[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 488 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 488

  To require the FHA to equitably treat homebuyers who have repaid in 
       full their FHA-insured mortgages, and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                             March 3, 2011

  Mr. Cardin introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To require the FHA to equitably treat homebuyers who have repaid in 
       full their FHA-insured mortgages, 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 ``Reduce Excessive Interest Payments 
Act'' or the ``REIP Act''.

SEC. 2. PROHIBITION ON INTEREST CHARGES FOR ON-TIME PRINCIPAL PAYMENTS.

    Section 203 of the National Housing Act (12 U.S.C. 1709) is amended 
by adding at the end the following:
    ``(z) Prohibition on Interest Charges for On-time Principal 
Payments.--Each mortgagee (or servicer) with respect to a mortgage 
under this section may not impose, nor may the Secretary require the 
imposition of, any interest charge on such a mortgage as a result of 
the loss of any time period provided by the mortgagee (or servicer) 
within which the mortgagor may fully repay the principal balance amount 
of the mortgage, with respect to--
            ``(1) any days in the billing cycle that precedes the most 
        recent billing cycle in which such amounts were repaid; or
            ``(2) any amounts repaid in the current billing cycle that 
        were repaid within such time period.''.
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