‘‘(A) not participate in, be associated with, 
or employ any party that participates in or is 
associated with any other financial or insurance 
activity; or 
‘‘(B) demonstrate to the Secretary that the 
mortgagee or other party maintains, or will 
maintain, firewalls and other safeguards de-
signed to ensure that—
‘‘(i) individuals participating in the 
origination of the mortgage shall have no 
involvement with, or incentive to provide 
the mortgagor with, any other financial or 
insurance product; and 
‘‘(ii) the mortgagor shall not be re-
quired, directly or indirectly, as a condition 
of obtaining a mortgage under this section, 
to purchase any other financial or insur-
ance product. 
‘‘(2) APPROVAL OF OTHER PARTIES.—All parties 
that participate in the origination of a mortgage to 
be insured under this section shall be approved by the 
Secretary. 
‘‘(o) PROHIBITION AGAINST REQUIREMENTS TO PUR-
CHASE ADDITIONAL PRODUCTS.—The mortgagee or any 
other party shall not be required by the mortgagor or any
other party to purchase an insurance, annuity, or other ad-
ditional product as a requirement or condition of eligibility 
for a mortgage authorized under subsection (c). 
‘‘(p) STUDY TO DETERMINE CONSUMER PROTECTIONS 
AND UNDERWRITING STANDARDS.—The Secretary shall 
conduct a study to examine and determine appropriate con-
sumer protections and underwriting standards to ensure 
that the purchase of products referred to in subsection (o) 
is appropriate for the consumer. In conducting such study, 
the Secretary shall consult with consumer advocates (in-
cluding recognized experts in consumer protection), indus-
try representatives, representatives of counseling organiza-
tions, and other interested parties.’’. 
(b) MORTGAGES FOR COOPERATIVES.—Subsection (b) 
of section 255 of the National Housing Act (12 U.S.C. 
1715z–20(b)) is amended—
(1) in paragraph (4)—
(A) by inserting ‘‘a first or subordinate 
mortgage or lien’’ before ‘‘on all stock’’; 
(B) by inserting ‘‘unit’’ after ‘‘dwelling’’; 
and 
(C) by inserting ‘‘a first mortgage or first 
lien’’ before ‘‘on a leasehold’’; and 
(2) in paragraph (5), by inserting ‘‘a first or 
subordinate lien on’’ before ‘‘all stock’’.
(c) LIMITATION ON ORIGINATION FEES.—Section 255 
of the National Housing Act (12 U.S.C. 1715z–20), as 
amended by the preceding provisions of this section, is fur-
ther amended by adding at the end the following new sub-
section: 
‘‘(r) LIMITATION ON ORIGINATION FEES.—The Sec-
retary shall establish limits on the origination fee that may 
be charged to a mortgagor under a mortgage insured under 
this section, which limitations shall—
‘‘(1) equal 1.5 percent of the maximum claim 
amount of the mortgage unless adjusted thereafter on 
the basis of—
‘‘(A) the costs to the mortgagor; and 
‘‘(B) the impact of such fees on the reverse 
mortgage market; 
‘‘(2) be subject to a minimum allowable amount; 
‘‘(3) provide that the origination fee may be 
fully financed with the mortgage; 
‘‘(4) include any fees paid to correspondent 
mortgagees approved by the Secretary; and 
‘‘(5) have the same effective date as subsection 
(m)(2) regarding the limitation on principal obliga-
tion.’’. 
(d) STUDY REGARDING PROGRAM COSTS AND CREDIT 
AVAILABILITY.—
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study regarding the 
costs and availability of credit under the home equity 
conversion mortgages for elderly homeowners program 
under section 255 of the National Housing Act (12 
U.S.C. 1715z–20) (in this subsection referred to as the 
‘‘program’’). 
(2) PURPOSE.—The purpose of the study re-
quired under paragraph (1) is to help Congress ana-
lyze and determine the effects of limiting the amounts 
of the costs or fees under the program from the 
amounts charged under the program as of the date of 
the enactment of this title. 
(3) CONTENT OF REPORT.—The study required 
under paragraph (1) should focus on—
(A) the cost to mortgagors of participating 
in the program; 
(B) the financial soundness of the program; 
(C) the availability of credit under the pro-
gram; and 
(D) the costs to elderly homeowners partici-
pating in the program, including—
(i) 
mortgage 
insurance 
premiums 
charged under the program;
(ii) up-front fees charged under the 
program; and 
(iii) margin rates charged under the 
program. 
(4) TIMING
OF
REPORT.—Not later than 12 
months after the date of the enactment of this title, 
the Comptroller General shall submit a report to the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Serv-
ices of the House of Representatives setting forth the 
results and conclusions of the study required under 
paragraph (1). 
SEC. 123. ENERGY EFFICIENT MORTGAGES PROGRAM. 
Section 106(a)(2) of the Energy Policy Act of 1992 (42 
U.S.C. 12712 note) is amended—
(1) by amending subparagraph (C) to read as 
follows: 
‘‘(C) COSTS OF IMPROVEMENTS.—The cost 
of cost-effective energy efficiency improvements 
shall not exceed the greater of—
‘‘(i) 5 percent of the property value 
(not to exceed 5 percent of the limit estab-
lished under section 203(b)(2)(A)) of the 
National 
Housing 
Act 
(12 
U.S.C. 
1709(b)(2)(A); or
‘‘(ii) 2 percent of the limit established 
under section 203(b)(2)(B) of such Act.’’; 
and 
(2) by adding at the end the following: 
‘‘(D) LIMITATION.—In any fiscal year, the 
aggregate number of mortgages insured pursuant 
to this section may not exceed 5 percent of the 
aggregate number of mortgages for 1- to 4-family 
residences insured by the Secretary of Housing 
and Urban Development under title II of the Na-
tional Housing Act (12 U.S.C. 1707 et seq.) dur-
ing the preceding fiscal year.’’. 
SEC. 124. PILOT PROGRAM FOR AUTOMATED PROCESS FOR 
BORROWERS WITHOUT SUFFICIENT CREDIT 
HISTORY. 
(a) ESTABLISHMENT.—Title II of the National Hous-
ing Act (12 U.S.C. 1707 et seq.) is amended by adding at 
the end the following new section: 
‘‘SEC. 257. PILOT PROGRAM FOR AUTOMATED PROCESS FOR 
BORROWERS WITHOUT SUFFICIENT CREDIT 
HISTORY. 
‘‘(a) ESTABLISHMENT.—The Secretary shall carry out 
a pilot program to establish, and make available to mortga-
gees, an automated process for providing alternative credit 
rating information for mortgagors and prospective mortga-