FHA Loan Affordability Act of 2019

FHA Loan Affordability Act of 2019

This bill requires Federal Housing Administration mortgage borrowers to pay mortgage insurance premiums only when their remaining principal balance exceeds 78% or more of the home value or sales price. The bill applies only to mortgages insured after the bill's enactment.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3141 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 3141

 To limit the collection of annual premiums under the FHA program for 
 mortgage insurance for single family housing, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 5, 2019

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

_______________________________________________________________________

                                 A BILL


 
 To limit the collection of annual premiums under the FHA program for 
 mortgage insurance for single family housing, and for other purposes.

    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 ``FHA Loan Affordability Act of 
2019''.

SEC. 2. ANNUAL PREMIUMS.

    Paragraph (2) of section 203(c) 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 new subparagraph:
                    ``(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.''.
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