This bill would require the Federal Housing Finance Agency (FHFA) Director to make the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) treat certain payments toward a buyer's student loans as a financial concession in the sale of a home. A "covered payment" is a payment by an interested party to the buyer toward a student loan as defined in Title IV of the Higher Education Act. The FHFA must issue the requirement within 30 days of the bill's enactment. If a covered payment exceeds $25,000, the portion over $25,000 must be classified as a sales concession. The bill applies to newly constructed principal residences of the buyer.
If someone involved in a home sale pays part of a buyer's federal student loan, Fannie Mae and Freddie Mac would be required to count that payment as a financial concession when the home is a newly built primary residence. Any amount of that payment over $25,000 would instead be labeled a sales concession.
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