OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Building Up Independent Lives and Dreams Act

Floor Speech

Date: May 14, 2019
Location: Washington, DC
Issues: Housing and Property

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Mr. Speaker, I rise to support H.R. 1060, the BUILD Act, which is bipartisan legislation authored by Representatives Loudermilk and Sherman that will allow nonprofit organizations like Habitat for Humanity, offering mortgage loans for charitable purposes to use alternative forms to satisfy disclosure requirements.

Specifically, this bill would allow bona fide nonprofits which are eligible for tax-exempt charitable donations to have the option to use the Truth in Lending, Good Faith Estimate, and HUD-1 forms instead of TRID forms required by the TILA-RESPA Integrated Disclosure Rule. They may only do so in limited circumstances where they offer a zero percent interest loan.

Currently, financial institutions that make five or fewer mortgage loans a year are allowed to use these alternative disclosure forms, including the HUD-1 form, instead of the TRID form.

This bill simply extends this flexibility to eligible nonprofit charities in very limited circumstances, even if they make more than five mortgage loans a year.

Passing this bipartisan legislation will help nonprofits do their important work in helping families in our communities build and improve places to call home.

For example, the vast majority of the more than 1,200 local Habitat organizations in all 50 States are small, community-based organizations with very small mortgage portfolios and few, if any, full-time staff and rely on volunteers for much of their operations.

The BUILD Act will help charities like Habitat help families get a home of their own, but still ensures the material terms and costs of mortgage loans are clearly disclosed to the borrower.

Mr. Speaker, I thank Representatives Loudermilk and Sherman for their work on this bill, and I urge my colleagues to support H.R. 1060, the BUILD Act.

Mr. Speaker, I want to reiterate my thanks to the members of our committee, Representatives Loudermilk and Sherman, for working together to craft a narrow piece of legislation that will help nonprofit organizations like Habitat for Humanity have flexibility on which disclosure forms they use when they provide a zero-interest mortgage loan to a family getting a home of their own.

I urge my colleagues to support H.R. 1060, the BUILD Act, and I yield back the balance of my time.

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