,i #aai? ,,congress #b;d ,session ,h4 ,r4 #ajhcc ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,octob] #ae1 #bjbf,mr4 ,?an$> introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to all[ ! ,secret>y to insure mortgages = c]ta9 fir/-"t homebuy]s1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,doorway to ! ,am]ican ,dream ,act4 #b4 ,insurance ( mortgages = c]ta9 fir/-"t homebuy]s 7a7 ,9 g5]al ,title ,,ii ( ! ,national ,h\s+ ,act is am5d$ by ins]t+ aft] section #bjc ! foll[+3 #bjc;,a4 ,insurance ( mortgages = c]ta9 fir/-"t homebuy]s 7a7 ,9 g5]al ,! ,secret>y is au?oriz$ ^u application by ! mortgagee1 to insure1 z h]e9aft] provid$1 any mortgage 7z def9$ 9 section #bja ( ?is ,act7 (f]$ to him :i* is eligible = insurance z h]e9aft] provid$1 &1 ^u su* t]ms z ! ,secret>y may prescribe1 to make commitm5ts = ! insur+ ( su* mortgages prior to ! date ( _! execution or disbursem5t !reon4 7b7 ,eligibility 7#a7 ,9 g5]al ,to be eligible = insurance "u ?is section1 a mortgage %all-- 7,a7 be secur$ by a prop]ty t is a dwell+ design$ pr9cipally = a s+le-family resid5t2 7,b7 h be5 made to1 & be held by1 a mortgagee approv$ by ! ,secret>y z responsible & able to s]vice ! mortgage prop]ly2 7,c7 be provid$ by a mortgagee approv$ by ! ,secret>y to a mortgagor :o1 z det]m9$ by ! ,secret>y-- 7i7 is "p ( a h\sehold ) an annual income t is less ?an #afj p]c5t ( ! area m$ian income2 & 7ii7 is a fir/-"t home buy] :o has complet$ a program ( c\nsel+ ) respect to ! responsibilities & f9ancial managem5t involv$ 9 home[n]%ip t is approv$ by ! ,secret>y2 7,d7 involve a pr9cipal obligation 7includ+ su* initial s]vice *>ges1 appraisal1 inspection1 & o!r fees z ! ,secret>y %all approve7 9 an am\nt-- 7i7 n to exce$ ! less] (-- 7,i7 9 ! case ( a #a-;family resid5ce1 #aae p]c5t ( ! m$ian #a-;family h\se price 9 ! area1 z det]m9$ by ! ,secret>y2 & 9 ! case ( a #b-;family resid5ce1 ! p]c5tage ( su* m$ian price t be>s ! same ratio to su* m$ian price z ! doll> am\nt limitation det]m9$ "u ! six? s5t5ce ( section #cje7;a77#b7 ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77#b77 = a #b-;family resid5ce1 respectively1 be>s to ! doll> am\nt limitation det]m9$ "u su* section = a #a-;family resid5ce2 or 7,,ii7 #aej p]c5t ( ! doll> am\nt limitation det]m9$ "u ! six? s5t5ce ( su* section #cje7;a77#b7 = a resid5ce ( applicable size2 except t ! doll> am\nt limitation 9 effect "u ?is subp>agraph = any size resid5ce = any area may n be less ?an ! great] (3 7aa7 ! doll> am\nt limitation 9 effect "u ?is section = ! area on ,octob] #ba1 #aiih2 or 7bb7 #fe p]c5t ( ! doll> am\nt limitation det]m9$ "u ! six? s5t5ce ( su* section #cje7;a77#b7 = a resid5ce ( ! applicable size2 & 7,b7 n to exce$ #ajj p]c5t ( ! apprais$ value ( ! prop]ty4 7,e7 h a loan-to-value ratio t does n exce$ #if4e p]c5t2 7,f7 h a maturity satisfactory to ! ,secret>y b n to exce$ ?irty ye>s f ! date ( insurance ( ! mortgage2 7,g7 conta9 complete amortization provisions satisfactory to ! ,secret>y requir+ p]iodic paym5ts by ! mortgagor n 9 excess ( 8 reasonable ability to pay z det]m9$ by ! ,secret>y2 7,h7 be> int]e/ 7exclusive ( premium *>ges = insurance & s]vice *>ges1 if any7 z n to exce$ #c4e p] c5tum p] annum on ! am\nt ( ! pr9cipal obligation out/&+ at any "t2 7,i7 provide1 9 a mann] satisfactory to ! ,secret>y1 = ! application ( ! mortgagor's p]iodic paym5ts 7exclusive ( ! am\nt allocat$ to int]e/ & to ! premium *>ge :i* is requir$ = mortgage insurance z h]e9aft] provid$ & to ! s]vice *>ge1 if any7 to amortization ( ! pr9cipal ( ! mortgage2 & 7,j7 conta9 su* t]ms & provisions ) respect to insurance1 repairs1 alt]ations1 paym5t ( taxes1 s]vice *>ges1 default res]ves1 del9qu5cy *>ges1 =eclosure proce$+s1 anticipation ( maturity1 & o!r matt]s z ! ,secret>y may 9 8 discretion prescribe4 7#b7 ,area def9$ ,9 ?is subsection1 area means a metropolitan /ati/ical area z e/abli%$ by ! ,(fice ( ,managem5t & ,budget2 & ! m$ian #a-;family h\se price = an area %all be equal to ! m$ian #a-;family h\se price ( ! c\nty )9 ! area t has ! highe/ su* m$ian price4 7#c7 ,fir/-"t homebuy] def9$ ,9 ?is section1 ! t]m fir/-"t homebuy] means a p]son :o has n own$ a resid5tial prop]ty or _h an own]%ip int]e/ 9 a resid5tial prop]ty 9 ! #c-ye> p]iod prior to seek+ insurance "u ?is section4 7#d7 ,sol> en]gy sy/ems ,not)/&+ any o!r provision ( ?is subsection1 ! am\nt :i* may be insur$ "u ?is section may be increas$ by up to #bj p]c5t if su* increase is necess>y to acc\nt = ! increas$ co/ ( ! resid5ce due to ! in/allation ( a sol> en]gy sy/em 7z def9$ 9 subp>agraph 7#c7 ( ! la/ p>agraph ( section #b7;a7 ( ?is ,act7 !re94 7c7 ,int]e/ rate subsidy 7#a7 ,9 g5]al ,! ,secret>y %all1 ea* mon?1 provide to ea* mortgagee associat$ ) a mortgage insur$ "u ?is section1 an int]e/ rate subsidy t is equal to-- 7,a7 if ! mortgagor is "p ( a h\sehold ) an annual income t is less ?an #hj p]c5t ( ! area m$ian income1 ! diff]5ce betwe5-- 7i7 ! int]e/ rate *>g$ by ! mortgagee associat$ ) su* mortgage multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7ii7 #a p]c5t multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 7,b7 if ! mortgagor is "p ( a h\sehold ) an annual income t is equal to or great] ?an #hj p]c5t b less ?an #ij p]c5t ( ! area m$ian income1 ! diff]5ce betwe5-- 7i7 ! int]e/ rate *>g$ by ! mortgagee associat$ ) su* mortgage multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7ii7 #a4cabe p]c5t multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 7,c7 if ! mortgagor is "p ( a h\sehold ) an annual income t is equal to or great] ?an #ij p]c5t b less ?an #ajj p]c5t ( ! area m$ian income1 ! diff]5ce betwe5-- 7i7 ! int]e/ rate *>g$ by ! mortgagee associat$ ) su* mortgage multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7ii7 #a4fbe p]c5t multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 7,d7 if ! mortgagor is "p ( a h\sehold ) an annual income t is equal to or great] ?an #ajj p]c5t b less ?an #aaj p]c5t ( ! area m$ian income1 ! diff]5ce betwe5-- 7i7 ! int]e/ rate *>g$ by ! mortgagee associat$ ) su* mortgage multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7ii7 #a4icge p]c5t multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 7,e7 if ! mortgagor is "p ( a h\sehold ) an annual income t is equal to or great] ?an #aaj p]c5t b less ?an #abj p]c5t ( ! area m$ian income1 ! diff]5ce betwe5-- 7i7 ! int]e/ rate *>g$ by ! mortgagee associat$ ) su* mortgage multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7ii7 #b4be p]c5t multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 7,f7 if ! mortgagor is "p ( a h\sehold ) an annual income t is equal to or great] ?an #abj p]c5t b less ?an #acj p]c5t ( ! area m$ian income1 ! diff]5ce betwe5-- 7i7 ! int]e/ rate *>g$ by ! mortgagee associat$ ) su* mortgage multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7ii7 #b4efbe p]c5t multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 7,g7 if ! mortgagor is "p ( a h\sehold ) an annual income t is equal to or great] ?an #acj p]c5t b less ?an #adj p]c5t ( ! area m$ian income1 ! diff]5ce betwe5-- 7i7 ! int]e/ rate *>g$ by ! mortgagee associat$ ) su* mortgage multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7ii7 #b4hge p]c5t multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 7,h7 if ! mortgagor is "p ( a h\sehold ) an annual income t is equal to or great] ?an #adj p]c5t b less ?an #aej p]c5t ( ! area m$ian income1 ! diff]5ce betwe5-- 7i7 ! int]e/ rate *>g$ by ! mortgagee associat$ ) su* mortgage multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7ii7 #c4ahge p]c5t multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7,i7 if ! mortgagor is "p ( a h\sehold ) an annual income t is equal to or great] ?an #aej p]c5t b less ?an #afj p]c5t ( ! area m$ian income1 ! diff]5ce betwe5-- 7i7 ! int]e/ rate *>g$ by ! mortgagee associat$ ) su* mortgage multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab2 & 7ii7 #c4e p]c5t multipli$ by ! am\nt ( ! out/&+ pr9cipal obligation divid$ by #cfe & !n multipli$ by #ab4 7#b7 ,exception 7,a7 ,9 g5]al ,! ,secret>y %all n provide an int]e/ rate subsidy to a mortgagee associat$ ) a mortgage insur$ "u ?is section if ! none ( ! mortgagors associat$ ) su* mortgage are us+ prop]ty secur+ ! mortgage z _! prim>y resid5ce4 7,b7 ,c]tification ,ea* mortgagor associat$ ) a mortgage insur$ "u ?is section %all c]tify to ! ,secret>y n less ?an once ea* ye> :e!r su* mortgagor is us+ ! us+ prop]ty secur+ ! mortgage z _! prim>y resid5ce4 7d7 ,premium *>ges 7#a7 ,initial premium *>ge ,! ,secret>y %all require a premium *>ge = ! insurance ( ea* mortgage "u ?is section t is equal to #a p]c5t ( ! am\nt ( ! pr9cipal obligation ( ! mortgage out/&+ at ! "t insurance is provid$4 7#b7 ,annual premium *>ges ,! ,secret>y %all1 ea* ye>1 require an annual *>ge = ! insurance ( ea* mortgage "u ?is section t is equal to #j4ce p]c5t ( ! am\nt ( ! pr9cipal obligation ( ! mortgage out/&+1 )\t tak+ into acc\nt del9qu5t paym5ts or prepaym5ts4 7#c7 ,paym5ts ,premium *>ges & annual *>ges "u ?is subsection %all be payable by ! mortgagee1 ei!r 9 ca% or 9 deb5tures issu$ by ! ,secret>y "u ?is section at p> plus accru$ int]e/1 9 su* mann] z may be prescrib$ by ! ,secret>y4 7#d7 ,accept+ = insurance ,if ! ,secret>y f9ds1 ^u ! pres5tation ( a mortgage = insurance & ! t5d] ( ! initial premium *>ge or *>ges s require1 t ! mortgage complies ) ! provisions ( ?is section1 su* mortgage may be accept$ = insurance by endorsem5t or o!rwise z ! ,secret>y may prescribe4 7e7 ,release ( mortgagor f liability ,! ,secret>y may1 at any "t "u su* t]ms & conditions z he may prescribe1 cons5t to ! release ( ! mortgagor f 8 liability "u ! mortgage or ! cr$it in/rum5t secur$ !reby1 or cons5t to ! release ( p>ts ( ! mortgag$ prop]ty f ! li5 ( ! mortgage4 7f7 ,inconte/ability ,any contract ( insurance execut$ by ! ,secret>y "u ?is section %all be conclusive evid5ce ( ! eligibility ( ! mortgage = insurance1 & ! validity ( any contract ( insurance s execut$ %all be inconte/able 9 ! h&s ( an approv$ mortgagee f ! date ( ! execution ( su* contract1 except = fraud or misrepres5tation on ! "p ( su* approv$ mortgagee4 7g7 ,entitlem5t to b5efits ( insurance ,9 any case 9 :i* ! mortgagee "u a mortgage insur$ "u ?is section %all h =eclos$ & tak5 possession ( ! mortgag$ prop]ty 9 accordance ) ! regulations (1 & )9 a p]iod to be det]m9$ by1 ! ,secret>y1 or %all1 ) ! cons5t ( ! ,secret>y1 h o!rwise acquir$ su* prop]ty f ! mortgagor aft] default1 ! mortgagee %all be entitl$ to receive ! b5efits ( ! insurance z provid$ 9 section #bjd7;a7 ( ?is ,act ) respect to mortgages insur$ "u ?is section4 7h7 ,application ( section #bjd ,subsections 7c71 7d71 7e71 7f71 7g71 7h71 7j71 & 7k7 ( section #bjd ( ?is ,act %all be applicable to mortgages insur$ "u ?is section except t all ref]5ces !re9 to ! ,mutual ,mortgage ,insurance ,fund or ! ,fund %all be con/ru$ to ref] to ! ,g5]al ,insurance ,fund1 & all ref]5ces !re9 to section #bjc %all be con/ru$ to ref] to ?is section3 ,provid$1 ,t deb5tures issu$ 9 connection ) mortgages insur$ "u ?is section %all h ! same tax exemption z deb5tures issu$ 9 connection ) mortgages insur$ "u ?is section4 7i7 ,au?orization ( appropriations 7#a7 ,9 g5]al ,!re is au?oriz$ to be appropriat$ n m ?an #e1jjj1jjj1jjj ea* fiscal ye> to c>ry out ?is section4 7#b7 ,update ( am\nt ,! am\nt 9 p>agraph 7#a7 %all be updat$ ea* ye> to reflect any *anges 9 ! consum] price index4 4 7b7 ,approv$ mortgagees ,! ,secret>y ( ,h\s+ & ,urban ,developm5t %all1 n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 publi% a li/ ( mortgagees approv$ by ! ,secret>y pursuant to section #bjc;,a ( ! ,national ,h\s+ ,act4 7c7 ,con=m+ am5dm5ts ,title ,,ii ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agjg et seq47 is am5d$-- 7#a7 9 section #bja1 by /rik+ ,z us$ 9 section #bjc & ins]t+ ,z us$ 9 section #bjc & section #bjc;,a2 7#b7 9 section #bjb7;a77#a71 by /rik+ insur$ "u section #bjc & ins]t+ insur$ "u section #bjc & section #bjc;,a2 7#c7 9 section #bjc7r77#d71 by /rik+ insur$ "u ?is section #bjc & ins]t+ insur$ "u ?is section #bjc or section #bjc;,a2 7#d7 9 section #bjd7;a77#a7 by /rik+ "u section #bjc & ins]t+ "u section #bjc or section #bjc;,a2 7#e7 9 section #bjd7;d7-- 7,a7 by /rik+ insur$ "u section #bjc %all be & ins]t+ insur$ "u section #bjc & section #bjc;,a %all be2 & 7,b7 by /rik+ insur$ "u section #bjc or section #bjg & ins]t+ insur$ "u section #bjc1 section #bjc;,a1 or section #bjg2 7#f7 9 section #bjd7;f71 by /rik+ insur$ "u section #bjc & ins]t+ insur$ "u section #bjc or section #bjc;,a2 7#g7 9 section #bjd7;j71 by /rik+ insur$ "u section #bjc 7o!r ?an a mortgagee receiv+ insurance b5efits "u clause 7#a77;,a7 ( ! second s5t5ce ( subsection 7a77 & ins]t+ insur$ "u section #bjc 7o!r ?an a mortgagee receiv+ insurance b5efits "u clause 7#a77;,a7 ( ! second s5t5ce ( subsection 7a77 or "u section #bjc;,a2 7#h7 9 section #bje7;d71 by /rik+ insur$ "u section #bjc & ins]t+ insur$ "u section #bjc or section #bjc;,a2 7#i7 9 section #bjf1 by /rik+ insurance "u section #bjc & ins]t+ insurance "u section #bjc or section #bjc;,a2 7#aj7 9 section #bjg7;b71 by /rik+ insur$ "u section #bjc & ins]t+ insur$ "u section #bjc & section #bjc;,a2 7#aa7 9 section #bbj7;f71 by /rik+ insur$ "u section #bjc & ins]t+ insur$ "u section #bjc & section #bjc;,a2 7#ab7 9 section #bbb1 by /rik+ insur$ "u section #bjc & ins]t+ insur$ "u section #bjc & section #bjc;,a2 7#ac7 9 section #bbd1 by /rik+ insur$ "u section #bjc or #bcd & ins]t+ insur$ "u section #bjc1 section #bjc;,a1 or section #bcd2 7#ad7 section #bbf is am5d$ by /rik+ insurance "u section #bjc & ins]t+ insurance "u section #bjc or section #bjc;,a2 7#ae7 9 section #bch1 by /rik+ insur$ "u section #bjc & ins]t+ insur$ "u section #bjc or section #bjc;,a2 & 7#af7 section #bdh is am5d$ by /rik+ premium "u section #bjc or "u section #bjc;,a1 z applicable4