[Congressional Record Volume 156, Number 114 (Friday, July 30, 2010)]
[House]
[Pages H6468-H6469]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
INCREASING FLEXIBILITY IN AMOUNT OF PREMIUMS CHARGED FOR FHA SINGLE
FAMILY HOUSING MORTGAGE INSURANCE
Mr. FRANK of Massachusetts. Mr. Speaker, I move to suspend the rules
and pass the bill (H.R. 5981) to increase the flexibility of the
Secretary of Housing and Urban Development with respect to the amount
of premiums charged for FHA single family housing mortgage insurance,
and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5981
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. MORTGAGE INSURANCE PREMIUMS.
(a) Flexibility.--Subparagraph (B) of section 203(c)(2) of
the National Housing Act (12 U.S.C. 1709(c)(2)(B)) is
amended--
(1) in the matter preceding clause (i)--
(A) by striking ``shall'' and inserting ``may''; and
(B) by striking ``0.50 percent'' and inserting ``1.5
percent''; and
(2) in clause (ii), by striking ``shall be in an amount not
exceeding 0.55 percent'' and inserting ``may be in an amount
not exceeding 1.55 percent''.
(b) Implementation.--The Secretary may adjust the amount of
any initial or annual
[[Page H6469]]
premium charged pursuant to subsection (a) through notice
published in the Federal Register or mortgagee letter. Such
notice or mortgagee letter shall establish the effective date
of any premium adjustment therein.
SEC. 2. CONGRESSIONAL TESTIMONY.
The Assistant Secretary of the Department of Housing and
Urban Development who is the Federal Housing Commissioner
shall appear before the Committee on Banking, Housing and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives within 270 days
after the enactment of this Act to discuss the finances,
including premiums, of the Federal Housing Administration.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Massachusetts (Mr. Frank) and the gentlewoman from West Virginia (Mrs.
Capito) each will control 20 minutes.
The Chair recognizes the gentleman from Massachusetts.
Mr. FRANK of Massachusetts. Mr. Speaker, I yield myself such time as
I may consume.
We have for these couple of years now had a bipartisan effort that
began in the Bush administration and has been continued in the Obama
administration--and it's been bipartisan on the Committee of Financial
Services--to make sure that the FHA is both an effective and an
efficient means for housing finance. Having a reliable way to provide
the funding needed for housing finance in its various aspects is
important both for the citizens who benefit from it and for the
economy.
The FHA had not been in a great shape. We have a package of measures
and we have had administrations--and as I say it's been bipartisan on
the two administrations in our committee--to improve the FHA's
capacity, to increase its capacity, but also to provide that it will be
done in a reasonable way.
This House passed earlier this year overwhelmingly, by a bipartisan
vote, a comprehensive reform of the FHA. It may shock the Members to
know, Mr. Speaker, that the United States Senate has not acted
expeditiously on this noncontroversial measure, and there are a couple
of pieces of it that cannot wait.
It is my intention--and I want to assure the gentlewoman from West
Virginia, the ranking member of the subcommittee who put a lot of good
work in this bill and who was responsible for some of its most
important provisions and safeguards--that we do not intend to let those
die. We will continue to press the Senate for the rest of this bill;
and we will also, in accordance with what we have said, have the
administrator of the FHA before us to talk about how this is being
done.
But what we need to do now is to take the authority we gave the FHA
to raise the fees--this is a bill when it had the CBO certification
they say doesn't result in any direct spending. In fact, it will save
money. It will price the FHA appropriately. People have been worried
about the FHA's fiscal solvency. This helps it.
So it's a bill--and I will say finally, it's taken from the larger
bill we have passed. We are reenacting today a small piece of a
comprehensive bill because while I am still fully committed and I know
others are to the comprehensive bill, it's important we do this now.
We're about to be without legislative capacity for 6 weeks.
So I urge that the House pass the bill.
I reserve the balance of my time.
Mrs. CAPITO. Mr. Speaker, I yield myself such time as I may consume.
I'm rising today in support of this bill, H.R. 5981, and as our
chairman said, we have been working diligently, I think, to bring forth
solid FHA reform. We passed that bill almost unanimously--I think it
was 406-4--probably about a month ago, and so the majority, the large
majority of this House is in agreement with a lot of the provisions in
that bill.
One of the provisions, as he said, is raising the annual premium on
FHA, and I think this is right and proper; and I think it's something
we need to do because, as we know and as has been brought forth in our
committee, the capital reserve fund has fallen, I believe, dangerously
low. And what we're trying to avoid is a situation where we may be
asked to bail or at least to help the FHA in some sort of infusion of
dollars from the Treasury.
So I wholeheartedly will support this bill, but I do want to
reemphasize, as the chairman said, we had a whole host of reforms in
our original bill. We cannot forget the other important reforms that
were in the original H.R. 5072, and we need to move forward with those
after our district work period and recess. We need to move forward with
this as expeditiously as we did before we left.
One thing in the short bill we're considering today, it does say that
the commissioner has to come before the committee within 270 days. I
would like to ask the chairman if we could have a hearing in September
on this very topic so that we can see what the status, at least interim
status, of the fund is.
Mr. FRANK of Massachusetts. Will the gentlewoman yield?
Mrs. CAPITO. I yield to the gentleman.
Mr. FRANK of Massachusetts. My answer is absolutely, we will have the
commissioner. I have to say HUD, the Secretary and the commissioner
have been very cooperative, and we will have such a hearing in
September.
Mrs. CAPITO. I thank the chairman for that.
I have no requests for time, and I yield back the balance of my time.
General Leave
Mr. FRANK of Massachusetts. Mr. Speaker, I ask unanimous consent that
all Members have 5 legislative days in which to revise and extend their
remarks and include extraneous material with regard to this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Massachusetts?
There was no objection.
Mr. FRANK of Massachusetts. Mr. Speaker, I yield back the balance of
my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Massachusetts (Mr. Frank) that the House suspend the
rules and pass the bill, H.R. 5981.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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