[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 562 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 562

To amend section 255 of the National Housing Act to prevent the funding 
     of unnecessary or excessive costs for obtaining a home equity 
                          conversion mortgage.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 1997

Mr. D'Amato (for himself, Mr. Faircloth, Mr. Bennett, Mr. Sarbanes, Mr. 
Dodd, Mr. Kerry, Mr. Bryan, Mrs. Boxer, Ms. Moseley-Braun, Mr. Johnson, 
 and Mr. Reed) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend section 255 of the National Housing Act to prevent the funding 
     of unnecessary or excessive costs for obtaining a home equity 
                          conversion mortgage.

    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 ``Senior Citizen Home Equity 
Protection Act''.

SEC. 2. DISCLOSURE REQUIREMENTS; PROHIBITION OF FUNDING OF UNNECESSARY 
              OR EXCESSIVE COSTS.

    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 with such restrictions as the 
        Secretary determines to be appropriate to ensure that the 
        mortgagor does not fund any unnecessary or excessive costs for 
        obtaining the mortgage, including any costs of estate planning, 
        financial advice, or other related services.''.

SEC. 3. IMPLEMENTATION.

    (a) Notice.--The Secretary of Housing and Urban Development shall, 
by interim notice, implement the amendments made by section 2 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 section 2. 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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