II 112th CONGRESS 1st Session S. 488 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.

1.

Short title

This Act may be cited as the Reduce Excessive Interest Payments Act or the REIP Act.

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. .