I
103D CONGRESS
1ST SESSION
H. R. 1123
To reduce losses under the single family and multifamily mortgage insurance
programs under title II of the National Housing Act through modernization.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 24, 1993
Mr. SANTORUM (for himself, Mr. INGLIS of South Carolina, Mr. DOOLITTLE,
and Mr. ZIMMER) introduced the following bill; which was referred to the
Committee on Banking, Finance and Urban Affairs
A BILL
To reduce losses under the single family and multifamily
mortgage insurance programs under title II of the Na-
tional Housing Act through modernization.
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 ‘‘FHA Modernization
Act’’.
SEC. 2. FHA COMPUTER SYSTEM.
(a) SELECTION.—
(1) IN GENERAL.—The Secretary of Housing
and Urban Development (in this Act referred to as
tional Affordable Housing Act, and mortgagees ap-
proved for direct endorsement.
SEC. 3. STUDY OF PRIVATE MANAGEMENT OF INSURANCE
PROGRAMS USING COMPUTER SYSTEM.
(a) STUDY.—The Secretary shall conduct a study to
determine the effectiveness and feasibility of utilizing pri-
vate contractors to administer the single family and multi-
family housing mortgage insurance programs under the
National Housing Act using the computer system selected
under section 2. The study shall analyze whether the pur-
poses of the mortgage insurance programs would be car-
ried out more efficiently and economically by using con-
tractors with demonstrated capabilities to carry out the
mortgage insurance functions currently performed by the
staff of the Department of Housing and Urban Develop-
ment.
(b) REPORT.—The Secretary shall submit a report
regarding the study to the Congress not later than the
expiration of the 4-month period beginning on the date
of the enactment of this Act, which shall contain findings
and recommendations regarding the use and cost of pri-
vate contractors.
SEC. 4. PERFORMANCE STANDARDS.
The Secretary shall establish standards by which to
evaluate the performance of the Department of Housing
and Urban Development with respect to functions per-
formed by the Department in carrying out the single fam-
ily and multifamily housing mortgage insurance programs
under title II of the National Housing Act, including
standards for prompt servicing of applications, accuracy
of records, accounting for funds, prompt handling of delin-
quencies, and any other separately identifiable functions
performed by the Department in carrying out such pro-
grams.
SEC. 5. PERIODIC REPORTS REGARDING CONTRACTOR
PERFORMANCE.
Using information compiled and available through
the computer system selected under section 2, the Sec-
retary shall submit to the Congress a report for each cal-
endar year regarding the performance of mortgagees,
servicers, and contractors involved in the single family and
multifamily housing mortgage insurance programs under
title II of the National Housing Act, entities to whom
processing functions have been delegated by the Secretary
under section 328 of the Cranston-Gonzalez National Af-
fordable Housing Act, and mortgagees approved for direct
endorsement. Each report under this section shall be sub-
mitted not later than the March 31 of the year following
the year for which the report is made.
SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this Act $10,000,000 for fiscal year 1994.
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