Congress expands mortgage access for 32 million unbanked Americans

What it does

This bill requires mortgage lenders to consider alternative credit information (like rental payment history or bank statements) when evaluating borrowers, if the borrower requests it and authorizes its use. The lender must treat this alternative data the same way as traditional credit-bureau data, unless it appears fraudulent. The bill aims to help the roughly 32 million Americans without traditional credit histories—disproportionately low-income, younger, and people of color—access mortgages by showing lenders evidence of creditworthiness beyond standard credit scores.

Why we flagged it

The bill's core mechanism is straightforward: it creates a statutory right for mortgage applicants to submit alternative credit data and mandates lenders consider it equally. This is a consumer-protection and access measure, not a deregulation or industry carve-out.

What the text implies

• Lenders may face operational costs integrating alternative data into underwriting systems, which could be passed to consumers through higher fees or stricter qualification standards elsewhere.
• The bill's effectiveness depends entirely on CFPB rulemaking (18-month timeline); weak regulations could render the mandate toothless.
• Mortgage insurers and secondary-market players (Fannie Mae, Freddie Mac) must update systems; this may create competitive advantage for larger lenders with more sophisticated tech.
• Alternative data quality and fraud risk are not standardized; the bill relies on lender judgment and CFPB oversight to prevent bad-faith rejection of legitimate alternative data.

Who it affects

Ordinary citizens, especially those historically excluded from credit markets (low-income, younger, and communities of color), gain a concrete right to present alternative evidence of creditworthiness and require lenders to consider it fairly. This expands access to mortgages without imposing new costs on borrowers and includes consumer protections (notice requirements, fraud safeguards, CFPB oversight).

Who stands to gain

• mortgage lenders (expanded customer base, lower-risk borrowers with alternative data)
• mortgage insurers (Fannie Mae, Freddie Mac, FHA)
• fintech/alternative credit-data providers
• community banks and credit unions (potential competitive advantage if they adopt alternative data fa

Named in the bill

Bureau of Consumer Financial Protection (CFPB), Federal Housing Finance Agency (FHFA), Department of Housing and Urban Development (HUD), Fannie Mae, Freddie Mac, Equal Credit Opportunity Act, Fair Credit Reporting Act, Community Reinvestment Act, AIG, FBK, FMAO, PFG — and 1 more

Where it stands

4 cosponsors: 4 Democrats.

• Jun 18, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jun 18, 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.