[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3706 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3706

  To require borrowers under FHA-insured mortgages for single-family 
  housing to make downpayments of at least 5 percent and to prohibit 
            financing of closing costs under such mortgages.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 1, 2009

  Mr. Garrett of New Jersey introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To require borrowers under FHA-insured mortgages for single-family 
  housing to make downpayments of at least 5 percent and to prohibit 
            financing of closing costs under such mortgages.

    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 ``FHA Taxpayer Protection Act of 
2009''.

SEC. 2. DOWNPAYMENT REQUIREMENT OF 5 PERCENT AND PROHIBITION OF 
              FINANCING OF CLOSING COSTS.

    Section 203 of the National Housing Act (12 U.S.C. 1709) is 
amended--
            (1) in subsection (b)(9)(A), by striking ``3.5 percent'' 
        and inserting ``5.0 percent''; and
            (2) in subsections (b)(2) and (k)(3)(A), by striking 
        ``(including such initial service charges, appraisal, 
        inspection, and other fees as the Secretary shall approve)'' 
        each place such term appears and inserting ``(which may not 
        include any initial service charges, appraisal, inspection, or 
        other fees or closing costs as the Secretary shall prohibit)''.

SEC. 3. GAO STUDY OF FHA FINANCIAL SOUNDNESS.

    The Comptroller General of the United States shall conduct a study 
of the Mutual Mortgage Insurance Fund and the mortgage insurance 
programs under which the insurance obligations are obligations of such 
Fund to determine--
            (1) the current financial state of the Fund;
            (2) the appropriate capital ratio (as such term is defined 
        in section 205(f) of the National Housing Act (12 U.S.C. 
        1711(f)) that should be maintained for the Fund to ensure 
        financial soundness of the Fund while making mortgage insurance 
        available;
            (3) how the capital ratio of the Fund affects the mortgage 
        insurance programs under the Fund and the exposure of the 
        taxpayers for obligations of the Fund;
            (4) how the capital ratio of the Fund affects the broader 
        housing market; and
            (5) the extent to which the housing markets are more 
        dependent on mortgage insurance provided through the Fund since 
        the financial crisis began in 2008.
Not later than the expiration of the 90-day period beginning on the 
date of the enactment of this Act the Comptroller General shall submit 
a report to the Congress setting forth the results and conclusions of 
the study conducted under this section.
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