,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #cagb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #ac1 #bjba,mr4   
,ru!r=d 7= himself1 ,mr4 ,lawson (      
,florida1 ,mrs4 ,watson ,coleman1 & ,mr4
 ,katko7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to am5d !         
,national ,h\s+ ,act to e/abli% a       
mortgage insurance program = fir/       
respond]s1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z ! ,homes =
 ,e ,local ,protector1 ,educator1 &     
,respond] ,act ( #bjba or ! ,,help] ,act
 ( #bjba4  #b4 ,,fha mortgage insurance 
program = mortgages = fir/ respond]s    
,title ,,ii ( ! ,national ,h\s+ ,act    
7#ab ,u4,s4,c4 #agjg et seq47 is am5d$  
by add+ at ! end ! foll[+ new section3  
#bei4 ,,fha mortgage insurance program =
 mortgages = fir/ respond]s  7a7        
,au?ority ,subject to subsection 7i71 ! 
,secret>y may1 ^u application by a      
mortgagee1 insure any mortgage eligible 
= insurance "u ?is section &1 ^u su*    

t]ms & conditions z ! ,secret>y may     
prescribe1 make commitm5ts = ! insurance
 ( su* mortgages prior to ! date ( _!   
execution or disbursem5t4  7b7 ,eligible
 mortgagors ,! mortgagor = a mortgage   
insur$ "u ?is section %all1 at ! "t !   
mortgage is execut$1 meet ! foll[+      
requirem5ts3 7#a7 ,fir/ respond] ,!     
mortgagor %all be-- 7,a7 7i7 employ$    
full-"t by a law en=cem5t ag5cy ( !     
,f$]al ,gov]nm5t1 a ,/ate 7z su* t]m is 
def9$ 9 section #bja 7#ab ,u4,s4,c4     
#agjg771 or a unit ( g5]al local        
gov]nm5t2 &  7ii7 9 c>ry+ out su*       
full-"t employm5t1 sworn to uphold1 &   
make arre/s = violations (1 ,f$]al1     
,/ate1 c\nty1 t[n%ip1 or municipal laws1
 or au?oriz$ by law to sup]vise s5t5c$  
crim9al (f5d]s2  7,b7 employ$ full-"t z 
a firefight]1 p>am$ic1 or em]g5cy m$ical
 te*nician by a fire dep>tm5t or em]g5cy
 m$ical s]vices respond] unit ( ! ,f$]al
 ,gov]nm5t1 a ,/ate1 or a unit ( g5]al  
local gov]nm5t2 or  7,c7 employ$ z a    
full-"t tea*] by a ,/ate-accr$it$ public

 s*ool or private s*ool t provides      
direct s]vices to /ud5ts 9 grades       
pre-k9d]g>t5 ?r\gh #ab4  7#b7 ,ye>s (   
s]vice ,! mortgagor %all h be5-- 7,a7   
employ$ z requir$ "u p>agraph 7#a7 be=e 
application = a mortgage insur$ "u ?is  
section = #d or m consecutive ye>s2 or  
7,b7 releas$ f employm5t describ$ 9     
p>agraph 7#a77;,c7 due to an            
occupation-connect$ disability result+  
directly f su* duty or employm5t4  7#c7 
,int5t = future s]vice ,except 9 ! case 
( a mortgagor describ$ 9 p>agraph       
7#b77;,b71 ! mortgagor %all h c]tifi$ t 
! mortgagor 9 good fai? int5ds to       
cont9ue employm5t z describ$ 9 p>agraph 
7#a7 = at lea/ "o ye> foll[+ ! date (   
clos+ on ! mortgage4  7#d7 ,good /&+ ,! 
mortgagor %all be 9 good /&+ ) respect  
to ! employm5t requir$ "u p>agraph 7#a7 
& n on probation or "u inve/igation =   
conduct t1 if det]m9$ to h occurr$1 is  
gr\nds = t]m9ation ( employm5t4  7#e7   
,acceptable risk ,! mortgagor meets su* 
requirem5ts z ! ,secret>y %all e/abli%  

to ensure t insurance ( ! mortgage      
repres5ts an acceptable risk to !       
,mutual ,mortgage ,insurance ,fund4     
7#f7 ,actu>ial objectives ,! mortgagor  
meets su* und]writ+ requirem5ts z !     
,secret>y %all e/abli% to meet actu>ial 
objectives id5tifi$ by ! ,secret>y1 :i* 
may include avoid+ a positive subsidy   
rate or comply+ ) ! capital ratio       
requirem5t "u section #bje7;f77#b7 7#ab 
,u4,s4,c4 #agaa7;f77#b774  7#g7 ,"o-"t  
use ,! mortgagor %all nev] previ\sly h  
be5 ! mortgagor "u a mortgage insur$ "u 
?is section4  7c7 ,mortgage t]ms ,a     
mortgage insur$ "u ?is section %all     
comply ) ! foll[+ requirem5ts3 7#a7 ,use
 ( proce$s ,! proce$s ( ! mortgage %all 
be us$ only to-- 7,a7 to pur*ase1       
con/ruct1 or repair a #a-;family        
resid5ce1 includ+ a #a-;family dwell+   
unit 9 a condom9ium project2 or  7,b7 to
 pur*ase-- 7i7 a manufactur$ home to be 
p]man5tly affix$ to a lot t is own$ by !
 mortgagor2 or  7ii7 a manufactur$ home 
& a lot to :i* ! home w be p]man5tly    

affix$4  7#b7 ,security ,! mortgage %all
 be secur$ by an int]e/ 9 ! resid5ce =  
:i* ! proce$s are us$4  7#c7 ,no        
d[npaym5t ,subject to p>agraph 7#e7 (   
?is subsection1 ! mortgage may involve  
an orig9al pr9cipal obligation 9 an     
am\nt up to #ajj p]c5t ( ! co/ (        
acquisition ( ! resid5ce involv$        
7includ+ *>ges & fees ref]r$ to 9 su*   
p>agraph 7#e7 & ! premium pursuant to   
subsection 7d77#a77 & %all n require t !
 mortgagor %all pay any am\nt1 9 ca% or 
its equival5t1 on acc\nt ( ! prop]ty4   
7#d7 ,use z pr9cipal resid5ce  7,a7     
,requirem5t ,! resid5ce secur+ !        
mortgage %all be occupi$1 dur+ ! t]m ( !
 mortgage1 by ! mortgagor z !           
mortgagor's pr9cipal resid5ce4  7,b7    
,c]tification ,! mortgagor %all c]tify  
compliance ) subp>agraph 7,a7 ^u !      
execution ( ! mortgage & annually dur+ !
 p]iod specifi$ 9 su* subp>agraph4  7#e7
 ,loan limits ,! mortgage %all involve  
an orig9al pr9cipal obligation 7includ+ 
su* initial s]vice *>ges1 appraisal1    

inspection1 & o!r fees to ! ext5t       
all[able 9 connection ) a mortgage      
insur$ "u section #bjc7 n exce$+ ! am\nt
 all[able ) respect to a mortgage insur$
 "u section #bjc7;h74  7#f7 ,clos+ co/s 
,! ,secret>y %all provide t ! sell] ( a 
resid5ce acquir$ us+ a mortgage insur$  
"u ?is section may pay all or a "p ( any
 clos+ co/s associat$ ) su* sale1       
subject to su* limits z ! ,secret>y %all
 e/abli%4  7#g7 ,mortgagee ,a mortgage  
insur$ "u ?is section %all be orig9at$  
by a mortgagee approv$ by ,secret>y "u  
?is title4  7#h7 ,int]e/ ,a mortgage    
insur$ "u ?is section %all be> int]e/ at
 rate agre$ to by mortgagor & mortgagee1
 :i* may be adju/able4  7d7 ,mortgage   
insurance premium  7#a7 ,up-front       
premium ,subject to p>agraph 7#b71 !    
,secret>y %all e/abli% & collect an     
insurance premium 9 connection ) ea*    
mortgage insur$ "u ?is section1 at ! "t 
& 9 ! mann] 9 provid$ "u section        
#bjc7;c77#b77;,a7 7#ab ,u4,s4,c4        
#agji7;c77#b77;,a771 except t su*       

premiums %all be 9 an am\nt equal to    
#c4f p]c5t ( ! am\nt ( ! orig9al insur$ 
pr9cipal obligation ( ! mortgage4  7#b7 
,au?ority to adju/ ,! ,secret>y may     
adju/ ! p]c5tages specifi$ 9 p>agraph   
7#a7 f "t to "t by increas+ or decreas+ 
su* p]c5tages z ! ,secret>y consid]s    
necess>y1 bas$ on ! p]=mance ( mortgages
 insur$ "u ?is section & m>ket          
conditions4  7#c7 ,prohibition ( mon?ly 
premiums ,a mortgage insur$ "u ?is      
section %all n be subject to a mon?ly   
insurance premium1 includ+ a premium "u 
section #bjc7;c77#b77;,b7 7#ab ,u4,s4,c4
 #agji7;c77#b77;,b774  7e7 ,ext5t (     
insurance ,mortgage insurance "u ?is    
section %all provide insurance ( !      
mortgage 9 ! same am\nt z w\ld be       
gu>ante$ "u section #cgjc7;a77#a7 (     
title #ch1 ,unit$ ,/ates ,code1 = a loan
 gu>ante$ "u *apt] #cg ( su* title hav+ 
an orig9al pr9cipal obligation 9 ! same 
am\nt z su* mortgage4  7f7 ,proc$ure ^u 
default ,9 ! ev5t ( default 9 ! paym5t (
 any mortgage insur$ "u ?is section1 su*

 mortgage %all be subject to ! same     
requirem5ts1 conditions1 & proc$ures    
applicable "u ?is title to mortgages    
insur$ "u section #bjc t are 9 default4 
7g7 ,,mmif ,a mortgage insur$ "u ?is    
section %all be an obligation ( !       
,mutual ,mortgage ,insurance ,fund      
e/abli%$ "u section #bjb7;a7 7#ab       
,u4,s4,c4 #agjh7;a774  7h7              
,reau?orization requir$ ,! au?ority to  
ent] into new commitm5ts to insure      
mortgages "u ?is section %all expire ^u 
! conclusion ( ! #e-ye> p]iod beg9n+ on 
! date ( ! enactm5t ( ?is section unless
 o!rwise specifically provid$ by law4  4