The ROAD to Housing Act

I have a different sort of topic for you today. This blog is about a piece of pending legislation. As compliance professionals, we usually wait until the law is final and the regulations are baked in before we talk about the impact on credit unions. But it’s equally important to look ahead and consider what obligations might develop in the future. That way our colleagues in the Legislative Advocacy section can raise concerns before the bill in question becomes law.

Only July 29, 2025, the Senate Banking Committee unanimously voted out of committee the Renewing Opportunity in the American Dream to Housing Act of 2025, or as it was meant to be shortened, the “ROAD to Housing Act of 2025.” We don’t often see the Senate Banking Committee agree to something unanimously. The Committee is made up of 24 senators from both sides of the aisle. The bill advanced at Committee a “markup” that allows them to make changes to proposed legislation and then vote on permitting the marked up legislation to proceed to the full Senate Floor. This particular legislation was sponsored by both the Chair and the Ranking Member of the Committee which demonstrates bipartisan support for addressing the housing issues in the bill. It’s made up of individual pieces of legislation that were previously introduced, and some new provisions. You can read America’s Credit Unions thoughts on key provisions for credit unions here. Given its wide bipartisan support in Committee, it has a good chance to move out of the Senate to the House. It has also been introduced as amendment to S. 2296, the National Defense Authorization Act (NDAA) for Fiscal Year 2026 and could be added as an amendment to that bill or eventually considered as a standalone measure in the Senate. Stay tuned for more updates as they occur.

As institutions that are always working to help members purchase their own homes, credit unions are in a unique position to weigh in on this proposal. It has seven overall sections which includes (i)improving financial literacy; (ii) building more homes; (iii)  manufactured housing; (iv)  making home ownership more affordable; (v)  program reform; (vi)veteran housing, oversight and accountability;  and (vii) a final section that addresses coordination, studies, and reporting.  

While many sections may have direct or indirect influence on how credit unions lend money, I have picked out a few that seemed especially relevant.

Section 101

Does your credit union employ housing counselors? This provision would allow the Department of Housing and Urban Development (HUD) to review the performance of housing counselors and require additional training, re-testing, or revocation of the underperforming counselors’ certifications.

Section 213

This provision gives HUD authority to review the statutory exceptions for high-cost percentage and high-cost area annual indexing and to adjust Federal Housing Administration (FHA) loan limits through formal rulemaking.  

Section 401

This provision would create incentives for small dollar loan originators by allowing the Consumer Financial Protection Bureau (CFPB) to amend rules that currently discourage small mortgages. Helping credit unions more fairly compensate staff that support staff serving members with modest needs.

Section 402

This provision would permit the CFPB to adjust the Qualified Mortgage points-and-fees cap for loans under $100,000, making it easier for credit unions to offer small dollar mortgages. This change reduces cost barriers and could expand access to mortgage credit for low- and moderate-income members and those in rural areas.

Section 403

This provision would address the long-standing issue of appraiser shortages by allowing greater use of credentialed trainees and expanding the appraiser workforce through grants, resulting in an accessible, better-trained, scalable appraiser pipeline.

Section 603

This provision would exclude veterans’ disability compensation from annual income permanently under the HUD-Veterans Affairs Supportive Housing program.

Section 705  

This provision would require the Federal Housing Finance Agency (FHFA) to publish an online database of property-level appraisal and other home valuation data that lenders collect in connection with a mortgage application.” This move aims to clarify the appraisal process, making it easier to track and analyze appraisal data for potential bias. The proposed law would also allow homeowners to appeal an evaluation or get a second opinion on their homes’ valuations. This might sound familiar – it was a Biden Administration rule that was repealed at the start of the current administration. Because lenders bear the cost of the second appraisal, credit unions should be aware that it may become law.

What other provisions might affect credit unions? Take a look at the bill and let us know at compliance@americascreditunions.org.