(4) HOME EQUITY CONVERSION MORTGAGE IN-
SURANCE.—Paragraph (1) of section 255(d) of the 
National Housing Act (12 U.S.C. 1715z-20(d)(1)) is 
amended by striking ‘‘as responsible and able to 
service the mortgage properly’’. 
(5) WAR
HOUSING
MORTGAGE
INSURANCE.—
Paragraph (1) of section 603(b) of the National 
Housing Act (12 U.S.C. 1738(b)(1)) is amended—
(A) by striking ‘‘, and be held by,’’; and 
(B) by striking ‘‘as responsible and able to 
service the mortgage properly’’. 
(6) WAR HOUSING MORTGAGE INSURANCE FOR 
LARGE-SCALE HOUSING PROJECTS.—Paragraph (1) 
of section 611(b) of the National Housing Act (12 
U.S.C. 1746(b)(1)) is amended—
(A) by striking ‘‘ and be held by’’; and 
(B) by striking ‘‘as responsible and able to 
service the mortgage properly’’. 
(7) GROUP PRACTICE FACILITY MORTGAGE IN-
SURANCE.—Section 1101(b)(2) of the National 
Housing Act (12 U.S.C. 1749aaa(b)(2)) is amend-
ed—
(A) by striking ‘‘ and held by’’; and 
(B) by striking ‘‘as responsible and able to 
service the mortgage properly’’.
(8) NATIONAL
DEFENSE
HOUSING
INSUR-
ANCE.—Paragraph (1) of section 903(b) of the Na-
tional Housing Act (12 U.S.C. 1750b(b)(1)) is 
amended—
(A) by striking ‘‘, and be held by,’’; and 
(B) by striking ‘‘as responsible and able to 
service the mortgage properly’’. 
SEC. 17. SENSE OF CONGRESS REGARDING TECHNOLOGY 
FOR FINANCIAL SYSTEMS. 
(a) CONGRESSIONAL FINDINGS.—The Congress finds 
the following: 
(1) The Government Accountability Office has 
cited the FHA single family housing mortgage insur-
ance program as a ‘‘high-risk’’ program, with a pri-
mary reason being non-integrated and out-dated fi-
nancial management systems. 
(2) The ‘‘Audit of the Federal Housing Admin-
istration’s Financial Statements for Fiscal Years 
2004 and 2003’’, conducted by the Inspector Gen-
eral of the Department of Housing and Urban De-
velopment reported as a material weakness that 
‘‘HUD/FHA’s automated data processing [ADP] 
system environment must be enhanced to more effec-
tively support FHA’s business and budget proc-
esses’’.
(3) Existing technology systems for the FHA 
program have not been updated to meet the latest 
standards of the Mortgage Industry Standards 
Maintenance Organization and have numerous defi-
ciencies that lenders have outlined. 
(4) Improvements to technology used in the 
FHA program will—
(A) allow the FHA program to improve the 
management of the FHA portfolio, garner 
greater efficiencies in its operations, and lower 
costs across the program; 
(B) result in efficiencies and lower costs 
for lenders participating in the program, allow-
ing them to better use the FHA products in ex-
tending homeownership opportunities to higher 
credit risk or lower-income families, in a sound 
manner. 
(5) The Mutual Mortgage Insurance Fund op-
erates without cost to the taxpayers and generates 
revenues for the Federal Government. 
(b) SENSE OF CONGRESS.—It is the sense of the 
Congress that—
(1) the Secretary of Housing and Urban Devel-
opment should use a portion of the funds received 
from premiums paid for FHA single family housing
mortgage insurance that are in excess of the 
amounts paid out in claims to substantially increase 
the funding for technology used in such FHA pro-
gram; 
(2) the goal of this investment should be to 
bring the technology used in such FHA program to 
the level and sophistication of the technology used in 
the conventional mortgage lending market, or to ex-
ceed such level; and 
(3) the Secretary of Housing and Urban Devel-
opment should report to the Congress not later than 
180 days after the date of the enactment of this Act 
regarding the progress the Department is making 
toward such goal and if progress is not sufficient, 
the resources needed to make greater progress. 
SEC. 18. SAVINGS PROVISION. 
Any mortgage insured under title II of the National 
Housing Act before the date of enactment of this title shall 
continue to be governed by the laws, regulations, orders, 
and terms and conditions to which it was subject on the 
day before the date of the enactment of this Act. 
SEC. 19. IMPLEMENTATION. 
The Secretary of Housing and Urban Development 
shall by notice establish any additional requirements that
may be necessary to immediately carry out the provisions 
of this title. The notice shall take effect upon issuance.
Passed the House of Representatives July 25, 2006. 
Attest:
Clerk.