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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5338 Introduced in House (IH)]

106th CONGRESS
  2d Session
                                H. R. 5338

     To amend the Homeowners Protection Act of 1998 to provide for 
 cancellation of FHA mortgage insurance for mortgages on single family 
                                 homes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2000

  Mr. Hansen introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL

 
     To amend the Homeowners Protection Act of 1998 to provide for 
 cancellation of FHA mortgage insurance for mortgages on single family 
                                 homes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protection of the American Dream 
Act''.

SEC. 2. COVERAGE OF FHA MORTGAGE INSURANCE.

    (a) Definition.--Section 2 of the Homeowners Protection Act of 1998 
(12 U.S.C. 4901) is amended by striking paragraph (11) and inserting 
the following new paragraph:
            ``(11) Qualified mortgage insurance.--The term `qualified 
        mortgage insurance' means mortgage insurance other than 
        mortgage insurance made available under title 38 of the United 
        States Code or title V of the Housing Act of 1949. The term 
        includes mortgage insurance made available under the National 
        Housing Act.''.
    (b) Conforming Amendments.--The Homeowners Protection Act of 1998 
(12 U.S.C. 4901 et seq.) is amended--
            (1) by striking ``private'' each place it a appears (other 
        than in section 9(b) (12 U.S.C. 4908(b)) and inserting 
        ``qualified'';
            (2) in the section heading for section 3 (12 U.S.C. 4902), 
        by striking ``private'' and inserting ``qualified''; and
            (3) in section 11 (12 U.S.C. 4910), in the subsection 
        heading for subsection (a), by striking ``PMI'' and inserting 
        ``Qualified Mortgage Insurance''.

SEC. 3. EXCEPTIONS FOR HIGH RISK LOANS.

    Section 3(f)(1) of the Homeowners Protection Act of 1998 (12 U.S.C. 
4902(f)(1)) is amended--
            (1) in subparagraph (A), by striking ``section 3; or'' and 
        inserting ``this section;''; and
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) as determined in accordance with regulations 
                issued by the Secretary of Housing and Urban 
                Development, in the case of a mortgage loan that is 
                insured pursuant to the National Housing Act, so as to 
                require the imposition or continuation of a mortgage 
                insurance requirement beyond the terms specified in 
                subsection (a) or (b) of this section.''.

SEC. 4. MORTGAGE INSURANCE PREMIUMS.

    Subparagraph (B) of section 203(c)(2) of the National Housing Act 
(12 U.S.C. 1709(c)(2)(B)) is amended by inserting after and below 
clause (ii) of such subparagraph the following:
        ``Notwithstanding any other provisions of this Act, a 
        requirement for mortgage insurance under this Act and the 
        obligation under this paragraph for a mortgagor to make annual 
        premium payments for such insurance shall be subject to 
        cancellation and termination pursuant to the Homeowners 
        Protection Act of 1998.''.
                                 <all>
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