118 HR 10498 IH: The Mortgage Insurance Freedom Act U.S. House of Representatives 2024-12-18 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS2d SessionH. R. 10498IN THE HOUSE OF REPRESENTATIVESDecember 18, 2024Mr. Meeks (for himself and Mr. Sessions) introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo amend the National Housing Act to restrict the collection of annual mortgage insurance premiums when a 78 percent loan-to value ratio is reached, and for other purposes.

1.

Short title

This Act may be cited as the The Mortgage Insurance Freedom Act.

2.

Restriction of collection of annual mortgage insurance premiums

(a)

In general

Section 203(c)(2) of the National Housing Act (12 U.S.C. 1709(c)(2)) is amended—(1)in subparagraph (B)—(A)in clause (i), by striking “For any” and inserting “Subject to subparagraph (D), for any”; and (B)in clause (ii), by striking “For any” and inserting “Subject to subparagraph (D), for any”; (2)in subparagraph (C)(i), by striking “In addition” and inserting “Subject to subparagraph (D), in addition”; and(3)by adding at the end the following:(D)

Restriction on annual premium collection

(i)

In general

The Secretary may not collect any annual premiums under this paragraph with respect to a mortgage at any time that the remaining insured principal balance (excluding the portion of the remaining balance attributable to the premium collected under subparagraph (A)) is 78 percent or less than the lower of—(I)the sales price of the dwelling at the sale in connection with which the mortgage was made, or(II)the appraised value of the dwelling at the time of the origination of the mortgage.(ii)

Exception

Clause (i) shall not apply during any period in which Mutual Mortgage Insurance Fund has a capital ratio below 2 percent. (iii)

Rulemaking

The Secretary shall, not later than 180 days after the enactment of this subparagraph, issue such rules to carry out this subparagraph and such rules shall include a process for mortgagors of mortgages insured under this title to use to demonstrate to the Secretary that the insured principal balance of the mortgage of such mortgagor is 78 percent or less than the lower of—(I)the sales price of the dwelling at the sale in connection with which the mortgage was made, or(II)the appraised value of the dwelling at the time of the origination of the mortgage. (iv)

Outreach and education

The Secretary shall conduct outreach and educational activities to inform mortgagors of mortgages insured under this title about—(I)the restriction on premium collection imposed by clause (i); and(II)and the processes the mortgagor may use to demonstrate to the Secretary that the insured principal balance of the mortgage of such mortgagor is 78 percent or less than the lower of—(aa)the sales price of the dwelling at the sale in connection with which the mortgage was made, or(bb)the appraised value of the dwelling at the time of the origination of the mortgage .(b)

Applicability

The amendments made by subsection (a) shall apply with respect only to mortgages endorsed for insurance by the Secretary of Housing and Urban Development after the date of the enactment of this Act.