A bill to modernize the Federal Housing Administration to meet the housing needs of the American people.

Summary: 21st Century Housing Act - Amends the Housing Act of 1948 to authorize the Secretary of Housing and Urban Development, in carrying out any program through the Federal Housing Administration, to: (1) appoint and fix the compensation of Administration personnel; and (2) use premium-generated income for information technology upgrades.

Amends the National Housing Act to: (1) extend the maturity term for insured mortgages; (2) revise mortgage insurance eligibility criteria and requirements for premium charges; (3) authorize waiver of certain requirements for new product initiatives; (4) increase the maximum mortgage amount limit for multifamily housing in high-cost areas; and (5) increase the capital ratio for the Mutual Mortgage Insurance Fund.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``21st Century Housing Act''.

SEC. 2. INVESTMENT IN FHA INFRASTRUCTURE.

    (a) Human Resources and Funding.--Section 502(a) of the Housing Act 
of 1948 (12 U.S.C. 1701c(a)) is amended--
            (1) by striking ``The Secretary of Housing and Urban 
        Development'' and inserting the following:
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary of Housing and Urban Development''; and
            (2) by adding at the end the following:
            ``(2) Administration of fha programs.--
                    ``(A) Office personnel.--
                            ``(i) Appointment.--In carrying out any 
                        program through the Federal Housing 
                        Administration (in this section referred to as 
                        the `Administration'), the Secretary may 
                        appoint and fix the compensation of such 
                        officers and employees of the Administration as 
                        the Secretary considers necessary.
                            ``(ii) Compensation.--Any officer or 
                        employee appointed under clause (i) may be paid 
                        without regard to the provisions of chapter 51 
                        and subchapter III of chapter 53 of title 5, 
                        United States Code, relating to classification 
                        and General Schedule pay rates.
                    ``(B) Comparability of compensation with federal 
                banking agencies.--In fixing and directing compensation 
                under subparagraph (A), the Secretary shall consult 
                with, and maintain comparability with the compensation 
                of officers and employees of the Federal Deposit 
                Insurance Corporation.
                    ``(C) Personnel of other federal agencies.--In 
                carrying out the duties of the Administration, the 
                Secretary may use information, services, staff, and 
                facilities of any Federal executive agency, independent 
                agency, or department on a reimbursable basis, with the 
                consent of such agency or department.
                    ``(D) Outside experts and consultant.--In carrying 
                out the duties of the Administration, the Secretary may 
                procure temporary and intermittent services under 
                section 3109(b) of title 5, United States Code.
                    ``(E) Use of premium-generated income.--To the 
                extent that income derived in any fiscal year from 
                premium fees charged under section 203(c) of the 
                National Housing Act (12 U.S.C. 1709(c)) are in excess 
                of the level of income estimated for that fiscal year 
                for such premium fees and assumed in the baseline 
                projection prepared by the Director of the Office of 
                Management and Budget for inclusion in the President's 
                annual budget request, not more than $82,000,000 of 
                such excess amounts may be used from such amounts for 
                the purpose of carrying out this paragraph.''.
    (b) Information Technology Investment.--Section 502(a) of the 
Housing Act of 1948 (12 U.S.C. 1701c(a)), as amended by subsection (a), 
is amended by adding at the end the following:
            ``(3) Information technology.--
                    ``(A) In general.--In carrying out any program 
                through the Administration, the Secretary may utilize 
                such funds as are available under subparagraph (B) to 
                ensure that an appropriate level of investment in 
                information technology is maintained in order for the 
                Secretary to upgrade its technology systems.
                    ``(B) Use of premium-generated income.--To the 
                extent that income derived from premium fees charged 
                under section 203(c) of the National Housing Act (12 
                U.S.C. 1709(c)) are in excess of the level of income 
                estimated for that fiscal year for such premium fees 
                and assumed in the baseline projection prepared by the 
                Director of the Office of Management and Budget for 
                inclusion in the President's annual budget request, not 
                more than $72,000,000 of such excess amounts may be 
                used from such amounts for the purpose of carrying out 
                this paragraph.''.

SEC. 3. EXTENSION OF MORTGAGE TERM AUTHORITY.

    Section 203(b)(3) of the National Housing Act (12 U.S.C. 
1709(b)(3)) is amended--
            (1) by striking ``thirty-five years'' and inserting ``50 
        years''; and
            (2) by striking ``(or thirty years if such mortgage is not 
        approved for insurance prior to construction)''.

SEC. 4. DOWNPAYMENT FLEXIBILITY.

    Section 203(b)(9) of the National Housing Act (12 U.S.C. 
1709(b)(9)) is amended by striking ``(9)'' and all that follows through 
``Provided further, That for'' and inserting the following:
            ``(9) Be executed by a mortgagor who shall have paid on 
        account of the property, in cash or its equivalent, an amount, 
        if any, as the Secretary may determine, based on factors 
        determined by the Secretary and commensurate with the 
        likelihood of default. For''.

SEC. 5. MORTGAGE INSURANCE FLEXIBILITY.

    Section 203(c)(2) of the National Housing Act (12 U.S.C. 
1709(c)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking the first sentence and inserting 
                ``The Secretary shall establish and collect, at the 
                time of insurance, a single premium payment, in such 
                amount as the Secretary may determine, based on factors 
                determined by the Secretary and commensurate with the 
                likelihood of default of the homebuyer. Such premium 
                payment shall be in an amount not to exceed 3 percent 
                of the amount of the original insured principal 
                obligation of the mortgage.''; and
                    (B) by striking the second sentence; and
            (2) in subparagraph (B), by striking ``0.50 percent'' and 
        inserting ``1 percent''.

SEC. 6. INNOVATION FOR NEW PROJECTS.

    Section 203 of the National Housing Act (12 U.S.C. 1709) is amended 
by adding at the end the following:
    ``(y) Waiver for New Product Initiatives.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, and subject to the limitation under paragraph (2), the 
        Secretary may waive such requirements of this section as the 
        Secretary determines appropriate for any new product 
        initiative.
            ``(2) Limitation.--For all new product initiatives in any 
        fiscal year, the Secretary may allocate an amount equal to not 
        more than 10 percent of the amount necessary to carry out the 
        insurance of mortgages under this section for the prior fiscal 
        year.''.

SEC. 7. MAXIMUM MORTGAGE AMOUNT LIMIT FOR MULTIFAMILY HOUSING IN HIGH-
              COST AREAS.

    Sections 207(c)(3), 213(b)(2)(B)(i), 220(d)(3)(B)(iii)(III), 
221(d)(3)(ii)(II), 221(d)(4)(ii)(II), 231(c)(2)(B), and 234(e)(3)(B) of 
the National Housing Act (12 U.S.C. 1713(c)(3), 1715e(b)(2)(B)(i), 
1715k(d)(3)(B)(iii)(III), 1715l(d)(3)(ii)(II), 1715l(d)(4)(ii)(II), 
1715v(c)(2)(B)), and 1715y(e)(3)(B)) are each amended--
            (1) by striking ``140 percent'' each place that term 
        appears and inserting ``170 percent''; and
            (2) by striking ``170 percent'' each place that term 
        appears and inserting ``215 percent''.

SEC. 8. INCREASE IN FHA FINANCIAL INTEGRITY.

    Section 205(f)(2) of the National Housing Act (12 U.S.C. 
1711(f)(2)) is amended by striking ``2.0 percent'' and inserting ``3.0 
percent''.