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[House Report 111-503]
[From the U.S. Government Publishing Office]

111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-503

======================================================================

 
  PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5072) TO IMPROVE THE 
 FINANCIAL SAFETY AND SOUNDNESS OF THE FHA MORTGAGE INSURANCE PROGRAM, 
    AND PROVIDING FOR CONSIDERATION OF MOTIONS TO SUSPEND THE RULES

                                _______
                                

    June 8, 2010.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

  Mr. Perlmutter, from the Committee on Rules, submitted the following

                              R E P O R T

                      [To accompany H. Res. 1424]

    The Committee on Rules, having had under consideration 
House Resolution 1424, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 5072, the 
``FHA Reform Act of 2010,'' under a structured rule. The 
resolution waives all points of order against consideration of 
the bill except those arising under clause 9 or 10 of rule XXI. 
The resolution provides one hour of general debate equally 
divided and controlled by the chair and ranking minority member 
of the Committee on Financial Services. The resolution provides 
that the amendment in the nature of a substitute recommended by 
the Committee on Financial Services now printed in the bill 
shall be considered as an original bill for the purpose of 
amendment and shall be considered as read. The rule waives all 
points of order against the amendment in the nature of a 
substitute except for clause 10 of rule XXI. This waiver does 
not affect the point of order available under clause 9 of rule 
XXI (regarding earmark disclosure). The rule further makes in 
order only those amendments printed in this report. The 
amendments made in order may be offered only in the order 
printed in this report, may be offered only by a Member 
designated in this report, shall be considered as read, shall 
be debatable for the time specified in this report equally 
divided and controlled by the proponent and an opponent, shall 
not be subject to amendment, and shall not be subject to a 
demand for division of the question. All points of order 
against the amendments except for clauses 9 and 10 of rule XXI 
are waived. The rule provides one motion to recommit with or 
without instructions. The resolution provides that the Chair 
may entertain a motion that the Committee rise only if offered 
by the chair of the Committee on Financial Services or a 
designee. The resolution provides that the Chair may not 
entertain a motion to strike out the enacting words of the 
bill. The resolution authorizes the Speaker to entertain 
motions that the House suspend the rules at any time through 
the legislative day of June 11, 2010. The Speaker or her 
designee shall consult with the Minority Leader or his designee 
on the designation of any matter for consideration pursuant to 
this resolution.

                         EXPLANATION OF WAIVERS

    Although the resolution waives all points of order against 
consideration of the bill (except for clauses 9 and 10 of rule 
XXI) and all points of order against the amendment in the 
nature of a substitute (except for clause 10 of rule XXI), the 
Committee is not aware of any points of order. The waivers of 
all points of order are prophylactic.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 440

    Date: June 8, 2010.
    Measure: H.R. 5072.
    Motion by: Mr. Dreier.
    Summary of motion: To report an open rule.
    Results: Defeated 3-8.
    Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay; 
Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; Polis--Nay; 
Dreier--Yea; Diaz-Balart, L.--Yea; Sessions--Yea; Slaughter--
Nay.

Rules Committee record vote No. 441

    Date: June 8, 2010.
    Measure: H.R. 5072.
    Motion by: Mr. Lincoln Diaz-Balart of Florida.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Garrett (NJ), #4, which would 
require FHA-approved private lenders to retain 5% of the risk 
of the loans they write by allowing FHA to insure only 95% of 
each loan.
    Results: Defeated 3-8.
    Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay; 
Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; Polis--Nay; 
Dreier--Yea; Diaz-Balart, L.--Yea; Sessions--Yea; Slaughter--
Nay.

Rules Committee record vote No. 442

    Date: June 8, 2010.
    Measure: H.R. 5072.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Roskam (IL), #14, which would 
set a compensation limit at the level of the Chairman of the 
Joint Chiefs of Staff of the Armed Forces for executives at 
Fannie Mae and Freddie Mac while either is in conservatorship 
or receivership.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; 
Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-Balart, L.--Yea; 
Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 443

    Date: June 8, 2010.
    Measure: H.R. 5072.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Garrett (NJ), #2, which would 
prohibit the Up-Front Premium from being financed into the loan 
amount.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; 
Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-Balart, L.--Yea; 
Sessions--Yea; Slaughter--Nay.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    1. Waters (CA): Would (1) provide for various technical 
corrections, (2) make modifications to the GAO report in 
section 15 of the bill, (3) provide that the Secretary may 
increase loan limits for micropolitan counties surrounded by 
higher cost areas and experiencing significant growth, and (4) 
address documentation standards for FHA loans. (10 minutes)
    2. Cardoza (CA): Would prioritize foreclosure counseling 
services to areas of the country that have been the hardest-hit 
by the housing crisis. (10 minutes)
    3. Cao (LA): Would include information about credit risk 
and financial counseling services to mortgagors in addition to 
the housing and loan modification information currently 
included in the bill. (10 minutes)
    4. Bean (IL): Would require HUD to submit an annual report 
to Congress discussing proposed or actual increases in the 
minimum cash investment requirements (downpayment requirements) 
in the FHA program. It would further give HUD the authority to 
establish higher minimum cash investment requirements for all 
or class(es) of borrowers and requires HUD to take into 
consideration the findings of the annual report. (10 minutes)
    5. Garrett (NJ): Would raise the FHA down payment 
requirement from 3.5% to 5% and prohibit closing costs from 
being rolled in as well. (10 minutes)
    6. Tierney (MA): Would (1) direct the Secretary of the 
Department of Housing and Urban Development to provide mortgage 
insurance premium refunds to eligible borrowers of FHA insured 
loans, which were closed prior to December 8, 2004, but which 
were not endorsed until December 8, 2004 or after that date, 
and; (2) authorize such sums as may be necessary for such 
refunds. (10 minutes)
    7. Price, Tom (GA): Would cap the number of mortgages the 
FHA can issue to 10% of total loans originated in the U.S. each 
year. Within 90 days of enactment, FHA must submit a plan to 
Congress to roll back FHA market share to 10% of loans 
originated each year by 2012. (10 minutes)
    8. Weiner (NY), Miller, Gary (CA): Would increase loan 
limits for the construction or rehabilitation of multifamily 
housing with elevators including rentals, cooperatives, 
condominiums to ensure that they represent today's construction 
costs. Would create an ``extremely high cost area'' category 
for FHA Multifamily Insurance for those areas, similar to those 
in Alaska, Guam, Hawaii, and the Virgin Islands. (10 minutes)
    9. Turner (OH): Would repeal the emergency authority that 
allows the FHA to insure loans up to $720,000 in certain high 
cost areas. The amendment would create a maximum loan limit of 
$500,000 for a single family unit and a percentage of the same 
ratio for 2-, 3- or 4-family residences. (10 minutes)
    10. Clarke (NY), Cuellar (TX): Would direct the GAO to 
include in its FHA report an analysis on the effectiveness of 
HUD's loss mitigation home retention options in assisting 
individuals, particularly low income borrowers, in avoiding 
home foreclosure for mortgages. (10 minutes)
    11. Nye (VA): Would instruct the Federal Housing 
Administration to continue the Special Forbearance program, as 
it relates to Chinese Drywall, until the end of FY 2011. (10 
minutes)
    12. Edwards, Chet (TX): Would require individuals to 
certify that they have not been convicted of a sex offense 
against a minor in order to get an FHA mortgage. (10 minutes)
    13. Adler (NJ): Would state that no funds authorized under 
the act may be used to pay the salary of an employee who has 
been officially disciplined for viewing, downloading, or 
exchanging pornography (including child pornography) on a 
Federal Government computer or while performing official 
Federal Government duties. (10 minutes)

                 TEXT OF AMENDMENTS TO BE MADE IN ORDER

 1. An Amendment To Be Offered by Representative Waters of California, 
               or Her Designee, Debatable for 10 Minutes

  Page 9, line 19, after ``single family'' insert 
``residences''.
  Page 18, line 24, strike ``12-month'' and insert ``18-
month''.
  Page 14, after line 16, insert the following new section:

SEC. 13. AUTHORIZATION TO PARTICIPATE IN THE ORIGINATION OF FHA-INSURED 
                    LOANS.

  (a) Single Family Mortgages.--Section 203(b) of the National 
Housing Act (12 U.S.C. 1709(b)) is amended by striking 
paragraph (1) and inserting the following new paragraph:
          ``(1) Have been made to a mortgagee approved by the 
        Secretary or to a person or entity authorized by the 
        Secretary under section 202(d)(1) to participate in the 
        origination of the mortgage, and be held by a mortgagee 
        approved by the Secretary as responsible and able to 
        service the mortgage properly.''.
  (b) Home Equity Conversion Mortgages.--Section 255(d) of the 
National Housing Act (12 U.S.C. 1715z-20(d)) is amended by 
striking paragraph (1) and inserting the following new 
paragraph:
          ``(1) have been originated by a mortgagee approved 
        by, or by a person or entity authorized under section 
        202(d)(1) to participate in the origination by, the 
        Secretary;''.
  Page 14, line 17, strike ``13'' and insert ``14''.
  Page 15, line 14, strike ``14'' and insert ``15''.
  Strike line 23 on page 18 and all that follows through page 
22, line 20, and insert the following:

SEC. 16. GAO REPORT ON FHA.

  Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the 
Comptroller General of the United States shall submit to the 
Congress a report on the single family mortgage insurance 
programs of the Secretary of Housing and Urban Development and 
the Mutual Mortgage Insurance Fund established under section 
202(a) of the National Housing Act (12 U.S.C. 1708(a)) that--
          (1) analyzes such Fund, the economic net worth, 
        capital ratio, and unamortized insurance-in-force (as 
        such terms are defined in section 205(f)(4) of such Act 
        (12 U.S.C. 1711(f)(4))) of such Fund, the risks to the 
        Fund, how the capital ratio of the Fund affects the 
        mortgage insurance programs under the Fund and the 
        broader housing market, the extent to which the housing 
        markets are more dependent on mortgage insurance 
        provided through the Fund since the financial crisis 
        began in 2008, and the exposure of the taxpayers for 
        obligations of the Fund;
          (2) analyzes the methodology for determining the 
        Fund's capital ratio under section 205(f) of such Act 
        and examines alternative methods for assessing the 
        Fund's financial condition and their potential impacts 
        on the Fund's ability to meet the operational goals 
        under section 202(a)(7) of such Act;
          (3) analyzes the potential effects of the increases 
        in the limits on the maximum principal obligation of 
        mortgages made by the FHA Modernization Act of 2008 
        (title I of division B of Public Law 110-289), section 
        202 of the Economic Stimulus Act of 2008 (Public Law 
        110-185; 122 Stat. 620), section 1202 of division A of 
        the American Recovery and Reinvestment Act of 2009 
        (Public Law 111-5; 123 Stat. 225), and section 166 of 
        the Continuing Appropriations Resolution, 2010 (as 
        added by section 104 of division B of Public Law 111-
        88; 123 Stat. 29723) on--
                  (A) the risks to and safety and soundness of 
                the Fund;
                  (B) the impact on the affordability and 
                availability of mortgage credit for borrowers 
                for loans authorized under such higher loan 
                limits;
                  (C) the private market for residential 
                mortgage loans that are not insured by the 
                Secretary of Housing and Urban Development; and
                  (D) the Federal National Mortgage Association 
                and the Federal Home Loan Mortgage Corporation; 
                and
          (4) analyzes the impact on affordability to FHA 
        borrowers, and the impact to the Fund, of seller 
        concessions or contributions to a borrower purchasing a 
        residence using a mortgage that is insured by the 
        Secretary.
  At the end of the bill, add the following new sections:

SEC. 17. INCREASED LOAN LIMITS FOR DESIGNATED COUNTIES.

  (a) Authority.--Notwithstanding any other provision of law, 
the Secretary of Housing and Urban Development (in this section 
referred to as the ``Secretary'') may increase the dollar 
amount limitations on the principal obligation of mortgages 
otherwise determined under section 203(b)(2) of the National 
Housing Act for any county that is designated under this 
section.
  (b) Procedure.--
          (1) Federal register notice.--Any designation of a 
        county under this section shall be made only pursuant 
        to application by the county for such designation, in 
        accordance with procedures that the Secretary may 
        establish. The Secretary may establish such procedures 
        only by publication in the Federal Register not later 
        than 60 days after the date of the enactment of this 
        Act.
          (2) Final determination.--If the Secretary 
        establishes procedures for applications under paragraph 
        (1) and receives a completed application for 
        designation under this section of a county in 
        accordance with such procedures, the Secretary shall 
        issue a final determination regarding such application 
        for designation, based on the criteria under subsection 
        (c), not later than 60 days after such receipt.
  (c) Determination Criteria.--The Secretary may designate an 
applicant county under this section only if the county is 
located within a micropolitan area (as such term is defined by 
the Director of the Office of Management and Budget) and meets 
the following criteria:
          (1) More than 70 percent of the border of the 
        applicant county abuts two or more metropolitan 
        statistical areas (as such term is defined by the 
        Director of the Office of Management and Budget) for 
        which each dollar amount limitation on the principal 
        obligation of a mortgage that may be insured under 
        section 203 of the National Housing Act, in effect at 
        the time of such determination, is at least 40 percent 
        greater than the dollar amount limitation for the same 
        size residence for the applicant county. For purposes 
        of such calculation, the dollar amount limitations of 
        such abutting counties shall not include any increase 
        attributable to the authority under this section.
          (2) The applicant county has experienced significant 
        population growth, as evidenced by an increase of 15 
        percent or more during the 10 years preceding the 
        application, according to statistics of the United 
        States Census Bureau or such other appropriate criteria 
        as the Secretary shall establish.
          (3) The dollar amount limitation on the principal 
        obligation of a mortgage on housing in the applicant 
        county that may be insured under section 203 of the 
        National Housing Act, in effect at the time of such 
        application, is the minimum such dollar amount 
        limitation allowable under the matter that follows 
        clause (ii) in section 203(b)(2)(A) of the National 
        Housing Act.
  (d) Establishment of Loan Limits.--For a county designated 
under this section, the Secretary may increase the maximum 
dollar amount limitations on the principal obligation of 
mortgages otherwise determined under section 203(b)(2) of the 
National Housing Act to such levels as are appropriate, taking 
into consideration the criteria established for such 
designation, but not to exceed the dollar amount limitations 
for the abutting metropolitan statistical area meeting the 
requirements of subsection (c)(1) that has the lowest such 
dollar amount limitations.
  (e) Effective Date and Term of Designation of New Countywide 
Loan Limits.--A designation of a county under this section, and 
the maximum dollar amount limitations for such county pursuant 
to subsection (d), shall--
          (1) take effect upon the expiration of the 60-day 
        period that begins upon the final determination for the 
        county referred to in subsection (b)(2); and
          (2) remain in effect until the end of the calendar 
        year in which such designation takes effect.
  (f) Loan Limits for Succeeding Years.--With respect to each 
calendar year immediately following the calendar year in which 
a county is designated under this subsection, the Secretary 
may, notwithstanding any other provision of law, continue or 
adjust the dollar amount limitations in effect pursuant to this 
section for such designated county for such preceding year, as 
appropriate, consistent with the criteria under this section.

SEC. 18. IDENTIFICATION REQUIREMENTS FOR BORROWERS.

  Section 203 of the National Housing Act (12 U.S.C. 1709), as 
amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
  ``(z) Identification Requirements for Borrowers.--No mortgage 
on a 1- to 4-family dwelling may be insured under this title 
unless the mortgagor under such mortgage--
          ``(1) provides a valid Social Security Number; and
          ``(2) is (A) a United States citizen, (B) a lawful 
        permanent resident alien, or (C) a non-permanent 
        resident alien who legally resides in and is authorized 
        to work in the United States.
The Secretary shall establish policies under which mortgagees 
verify compliance with the requirements under this 
subsection.''.
                              ----------                              

2. An Amendment To Be Offered by Representative Cardoza of California, 
               or His Designee, Debatable for 10 Minutes

  Page 15, line 20, strike ``(e)'' and insert ``(f)''.
  Page 18, after line 16, insert the following new subsection:
  (e) Priority.--In providing reimbursements under this 
section, the Secretary of Housing and Urban Development shall 
provide priority to independent third parties serving 
mortgagors under covered mortgages in areas experiencing a 
mortgage foreclosure rate and unemployment rate higher than the 
national average for the most recent 12-month period for which 
satisfactory data are available.
  Page 18, line 17, strike ``(e)'' and insert ``(f)''.
                              ----------                              

 3. An Amendment To Be Offered by Representative Cao of Louisiana, or 
                 His Designee, Debatable for 10 Minutes

  Page 16, line 4, strike ``and''.
  Page 16, line 6, strike the period and insert ``; and''.
  Page 16, after line 6, insert the following:
          (3) available counseling regarding financial 
        management and credit risk.
                              ----------                              

 4. An Amendment To Be Offered by Representative Bean of Illinois, or 
                 Her Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 16. AUTHORITY TO ESTABLISH HIGHER MINIMUM CASH INVESTMENT 
                    REQUIREMENT.

  (a) Authority.--Paragraph (9) of section 203(b) of the 
National Housing Act (12 U.S.C. 1709(b)(9)) is amended by 
adding at the end the following new subparagraph:
                  ``(D) Authority to establish higher minimum 
                requirement.--The Secretary may establish a 
                higher minimum cash investment requirement than 
                the minimum requirement under subsection (a), 
                for all mortgagors or a certain class or 
                classes of mortgagors, which may be based on 
                criteria related to borrowers' credit scores or 
                other industry standards related to borrowers' 
                financial soundness. In establishing such a 
                higher minimum cash investment requirement, the 
                Secretary shall take into consideration the 
                findings of the most recent annual report to 
                the Congress on minimum cash investments 
                pursuant to section 16(b) of the FHA Reform Act 
                of 2010.''.
  (b) Report.--Not later than the expiration of the 12-month 
period beginning on the date of the enactment of this Act and 
annually thereafter, the Secretary of Housing and Urban 
Development shall submit to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate a report detailing the 
implementation of the minimum cash investment requirements 
under section 203(b)(9) of the National Housing Act (12 U.S.C. 
1709(b)(9)) and discussing and analyzing options for proposed 
changes to such requirements, including changes that would take 
into account borrowers' credit scores or other industry 
standards related to borrowers' financial soundness. Such 
report shall--
          (1) analyze the impacts that any actual or proposed 
        such changes are projected to have on--
                  (A) the financial soundness of the Mutual 
                Mortgage Insurance Fund;
                  (B) the housing finance market of the United 
                States; and
                  (C) the number of borrowers served by the 
                Federal Housing Administration;
          (2) explain the reasons for any actual or proposed 
        such changes in the such requirements made since the 
        last report under this subsection;
          (3) evaluate the impact of any actual or proposed 
        such changes in such requirements on the Mutual 
        Mortgage Insurance Fund;
          (4) evaluate the impacts of any actual or proposed 
        such changes on potential mortgagors under mortgages on 
        one- to four-family dwellings insured by the Secretary 
        under the National Housing Act; and
          (5) evaluate the impact of any actual or proposed 
        such changes on the soundness of the housing market in 
        the United States.
                              ----------                              

5. An Amendment To Be Offered by Representative Garrett of New Jersey, 
               or His Designee, Debatable for 10 Minutes

  Page 3, after line 16, insert the following new section:

SEC. 3. DOWNPAYMENT REQUIREMENT OF 5 PERCENT AND PROHIBITION OF 
                    FINANCING OF CLOSING COSTS.

  Section 203 of the National Housing Act (12 U.S.C. 1709) is 
amended--
          (1) in subsection (b)(9)(A), by striking ``3.5 
        percent'' and inserting ``5.0 percent''; and
          (2) in subsections (b)(2) and (k)(3)(A), by striking 
        ``(including such initial service charges, appraisal, 
        inspection, and other fees as the Secretary shall 
        approve)'' each place such term appears and inserting 
        ``(which may not include any initial service charges, 
        appraisal, inspection, or other fees or closing costs 
        as the Secretary shall prohibit)''.
                              ----------                              

      6. An Amendment To Be Offered by Representative Tierney of 
        Massachusetts, or His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 16. MORTGAGE INSURANCE PREMIUM REFUNDS.

  (a) Authority.--The Secretary of Housing and Urban 
Development shall, to the extent that amounts are made 
available pursuant to subsection (c), provide refunds of 
unearned premium charges paid at the time of insurance for 
mortgage insurance under title II of the National Housing Act 
(12 U.S.C. 1707 et seq.) to or on behalf of mortgagors under 
mortgages described in subsection (b).
  (b) Eligible Mortgages.--A mortgage described in this section 
is a mortgage on a one- to four-family dwelling that--
          (1) was insured under title II of the National 
        Housing Act (12 U.S.C. 1707 et seq.);
          (2) is otherwise eligible, under the last sentence of 
        subparagraph (A) of section 203(c)(2) of such Act (12 
        U.S.C. 1709(c)(2)(A)), for a refund of all unearned 
        premium charges paid on the mortgage pursuant to such 
        subparagraph, except that the mortgage--
                  (A) was closed before December 8, 2004; and
                  (B) was endorsed on or after such date.
  (c) Authorization of Appropriations.--There is authorized to 
be appropriated for each fiscal year such sums as may be 
necessary to provide refunds of unearned mortgage insurance 
premiums pursuant to this section.
                              ----------                              

 7. An Amendment To Be Offered by Representative Tom Price of Georgia, 
               or His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 16. LIMITATION ON FHA SHARE OF MORTGAGE MARKET.

  (a) 10 Percent Limitation.--Section 203 of the National 
Housing Act (12 U.S.C. 1709) is amended by inserting after 
subsection (h) the following new subsection:
  ``(i) Limitation on FHA Market Share.--Notwithstanding any 
other provision of law, the aggregate number of mortgages 
secured by one- to four-family dwellings that are insured under 
this title in fiscal year 2012 or any fiscal year thereafter 
may not exceed 10 percent of the aggregate number of mortgages 
on such dwellings originated in the United States (but not 
including mortgages insured under this title), as determined by 
the Secretary after consultation with appropriate Federal 
financial regulatory agencies, during the preceding fiscal 
year.''.
  (b) Plan.--Not later than the expiration of the 90-day period 
beginning upon the date of the enactment of this Act, the 
Secretary of Housing and Urban Development shall submit to the 
Congress a plan setting forth a strategy and actions to be 
taken to ensure compliance with section 203(i) of the National 
Housing Act, as added by the amendment made by subsection (a) 
of this section.
                              ----------                              

8. An Amendment To Be Offered by Representative Weiner of New York, or 
                 His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 16. MAXIMUM MORTGAGE AMOUNT LIMITS FOR MULTIFAMILY HOUSING.

  (a) Elevator-Type Structures.--
          (1) Amendments.--The National Housing Act is amended 
        in each of the provisions specified in paragraph (2)--
                  (A) by inserting ``with sound standards of 
                construction and design'' after ``elevator-type 
                structures'' the first place such term appears; 
                and
                  (B) by striking ``to not to exceed'' and all 
                that follows through ``sound standards of 
                construction and design'' each place such terms 
                appear and inserting ``by not more than 50 
                percent of the amounts specified for each unit 
                size''.
          (2) Provisions amended.--The provisions of the 
        National Housing Act specified in this paragraph are as 
        follows:
                  (A) Subparagraph (A) of section 207(c)(3) (12 
                U.S.C. 1713(c)(3)(A)).
                  (B) Subparagraph (A) of section 213(b)(2) (12 
                U.S.C. 1715e(b)(2)(A)).
                  (C) Subclause (I) of section 
                220(d)(3)(B)(iii) (12 U.S.C. 
                1715k(d)(3)(B)(iii)(I)).
                  (D) In section 221(d) (12 U.S.C. 1715l(d))--
                          (i) subclause (I) of paragraph 
                        (3)(ii); and
                          (ii) subclause (I) of paragraph 
                        (4)(ii).
                  (E) Subparagraph (A) of section 231(c)(2) (12 
                U.S.C. 1715v(c)(2)(A)).
                  (F) Subparagraph (A) of section 234(e)(3) (12 
                U.S.C. 1715y(e)(3)(A)).
  (b) Extremely High-Cost Areas.--Section 214 of the National 
Housing Act (12 U.S.C. 1715d) is amended--
          (1) in the first sentence--
                  (A) by inserting ``, or with respect to 
                projects consisting of more than four dwelling 
                units located in an extremely high-cost area as 
                determined by the Secretary'' after ``or the 
                Virgin Islands'' the first place such term 
                appears;
                  (B) by inserting ``, or to construct projects 
                consisting of more than four dwelling units on 
                property located in an extremely high-cost area 
                as determined by the Secretary'' after ``or the 
                Virgin Islands'' the second place such term 
                appears; and
                  (C) by inserting ``, or with respect to 
                projects consisting of more than four dwelling 
                units located in an extremely high-cost area as 
                determined by the Secretary'' after ``or the 
                Virgin Islands'' the third place such term 
                appears;
          (2) in the second sentence--
                  (A) by inserting ``, or with respect to a 
                project consisting of more than four dwelling 
                units located in an extremely high-cost area as 
                determined by the Secretary,'' after ``or the 
                Virgin Islands'' the first place such term 
                appears; and
                  (B) by inserting ``, or in the case of a 
                project consisting of more than four dwelling 
                units in an extremely high-cost area as 
                determined by the Secretary, in such extremely 
                high-cost area,'' after ``or the Virgin 
                Islands'' the second place such term appears; 
                and
          (3) in the section heading, by striking ``and the 
        virgin islands'' and inserting ``the virgin islands, 
        and extremely high-cost areas''.
  (c) Effective Date.--The amendments made by this section 
shall apply to mortgages insured under title II of the National 
Housing Act after September 30, 2010.
                              ----------                              

9. An Amendment To Be Offered by Representative Turner of Ohio, or His 
                   Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 16. FHA MAXIMUM LOAN LIMITS FOR 2010.

  Section 166 of the Continuing Appropriations Resolution, 2010 
(as added by section 104 of Public Law 111-88; 123 Stat. 2972) 
is amended--
          (1) in subsection (a), by striking ``For'' and 
        inserting ``Except as provided in subsection (c), 
        for'';
          (2) in subsection (b), by inserting ``the lesser of 
        the applicable amount under subsection (c) of this 
        section or'' after ``but in no case to an amount that 
        exceeds''; and
          (3) by adding at the end the following new 
        subsection:
  ``(c) Absolute Ceiling Limits.--Notwithstanding any other 
provision of this section, the maximum dollar amount limitation 
on the principal obligation of a mortgage determined under this 
section for any area or subarea may not exceed, in the case of 
a one-family residence, $500,000, and in the case of a 2-, 3-, 
or 4-family residence, the percentage of such amount that bears 
the same ratio to such amount as the dollar amount limitation 
determined under the sixth sentence of section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act for a 2-, 3-, or 4-
family residence, respectively, bears to the dollar amount 
limitation determined under such section for a 1-family 
residence.''.
                              ----------                              

10. An Amendment To Be Offered by Representative Clarke of New York, or 
                 Her Designee, Debatable for 10 Minutes

  Page 21, line 3, strike ``and''.
  Page 21, line 8, strike the period and insert ``; and''.
  Page 21, after line 8, insert the following:
                  (E) analyzes the effectiveness of the loss 
                mitigation home retention options of the 
                Department of Housing and Urban Development in 
                assisting individuals in avoiding home 
                foreclosure for mortgages on 1- to 4-family 
                residences insured under subsection (b) or (k) 
                of section 203, section 234(c), or section 251 
                of the National Housing Act, particularly for 
                low-income individuals (as such term is defined 
                in section 103 of the Riegle Community 
                Development and Regulatory Improvement Act of 
                1994 (12 U.S.C. 4702)).
                              ----------                              

 11. An Amendment To Be Offered by Representative Nye of Virginia, or 
                 His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 16. SPECIAL FORBEARANCE FOR MORTGAGORS WITH CHINESE DRYWALL.

  The provisions of Mortgagee Letter 2002-17 of the Secretary 
of Housing and Urban Development (regarding ``Special 
Forbearance: Program Changes and Updates'') relating to Type I 
Special Forbearance shall apply, until the conclusion of fiscal 
year 2011 and may not be revoked, annulled, repealed, or 
rescinded during such period, with respect to mortgagees of 
mortgages insured under title II of the National Housing Act 
that are secured by one- to four-family dwellings that have 
problem or damaging drywall products.
                              ----------                              

12. An Amendment To Be Offered by Representative Chet Edwards of Texas, 
               or His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 16. REQUIRED CERTIFICATIONS.

  Section 203 of the National Housing Act (12 U.S.C. 1709), as 
amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
  ``(z) Required Certifications.--Notwithstanding any other 
provision of law, the Secretary may not insure any mortgage 
secured by a one- to four-family dwelling unless the mortgagor 
under such mortgage certifies, under penalty of perjury, that 
the mortgagor has not been convicted of a sex offense against a 
minor (as such terms are defined in section 111 of the Sex 
Offender Registration and Notification Act (42 U.S.C. 
16911)).''.
                              ----------                              

 13. An Amendment To Be Offered by Representative Adler of New Jersey, 
               or His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 16. PROHIBITION ON USE OF FUNDS FOR CERTAIN FEDERAL EMPLOYEES.

  None of the funds authorized under this Act or any amendment 
made by this Act may be used to pay the salary of any 
individual engaged in activities related to title II of the 
National Housing Act who has been officially disciplined for 
violations of subpart G of the Standards of Ethical Conduct for 
Employees of the Executive Branch for viewing, downloading, or 
exchanging pornography, including child pornography, on a 
Federal Government computer or while performing official 
Federal Government duties.

                                  
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