[Congressional Record Volume 170, Number 119 (Tuesday, July 23, 2024)]
[Senate]
[Pages S5316-S5317]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3048. Mr. RUBIO (for himself and Mr. Ossoff) submitted an
amendment intended to be proposed by him to the bill S. 4638, to
authorize appropriations for fiscal year 2025 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. FHA MORTGAGE INSURANCE PROGRAM FOR MORTGAGES FOR
FIRST RESPONDERS.
Section 203 of the National Housing Act (12 U.S.C. 1709) is
amended by adding at the end the following:
``(z) FHA Mortgage Insurance Program for Mortgages for
First Responders.--
``(1) Definitions.--In this subsection:
``(A) First responder.--The term `first responder' means an
individual who is, as attested by the individual--
``(i)(I) employed full-time by a law enforcement agency of
the Federal Government, a State, a Tribal government, or a
unit of general local government; and
``(II) in carrying out such full-time employment, sworn to
uphold, and make arrests for violations of, Federal, State,
county, township, municipal, or Tribal laws, or authorized by
law to supervise sentenced criminal offenders or individuals
with pending criminal charges;
``(ii) employed full-time as a firefighter, paramedic, or
emergency medical technician by a fire department or
emergency medical services responder unit of the Federal
Government, a State, a Tribal government, or a unit of
general local government; or
``(iii) employed as a full-time teacher by a State-
accredited public school or private school that provides
direct services to students in grades pre-kindergarten
through 12.
``(B) First-time homebuyer.--The term `first-time
homebuyer' has the meaning given the term in section 104 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12704).
``(C) State.--The term `State' has the meaning given the
term in section 201.
``(D) Tribal government.--The term `Tribal government'
means the recognized governing body of any Indian or Alaska
Native tribe, band, nation, pueblo, village, community,
component band, or component reservation, individually
identified (including parenthetically) in the list published
most recently pursuant to section 104 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).
[[Page S5317]]
``(2) Authority.--The Secretary may, upon application by a
mortgagee, insure any mortgage eligible for insurance under
this subsection to an eligible mortgagor and, upon such terms
and conditions as the Secretary may prescribe, make
commitments for the insurance of such mortgages prior to the
date of their execution or disbursement.
``(3) Mortgage terms; mortgage insurance premium.--
``(A) Terms.--
``(i) In general.--A mortgage insured under this subsection
shall--
``(I) be made to an eligible mortgagor;
``(II) comply with the requirements established under
paragraphs (1) through (7) of subsection (b); and
``(III) be used only to--
``(aa) purchase or repair a 1-family residence, including a
1-family dwelling unit in a condominium project, to serve as
a principal residence of the mortgagor, as attested by the
mortgagor; or
``(bb) purchase a principal residence of the mortgagor, as
attested by the mortgagor, which is--
``(AA) a manufactured home to be permanently affixed to a
lot that is owned by the mortgagor and titled as real
property; or
``(BB) a manufactured home and a lot to which the home will
be permanently affixed that is titled as real property.
``(ii) No down payment.--Notwithstanding any provision to
the contrary in the matter following subsection (b)(2)(B)
with respect to first-time homebuyers--
``(I) the Secretary may insure any mortgage that involves
an original principal obligation (including allowable charges
and fees and the premium pursuant to subparagraph (B) of this
paragraph) in an amount not to exceed 100 percent of the
appraised value of the property involved; and
``(II) the mortgagor of a mortgage described in subclause
(I) shall not be required to pay any amount, in cash or its
equivalent, on account of the property.
``(B) Mortgage insurance premium.--
``(i) Up-front premium.--The Secretary shall establish and
collect an insurance premium in connection with mortgages
insured under this subsection that is a percentage of the
original insured principal obligation of the mortgage amount,
which shall be collected at the time and in the manner
provided under subsection (c)(2)(A), except that the premiums
collected under this subparagraph--
``(I) may be in an amount that exceeds 3 percent of the
amount of the original insured principal obligation of the
mortgage; and
``(II) may be adjusted by the Secretary from time to time
by increasing or decreasing such percentages as the Secretary
considers necessary, based on the performance of mortgages
insured under this subsection and market conditions.
``(ii) Prohibition of monthly premiums.--A mortgage insured
under this subsection shall not be subject to a monthly
insurance premium, including a premium under subsection
(c)(2)(B).
``(4) Eligible mortgagors.--The mortgagor for a mortgage
insured under this subsection shall, at the time the mortgage
is executed--
``(A) be a first-time homebuyer;
``(B) have completed a program of housing counseling
provided through a housing counseling agency approved by the
Secretary;
``(C) as attested by the mortgagor--
``(i) be employed as a first responder;
``(ii) have been--
``(I) employed as a first responder for not less than 4 of
the 5 years preceding the date on which the mortgagor
submitted an application to insure the mortgage under this
section; or
``(II) released from employment as a first responder due to
an occupation-connected disability resulting from such duty
or employment;
``(iii) be in good standing as a first responder and not on
probation or under investigation for conduct that, if
determined to have occurred, is grounds for termination of
employment;
``(iv) in good faith intend to continue as a first
responder for not less than 1 year following the date of
closing on the mortgage; and
``(v) have previously never been the mortgagor under a
mortgage insured under this subsection;
``(D) meet such requirements as the Secretary shall
establish to ensure that insurance of the mortgage represents
an acceptable risk to the Mutual Mortgage Insurance Fund; and
``(E) meet such underwriting requirements as the Secretary
shall establish to meet actuarial objectives identified by
the Secretary, which may include avoiding a positive subsidy
rate or complying with the capital ratio requirement under
section 205(f)(2).
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out the program under this
subsection--
``(A) $660,000 for fiscal year 2024, to remain available
until expended; and
``(B) $160,000 for each of fiscal years 2025 through 2030,
to remain available until expended.
``(6) Reauthorization required.--The authority to enter
into new commitments to insure mortgages under this
subsection shall expire on the date that is 5 years after the
date on which the Secretary first makes available insurance
for mortgages under this subsection.''.
______