I 
111TH CONGRESS 
1ST SESSION H. R. 3146 
To make improvements to the FHA mortgage insurance programs of the 
Department of Housing and Urban Development, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 9, 2009 
Mr. ADLER of New Jersey (for himself, Mr. LEE of New York, Mr. HIMES, 
and Mr. LANCE) introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
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, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘21 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: 
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‘‘(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.— 
‘‘(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 
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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-
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 
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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 
the President’s annual budget request, not more 
than $72,000,000 of such excess amounts may be 
used from such amounts for the purpose of carrying 
out this subsection. 
‘‘(i) TRAINING AND EDUCATION PROGRAM.— 
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‘‘(1) 
ESTABLISHMENT.—The 
Secretary 
of 
Housing and Urban Development shall carry out a 
comprehensive training and education program to 
improve the service provided by personnel of the De-
partment carrying out functions referred to in sub-
section (g)(1) to users of the mortgage insurance 
programs under this Act and any other FHA mort-
gage insurance programs. 
‘‘(2) TOPICS.—The training and education pro-
gram under this subsection shall— 
‘‘(A) have as its primary goal improving 
the quality and consistency of responses pro-
vided by such personnel of the Department 
headquarters and other offices and centers of 
the Department regarding regulations, hand-
books, mortgagee letters, and other guidance; 
and 
‘‘(B) be designed to— 
‘‘(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 
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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 
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 
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