[Congressional Record Volume 172, Number 42 (Thursday, March 5, 2026)]
[Senate]
[Pages S896-S897]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4357. Mr. SCHUMER submitted an amendment intended to be proposed 
by him to the bill H.R. 6644, a bill to increase the supply of housing 
in America, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. MORTGAGE INSURANCE REFORMS.

       (a) Findings.--Congress finds the following:
       (1) Each year, millions of homebuyers must purchase costly 
     mortgage insurance, which can tack on thousands of dollars in 
     costs to the already expensive process of buying a home, 
     which is an aspiration increasingly out of reach for far too 
     many people in the United States.
       (2) Government-backed mortgages require the borrower to 
     purchase mortgage insurance in the form of an upfront 
     mortgage insurance premium and an annual mortgage insurance 
     premium that is paid in monthly installments.
       (3) Conventional mortgages require private mortgage 
     insurance (in this section referred to as ``PMI'') for the 
     approximately 800,000 homeowners each year who make a down 
     payment of less than 20 percent of the home purchase price.
       (4) More than 28 percent of all mortgage loans that 
     originated between 1999 and 2022 required mortgage insurance.
       (5) PMI costs families an average of $2,110 per year, or 
     $176 per month.
       (6) For some families, PMI can cost as much as $6,210 per 
     year, or more than $500 per month.
       (7) For mortgages insured by the Federal Housing 
     Administration (in this section referred to as the ``FHA''), 
     the average mortgage insurance premium is $1,650 per year, or 
     about $137 per month.
       (8) In 2023, the FHA announced a 30 basis-point reduction 
     to annual mortgage insurance premiums for new mortgages 
     insured by the FHA, saving more than 1,100,000 borrowers an 
     average of $453 each annually. Total savings for these 
     borrowers over a loan life of roughly 10 years is forecasted 
     to amount to more than $5,100,000,000.
       (b) Maximum Capital Ratio for Mutual Mortgage Insurance 
     Fund.--
       (1) In general.--Section 205(f) of the National Housing Act 
     (12 U.S.C. 1711(f)) is amended--
       (A) by redesignating paragraph (4) as paragraph (5); and
       (B) by inserting after paragraph (3) the following:
       ``(4)(A) Subject to subparagraph (B), the Secretary shall 
     ensure that the capital ratio of the Mutual Mortgage 
     Insurance Fund does not exceed 5.75 percent.
       ``(B) At the end of the 2-year period beginning on the date 
     of enactment of this paragraph, and annually thereafter, the 
     Secretary--
       ``(i) shall evaluate, based on market conditions and the 
     health of the Mutual Mortgage Insurance Fund, whether to 
     increase or decrease the maximum percentage under 
     subparagraph (A); and
       ``(ii) may increase or decrease the maximum percentage 
     under subparagraph (A) if the Secretary determines 
     appropriate.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on the date that is 60 days after the date 
     of enactment of this Act.
       (c) Automatic Termination of Premium Payments for FHA 
     Mortgage Insurance.--

[[Page S897]]

     Section 203(c)(2)(B) of the National Housing Act (12 U.S.C. 
     1709(c)(2)(B)) is amended--
       (1) by striking ``for the following periods:'' and all that 
     follows through ``(ii) For any mortgage involving an original 
     principal obligation (excluding any premium collected under 
     subparagraph (A)) that is greater than or equal to 90 percent 
     of such value, for the first 30 years of the mortgage term; 
     except that notwithstanding the matter preceding clause 
     (i),'' and inserting the following: ``for the first 5 years 
     of the mortgage term, except that'';
       (2) by striking ``such value'' and inserting `` the 
     appraised value of the property (as of the date the mortgage 
     is accepted for insurance)''; and
       (3) by striking ``under this clause'' and inserting ``under 
     this subparagraph''.
       (d) Cancellation or Automatic Termination of Private 
     Mortgage Insurance.--Section 2 of the Homeowners Protection 
     Act of 1998 (12 U.S.C. 4901) is amended--
       (1) in paragraph (2), by striking ``80 percent'' each place 
     that term appears and inserting ``85 percent''; and
       (2) in paragraph (18), by striking ``78 percent'' each 
     place that term appears and inserting ``80 percent''.
                                 ______