I 
112TH CONGRESS 
2D SESSION 
H. R. 5884 
To establish a 1-year pilot program to reduce up-front premiums on FHA 
mortgage insurance for first-time homebuyers who complete a homeown-
ership counseling program and thereby help to reduce default rates 
on residential mortgages. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 1, 2012 
Ms. BASS of California (for herself, Mr. DOLD, and Mr. GUTIERREZ) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
A BILL 
To establish a 1-year pilot program to reduce up-front pre-
miums on FHA mortgage insurance for first-time home-
buyers who complete a homeownership counseling pro-
gram and thereby help to reduce default rates on residen-
tial mortgages. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Homeownership Pres-
ervation Education Act of 2012’’. 
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SEC. 2. PILOT PROGRAM FOR REDUCTION OF FHA UP-
FRONT-PREMIUMS FOR FIRST-TIME HOME-
BUYERS. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development (in this section referred to as the 
‘‘Secretary’’) shall carry out a pilot program under this 
section to evaluate the effectiveness, in reducing defaults 
on residential mortgages, of reducing up-front premiums 
for mortgage insurance made available by the Secretary 
pursuant to title II of National Housing Act for mortga-
gors who are first-time homebuyers who complete a home-
ownership counseling program that provides for one-on- 
one prepurchase counseling. 
(b) REDUCED PREMIUMS.—Subject to subsection (c) 
of this section and notwithstanding the second sentence 
of subparagraph (A) of section 203(c)(2) of the National 
Housing Act (12 U.S.C. 1709(c)(2)(A)), in the case of a 
mortgage secured by a 1- to 4-family dwelling that is an 
obligation of the Mutual Mortgage Insurance Fund for 
which the mortgagor is a first-time homebuyer who com-
pletes a program of counseling with respect to the respon-
sibilities and financial management involved in homeown-
ership that is approved by the Secretary and provides for 
one-on-one pre-purchase counseling of the homebuyer by 
a nonprofit housing counseling agency approved by the 
Secretary, the amount of the premium payment for mort-
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gage insurance under title II of such Act that is collected 
at the time of insurance shall be discounted, from the pre-
mium payment that would otherwise be collected at such 
time if such mortgagor were not a first-time homebuyer, 
by an amount equal to 0.25 percent of the original insured 
principal obligation of the mortgage. 
(c) DURATION.—Subsection (b) shall apply only to 
mortgages insured during the 12-month period beginning 
upon such date that the Secretary implements the pilot 
program under this section, which shall not be later than 
the expiration of the 90-day period beginning on the date 
of the enactment of this Act. 
(d) REPORT TO CONGRESS.—Not later than 180 days 
before the expiration of the period referred to in sub-
section (c), the Secretary shall submit to the Congress a 
report regarding the use and impact of the pilot program 
under this section. The report shall include— 
(1) a review and analysis of the effectiveness of 
the program in— 
(A) increasing the number of homebuyers 
accessing prepurchase housing counseling; 
(B) reducing the rate of mortgage default 
and delinquency; 
(C) preventing foreclosure; and 
(D) supporting stable homeownership; and 
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(2) any recommendations the Secretary con-
siders appropriate regarding the program. 
(e) CONFORMING AMENDMENT.—Section 203(c)(2) 
of the National Housing Act (12 U.S.C. 1709(c)(2)(A)) 
is amended, in the matter preceding subparagraph (A), 
by striking ‘‘Notwithstanding’’ and inserting ‘‘Except as 
provided under section 2 of the Homeownership Preserva-
tion Education Act of 2012 and notwithstanding’’. 
Æ 
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