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FHA-Rural Regulatory Improvement Act of 2011

FHA-Rural Regulatory Improvement Act of 2011

Ratings: (0)|Views: 75|Likes:
Published by Brandon Snider
FHA may be changing their down payment requirement from 3.5% to 5%. Other changes are proposed as well, such as limiting the closing costs that can be financed, as well as moving the Rural Housing Service under the authority of HUD.
FHA may be changing their down payment requirement from 3.5% to 5%. Other changes are proposed as well, such as limiting the closing costs that can be financed, as well as moving the Rural Housing Service under the authority of HUD.

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Published by: Brandon Snider on May 26, 2011
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05/26/2011

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[Discussion Draft]
[DISCUSSION DRAFT]
112
TH
CONGRESS1
ST
S
ESSION
 
H. R.
 ll 
 
To
IN THE HOUSE OF REPRESENTATIVES
M
 l 
.
 llllll 
introduced the following bill; which was referred to theCommittee on
 llllllllllllll 
 
A BILL
 
To
 Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
3
(a) S
HORT
T
ITLE
.—This Act may be cited as the
4
‘‘FHA-Rural Regulatory Improvement Act of 2011’’.
5
(b) T
 ABLE OF
C
ONTENTS
.—The table of contents for
6
this Act is as follows:
7
Sec.1.Short title and table of contents.Sec.2.Required capital ratios for General and Special Risk Insurance Funds.Sec.3.FHA downpayment requirement of 5 percent and prohibition of financ-ing of closing costs.Sec.4.FHA mortgage limits.Sec.5.FHA annual mortgage insurance premiums.Sec.6.Indemnification by FHA mortgagees.
VerDate 0ct 09 2002 11:23 May 20, 2011Jkt 000000PO 00000Frm 00001Fmt 6652Sfmt 6211C:\DOCUME~1\PCCALLEN\APPLIC~1\SOFTQUAD\XMETAL\5.5\GEN\C\FHA-GN~1.XML
May 20, 2011 (11:23 a.m.)
F:\PCC\112HCO\FHA-GNMA_003.XML
f:\VHLC\052011\052011.049.xml (497569|3)
 
2
[Discussion Draft]
Sec.7.Delegation of FHA insuring authority.Sec.8.Authority to terminate FHA mortgagee origination and underwritingapproval.Sec.9.Authorization to participate in the origination of FHA-insured loans.Sec.10.Deputy Assistant Secretary of FHA for Risk Management and Regu-latory Affairs.Sec.11.Report on streamlining FHA programs.Sec.12.Establishment of Chief Financial Officer for GNMA.Sec.13.HUD management of rural housing programs.
SEC. 2. REQUIRED CAPITAL RATIOS FOR GENERAL AND
1
SPECIAL RISK INSURANCE FUNDS.
2
(a) S
PECIAL
R
ISK 
I
NSURANCE
F
UND
.—Subsection
3
(b) of section 238 of the National Housing Act (12 U.S.C.
4
1715z–3(b)) is amended—
5
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
6
(2) by adding at the end the following new
7
paragraph:
8
‘‘(2)(A) The Secretary shall ensure that the Special
9
Risk Insurance Fund attains a capital ratio of not less
10
than 1.25 percent within 24 months after the date of the
11
enactment of this paragraph, and maintains such ratio
12
thereafter, subject to subparagraph (B).
13
‘‘(B) The Secretary shall ensure that the Special Risk
14
Insurance Fund attains a capital ratio of not less than
15
2.0 percent within 5 years after the date of the enactment
16
of this paragraph, and shall ensure that the Fund main-
17
tains at least such capital ratio at all times thereafter.
18
‘‘(C) Upon the expiration of the 24-month period be-
19
ginning on the date of the enactment of this paragraph,
20
the Secretary shall submit to the Congress a report de-
21
VerDate 0ct 09 2002 11:23 May 20, 2011Jkt 000000PO 00000Frm 00002Fmt 6652Sfmt 6201C:\DOCUME~1\PCCALLEN\APPLIC~1\SOFTQUAD\XMETAL\5.5\GEN\C\FHA-GN~1.XML
May 20, 2011 (11:23 a.m.)
F:\PCC\112HCO\FHA-GNMA_003.XML
f:\VHLC\052011\052011.049.xml (497569|3)
 
3
[Discussion Draft]
scribing the actions the Secretary will take to ensure that
1
the Special Risk Insurance Fund attains the capital ratios
2
required under subparagraph (B).
3
‘‘(D) For purposes of this paragraph, the following
4
definitions shall apply:
5
‘‘(i) The term ‘capital’ means the economic net
6
 worth of the Special Risk Insurance Fund, as deter-
7
mined by the Secretary under the annual audit re-
8
quired under section 538.
9
‘‘(ii) The term ‘capital ratio’ means the ratio of 
10
capital to unamortized insurance-in-force on out-
11
standing mortgages that are obligations of the Spe-
12
cial Risk Insurance Fund.
13
‘‘(iii) The term ‘economic net worth’ means the
14
current cash available to the Special Risk Insurance
15
Fund, plus the net present value of all future cash
16
inflows and outflows expected to result from the out-
17
standing mortgages in the Fund.
18
‘‘(iv) The term ‘unamortized insurance-in-force’
19
means the remaining obligation on outstanding
20
mortgages that are obligations of the Special Risk
21
Insurance Fund, as estimated by the Secretary.’’.
22
(b) G
ENERAL
R
ISK 
I
NSURANCE
F
UND
.—Section 519
23
of the National Housing Act (12 U.S.C. 1735c) is amend-
24
ed by adding at the end the following new subsection:
25
VerDate 0ct 09 2002 11:23 May 20, 2011Jkt 000000PO 00000Frm 00003Fmt 6652Sfmt 6201C:\DOCUME~1\PCCALLEN\APPLIC~1\SOFTQUAD\XMETAL\5.5\GEN\C\FHA-GN~1.XML
May 20, 2011 (11:23 a.m.)
F:\PCC\112HCO\FHA-GNMA_003.XML
f:\VHLC\052011\052011.049.xml (497569|3)

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