Title: To amend the National Housing Act to require the Secretary of Housing and Urban Development to issue guidance to reduce up-front premiums for FHA-insured mortgages if the capital ratio of the Mutual Mortgage Insurance Fund exceeds the statutory limit, and for other purposes.
Policy area: Housing and Community Development

Summary:
This bill amends the National Housing Act to require the Department of Housing and Urban Development (HUD) to: (1) on a monthly basis, review the capital ratio of the Mutual Mortgage Insurance Fund; and (2) upon determining whether the fund's capital ratio exceeds a specified limit, either issue guidance to reduce up-front premiums on mortgages insured by the Federal Housing Administration or report to Congress on why HUD has determined not to reduce such premiums.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1321 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 1321

 To amend the National Housing Act to require the Secretary of Housing 
and Urban Development to issue guidance to reduce up-front premiums for 
   FHA-insured mortgages if the capital ratio of the Mutual Mortgage 
  Insurance Fund exceeds the statutory limit, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 2017

Mr. Brown of Maryland introduced the following bill; which was referred 
                 to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the National Housing Act to require the Secretary of Housing 
and Urban Development to issue guidance to reduce up-front premiums for 
   FHA-insured mortgages if the capital ratio of the Mutual Mortgage 
  Insurance Fund exceeds the statutory limit, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REDUCTION OF UP-FRONT PREMIUMS FOR FHA-INSURED MORTGAGES.

    (a) In General.--Section 205(f) of the National Housing Act (12 
U.S.C. 1711(f)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
    ``(4) Reduction in Up-Front Premiums.--
            ``(A) Review.--The Secretary shall review the capital ratio 
        of the Mutual Mortgage Insurance Fund on a monthly basis.
            ``(B) Determination.--Beginning on the date of the 
        enactment of this paragraph and every 6 months thereafter, the 
        Secretary shall determine whether the amount of capital in the 
        Mutual Mortgage Insurance Fund has resulted in a capital ratio 
        that has exceeded the requirement in paragraph (2) during the 
        6-month period immediately preceding the date on which the 
        determination is made. Upon making the determination, the 
        Secretary shall--
                    ``(i) issue guidance to reduce the up-front premium 
                collected pursuant to section 203(c)(2)(A); or
                    ``(ii) submit a report to Congress explaining why 
                the Secretary has made a determination not to reduce 
                such premium.''.
    (b) Application.--With respect to the first such determination made 
about the capital ratio of the Mutual Mortgage Insurance Fund as 
required under paragraph (4) of section 205(f) of the National Housing 
Act, as added by paragraph (1), the Secretary shall include the 6-month 
period occurring prior to the date of the enactment of this Act for 
purposes of determining the 6-month period described in such section 
205(f)(4) of the National Housing Act.
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