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Adds a new paragraph (5) to subsection (a) stating that whether a veteran described in paragraph (2) is a DACA recipient (as defined in section 203 of the National Housing Act (12 U.S.C. 1709)) shall not affect the veteran's entitlement to housing loan benefits under this chapter.
Amends subsection (a) of 42 U.S.C. 1436a by altering punctuation in paragraphs (6) and (7) and adding a new paragraph (8) to make recipients of deferred action under the Department of Homeland Security memorandum issued June 15, 2012 eligible for assistance.
Adds a new subsection (i) to section 203 of the National Housing Act prohibiting the Secretary from prescribing terms that limit FHA single-family mortgage insurance eligibility or issuing limited denials of participation based on a mortgagor's status as a DACA recipient, and defines "DACA recipient."
Adds a new paragraph (k) to section 501 of the Housing Act of 1949 prohibiting the Secretary from prescribing terms that limit eligibility for single-family mortgages made, insured, or guaranteed under that title because of the mortgagor's status as a DACA recipient, and defines "DACA recipient."
Adds a new paragraph (8) to subsection 302(b) of the National Housing Act stating that the corporation may not condition purchase of a single-family mortgage under that subsection on the borrower's status as a DACA recipient, and defines "DACA recipient."
Adds a new paragraph (6) to section 305(a) of the Federal Home Loan Mortgage Corporation Act stating that the Corporation may not condition purchase of a single-family mortgage under that subsection on the borrower's status as a DACA recipient, and defines "DACA recipient."
Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Prevents federal mortgage programs and housing laws from denying or limiting single-family mortgage eligibility or VA housing loan benefits solely because a borrower is a DACA recipient. It inserts an explicit definition of “DACA recipient” (someone granted deferred action under the June 15, 2012 DHS memorandum as of enactment) into statutes governing FHA insurance, USDA Rural Housing Service mortgages, purchases by Fannie Mae and Freddie Mac, HUD eligibility rules, and VA guaranteed loans.
Introduced May 15, 2025 by Juan Vargas · Last progress May 15, 2025
Under the National Housing Act (Section 203), the Secretary may not prescribe terms that limit the eligibility of a single-family mortgage for insurance under this title based in whole or in part on the mortgagor's status as a DACA recipient.
Under the National Housing Act (Section 203), the Secretary may not issue any limited denial of participation in the program for such insurance based in whole or in part on the status of the mortgagor as a DACA recipient.
Defines "DACA recipient" for the National Housing Act amendment as an alien who, on the date of enactment of this Act, is the recipient of deferred action pursuant to the Department of Homeland Security memorandum titled 'Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children' issued on June 15, 2012.
Under the Housing Act of 1949 (Section 501), the Secretary may not prescribe terms that limit eligibility for a single-family mortgage made, insured, or guaranteed under this title because of the mortgagor's status as a DACA recipient.
Defines "DACA recipient" for the Housing Act of 1949 amendment as an alien who, on the date of enactment of this Act, is the recipient of deferred action pursuant to the Department of Homeland Security memorandum issued on June 15, 2012 ('Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children').
Who is affected and how:
DACA recipients: The law directly increases access to single-family mortgage financing under major federal programs and secondary-market purchase criteria by prohibiting denial or limits based solely on DACA status. That can improve homebuying opportunities for eligible DACA recipients who meet ordinary underwriting standards (income, credit, etc.). The statutory definition ties eligibility to those with deferred action under the DHS June 15, 2012 memorandum on the date of enactment.
Veterans who are DACA recipients: The law makes clear that DACA status does not reduce or eliminate entitlement to VA-guaranteed housing loans, protecting an important benefit for qualifying veterans.
Lenders, mortgage insurers, and GSEs (Fannie Mae/Freddie Mac): These entities must not exclude borrowers solely because of DACA status. They may need to update internal underwriting checklists, seller/servicer guides, and eligibility policies to reflect the statutory change. Secondary-market purchase eligibility language may require administrative updates.
Federal housing program administrators (HUD, USDA, VA): Agencies will implement and enforce the statutory nondiscrimination language, update guidance and forms, and possibly issue implementing guidance for program staff and participating entities.
Housing market effects and fiscal impact: The change removes a statutory barrier for a specific population but does not expand program funding or create new subsidy streams. The net fiscal impact is likely small; any increase in loan originations would follow standard underwriting and risk processes and primarily affect who qualifies for existing programs rather than program budgets.
Legal and political context: While the change is narrow and technical—focused on eligibility language—it touches on broader immigration-policy debates. Implementation will hinge on the DHS-defined DACA cohort and on agencies updating operational rules to conform with the statute.
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Referred to the Subcommittee on Economic Opportunity.
Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House