FHA Loan Affordability Act of 2019

Bill: 116-s-2572
Sponsor: full_name: Sen. Shaheen, Jeanne [D-NH]
Introduced: 2019-09-26
Policy area: Housing and Community Development
Subjects: Housing finance and home ownership
Latest action: action_date: 2019-09-26
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2019-09-26
action_desc: Introduced in Senate
text: <p><b>FHA Loan Affordability Act of 2019 </b></p> <p>This bill requires Federal Housing Administration mortgage borrowers to pay mortgage insurance premiums only when their remaining principal balance exceeds&nbsp;78% or more of the home value or sales price. </p>

tv_txt: II 116th CONGRESS 1st Session S. 2572 IN THE SENATE OF THE UNITED STATES September 26, 2019 Mrs. Shaheen introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To limit the collection of annual premiums under the FHA program for mortgage insurance for single family housing, and for other purposes.

1. Short title This Act may be cited as the FHA Loan Affordability Act of 2019 . 2. Annual premiums Section 203(c)(2) of the National Housing Act ( 12 U.S.C. 1709(c)(2) ) is amended— (1) in subparagraph (B)— (A) in clause (i), by striking For any and inserting Subject to subparagraph (D), for any ; and (B) in clause (ii), by striking For any and inserting Subject to subparagraph (D), for any ; (2) in subparagraph (C)(i), by striking In addition and inserting Subject to subparagraph (D), in addition ; and (3) by adding at the end the following: (D) The Secretary may not collect any annual premiums under this paragraph with respect to a mortgage at any time that the remaining insured principal balance (excluding the portion of the remaining balance attributable to the premium collected under subparagraph (A)) is 78 percent or less than the lower of (i) the sales price of the dwelling at the sale in connection with which the mortgage was made, or (ii) the appraised value of the dwelling at the time of the origination of the mortgage. .