Committee unanimously advances pilot program to buy down mortgage interest rates for first‑time buyers

The Senate Commerce and Labor Committee voted unanimously in a work session to advance Senate Bill 193, a proposal directing the Housing Division of the Department of Business and Industry to establish a pilot program that would buy down the interest rate on mortgage loans for eligible first‑time homebuyers.

Patrick Ashton of the Legislative Counsel Bureau summarized the amendment package that refined eligibility, loan type and administrative requirements. The amendment replaces the term “eligible family” with “eligible borrower,” requires mortgage lenders used under the program to be approved by the Housing Division, and clarifies that loans under the pilot must be 30‑year fixed first mortgage loans. The amendment also authorizes the housing division to establish a waiver process, makes its rulemaking discretionary rather than mandatory, and defines a buy‑down as a permanent decrease in the interest rate on a 30‑year fixed first mortgage.

During the work session Senator Donate offered a conceptual amendment during the hearing (summarized in the work session packet). Senator Donate moved the do‑pass‑as‑amended motion and Senator Flores seconded; the motion carried unanimously. Committee materials show the intent is to limit program assistance to borrowers actively obtaining an approved mortgage loan and to require lending institutions participating in the program be approved by the Housing Division.

Committee members discussed the amendments and clarified that the division will adopt administrative practices and approve participating lenders. The measure will be reported to the full Senate with the committee’s amendments.