Click here to view today’s floor speech.
WASHINGTON, D.C. – Today, U.S. Senator Deb Fischer (R-Neb.) led her colleagues from both the House and Senate, including Senator Chris Van Hollen (D-Md.) and U.S. Representatives Barry Loudermilk (R-Ga.-11) and Brad Sherman (D-Cali.-30), to introduce the Building up Independent Lives and Dreams (BUILD) Act.
This bipartisan, bicameral legislation would allow nonprofits to once again use forms that are less complex when they are issuing 0% interest loans. This will help ensure the organizations can continue to make these loans to borrowers.
“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. Our bipartisan solution would allow for less complex forms, ensuring these organizations can continue to lend a hand to the less fortunate,” said Senator Fischer.
“Habitat for Humanity of Lincoln works with local homebuyers to purchase homes with affordable mortgages. Under current TRID regulations, we are required to comply with the same rules as large banks that in most cases have departments of staff to ensure compliance…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,” said Josh Hanshaw, Executive Director, Habitat for Humanity of Lincoln.
New rules require all mortgage lenders who make five or more loans to fill out complex and expensive disclosure forms designed to protect consumers. These forms replaced simpler ones that had existed for years.
Habitat for Humanity (Habitat) issues 0% interest mortgages to its clients, who are often the families receiving Habitat homes. The goal of these loans is not just cost savings, it is to help families build credit and learn financial responsibility. Because the new forms are longer, more complicated, and expensive to complete, most volunteers are not able complete them.
The BUILD Act would allow nonprofits to use the old forms when issuing 0% interest loans, even if they make more than 5 mortgages. Staff and volunteers are familiar with these forms and they still have the adequate consumer protections needed for non-interest-bearing loans.
The BUILD Act is supported by:
· Habitat for Humanity International
· Habitat for Humanity Omaha
· Habitat for Humanity Fremont
· Habitat for Humanity Grand Island
· Habitat for Humanity Lincoln
· Habitat for Humanity Columbus
· Habitat for Humanity Sarpy
· Scotts Bluff County Habitat for Humanity
· Habitat for Humanity of Columbus
All four members were lead sponsors of the BUILD Act in the 115th Congress.
Click here to read bill text.
