HB 3188
Directs the Housing and Community Services Department to establish a program to guarantee against losses in mortgage loans that lenders extend to first-time home buyers.
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Sign in to take actionPublic sentiment
Support
75%
Oppose
25%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill establishes a program within the Housing and Community Services Department to provide loan guarantees to lenders making mortgages to first-time homebuyers in Oregon. The program, called the Welcome Home Assistance Program, aims to reduce lender risk and encourage mortgage lending to this group. It specifies loan criteria, including fixed interest rates, income limits, and homebuyer education requirements, and creates a dedicated fund to finance the guarantees. An emergency declaration allows the bill to take effect immediately.
Key provisions
- Creates the Welcome Home Assistance Program Fund to guarantee mortgage losses for lenders.
- Defines eligible mortgage loans based on fixed interest rates, income limits, and homebuyer education.
- Sets income limits for borrowers (130% of median household income).
- Requires first-time homebuyers to complete a home buyer education class.
- Establishes a pledge limit of 20% of the dwelling’s purchase price as a guarantee.
- Specifies documentation lenders must provide to claim a loss.
- Outlines a process for lenders to release the department from the pledge.
- Requires the department to adopt rules implementing the program.
Who is affected
- First-time homebuyers
- Lenders (particularly mortgage lenders)
- Housing and Community Services Department
- Oregon residents
- The State Treasury
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsors
Vikki Breese-Iverson
Cosponsor
Arguments in favor
Reasons to support this legislation.
Supporters of the bill advocate for expanding home ownership opportunities in Oregon by creating a loan loss reserve fund and increasing access to affordable housing. They argue that this would help achieve overall homeownership goals, particularly for low-income families and essential workers. A key initiative supporting this goal is the proposed HB 3188, which would provide additional funding for loan guarantees and expand financing options. Additionally, proponents point to the success of programs like the Oregon Welcome Home Program, modeled after a successful Arizona program, as evidence that collaborative efforts can increase home ownership opportunities among low-to-moderate income families.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Some that HB 3188 is discriminatory and unfair to taxpayers, citing concerns that the program's use of taxpayer funds to subsidize mortgage payments for low-income homebuyers may create an uneven playing field, where those who cannot afford loan repayments are still granted benefits. They contend that this approach fails to ensure that borrowers can meet their obligations, potentially leading to financial burdens on taxpayers in the future. Additionally, some concerns that the program's eligibility criteria and funding mechanisms may disproportionately benefit certain socioeconomic groups over others, exacerbating existing inequalities in the housing market.