1.This Act may be cited as the
FHA Reform Act of
2010
.
2.Indemnification
by mortgagees
(a)Section 202 of the
National Housing Act (12 U.S.C. 1708) is amended by adding at the end the
following new subsection:
(i)Indemnification
by mortgagees
(1)If the Secretary
determines that a mortgage executed by a mortgagee approved by the Secretary
under the direct endorsement program or insured by a mortgagee pursuant to the
delegation of authority under section 256 was not materially originated or
underwritten in accordance with the requirements established by the Secretary,
as determined by the Secretary, and the Secretary pays an insurance claim with
respect to the mortgage within a reasonable period specified by the Secretary,
the Secretary shall require the mortgagee approved by the Secretary under the
direct endorsement program or the mortgagee delegated authority under section
256 to indemnify the Secretary for the loss.
(2)Fraud or
misrepresentationIf fraud or misrepresentation was involved in
connection with the origination or underwriting, the Secretary may require the
mortgagee approved by the Secretary under the direct endorsement program or the
mortgagee delegated authority under section 256 to indemnify the Secretary for
the loss regardless of when an insurance claim is paid.
(3)Requirements and
proceduresThe Secretary shall issue regulations establishing
appropriate requirements and procedures governing the indemnification of the
Secretary by the
mortgagee.
.
(b)Section 202(a) of the National Housing Act (12 U.S.C.
1708(a)) is amended by adding at the end the following:
(8)The
Secretary shall take any actions required to seek indemnification for any early
term default and claim on a mortgage which—
(A)is an obligations
of the Fund; and
(B)as of the date of
origination of the mortgage, was not in material compliance with a provision,
regulation, or other guideline established or promulgated pursuant to this
title.
(9)Programmatic
review of defaultsThe Secretary shall establish and maintain a
program—
(A)to review the
cause of each early term default and claim on a mortgage described under
paragraph (8); and
(B)to require
indemnification of any such early term default that did not meet the guidelines
and requirements set forth pursuant to this section prior to the date of
origination.
(10)Definition of
early term defaultFor purposes of this subsection, the term
early term default means any loan that becomes delinquent or that
is in default during the 2-year period beginning on the date of origination of
such
loan.
.
3.Delegation of
insuring authoritySection 256
of the National Housing Act (12 U.S.C. 1715z–21) is amended—
(1)by striking
subsection (c);
(2)in subsection (e),
by striking , including
and all that follows through by
the mortgagee
; and
(3)by redesignating
subsections (d) and (e) as subsections (c) and (d), respectively.
4.Authority to
terminate mortgagee origination and underwriting approvalSection 533 of the National Housing Act (12
U.S.C. 1735f–11) is amended—
(1)in the first
sentence of subsection (b), by inserting or areas or on a nationwide
basis
after area
each place such term appears;
and
(2)in subsection (c),
by striking (c)
and all that follows through The
Secretary
in the first sentence of paragraph (2) and inserting the
following:
(c)Termination of
mortgagee origination and underwriting approval
(1)If the Secretary
determines, under the comparison provided in subsection (b), that a mortgagee
has a rate of early defaults and claims that is excessive, the Secretary may
terminate the approval of the mortgagee to originate or underwrite single
family mortgages for any area, or areas, or on a nationwide basis,
notwithstanding section 202(c) of this Act.
(2)The
Secretary
.
5.Deputy Assistant
Secretary of FHA for Risk Management and Regulatory Affairs
(a)Establishment of
positionSubsection (b) of
section 4 of the Department of Housing and Urban Development Act (42 U.S.C.
3533(b)) is amended—
(1)by inserting
(1)
after (b)
; and
(2)by adding at the
end the following new paragraph:
(2)There shall be in the Department, within
the Federal Housing Administration, a Deputy Assistant Secretary for Risk
Management and Regulatory Affairs, who shall be appointed by the Secretary and
shall be responsible to the Federal Housing Commissioner for all matters
relating to managing and mitigating risk to the mortgage insurance funds of the
Department and ensuring the performance of mortgages insured by the
Department.
.
(b)Upon the appointment and confirmation of
the initial Deputy Assistant Secretary for Risk Management and Regulatory
Affairs pursuant to section 4(b)(2) of the Department of Housing and Urban
Development Act, as amended by subsection (a) of this section, the position of
chief risk officer within the Federal Housing Administration, filled by
appointment by the Federal Housing Commissioner, is abolished.
6.Use of outside
credit risk analysis sourcesSection 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)Use of outside
credit risk analysis sourcesThe Secretary may obtain the services of,
and enter into contracts with, private and other entities outside of the
Department in—
(1)analyzing credit
risk models and practices employed by the Department in connection with such
mortgages;
(2)evaluating
underwriting standards applicable to such mortgages insured by the Department;
and
(3)analyzing the
performance of lenders in complying with, and the Department in enforcing, such
underwriting
standards.
.
7.Review of mortgagee
performanceSection 533 of the
National Housing Act (12 U.S.C. 1735f–11) is amended—
(1)in subsection (a),
by inserting after the period at the end the following: For purposes of
this subsection, the term early default means a default that
occurs within 24 months after a mortgage is originated or such alternative
appropriate period as the Secretary shall establish.
;
(2)in subsection (b),
by inserting after the period at the end of the first sentence the following:
The Secretary shall also identify which mortgagees have had a
significant or rapid increase, as determined by the Secretary, in the number or
percentage of early defaults and claims on such mortgages, with respect to all
mortgages originated by the mortgagee or mortgages on housing located in any
particular geographic area or areas.
; and
(3)by adding at the
end the following new subsections:
(d)There is authorized
to be appropriated to the Secretary for each of fiscal years 2010 through 2014
the amount necessary to provide 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 and to
carry out other responsibilities relating to ensuring the safety and soundness
of the Mutual Mortgage Insurance Fund.
(e)Not later than 90
days after the date of enactment of the FHA
Reform Act of 2010 and not less often than annually thereafter,
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 reviews
required under subsection (a). Such report shall not include detailed
information on the performance of individual
mortgages.
.
8.Use of nationwide
mortgage licensing system and registry
(a)Use by
mortgagees, officers, and owners; use for insured mortgages
(1)Mortgagees,
officers, and ownersSection
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 subsections:
(k)Use of
nationwide mortgage licensing system and registry for mortgagees, officers, and
ownersThe Secretary may require, as a condition for approval of
a mortgagee by the Secretary to originate or underwrite mortgages on single
family residences that are insured by the Secretary, that the mortgagee—
(1)obtain and
maintain a unique company identifier assigned by the Nationwide Mortgage
Licensing System and Registry, as established by the Conference of State Bank
Supervisors and the American Association of Residential Mortgage Regulators;
and
(2)obtain and maintain, as relates to any and
all officers or owners of the mortgagee who are subject to the requirements of
the S.A.F.E. Mortgage Licensing Act of 2008, or are otherwise required to
register with the Nationwide Mortgage Licensing System and Registry, the unique
identifier assigned by the Nationwide Mortgage Licensing System and Registry,
as established by the Conference of State Bank Supervisors and the American
Association of Residential Mortgage
Regulators.
.
(2)Section 203 of the National Housing Act (12 U.S.C.
1709) is amended by adding at the end the following new subsection:
(y)Use of
nationwide mortgage licensing system and registry for insured
loansThe Secretary may
require each mortgage insured under this section to include the unique
identifier (as such term is defined in section 1503 of the S.A.F.E. Mortgage
Licensing act of 2008 (12 U.S.C. 5102)) and any unique company identifier
assigned by the Nationwide Mortgage Licensing System and Registry, as
established by the Conference of State Bank Supervisors and the American
Association of Residential Mortgage
Regulators.
.
(b)Coordination
with State regulatory agenciesSection 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:
(l)Information
sharing with State regulatory agencies
(1)Joint protocol
on information sharingThe
Secretary shall, through consultation with State regulatory agencies, pursue
protocols for information sharing, including the appropriate treatment of
confidential or otherwise restricted information, regarding either actions
described in subsection (c)(3) of this section or disciplinary or enforcement
actions by a State regulatory agency or agencies against a mortgagee (as such
term is defined in subsection (c)(7)).
(2)To
the greatest extent possible, the Secretary and appropriate State regulatory
agencies shall coordinate disciplinary and enforcement actions involving
mortgagees (as such term is defined in subsection
(c)(7)).
.
9.Reporting of
mortgagee actions taken against other mortgageesSection 202 of the National Housing Act (12
U.S.C. 1708(e)), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
(m)Notification of
mortgagee actionsThe
Secretary shall require each mortgagee, as a condition for approval by the
Secretary to originate or underwrite mortgages on single family or multifamily
housing that are insured by the Secretary, if such mortgagee engages in the
purchase of mortgages insured by the Secretary and originated by other
mortgagees or in the purchase of the servicing rights to such mortgages, and
such mortgagee at any time takes action to terminate or discontinue such
purchases from another mortgagee based on any determination, evidence, or
report of fraud or material misrepresentation in connection with the
origination of such mortgages, the mortgagee shall, not later than 15 days
after taking such action, shall notify the Secretary of the action taken and
the reasons for such
action.
.
10.Annual actuarial
study and quarterly reports on Mutual Mortgage Insurance FundSubsection (a) of section 202 of the
National Housing Act (12 U.S.C. 1708(a)) is amended—
(1)in paragraph
(4)—
(A)by striking
The Secretary shall provide for an independent
and inserting the
following:
(A)The Secretary shall provide for an
independent
;
(B)in subparagraph
(A) (as so designated by this paragraph), in the second sentence, by inserting
before the period at the end the following: , any changes to the current
or projected safety and soundness of the Fund since the most recent report
under this paragraph or paragraph (5), and any risks to the Fund
;
and
(C)by adding at the
end the following:
(B)Additional
reporting on defaultsThe report required under subparagraph (A)
shall include—
(i)all data, for
each of the last preceding fiscal years, on each default of a mortgage which is
an obligation of the Fund, including—
(I)the actual number
of all such defaults; and
(II)the percentage
of all such defaults, broken out by quarter for each such fiscal year;
(ii)all data, for
each of the last preceding fiscal years, on each early term default of mortgage
which is an obligation of the Fund, including—
(I)the actual number
of all such early term defaults;
(II)the percentage
of all such early term defaults, broken out by quarter for each such fiscal
year; and
(III)a summary of
the findings of the causes of such early term defaults discovered by the
program established under paragraph (9); and
(iii)the results of
all known investigations or inquiries concerning defaults on loans insured
under this title or any insurance payments made by the Secretary pursuant to
this title, including—
(I)the number of
such loans as to which the Secretary made an inquiry about the reasons for loss
or default;
(II)the identity of
the direct endorsement underwriter of such loan;
(III)all of the
reasons determined to be the cause for each default or insurance payment,
including whether such default or payment was due to an underwriting error,
borrower fraud or misrepresentation, mortgage broker fraud or
misrepresentation, appraiser fraud or misrepresentation, lender fraud or
misrepresentation, reduced borrower income, or reduced property value;
(IV)whether there
was an insurance payment made pursuant to this title in connection with the
loan, and if so, the amount of such payment and the date on which such payment
was made;
(V)the rate at which
such loans are becoming seriously delinquent, as determined by the
Secretary;
(VI)whether the rate
set for under subclause (V) is increasing or decreasing;
(VII)if there are
certain subsets of mortgages within the larger set of mortgages which are
obligations of the Fund that have great or lesser rates of default; and
(VIII)if a subset of
mortgages is identified under subclause (VII), the characteristics of such
subset of mortgages and the financial exposure of the Federal Housing
Administration created by such subsets.
(C)The first annual report, and each annual report
thereafter, to include the additional reporting on defaults as required by
subparagraph (B), shall be submitted within 90 days of the first day of the
next fiscal year, or if such report for the past fiscal year is submitted to
Congress prior to the date of enactment of the
FHA Reform Act of 2010, such
report shall be updated and resubmitted to reflect such additional reporting
requirements not later than the last day of the full calendar quarter following
the date of enactment of the FHA Reform Act
of 2010.
;
and
(2)in paragraph
(5)—
(A)in the matter
prior to subparagraph (A), by striking During each fiscal year
and inserting the following:
(A)During each fiscal 8
year;
;
(B)by redesignating
subparagraphs (A) through (E) as clauses (i) through (v), respectively, and
moving the margins 2 ems to the right;
(C)in clause (iv) of
subparagraph (A) (as so redesignated), by striking and
at the
end;
(D)in clause (v) of
subparagraph (A) (as so redesignated), by striking the period at the end and
inserting ; and
;
(E)by adding at the
end of subparagraph (A) the following:
(vi)any other
factors that are likely to have an impact on the financial status of the Fund
or cause any material changes to the current or projected safety and soundness
of the Fund since the most recent report under paragraph (4).
The
Secretary may include in the report under this paragraph any recommendations
not made in the most recent report under paragraph (4) that may be needed to
ensure that the Fund remains financially
sound.;
and
(F)by adding at the
end the following:
(B)Additional
reporting on defaultsThe report required under subparagraph (A)
shall include—
(i)all data, for
each of the last preceding fiscal years, on each default of mortgage which is
an obligation of the Fund, including—
(I)the actual number
of all such defaults; and
(II)the percentage
of all such defaults, broken out by quarter for each such fiscal year;
(ii)all data, for
each of the last preceding fiscal years, on each early term default of mortgage
which is an obligation of the Fund, including—
(I)the actual number
of all such early term defaults;
(II)the percentage
of all such early term defaults, broken out by quarter for each such fiscal
year; and
(III)a summary of
the findings of the causes of such early term defaults discovered by the
program established under paragraph (9); and
(iii)the results of
all known investigations or inquiries concerning defaults on loans insured
under this title or any insurance payments made by the Secretary pursuant to
this title, including—
(I)the number of
such loans as to which the Secretary made an inquiry about the reasons for loss
or default;
(II)the identity of
the direct endorsement underwriter of such loan;
(III)all the reasons
determined to be the cause for each default or insurance payment, including
whether such default or payment was due to an underwriting error, borrower
fraud or misrepresentation, mortgage broker fraud or misrepresentation,
appraiser fraud or misrepresentation, lender fraud or misrepresentation,
reduced borrower income, or reduced property value;
(IV)whether there
was an insurance payment made pursuant to this title in connection with the
loan, and if so, the amount of such payment and the date on which such payment
was made;
(V)the rate at which
such loans are becoming seriously delinquent, as determined by the
Secretary;
(VI)whether the rate
set for under subclause (V) is increasing or decreasing;
(VII)if there are
certain subsets of mortgages within the larger set of mortgages which are
obligations of the Fund that have great or lesser rates of default; and
(VIII)if a subset of
mortgages is identified under subclause (VII), the characteristics of such
subset of mortgages and the financial exposure of the Federal Housing
Administration created by such
subsets.
.
11.Review of downpayment
requirementsSection 205 of
the National Housing Act (12 U.S.C. 1711) is amended by adding at the end the
following new subsection:
(g)Review of
downpayment requirementsIf,
at any time when the capital ratio (as such term is defined in subsection (f))
of the Mutual Mortgage Insurance Fund does not comply with the requirement
under subsection (f)(1), the Secretary establishes a cash investment
requirement, for all mortgages or mortgagors or with respect to any group of
mortgages or mortgagors, that exceeds the minimum percentage or amount required
under section 203(b)(9), thereafter upon the capital ratio first complying with
the requirement under subsection (f)(1) the Secretary shall review such cash
investment requirement and, if the Secretary determines that such percentage or
amount may be reduced while maintaining such compliance, the Secretary may
subsequently reduce such requirement by such percentage or amount as the
Secretary considers
appropriate.
.
12.Authorization to
participate in the origination of FHA-insured loans
(a)Section 203(b) of the National Housing Act (12 U.S.C.
1709(b)) is amended by striking paragraph (1) and inserting the following new
paragraph:
(1)Have been made to
a mortgagee approved by the Secretary or to a person or entity authorized by
the Secretary under section 202(d)(1) to participate in the origination of the
mortgage, and be held by a mortgagee approved by the Secretary as responsible
and able to service the mortgage
properly.
.
(b)Home equity
conversion mortgagesSection 255(d) of the National Housing Act
(12 U.S.C. 1715z–20(d)) is amended by striking paragraph (1) and inserting the
following new paragraph:
(1)have been
originated by a mortgagee approved by, or by a person or entity authorized
under section 202(d)(1) to participate in the origination by, the
Secretary;
.
13.Default and
origination information by loan servicer and originating direct endorsement
lender
(a)Collection of
informationParagraph (2) of
section 540(b) of the National Housing Act (12 U.S.C. 1712 U.S.C.
1735f–18(b)(2)) is amended by adding at the end the following new
subparagraph:
(C)For each entity that services insured
mortgages, data on the performance of mortgages originated during each calendar
quarter occurring during the applicable collection period, disaggregated by the
direct endorsement mortgagee from whom such entity acquired such
servicing.
.
(b)Information
described in subparagraph (C) of section 540(b)(2) of the National Housing Act,
as added by subsection (a) of this section, shall first be made available under
such section 540 for the applicable collection period (as such term is defined
in such section) relating to the first calendar quarter ending after the
expiration of the 12-month period that begins on the date of the enactment of
this Act.
14.Third party
servicer outreach
(a)The Secretary of Housing and Urban
Development may, to the extent any amounts for fiscal year 2010 or 2011 are
made available in advance in appropriation Acts for reimbursements under this
section, provide reimbursement to servicers of covered mortgages (as such term
is defined in subsection (f)) for costs of obtaining the services of
independent third parties meeting the requirements under subsection (b) of this
section to make in-person contact with mortgagors under covered mortgages whose
payments under such mortgages are 60 or more days past due, solely for the
purposes of providing information to such mortgagors regarding—
(1)available
counseling by housing counseling agencies approved by the Secretary;
(2)available mortgage
loan modification, refinance, and assistance programs; and
(3)available counseling regarding financial
management and credit risk.
(b)Qualified
independent third partiesAn independent third party meets the
requirements of this subsection if the third party—
(1)is an entity,
including a housing counseling agency approved by the Secretary, that meets
standards, qualifications, and requirements (including regarding foreclosure
prevention training, quality monitoring, safeguarding of non-public
information) established by the Secretary for purposes of this section for
in-person contact about available mortgage loan modification, refinance, and
assistance programs; and
(2)does not charge
any fees or require other payments, directly or indirectly, from any mortgagor
for making in-person contact and providing information and documents under this
section.
(c)Treatment of
personal, non-Public, and confidential informationAn
independent third party whose services are obtained using amounts made
available for use under this section and the mortgage servicer obtaining such
services shall not use, disclose, or distribute any personal, non-public, or
confidential information about a mortgagor obtained during an in-person contact
with the mortgagor, except for purposes of engaging in the process of
modification or refinance of the covered mortgage.
(d)Date of contact
and disclosuresEach independent third party whose services are
obtained by a mortgage servicer using amounts made available for use under this
section shall—
(1)initiate in-person contact with a mortgagor
not later than 10 days after the date upon which payments under the covered
mortgage of the mortgagor become 60 days past due; and
(2)upon making
in-person contact with a mortgagor, provide the mortgagor with a written
document that discloses—
(A)the name of, and
contact information for, the independent third party and the mortgage
servicer;
(B)that the
independent third party has contracted with the mortgage servicer to provide
the in-person contact at no charge to the mortgagor;
(C)that the
independent third party is an agent of the mortgage servicer;
(D)that the in-person contact with the
mortgagor consists of providing information about available counseling by a
housing counseling agency approved by the Secretary and available mortgage loan
modification, refinance, and assistance programs;
(E)that the independent third party and the
mortgage servicer are prohibited from the use, disclosure, or distribution of
personal, non-public, and confidential information about the mortgagor,
obtained during the in-person contact, except for purposes of engaging in the
process of modification or refinance of the covered mortgage; and
(F)any other
information that the Secretary determines should be disclosed.
(e)In providing reimbursements under this
section, the Secretary of Housing and Urban Development shall provide priority
to independent third parties serving mortgagors under covered mortgages in
areas experiencing a mortgage foreclosure rate and unemployment rate higher
than the national average for the most recent 12-month period for which
satisfactory data are available.
(f)Definition of
covered mortgageFor purposes
of this section, the term covered mortgage
means a mortgage on a
1- to 4-family residence insured under the provisions of subsection (b) or (k)
of section 203, section 234(c), or 251 of the National Housing Act (12 U.S.C.
1709, 1715y, 1715z–16).
15.Not later than the
expiration of the 12-month period beginning on the date of the enactment of
this Act, the Comptroller General of the United States shall submit to the
Congress a report on the single family mortgage insurance programs of the
Secretary of Housing and Urban Development and the Mutual Mortgage Insurance
Fund established under section 202(a) of the National Housing Act (12 U.S.C.
1708(a)) that—
(1)analyzes such Fund, the economic net worth,
capital ratio, and unamortized insurance-in-force (as such terms are defined in
section 205(f)(4) of such Act (12 U.S.C. 1711(f)(4))) of such Fund, the risks
to the Fund, how the capital ratio of the Fund affects the mortgage insurance
programs under the Fund and the broader housing market, the extent to which the
housing markets are more dependent on mortgage insurance provided through the
Fund since the financial crisis began in 2008, and the exposure of the
taxpayers for obligations of the Fund;
(2)analyzes the methodology for determining
the Fund’s capital ratio under section 205(f) of such Act and examines
alternative methods for assessing the Fund’s financial condition and their
potential impacts on the Fund’s ability to meet the operational goals under
section 202(a)(7) of such Act;
(3)analyzes the potential effects of the
increases in the limits on the maximum principal obligation of mortgages made
by the FHA Modernization Act of 2008 (title I of division B of Public Law
110–289), section 202 of the Economic Stimulus Act of 2008 (Public Law 110–185;
122 Stat. 620), section 1202 of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 225), and section 166 of
the Continuing Appropriations Resolution, 2010 (as added by section 104 of
division B of Public Law 111–88; 123 Stat. 29723) on—
(A)the risks to and
safety and soundness of the Fund;
(B)the impact on the
affordability and availability of mortgage credit for borrowers for loans
authorized under such higher loan limits;
(C)the private market
for residential mortgage loans that are not insured by the Secretary of Housing
and Urban Development; and
(D)the Federal
National Mortgage Association and the Federal Home Loan Mortgage Corporation;
and
(4)analyzes the impact on affordability to FHA
borrowers, and the impact to the Fund, of seller concessions or contributions
to a borrower purchasing a residence using a mortgage that is insured by the
Secretary.
16.Authority to
establish higher minimum cash investment requirement
(a)Paragraph (9) of section 203(b) of the
National Housing Act (12 U.S.C. 1709(b)(9)) is amended by adding at the end the
following new subparagraph:
(D)Authority to
establish higher minimum requirementThe Secretary may establish a higher
minimum cash investment requirement than the minimum requirement under
subsection (a), for all mortgagors or a certain class or classes of mortgagors,
which may be based on criteria related to borrowers’ credit scores or other
industry standards related to borrowers’ financial soundness. In establishing
such a higher minimum cash investment requirement, the Secretary shall take
into consideration the findings of the most recent annual report to the
Congress on minimum cash investments pursuant to section 16(b) of the FHA
Reform Act of
2010.
.
(b)Not later than the expiration of the
12-month period beginning on the date of the enactment of this Act and annually
thereafter, the Secretary of Housing and Urban Development shall submit to the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate a report
detailing the implementation of the minimum cash investment requirements under
section 203(b)(9) of the National Housing Act (12 U.S.C. 1709(b)(9)) and
discussing and analyzing options for proposed changes to such requirements,
including changes that would take into account borrowers’ credit scores or
other industry standards related to borrowers’ financial soundness. Such report
shall—
(1)analyze the
impacts that any actual or proposed such changes are projected to have
on—
(A)the financial
soundness of the Mutual Mortgage Insurance Fund;
(B)the housing
finance market of the United States; and
(C)the number of
borrowers served by the Federal Housing Administration;
(2)explain the
reasons for any actual or proposed such changes in the such requirements made
since the last report under this subsection;
(3)evaluate the
impact of any actual or proposed such changes in such requirements on the
Mutual Mortgage Insurance Fund;
(4)evaluate the
impacts of any actual or proposed such changes on potential mortgagors under
mortgages on one- to four-family dwellings insured by the Secretary under the
National Housing Act; and
(5)evaluate the
impact of any actual or proposed such changes on the soundness of the housing
market in the United States.
17.Mortgage
insurance premium refunds
(a)The
Secretary of Housing and Urban Development shall, to the extent that amounts
are made available pursuant to subsection (c), provide refunds of unearned
premium charges paid at the time of insurance for mortgage insurance under
title II of the National Housing Act (12 U.S.C. 1707 et seq.) to or on behalf
of mortgagors under mortgages described in subsection (b).
(b)A mortgage described in this section is a mortgage on a
one- to four-family dwelling that—
(1)was insured under
title II of the National Housing Act (12 U.S.C. 1707 et seq.); and
(2)is otherwise
eligible, under the last sentence of subparagraph (A) of section 203(c)(2) of
such Act (12 U.S.C. 1709(c)(2)(A)), for a refund of all unearned premium
charges paid on the mortgage pursuant to such subparagraph, except that the
mortgage—
(A)was closed before
December 8, 2004; and
(B)was endorsed on or
after such date.
(c)Authorization of
appropriationsThere is authorized to be appropriated for each
fiscal year such sums as may be necessary to provide refunds of unearned
mortgage insurance premiums pursuant to this section.
18.Maximum mortgage
amount limits for multifamily housing
(a)
(1)The National Housing Act is amended in each
of the provisions specified in paragraph (2)—
(A)by inserting
with sound standards of construction and design
after
elevator-type structures
the first place such term appears;
and
(B)by striking
to not to exceed
and all that follows through sound
standards of construction and design
each place such terms appear and
inserting by not more than 50 percent of the amounts specified for each
unit size
.
(2)The provisions of the
National Housing Act specified in this paragraph are as follows:
(A)Subparagraph (A)
of section 207(c)(3) (12 U.S.C. 1713(c)(3)(A)).
(B)Subparagraph (A)
of section 213(b)(2) (12 U.S.C. 1715e(b)(2)(A)).
(C)Subclause (I) of section 220(d)(3)(B)(iii)
(12 U.S.C. 1715k(d)(3)(B)(iii)(I)).
(D)In section 221(d)
(12 U.S.C. 1715l(d))—
(i)subclause (I) of
paragraph (3)(ii); and
(ii)subclause (I) of paragraph (4)(ii).
(E)Subparagraph (A)
of section 231(c)(2) (12 U.S.C. 1715v(c)(2)(A)).
(F)Subparagraph (A)
of section 234(e)(3) (12 U.S.C. 1715y(e)(3)(A)).
(b)Extremely
high-Cost areasSection 214 of the National Housing Act (12
U.S.C. 1715d) is amended—
(1)in the first
sentence—
(A)by inserting , or with respect to
projects consisting of more than four dwelling units located in an extremely
high-cost area as determined by the Secretary
after or the
Virgin Islands
the first place such term appears;
(B)by inserting
, or to construct projects consisting of more than four dwelling units
on property located in an extremely high-cost area as determined by the
Secretary
after or the Virgin Islands
the second place
such term appears; and
(C)by inserting
, or with respect to projects consisting of more than four dwelling
units located in an extremely high-cost area as determined by the
Secretary
after or the Virgin Islands
the third place
such term appears;
(2)in the second sentence—
(A)by inserting
, or with respect to a project consisting of more than four dwelling
units located in an extremely high-cost area as determined by the
Secretary,
after or the Virgin Islands
the first place
such term appears; and
(B)by inserting , or in the case of a
project consisting of more than four dwelling units in an extremely high-cost
area as determined by the Secretary, in such extremely high-cost area,
after or the Virgin Islands
the second place such term appears;
and
(3)in the section
heading, by striking and the virgin islands
and
inserting the virgin
islands, and extremely high-cost areas
.
(c)The amendments made by this section shall apply to mortgages
insured under title II of the National Housing Act after September 30,
2010.
19.Special
forbearance for mortgagors with Chinese drywallThe provisions of Mortgagee Letter 2002–17
of the Secretary of Housing and Urban Development (regarding Special
Forbearance: Program Changes and Updates
) relating to Type I Special
Forbearance shall apply, until the conclusion of fiscal year 2011 and may not
be revoked, annulled, repealed, or rescinded during such period, with respect
to mortgagees of mortgages insured under title II of the National Housing Act
that are secured by one- to four-family dwellings that have problem or damaging
drywall products.
20.Mortgage
insurance for condominiumsSection 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 provisionsIn 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.
.
21.Energy
efficient mortgagesSection
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)
.