End Unnecessary Borrowing Act of 2017

End Unnecessary Borrowing Act of 2017

This bill amends the National Housing Act with respect to the requirement that the Department of Housing and Urban Development (HUD) endeavor to ensure that the Mutual Mortgage Insurance Fund (MMI Fund) attains a capital ratio of not less than 2% within 10 years after enactment of that requirement (November 5, 1990) and to ensure that the fund maintains at least that capital ratio at all times thereafter.

The bill prohibits these requirements from being construed to authorize or require HUD to borrow any amounts to comply with the capital ratio requirement.

Any HUD authority to borrow from the Treasury for the MMI Fund may be used only to the extent necessary to pay claims on mortgage insurance that is an obligation of such fund.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 492 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 492

 To ensure that any authority of the Mutual Mortgage Insurance Fund to 
borrow amounts from the Treasury is used only to pay mortgage insurance 
                                claims.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 12, 2017

 Mr. Capuano introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To ensure that any authority of the Mutual Mortgage Insurance Fund to 
borrow amounts from the Treasury is used only to pay mortgage insurance 
                                claims.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End Unnecessary Borrowing Act of 
2017''.

SEC. 2. LIMITATION ON USE OF BORROWING AUTHORITY.

    Paragraph (2) of section 205(f) of the National Housing Act (12 
U.S.C. 1711(f)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following new subparagraphs:
            ``(B) Subparagraph (A) may not be construed to authorize or 
        require the Secretary to borrow any amounts to comply with the 
        capital ratio requirement under such subparagraph.
            ``(C) Notwithstanding any other provision of law, any 
        authority of the Secretary under this Act or otherwise to 
        borrow amounts from the Treasury of the United States for the 
        Mutual Mortgage Insurance Fund may be used only to the extent 
        necessary to pay claims on mortgage insurance that is an 
        obligation of such Fund.''.
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