[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6254 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6254

   To authorize the temporary participation of mortgage brokers and 
lenders under the FHA single-family housing mortgage insurance program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2008

  Mr. Gary G. Miller of California (for himself, Mr. Sherman, and Mr. 
    Baca) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To authorize the temporary participation of mortgage brokers and 
lenders under the FHA single-family housing mortgage insurance program.

    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 ``Temporary FHA Direct Endorsement 
Lender Participation Act of 2008''.

SEC. 2. TEMPORARY AUTHORITY FOR MORTGAGE BROKERS AND LENDERS TO 
              PARTICIPATE IN FHA SINGLE FAMILY MORTGAGE INSURANCE 
              PROGRAM THROUGH DIRECT ENDORSEMENT LENDERS.

    Section 202 of the Economic Stimulus Act of 2008 (Public Law 110-
185; 122 Stat. 620) is amended by adding at the end the following new 
subsection:
    ``(d) Temporary Mortgage Broker and Lender Participation Through 
Direct Endorsement Lenders.--
            ``(1) Authority.--The Secretary of Housing and Urban 
        Development shall provide for mortgage brokers who close 
        mortgages in their own names or in the names of other lenders, 
        but who do not underwrite or service the mortgage, and other 
        lenders not otherwise authorized to participate as mortgagees 
        under title II of the National Housing Act (12 U.S.C. 1707 et 
        seq.), to participate as mortgagees in the single family 
        housing mortgage insurance programs under such title II, but 
        only to the extent that--
                    ``(A) the insurance of a mortgage under such title 
                II made by any such broker or lender is performed by a 
                lender--
                            ``(i) who is authorized by the Secretary of 
                        Housing and Urban Development to process 
                        mortgages as a direct endorsement mortgagee; 
                        and
                            ``(ii) who has a compare ratio, as such 
                        term is defined for purposes of the 
                        Neighborhood Watch system for monitoring lender 
                        and appraiser performance under programs of the 
                        Department of Housing and Urban Development, 
                        that is less than or equal to the national 
                        average; and
                    ``(B) the mortgage broker or lender--
                            ``(i)(I) is licensed, under the laws of the 
                        State in which the property that is subject to 
                        the mortgage is located, to act as a mortgage 
                        broker or lender in such State; or
                            ``(II) is an insured depository 
                        institution, as such term defined in section 3 
                        of the Federal Deposit Insurance Act (12 U.S.C. 
                        1813),   or an insured credit union, as such 
                        term is defined in section 101 of the Federal 
                        Credit Union Act (12 U.S.C. 1752); and
                            ``(ii) certifies to the direct endorsement 
                        mortgagee insuring mortgages for such broker or 
                        lender that the broker or lender has submitted 
                        an application for participation as a mortgagee 
                        in such single family housing insurance 
                        programs, except that the broker or lender 
                        shall not be required to have complied with the 
                        requirements for such applications regarding 
                        submission of an audited financial statement.
            ``(2) Sunset.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), this subsection shall not apply to 
                any mortgage for which credit approval for the borrower 
                is issued after December 31, 2008.
                    ``(B) Extension.--The Secretary of Housing and 
                Urban Development may extend the authority under this 
                subsection for a period not longer than 6 months by 
                causing notice of such extension to be published in the 
                Federal Register before December 31, 2008.''.
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