[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3146 Engrossed in House (EH)]
111th CONGRESS
1st Session
H. R. 3146
_______________________________________________________________________
AN ACT
To make improvements to the FHA mortgage insurance programs of the
Department of Housing and Urban Development, 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 ``21st Century FHA Housing Act of
2009''.
SEC. 2. MORTGAGE INSURANCE FOR CONDOMINIUMS.
Section 203 of the National Housing Act (12 U.S.C. 1709) is amended
by adding at the end the following new subsection:
``(y) Inapplicability of Environmental Review Provisions.--In
insuring, under this section, any mortgage described in section
201(a)(C), the Secretary shall not be subject to the conditions of, or
review under, the National Environmental Policy Act of 1969 or any
other provision of law that furthers the purposes of such Act.''.
SEC. 3. ENERGY EFFICIENT MORTGAGES.
Section 106(a)(2)(C) of the Energy Policy Act of 1992 (42 U.S.C.
12712 note) is amended--
(1) in clause (i), by inserting ``(i)'' after ``(A)'' each
place such term appears; and
(2) in clause (ii), by striking ``203(b)(2)(B)'' and
inserting ``203(b)(2)(A)(ii)''.
SEC. 4. MODERNIZATION OF WORKFORCE AND RESOURCES.
Section 202 of the National Housing Act (12 U.S.C. 1708) is amended
by adding at the end the following new subsections:
``(g) Personnel.--
``(1) In general.--Notwithstanding section 502(a) of the
Housing Act of 1948 (12 U.S.C. 1701c(a)), the Secretary may
appoint and fix the compensation of such officers and employees
of the Department as the Secretary considers necessary to carry
out the functions of the Secretary under this Act and any other
functions of the Federal Housing Administration. Such officers
and employees may be paid without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of title 5, United
States Code, relating to classification and General Schedule
pay rates.
``(2) Comparability of compensation with federal financial
regulatory agencies.--In fixing and directing compensation
under paragraph (1), the Secretary shall consult with, and
maintain comparability with compensation of officers and
employees of the Federal Housing Finance Agency, the Board of
Governors of the Federal Reserve System, and the Federal
Deposit Insurance Corporation.
``(3) Personnel of other federal agencies.--In carrying out
the functions referred to in paragraph (1), the Secretary may
use information, services, staff, and facilities of any
executive agency, independent agency, or department on a
reimbursable basis, with the consent of such agency or
department.
``(4) Outside experts and consultants.--The Secretary may
procure temporary and intermittent services under section
3109(b) of title 5, United States Code, to assist the work of
the Department in carrying out the functions referred to in
paragraph (1).
``(h) Information Technology.--
``(1) In general.--In carrying out any program under this
Act or any other program of the Federal Housing Administration,
the Secretary may utilize any amounts as may be made available
for such programs to ensure that an appropriate level of
investment in information technology is maintained in order for
the Secretary to upgrade the technology systems of the
Department used in carrying out the functions referred to in
subsection (g)(1).
``(2) Use of premium-generated income.--To the extent that
income derived in any fiscal year from premium fees charged
under section 203(c) is in excess of the level of income
estimated for that such year for such premium fees and assumed
in the baseline projection prepared by the Director of the
Office of Management and Budget for inclusion in the
President's annual budget request and subject to approval in
advance in an appropriation Act, not more than $72,000,000 of
such excess amounts may be used from such amounts for the
purpose of carrying out this subsection.
``(i) Training and Education Program.--
``(1) Establishment.--The Secretary of Housing and Urban
Development shall carry out a comprehensive training and
education program to improve the service provided by personnel
of the Department carrying out functions referred to in
subsection (g)(1) to users of the mortgage insurance programs
under this Act and any other FHA mortgage insurance programs.
``(2) Topics.--The training and education program under
this subsection shall--
``(A) have as its primary goal improving the
quality and consistency of responses provided by such
personnel of the Department headquarters and other
offices and centers of the Department regarding
regulations, handbooks, mortgagee letters, and other
guidance; and
``(B) be designed to--
``(i) ensure that lenders participating in
the FHA programs may rely on information
provided by one office or center of the
Department when doing business with a different
office or center; and
``(ii) prevent such lenders from soliciting
answers to the same question from different
offices or centers of the Department in an
attempt to obtain an answer that is
satisfactory to the lender, by ensuring
consistent responses from different offices and
centers.''.
SEC. 5. RISK MANAGEMENT IMPROVEMENTS.
(a) Review of Delinquencies and Lender Monitoring.--Section 202 of
the National Housing Act (12 U.S.C. 1708), as amended by the preceding
provisions of this Act, is further amended by adding at the end the
following new subsection:
``(j) Risk Management Improvement.--
``(1) Review of delinquencies among recent originations.--
``(A) In general.--The Secretary shall conduct an
ongoing review of mortgages on single family housing
originated during the preceding 12 months and insured
pursuant to this Act under which the mortgagor has
become 60 or more days delinquent with respect to
payment under the mortgage during the first 90 days of
the term of the mortgage to determine which mortgages
should not have been originated or insured and the
characteristics of such mortgages, and which lenders
have relatively high incidences of such delinquent
mortgages;
``(B) Reporting to congress.--Not later than 90
days after the date of enactment of the 21st Century
FHA Housing Act of 2009, the Secretary shall make
available to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate any
information and conclusions pursuant to the review
required under subparagraph (A).
``(C) Sufficient resources.--There is authorized to
be appropriated to the Secretary for each of fiscal
years 2010 through 2014 the amount necessary to provide
90 additional full-time equivalent positions for the
Department, or for entering into such contracts as are
necessary, to conduct reviews in accordance with the
requirements of this section.
``(2) Lender monitoring.--In conducting monitoring and
analysis of the performance of lenders for mortgages on single
family housing insured under this Act, the Secretary shall
utilize a one-year period for such monitoring and analysis, to
promote earlier identification of problem lenders and allow
earlier intervention and sanctions.''.
(b) Analysis of Mortgage Performance.--Section 203(g)(2) of the
Helping Families Save Their Homes Act of 2009 (12 U.S.C. 1708 note) is
amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2)(B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) analyze the portion of mortgages randomly reviewed
pursuant to subparagraph (B) on the basis of performance.''.
SEC. 6. SENSE OF CONGRESS REGARDING ADEQUATE CAPITAL FLOW FOR MORTGAGE
LOANS.
(a) Congressional Findings.--The Congress finds that--
(1) warehouse lending, which provides short-term lines of
credit to non-depository lenders for mortgage loans that are
eventually sold into the secondary market to Fannie Mae,
Freddie Mac and Ginnie Mae, is a critical link in the housing
finance chain;
(2) according to data obtained pursuant to the Home
Mortgage Disclosure Act of 1975, nondepository lenders that
utilize warehouse lines of credit account for as much as 40
percent of all residential mortgage loans in the United States,
and nearly 55 percent of FHA loans, which are increasingly
popular;
(3) it is estimated that since 2006 warehouse lending
capacity available to the mortgage lending industry has
declined by nearly 90 percent to the current level of
approximately $20 billion to $25 billion;
(4) based upon projected 2009 lending volume, there could
be a shortfall of hundreds of billions of dollars in home
mortgage availability caused by a lack of warehouse lending
capacity; and
(5) unless Federal regulators promptly address the issue,
borrowers seeking to take advantage of today's low interest
rates will face rising costs and reduced credit access, which
could undermine the housing market recovery.
(b) Sense of the Congress.--It is the sense of the Congress that--
(1) the Secretary of the Treasury, the Secretary of Housing
and Urban Development, and the Director of the Federal Housing
Finance Agency should use their existing authorities under the
Emergency Economic Stabilization Act of 2008, the Housing and
Economic Recovery Act of 2008, and other statutory and
regulatory authorities to provide financial support and
assistance to facilitate increased warehouse credit capacity by
qualified warehouse lenders;
(2) such financial support and assistance should--
(A) be used only to expand the amount of credit or
lending capacity made available to qualified mortgage
lenders by qualified warehouse lenders for the purpose
of funding residential mortgage loans;
(B) be provided in such form and manner as such
Secretaries or the Director, as applicable, consider
appropriate, which might include direct loans,
guarantees, credit enhancement, and other incentives;
and
(C) comply with other requirements established by
such Secretaries or the Director, as applicable.
(c) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Qualified mortgage lender.--The term ``qualified
mortgage lender'' means an entity that--
(A) is engaged in the business of making mortgage
loans for one- to four-family residences that are--
(i) insured under title II of the National
Housing Act (12 U.S.C. 1707 et seq.);
(ii) guaranteed, insured, or made under
chapter 37 of title 38, United States Code;
(iii) made, guaranteed, or insured under
title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.); or
(iv) eligible for purchase by the Federal
National Mortgage Association or the Federal
Home Loan Mortgage Corporation; and
(B) is not a depository institution.
(2) Qualified warehouse lender.--The term ``qualified
warehouse lender'' means an entity that extends credit to
qualified mortgage lenders for the purpose of originating
mortgage loans described in paragraph (1)(A), or that otherwise
facilitates the origination of such loans by a qualified
mortgage lender.
SEC. 7. FORECLOSURE AVOIDANCE INITIATIVES.
Section 230 of the National Housing Act (12 U.S.C. 1715u) is
amended by inserting after subsection (d) the following new subsection:
``(e) Foreclosure Avoidance Demonstration Programs.--The Secretary
may carry out such demonstration programs as the Secretary from time to
time determines are appropriate to demonstrate the effectiveness of
alternative methods of avoiding foreclosure on mortgages insured under
this title, including methods involving short sales and deeds in lieu
of foreclosure, and such methods may involve partial or full payment of
insurance benefits to the mortgagee.''.
Passed the House of Representatives September 15, 2009.
Attest:
Clerk.
111th CONGRESS
1st Session
H. R. 3146
_______________________________________________________________________
AN ACT
To make improvements to the FHA mortgage insurance programs of the
Department of Housing and Urban Development, and for other purposes.