HR 1852 RFS
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Expanding American Homeownership Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Findings and purposes. 
Sec. 3. Maximum principal loan obligation. 
Sec. 4. Extension of mortgage term. 
Sec. 5. Downpayment simplification. 
Sec. 6. Mortgage insurance premiums for zero- and lower-downpayment bor-
rowers. 
Sec. 7. Mortgage insurance premiums for standard and higher-risk borrowers. 
Sec. 8. Risk-based mortgage insurance premiums. 
Sec. 9. Payment incentives. 
Sec. 10. Borrower protections for higher risk mortgages. 
Sec. 11. Refinancing mortgages. 
Sec. 12. Annual reports on new programs and loss mitigation. 
Sec. 13. Insurance for single family homes with licensed child care facilities. 
Sec. 14. Rehabilitation loans. 
Sec. 15. Discretionary action. 
Sec. 16. Insurance of condominiums and manufactured housing. 
Sec. 17. Mutual Mortgage Insurance Fund. 
Sec. 18. Hawaiian home lands and Indian reservations. 
Sec. 19. Conforming and technical amendments. 
Sec. 20. Home equity conversion mortgages. 
Sec. 21. Participation of mortgage brokers and correspondent lenders. 
Sec. 22. Conforming loan limit in disaster areas. 
Sec. 23. Failure to pay amounts from escrow accounts for single family mort-
gages. 
Sec. 24. Acceptable identification for FHA mortgagors. 
Sec. 25. Pilot program for automated process for borrowers without sufficient 
credit history. 
Sec. 26. Sense of Congress regarding technology for financial systems. 
Sec. 27. Multifamily housing mortgage limits in high cost areas. 
Sec. 28. Discount sales of multifamily properties. 
Sec. 29. Clarification of disposition of certain properties. 
Sec. 30. Noncompetitive sales by HUD to states and localities. 
Sec. 31. Use of FHA savings for costs of mortgage insurance, housing coun-
seling, FHA technologies, procedures, and processes, and for 
affordable housing grant fund, and study. 
Sec. 32. Limitation on mortgage insurance premium increases. 
Sec. 33. Civil money penalties for improperly influencing appraisals. 
Sec. 34. Mortgage insurance premium refunds. 
Sec. 35. Savings provision. 
Sec. 36. Implementation. 
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HR 1852 RFS
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) one of the primary missions of the Federal 
Housing Administration (FHA) single family mort-
gage insurance program is to reach borrowers who 
are underserved, or not served, by the existing con-
ventional mortgage marketplace; 
(2) the FHA program has a long history of in-
novation, which includes pioneering the 30-year self- 
amortizing mortgage and a safe-to-seniors reverse 
mortgage product, both of which were once thought 
too risky to private lenders; 
(3) the FHA single family mortgage insurance 
program traditionally has been a major provider of 
mortgage insurance for home purchases; 
(4) the FHA mortgage insurance premium 
structure, as well as FHA’s product offerings, 
should be revised to reflect FHA’s enhanced ability 
to determine risk at the loan level and to allow FHA 
to better respond to changes in the mortgage mar-
ket; 
(5) during past recessions, including the oil- 
patch downturns in the mid-1980s, FHA remained 
a viable credit enhancer and was therefore instru-
mental in preventing a more catastrophic collapse in 
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housing markets and a greater loss of homeowner 
equity; and 
(6) as housing price appreciation slows and in-
terest rates rise, many homeowners and prospective 
homebuyers will need the less-expensive, safer fi-
nancing alternative that FHA mortgage insurance 
provides. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to provide flexibility to FHA to allow for 
the insurance of housing loans for low- and mod-
erate-income homebuyers during all economic cycles 
in the mortgage market; 
(2) to modernize the FHA single family mort-
gage insurance program by making it more reflective 
of enhancements to loan-level risk assessments and 
changes to the mortgage market; and 
(3) to adjust the loan limits for the single fam-
ily mortgage insurance program to reflect rising 
house prices and the increased costs associated with 
new construction. 
SEC. 3. MAXIMUM PRINCIPAL LOAN OBLIGATION. 
Section 203(b)(2) of the National Housing Act (12 
U.S.C. 1709(b)(2)(A)) is amended by striking subpara-
graph (A) and inserting the following new subparagraph: 
‘‘(A) not to exceed the lesser of— 
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‘‘(i) in the case of a 1-family resi-
dence, 125 percent of the median 1-family 
house price in the area, as determined by 
the Secretary; and in the case of a 2-, 3- 
, or 4-family residence, the percentage of 
such median price that bears the same 
ratio to such median price as the dollar 
amount limitation in effect for 2007 under 
section 305(a)(2) of the Federal Home 
Loan 
Mortgage 
Corporation 
Act 
(12 
U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family 
residence, respectively, bears to the dollar 
amount limitation in effect for 2007 under 
such section for a 1-family residence; or 
‘‘(ii) 175 percent of the dollar amount 
limitation in effect for 2007 under such 
section 305(a)(2) for a residence of the ap-
plicable size (without regard to any author-
ity to increase such limitations with re-
spect to properties located in Alaska, 
Guam, Hawaii, or the Virgin Islands), ex-
cept that each such maximum dollar 
amount shall be adjusted effective January 
1 of each year beginning with 2008, by 
adding to or subtracting from each such 
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