FHA opens mortgage doors to borrowers with thin credit files—if lenders cooperate

What it does

This bill authorizes the FHA to run a pilot program allowing borrowers without strong credit histories to opt into using alternative credit scoring models that incorporate additional financial data (like utility payments, rent history, or other non-traditional credit indicators). Borrowers who choose to participate would be evaluated using these new models alongside traditional FHA scoring, potentially making mortgages more accessible to people with thin or no credit files. The program runs for up to 5 years, with mandatory reporting to Congress on whether it helps underserved borrowers without harming the FHA's insurance fund.

Why we flagged it

The bill's core mechanism is a voluntary pilot program designed to test whether alternative credit scoring models can expand mortgage access for underserved borrowers. It is not a deregulation, subsidy, or immunity grant—it is a structured experiment with mandatory evaluation and reporting.

What the text implies

• The bill does not specify which 'additional data' credit models will use, delegating that choice to the Secretary of HUD in consultation with Ginnie Mae. This creates discretion over what non-traditional credit signals are deemed acceptable, potentially favoring certain lenders' proprietary models.
• Borrowers who opt into the pilot program may face different approval rates and pricing than those using traditional FHA scoring, creating a two-tier system. The bill requires comparison information but does not mandate that alternative scoring produces better outcomes for the target population.
• The pilot is capped at 5 years with a 2-year evaluation window, meaning Congress will not see full performance data until year 7. If the program is deemed successful, expansion would require new legislation rather than automatic continuation.
• The bill prohibits use of the pilot for refinances or cash-out loans on the same property, limiting its reach to purchase mortgages and potentially excluding borrowers seeking to consolidate debt or access home equity.
• Lenders participating in the pilot gain early access to alternative credit models and market data on thin-file borrowers, potentially creating competitive advantage for early adopters in underserved lending markets.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The pilot expands mortgage access for borrowers with thin or no credit files by allowing them to voluntarily use alternative scoring models that incorporate non-traditional credit data. Participation is opt-in, borrowers receive clear notice of how the new model differs from standard FHA scoring, and they retain the right to use traditional underwriting if they prefer. Mandatory reporting ensures Congress can evaluate whether the program actually helps target borrowers without destabilizing the

Who stands to gain

• mortgage lenders and servicers participating in the pilot (early access to alternative credit models
• credit scoring model vendors (potential adoption of their proprietary models by FHA)
• housing counseling agencies (increased referrals and engagement from borrowers using the pilot)

Named in the bill

Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Government National Mortgage Association (Ginnie Mae), Federal Housing Finance Agency (FHFA), Mutual Mortgage Insurance Fund, mortgagees (lenders), prospective mortgagors (borrowers)

Where it stands

• Apr 16, 2026 — Introduced · Congress.gov: “Introduced in House”
• Apr 16, 2026 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $340,000 in lobbying spend. A filing names 104 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Al Green, the sponsor, reported $72,500 in PAC receipts in the 2026 cycle.

• American Psychological Association Services Inc.(fka American Psychological Assn — $340,000 on 1 filing

Lobbying Disclosure Act filings through Jul 16, 2026. A filing shows who paid to lobby on a bill it names, not what changed.