II 110th CONGRESS 1st Session S. 1985 IN THE SENATE OF THE UNITED STATES August 3, 2007 Mr. Allard (for himself 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 improve access of senior homeowners to capital.

1.

Short title

This Act may be cited as the Capital Access for Senior Homeowners Act of 2007.

2.

Home equity conversion mortgages

(a)

In general

Section 255 of the National Housing Act (12 U.S.C. 1715z–20) is amended— (1)in subsection (g), by striking the first sentence; (2)in subsection (i)(1)(C), by striking limitations and inserting limitation; and (3)by adding at the end the following new subsection: (o)

Authority To insure home purchase mortgage

(1)

In general

Notwithstanding any other provision in this section, the Secretary may insure, upon application by a mortgagee, a home equity conversion mortgage upon such terms and conditions as the Secretary may prescribe, when the primary purpose of the home equity conversion mortgage is to enable an elderly mortgagor to purchase a 1- to 4-family dwelling in which the mortgagor will occupy or occupies 1 of the units. (2)

Limitation on principal obligation

A home equity conversion mortgage insured pursuant to paragraph (1) shall involve a principal obligation that does not exceed the dollar amount limitation determined under section 203(b)(2) for a residence of the applicable size. . (b)

Mortgages for cooperatives

Subsection (b) of section 255 of the National Housing Act (12 U.S.C. 1715z–20(b)) is amended— (1)in paragraph (4)— (A)by inserting a first or subordinate mortgage or lien before on all stock; (B)by inserting unit after dwelling; and (C)by inserting a first mortgage or first lien before on a leasehold; and (2)in paragraph (5), by inserting a first or subordinate lien on before all stock. (c)

Study regarding program costs and credit availability

(1)

In general

The Comptroller General of the United States shall conduct a study regarding the costs and availability of credit under the home equity conversion mortgages for elderly homeowners program under section 255 of the National Housing Act (12 U.S.C. 1715z–20) (in this subsection referred to as the program). (2)

Purpose

The purpose of the study required under paragraph (1) is to help Congress analyze and determine the effects of reducing or limiting the amounts of the costs or fees under the program from the amounts charged under the program as of the date of the enactment of this Act. (3)

Content of report

The study required under paragraph (1) should focus on— (A)the cost to mortgagors of participating in the program; (B)the financial soundness of the program; (C)the availability of credit under the program; and (D)the costs to elderly homeowners participating in the program, including— (i)mortgage insurance premiums charged under the program; (ii)up-front fees charged under the program; and (iii)margin rates charged under the program. (4)

Timing of report

Not later than 12 months after the date of the enactment of this Act, the Comptroller General shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives setting forth the results and conclusions of the study required under paragraph (1).