IIB 
111TH CONGRESS 
1ST SESSION H. R. 3146 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 16, 2009 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To make improvements to the FHA mortgage insurance pro-
grams of the Department of Housing and Urban Devel-
opment, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘21st Century FHA 
Housing Act of 2009’’. 
SEC. 2. MORTGAGE INSURANCE FOR CONDOMINIUMS. 
Section 203 of the National Housing Act (12 U.S.C. 
1709) is amended by adding at the end the following new 
subsection: 
‘‘(y) INAPPLICABILITY OF ENVIRONMENTAL REVIEW 
PROVISIONS.—In insuring, under this section, any mort-
gage described in section 201(a)(C), the Secretary shall 
not be subject to the conditions of, or review under, the 
National Environmental Policy Act of 1969 or any other 
provision of law that furthers the purposes of such Act.’’. 
SEC. 3. ENERGY EFFICIENT MORTGAGES. 
Section 106(a)(2)(C) of the Energy Policy Act of 
1992 (42 U.S.C. 12712 note) is amended— 
(1) in clause (i), by inserting ‘‘(i)’’ after ‘‘(A)’’ 
each place such term appears; and 
(2) in clause (ii), by striking ‘‘203(b)(2)(B)’’ 
and inserting ‘‘203(b)(2)(A)(ii)’’. 
SEC. 
4. 
MODERNIZATION 
OF 
WORKFORCE 
AND 
RE-
SOURCES. 
Section 202 of the National Housing Act (12 U.S.C. 
1708) is amended by adding at the end the following new 
subsections: 
‘‘(g) PERSONNEL.— 
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‘‘(1) IN
GENERAL.—Notwithstanding section 
502(a) of the Housing Act of 1948 (12 U.S.C. 
1701c(a)), the Secretary may appoint and fix the 
compensation of such officers and employees of the 
Department as the Secretary considers necessary to 
carry out the functions of the Secretary under this 
Act and any other functions of the Federal Housing 
Administration. Such officers and employees may be 
paid without regard to the provisions of chapter 51 
and subchapter III of chapter 53 of title 5, United 
States Code, relating to classification and General 
Schedule pay rates. 
‘‘(2) COMPARABILITY OF COMPENSATION WITH 
FEDERAL
FINANCIAL
REGULATORY
AGENCIES.—In 
fixing and directing compensation under paragraph 
(1), the Secretary shall consult with, and maintain 
comparability with compensation of officers and em-
ployees of the Federal Housing Finance Agency, the 
Board of Governors of the Federal Reserve System, 
and the Federal Deposit Insurance Corporation. 
‘‘(3) PERSONNEL OF OTHER FEDERAL AGEN-
CIES.—In carrying out the functions referred to in 
paragraph (1), the Secretary may use information, 
services, staff, and facilities of any executive agency, 
independent agency, or department on a reimburs-
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able basis, with the consent of such agency or de-
partment. 
‘‘(4) OUTSIDE EXPERTS AND CONSULTANTS.— 
The Secretary may procure temporary and intermit-
tent services under section 3109(b) of title 5, United 
States Code, to assist the work of the Department 
in carrying out the functions referred to in para-
graph (1). 
‘‘(h) INFORMATION TECHNOLOGY.— 
‘‘(1) IN GENERAL.—In carrying out any pro-
gram under this Act or any other program of the 
Federal Housing Administration, the Secretary may 
utilize any amounts as may be made available for 
such programs to ensure that an appropriate level of 
investment in information technology is maintained 
in order for the Secretary to upgrade the technology 
systems of the Department used in carrying out the 
functions referred to in subsection (g)(1). 
‘‘(2) USE OF PREMIUM-GENERATED INCOME.— 
To the extent that income derived in any fiscal year 
from premium fees charged under section 203(c) is 
in excess of the level of income estimated for that 
such year for such premium fees and assumed in the 
baseline projection prepared by the Director of the 
Office of Management and Budget for inclusion in 
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‘‘(i) ensure that lenders participating 
in the FHA programs may rely on infor-
mation provided by one office or center of 
the Department when doing business with 
a different office or center; and 
‘‘(ii) prevent such lenders from solic-
iting answers to the same question from 
different offices or centers of the Depart-
ment in an attempt to obtain an answer 
that is satisfactory to the lender, by ensur-
ing consistent responses from different of-
fices and centers.’’. 
SEC. 5. RISK MANAGEMENT IMPROVEMENTS. 
(a) REVIEW OF DELINQUENCIES AND LENDER MON-
ITORING.—Section 202 of the National Housing Act (12 
U.S.C. 1708), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the fol-
lowing new subsection: 
‘‘(j) RISK MANAGEMENT IMPROVEMENT.— 
‘‘(1) REVIEW OF DELINQUENCIES AMONG RE-
CENT ORIGINATIONS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
conduct an ongoing review of mortgages on sin-
gle family housing originated during the pre-
ceding 12 months and insured pursuant to this 
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Act under which the mortgagor has become 60 
or more days delinquent with respect to pay-
ment under the mortgage during the first 90 
days of the term of the mortgage to determine 
which mortgages should not have been origi-
nated or insured and the characteristics of such 
mortgages, and which lenders have relatively 
high incidences of such delinquent mortgages; 
‘‘(B) REPORTING
TO
CONGRESS.—Not 
later than 90 days after the date of enactment 
of the 21st Century FHA Housing Act of 2009, 
the Secretary shall make available to the Com-
mittee on Financial Services of the House of 
Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
any information and conclusions pursuant to 
the review required under subparagraph (A). 
‘‘(C) SUFFICIENT
RESOURCES.—There is 
authorized to be appropriated to the Secretary 
for each of fiscal years 2010 through 2014 the 
amount necessary to provide 90 additional full- 
time equivalent positions for the Department, 
or for entering into such contracts as are nec-
essary, to conduct reviews in accordance with 
the requirements of this section. 
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‘‘(2) LENDER
MONITORING.—In conducting 
monitoring and analysis of the performance of lend-
ers for mortgages on single family housing insured 
under this Act, the Secretary shall utilize a one-year 
period for such monitoring and analysis, to promote 
earlier identification of problem lenders and allow 
earlier intervention and sanctions.’’. 
(b) ANALYSIS OF MORTGAGE PERFORMANCE.—Sec-
tion 203(g)(2) of the Helping Families Save Their Homes 
Act of 2009 (12 U.S.C. 1708 note) is amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (2)(B), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) analyze the portion of mortgages randomly 
reviewed pursuant to subparagraph (B) on the basis 
of performance.’’. 
SEC. 6. SENSE OF CONGRESS REGARDING ADEQUATE CAP-
ITAL FLOW FOR MORTGAGE LOANS. 
(a) CONGRESSIONAL FINDINGS.—The Congress finds 
that— 
(1) warehouse lending, which provides short- 
term lines of credit to non-depository lenders for 
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mortgage loans that are eventually sold into the sec-
ondary market to Fannie Mae, Freddie Mac and 
Ginnie Mae, is a critical link in the housing finance 
chain; 
(2) according to data obtained pursuant to the 
Home Mortgage Disclosure Act of 1975, nondeposi-
tory lenders that utilize warehouse lines of credit ac-
count for as much as 40 percent of all residential 
mortgage loans in the United States, and nearly 55 
percent of FHA loans, which are increasingly pop-
ular; 
(3) it is estimated that since 2006 warehouse 
lending capacity available to the mortgage lending 
industry has declined by nearly 90 percent to the 
current level of approximately $20 billion to $25 bil-
lion; 
(4) based upon projected 2009 lending volume, 
there could be a shortfall of hundreds of billions of 
dollars in home mortgage availability caused by a 
lack of warehouse lending capacity; and 
(5) unless Federal regulators promptly address 
the issue, borrowers seeking to take advantage of to-
day’s low interest rates will face rising costs and re-
duced credit access, which could undermine the 
housing market recovery. 
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(b) SENSE OF THE CONGRESS.—It is the sense of 
the Congress that— 
(1) the Secretary of the Treasury, the Secretary 
of Housing and Urban Development, and the Direc-
tor of the Federal Housing Finance Agency should 
use their existing authorities under the Emergency 
Economic Stabilization Act of 2008, the Housing 
and Economic Recovery Act of 2008, and other stat-
utory and regulatory authorities to provide financial 
support and assistance to facilitate increased ware-
house credit capacity by qualified warehouse lenders; 
(2) such financial support and assistance 
should— 
(A) be used only to expand the amount of 
credit or lending capacity made available to 
qualified mortgage lenders by qualified ware-
house lenders for the purpose of funding resi-
dential mortgage loans; 
(B) be provided in such form and manner 
as such Secretaries or the Director, as applica-
ble, consider appropriate, which might include 
direct loans, guarantees, credit enhancement, 
and other incentives; and 
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