer (R-NE) earlier this month sponsored a bipartisan, bicameral bill to provide regulatory relief to charitable organizations that provide housing assistance.

Sen. Fischer on Feb. 7 sponsored the Building Up Independent Lives and Dreams (BUILD) Act, S. 371, with lead original cosponsor U.S. Sen. Chris Van Hollen (D-MD). The identical H.R. 1060 was introduced the same day by U.S. Rep. Barry Loudermilk (R-GA) and Brad Sherman (D-CA). 

The proposed measure would permit nonprofits to use simplified forms to issue zero percent interest loans, said Sen. Fischer. 

“Every family deserves a roof over their heads. Because of misguided policies in Dodd-Frank, non-profit local Habitat for Humanity chapters in Nebraska have been forced to use complicated mortgage loan forms that make it difficult to build homes for people who need them,” the senator said. “Our bipartisan solution would allow for less complex forms, ensuring these organizations can continue to lend a hand to the less fortunate.”    

Josh Hanshaw, executive director of Habitat for Humanity of Lincoln, Neb., in Sen. Fischer’s home state, said the nonprofit works with local homebuyers to purchase homes having affordable mortgages. Under current regulations, he said the organization must comply with the same rules as large banks.

Such rules often require all mortgage lenders that make five or more loans to fill out complex and expensive disclosure forms designed to protect consumers, according to Sen. Fischer, who said these forms replaced simpler ones that existed previously. 

“We are committed to mortgage origination best practices, and comply with these rules and regulations to the best of our ability, but the flexibility the BUILD Act would provide by utilizing the HUD-1 and Good Faith Estimate forms would allow us to spend more time working one-on-one with our buyers to educate them on the home-buying process, and to spend our limited resources to serve more families by building more houses,” Hanshaw said. 

The BUILD Act would allow nonprofits to use the previous forms when issuing zero percent interest loans even if they make more than five mortgages, according to Fischer’s statement. 

The legislation is supported by Habitat for Humanity International and numerous local Habitat for Humanity groups in Omaha and Lincoln, Neb., among many others.

The newly reintroduced S. 371 has been referred for consideration to the U.S. Senate Banking, Housing, and Urban Affairs Committee, while H.R. 1060 is under review by the U.S. House Financial Services Committee.