110 HR 6254 IH: Temporary FHA Direct Endorsement U.S. House of Representatives 2008-06-12 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 6254 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.

1.

Short title

This Act may be cited as the Temporary FHA Direct Endorsement Lender Participation Act of 2008.

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. .