119 HR 5728 IH: Rural Homeownership Continuity Act of 2025 U.S. House of Representatives 2025-10-10 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I119th CONGRESS1st SessionH. R. 5728IN THE HOUSE OF REPRESENTATIVESOctober 10, 2025Mr. Costa (for himself, Mr. Bacon, Mr. LaMalfa, Ms. Balint, Mr. Sherman, Ms. Salinas, Ms. Pettersen, Mrs. Beatty, and Mr. Valadao) introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo amend the Housing Act of 1949 to permit the assumption of loans under the Doug Bereuter Section 502 Single Family Housing Loan Guarantee Program.

1.

Short title

This Act may be cited as the Rural Homeownership Continuity Act of 2025.

2.

Assumption of loans under the Doug Bereuter Section 502 Single Family Housing Loan Guarantee Program

(a)

In general

Section 502(h)(10) of the Housing Act of 1949 (42 U.S.C. 1472(h)(10)) is amended to read as follows: (10)

Assumption

(A)

In general

The Secretary may provide for the assumption of a current guaranteed loan made under this subsection by any individual qualified to receive a guaranteed loan under this subsection upon the transfer to that individual of the property for which the guaranteed loan was made. (B)

Release from liability

If a borrower of a guaranteed loan under this subsection transfers the property for which the guaranteed loan was made to an individual who assumes the guaranteed loan under subparagraph (A), the transferor, and any co-borrower or guarantor of the transferor, shall be relieved of liability with respect to the guaranteed loan. (C)

Assumption of obligations, rights, and interests

The Secretary shall provide in each assumption under subparagraph (A) for the assumption of the obligations, rights, and interests under the terms of the guaranteed loan or such other terms as the Secretary determines appropriate.. (b)

Applicability

The amendment made by subsection (a) shall apply with respect to loans guaranteed under section 502 of the Housing Act of 1949 (42 U.S.C. 1472) on or after the date of enactment of this Act. (c)

Rulemaking

The Secretary of Agriculture may issue a rule to allow servicers of loans guaranteed under section 502 of the Housing Act of 1949 (42 U.S.C. 1472) to charge fees to borrowers for transaction costs associated with the loan.