FHA Loan Affordability Act of 2019

IB Union Calendar No. 227 116TH CONGRESS 1ST SESSION H. R. 3141 [Report No. 116–282] To limit the collection of annual premiums under the FHA program for mortgage insurance for single family housing, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 5, 2019 Mr. PHILLIPS introduced the following bill; which was referred to the Committee on Financial Services NOVEMBER 12, 2019 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on June 5, 2019] VerDate Sep 11 2014 00:37 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3141.RH H3141 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 3141 RH A BILL To limit the collection of annual premiums under the FHA program for mortgage insurance for single family hous- ing, and for other purposes. VerDate Sep 11 2014 00:37 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H3141.RH H3141 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 3141 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘FHA Loan Affordability 4 Act of 2019’’. 5 SEC. 2. ANNUAL PREMIUMS. 6 (a) IN GENERAL.—Paragraph (2) of section 203(c) of 7 the National Housing Act (12 U.S.C. 1709(c)(2)) is amend- 8 ed— 9 (1) in subparagraph (B)— 10 (A) in clause (i), by striking ‘‘For any’’ 11 and inserting ‘‘Subject to subparagraph (D), for 12 any’’; and 13 (B) in clause (ii), by striking ‘‘For any’’ 14 and inserting ‘‘Subject to subparagraph (D), for 15 any’’; 16 (2) in subparagraph (C)(i), by striking ‘‘In ad- 17 dition’’ and inserting ‘‘Subject to subparagraph (D), 18 in addition’’; and 19 (3) by adding at the end the following new sub- 20 paragraph: 21 ‘‘(D) The Secretary may not collect any annual 22 premiums under this paragraph with respect to a 23 mortgage at any time that the remaining insured 24 principal balance (excluding the portion of the re- 25 VerDate Sep 11 2014 00:37 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H3141.RH H3141 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 3141 RH maining balance attributable to the premium collected 1 under subparagraph (A)) is 78 percent or less than 2 the lower of (i) the sales price of the dwelling at the 3 sale in connection with which the mortgage was 4 made, or (ii) the appraised value of the dwelling at 5 the time of the origination of the mortgage.’’. 6 (b) APPLICABILITY.—The amendments made by sub- 7 section (a) of this section shall apply with respect only to 8 mortgages insured by the Secretary of Housing and Urban 9 Development after the date of the enactment of this Act. 10 VerDate Sep 11 2014 00:37 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H3141.RH H3141 pamtmann on DSKBC07HB2PROD with BILLS VerDate Sep 11 2014 00:37 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H3141.RH H3141 pamtmann on DSKBC07HB2PROD with BILLS Union Calendar No. 227 116TH CONGRESS 1ST SESSION H. R. 3141 [Report No. 116–282] A BILL To limit the collection of annual premiums under the FHA program for mortgage insurance for single family housing, and for other purposes. NOVEMBER 12, 2019 Reported with an amendment, committed to the Com- mittee of the Whole House on the State of the Union, and ordered to be printed VerDate Sep 11 2014 00:37 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6651 Sfmt 6651 E:\BILLS\H3141.RH H3141 pamtmann on DSKBC07HB2PROD with BILLS