[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5884 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 5884

To establish a 1-year pilot program to reduce up-front premiums on FHA 
      mortgage insurance for first-time homebuyers who complete a 
  homeownership counseling program and thereby help to reduce default 
                    rates on residential mortgages.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 1, 2012

   Ms. Bass of California (for herself, Mr. Dold, and Mr. Gutierrez) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
To establish a 1-year pilot program to reduce up-front premiums on FHA 
      mortgage insurance for first-time homebuyers who complete a 
  homeownership counseling program and thereby help to reduce default 
                    rates on residential 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 ``Homeownership Preservation Education 
Act of 2012''.

SEC. 2. PILOT PROGRAM FOR REDUCTION OF FHA UPFRONT-PREMIUMS FOR FIRST-
              TIME HOMEBUYERS.

    (a) In General.--The Secretary of Housing and Urban Development (in 
this section referred to as the ``Secretary'') shall carry out a pilot 
program under this section to evaluate the effectiveness, in reducing 
defaults on residential mortgages, of reducing up-front premiums for 
mortgage insurance made available by the Secretary pursuant to title II 
of National Housing Act for mortgagors who are first-time homebuyers 
who complete a homeownership counseling program that provides for one-
on-one prepurchase counseling.
    (b) Reduced Premiums.--Subject to subsection (c) of this section 
and notwithstanding the second sentence of subparagraph (A) of section 
203(c)(2) of the National Housing Act (12 U.S.C. 1709(c)(2)(A)), in the 
case of a mortgage secured by a 1- to 4-family dwelling that is an 
obligation of the Mutual Mortgage Insurance Fund for which the 
mortgagor is a first-time homebuyer who completes a program of 
counseling with respect to the responsibilities and financial 
management involved in homeownership that is approved by the Secretary 
and provides for one-on-one pre-purchase counseling of the homebuyer by 
a nonprofit housing counseling agency approved by the Secretary, the 
amount of the premium payment for mortgage insurance under title II of 
such Act that is collected at the time of insurance shall be 
discounted, from the premium payment that would otherwise be collected 
at such time if such mortgagor were not a first-time homebuyer, by an 
amount equal to 0.25 percent of the original insured principal 
obligation of the mortgage.
    (c) Duration.--Subsection (b) shall apply only to mortgages insured 
during the 12-month period beginning upon such date that the Secretary 
implements the pilot program under this section, which shall not be 
later than the expiration of the 90-day period beginning on the date of 
the enactment of this Act.
    (d) Report to Congress.--Not later than 180 days before the 
expiration of the period referred to in subsection (c), the Secretary 
shall submit to the Congress a report regarding the use and impact of 
the pilot program under this section. The report shall include--
            (1) a review and analysis of the effectiveness of the 
        program in--
                    (A) increasing the number of homebuyers accessing 
                prepurchase housing counseling;
                    (B) reducing the rate of mortgage default and 
                delinquency;
                    (C) preventing foreclosure; and
                    (D) supporting stable homeownership; and
            (2) any recommendations the Secretary considers appropriate 
        regarding the program.
    (e) Conforming Amendment.--Section 203(c)(2) of the National 
Housing Act (12 U.S.C. 1709(c)(2)(A)) is amended, in the matter 
preceding subparagraph (A), by striking ``Notwithstanding'' and 
inserting ``Except as provided under section 2 of the Homeownership 
Preservation Education Act of 2012 and notwithstanding''.
                                 <all>