89–008 

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 


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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 


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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) 


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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.’’. 


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(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 contribuVerDate Mar 15 2010 04:31 Jun 09, 2010 Jkt 089008 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR503.XXX HR503

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tions 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 otherVerDate Mar 15 2010 04:31 Jun 09, 2010 Jkt 089008 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR503.XXX HR503

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wise 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 COUNTY- WIDE 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’’. 


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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 RE- QUIREMENT.—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 


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(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: 


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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— 


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(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, respecVerDate Mar 15 2010 04:31 Jun 09, 2010 Jkt 089008 PO 00000 Frm 00011 Fmt 6659 Sfmt 6602 E:\HR\OC\HR503.XXX HR503

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12 

tively, 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 fourfamily 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)).’’. 


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13 

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. 

Æ 


jbell on DSKDVH8Z91PROD with REPORTS