I 116TH CONGRESS 1ST SESSION H. R. 699 To amend the National Housing Act to require the Secretary of Housing and Urban Development to issue guidance to reduce up-front premiums for FHA-insured mortgages if the capital ratio of the Mutual Mortgage Insurance Fund exceeds the statutory limit, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 22, 2019 Mr. BROWN of Maryland introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the National Housing Act to require the Secretary of Housing and Urban Development to issue guidance to reduce up-front premiums for FHA-insured mortgages if the capital ratio of the Mutual Mortgage Insurance Fund exceeds the statutory limit, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. REDUCTION OF UP-FRONT PREMIUMS FOR 3 FHA-INSURED MORTGAGES. 4 (a) IN GENERAL.—Section 205(f) of the National 5 Housing Act (12 U.S.C. 1711(f)) is amended— 6 VerDate Sep 11 2014 23:20 Feb 04, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H699.IH H699 pbinns on DSK79D2C42PROD with BILLS 2 •HR 699 IH (1) by redesignating paragraph (4) as para- 1 graph (5); and 2 (2) by inserting after paragraph (3) the fol- 3 lowing new paragraph: 4 ‘‘(4) REDUCTION IN UP-FRONT PREMIUMS.— 5 ‘‘(A) REVIEW.—The Secretary shall review the 6 capital ratio of the Mutual Mortgage Insurance 7 Fund on a monthly basis. 8 ‘‘(B) DETERMINATION.—Beginning on the date 9 of the enactment of this paragraph and every 6 10 months thereafter, the Secretary shall determine 11 whether the amount of capital in the Mutual Mort- 12 gage Insurance Fund has resulted in a capital ratio 13 that has exceeded the requirement in paragraph (2) 14 during the 6-month period immediately preceding 15 the date on which the determination is made. Upon 16 making the determination, the Secretary shall— 17 ‘‘(i) issue guidance to reduce the up-front 18 premium collected pursuant to section 19 203(c)(2)(A); or 20 ‘‘(ii) submit a report to Congress explain- 21 ing why the Secretary has made a determina- 22 tion not to reduce such premium.’’. 23 (b) APPLICATION.—With respect to the first such de- 24 termination made about the capital ratio of the Mutual 25 VerDate Sep 11 2014 23:20 Feb 04, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H699.IH H699 pbinns on DSK79D2C42PROD with BILLS 3 •HR 699 IH Mortgage Insurance Fund as required under paragraph 1 (4) of section 205(f) of the National Housing Act, as 2 added by paragraph (1), the Secretary shall include the 3 6-month period occurring prior to the date of the enact- 4 ment of this Act for purposes of determining the 6-month 5 period described in such section 205(f)(4) of the National 6 Housing Act. 7 Æ VerDate Sep 11 2014 23:20 Feb 04, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H699.IH H699 pbinns on DSK79D2C42PROD with BILLS