[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1474 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1474

   To amend section 255 of the National Housing Act to prohibit the 
 charging of unreasonable and excessive fees in connection with equity 
  conversion mortgages for elderly homeowners, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 29, 1997

  Mr. Brown of California (for himself, Mr. Filner, Ms. Lofgren, Mr. 
  Dellums, Mr. Torres, and Mr. Capps) introduced the following bill; 
 which was referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
   To amend section 255 of the National Housing Act to prohibit the 
 charging of unreasonable and excessive fees in connection with equity 
  conversion mortgages for elderly homeowners, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``HUD Reverse Mortgage Program 
Protection Act''.

SEC. 2. PERMANENT MORTGAGE INSURANCE AUTHORITY.

    Section 255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) 
is amended by striking the first 2 sentences.

SEC. 3. DISCLOSURE REQUIREMENTS; PROHIBITION OF UNREASONABLE AND 
              EXCESSIVE FEES FOR REFERRAL SERVICES.

    Section 255(d) of the National Housing Act (12 U.S.C. 1715z-20(d)) 
is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) has received full disclosure of all costs to 
                the mortgagor for obtaining the mortgage, including any 
                costs of estate planning, financial advice, or other 
                related services; and'';
            (2) in paragraph (9)(F), by striking ``and'';
            (3) in paragraph (10), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(11) have been made subject to such requirements as the 
        Secretary shall establish to ensure, as the Secretary 
        determines appropriate, that the mortgagor is not charged 
        unreasonable or excessive fees (as determined by the Secretary) 
        for referrals in connection with obtaining the mortgage 
        (including referrals relating to repairs, inspections, 
        financial services, estate planning, insurance, title 
        assistance, and other related services).''.

SEC. 4. CONSUMER EDUCATION.

    Section 255(f) of the National Housing Act (12 U.S.C. 1715z-20(f)) 
is amended--
            (1) in the subsection heading, by striking ``Information 
        Services for Mortgagors'' and inserting ``Consumer Education 
        and Information''; and
            (2) by adding at the end the following:
``The Secretary shall carry out such actions and establish such 
requirements as the Secretary considers appropriate (A) to ensure that 
mortgagors under mortgages insured under this section receive adequate 
consumer education, including the counseling required under subsection 
(d)(2)(B) and education regarding the requirements established pursuant 
to subsection (d)(11), (B) to ensure that such consumer education is 
made generally available to elderly homeowners interested in mortgages 
insured under this section, and (C) to increase public access to 
entities approved by the Secretary that provide counseling regarding 
mortgages insured under this section and referrals to lenders for such 
mortgages.''.

SEC. 5. IMPLEMENTATION.

    (a) Notice.--The Secretary of Housing and Urban Development shall, 
by interim notice, implement the amendments made by this Act in an 
expeditious manner, as determined by the Secretary. Such notice shall 
not be effective after the date of the effectiveness of the final 
regulations issued under subsection (b).
    (b) Regulations.--The Secretary shall, not later than the 
expiration of the 90-day period beginning on the date of the enactment 
of this Act, issue final regulations to implement the amendments made 
by this Act. Such regulations shall be issued only after notice and 
opportunity for public comment pursuant to the provisions of section 
553 of title 5, United States Code (notwithstanding subsections (a)(2) 
and (b)(B) of such section).
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