Homes for Every Local Protector, Educator, and Responder Act of 2021 or the HELPER Act of 2021
This bill establishes a program administered by the Department of Housing and Urban Development to provide mortgage assistance to law enforcement officers, elementary and secondary school teachers, firefighters, or other first responders. Specifically, these individuals may be eligible for a one-time mortgage on a primary family residence with no down payment and no monthly mortgage insurance premium.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3172 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 3172
To amend the National Housing Act to establish a mortgage insurance
program for first responders, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 13, 2021
Mr. Rutherford (for himself, Mr. Lawson of Florida, Mrs. Watson
Coleman, and Mr. Katko) introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the National Housing Act to establish a mortgage insurance
program for first responders, 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 ``Homes for Every Local Protector,
Educator, and Responder Act of 2021'' or the ``HELPER Act of 2021''.
SEC. 2. FHA MORTGAGE INSURANCE PROGRAM FOR MORTGAGES FOR FIRST
RESPONDERS.
Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is
amended by adding at the end the following new section:
``SEC. 259. FHA MORTGAGE INSURANCE PROGRAM FOR MORTGAGES FOR FIRST
RESPONDERS.
``(a) Authority.--Subject to subsection (i), the Secretary may,
upon application by a mortgagee, insure any mortgage eligible for
insurance under this section and, upon such terms and conditions as the
Secretary may prescribe, make commitments for the insurance of such
mortgages prior to the date of their execution or disbursement.
``(b) Eligible Mortgagors.--The mortgagor for a mortgage insured
under this section shall, at the time the mortgage is executed, meet
the following requirements:
``(1) First responder.--The mortgagor shall be--
``(A)(i) employed full-time by a law enforcement
agency of the Federal Government, a State (as such term
is defined in section 201 (12 U.S.C. 1707)), or a unit
of general local government; and
``(ii) in carrying out such full-time employment,
sworn to uphold, and make arrests for violations of,
Federal, State, county, township, or municipal laws, or
authorized by law to supervise sentenced criminal
offenders;
``(B) employed full-time as a firefighter,
paramedic, or emergency medical technician by a fire
department or emergency medical services responder unit
of the Federal Government, a State, or a unit of
general local government; or
``(C) employed as a full-time teacher by a State-
accredited public school or private school that
provides direct services to students in grades pre-
kindergarten through 12.
``(2) Years of service.--The mortgagor shall have been--
``(A) employed as required under paragraph (1)
before application for a mortgage insured under this
section for 4 or more consecutive years; or
``(B) released from employment described in
paragraph (1)(C) due to an occupation-connected
disability resulting directly from such duty or
employment.
``(3) Intent for future service.--Except in the case of a
mortgagor described in paragraph (2)(B), the mortgagor shall
have certified that the mortgagor in good faith intends to
continue employment as described in paragraph (1) for at least
one year following the date of closing on the mortgage.
``(4) Good standing.--The mortgagor shall be in good
standing with respect to the employment required under
paragraph (1) and not on probation or under investigation for
conduct that, if determined to have occurred, is grounds for
termination of employment.
``(5) Acceptable risk.--The mortgagor meets such
requirements as the Secretary shall establish to ensure that
insurance of the mortgage represents an acceptable risk to the
Mutual Mortgage Insurance Fund.
``(6) Actuarial objectives.--The mortgagor meets such
underwriting requirements as the Secretary shall establish to
meet actuarial objectives identified by the Secretary, which
may include avoiding a positive subsidy rate or complying with
the capital ratio requirement under section 205(f)(2) (12
U.S.C. 1711(f)(2)).
``(7) One-time use.--The mortgagor shall never previously
have been the mortgagor under a mortgage insured under this
section.
``(c) Mortgage Terms.--A mortgage insured under this section shall
comply with the following requirements:
``(1) Use of proceeds.--The proceeds of the mortgage shall
be used only to--
``(A) to purchase, construct, or repair a 1-family
residence, including a 1-family dwelling unit in a
condominium project; or
``(B) to purchase--
``(i) a manufactured home to be permanently
affixed to a lot that is owned by the
mortgagor; or
``(ii) a manufactured home and a lot to
which the home will be permanently affixed.
``(2) Security.--The mortgage shall be secured by an
interest in the residence for which the proceeds are used.
``(3) No downpayment.--Subject to paragraph (5) of this
subsection, the mortgage may involve an original principal
obligation in an amount up to 100 percent of the cost of
acquisition of the residence involved (including charges and
fees referred to in such paragraph (5) and the premium pursuant
to subsection (d)(1)) and shall not require that the mortgagor
shall pay any amount, in cash or its equivalent, on account of
the property.
``(4) Use as principal residence.--
``(A) Requirement.--The residence securing the
mortgage shall be occupied, during the term of the
mortgage, by the mortgagor as the mortgagor's principal
residence.
``(B) Certification.--The mortgagor shall certify
compliance with subparagraph (A) upon the execution of
the mortgage and annually during the period specified
in such subparagraph.
``(5) Loan limits.--The mortgage shall involve an original
principal obligation (including such initial service charges,
appraisal, inspection, and other fees to the extent allowable
in connection with a mortgage insured under section 203) not
exceeding the amount allowable with respect to a mortgage
insured under section 203(h).
``(6) Closing costs.--The Secretary shall provide that the
seller of a residence acquired using a mortgage insured under
this section may pay all or a part of any closing costs
associated with such sale, subject to such limits as the
Secretary shall establish.
``(7) Mortgagee.--A mortgage insured under this section
shall be originated by a mortgagee approved by Secretary under
this title.
``(8) Interest.--A mortgage insured under this section
shall bear interest at rate agreed to by mortgagor and
mortgagee, which may be adjustable.
``(d) Mortgage Insurance Premium.--
``(1) Up-front premium.--Subject to paragraph (2), the
Secretary shall establish and collect an insurance premium in
connection with each mortgage insured under this section, at
the time and in the manner in provided under section
203(c)(2)(A) (12 U.S.C. 1709(c)(2)(A)), except that such
premiums shall be in an amount equal to 3.6 percent of the
amount of the original insured principal obligation of the
mortgage.
``(2) Authority to adjust.--The Secretary may adjust the
percentages specified in paragraph (1) from time to time by
increasing or decreasing such percentages as the Secretary
considers necessary, based on the performance of mortgages
insured under this section and market conditions.
``(3) Prohibition of monthly premiums.--A mortgage insured
under this section shall not be subject to a monthly insurance
premium, including a premium under section 203(c)(2)(B) (12
U.S.C. 1709(c)(2)(B)).
``(e) Extent of Insurance.--Mortgage insurance under this section
shall provide insurance of the mortgage in the same amount as would be
guaranteed under section 3703(a)(1) of title 38, United States Code,
for a loan guaranteed under chapter 37 of such title having an original
principal obligation in the same amount as such mortgage.
``(f) Procedure Upon Default.--In the event of default in the
payment of any mortgage insured under this section, such mortgage shall
be subject to the same requirements, conditions, and procedures
applicable under this title to mortgages insured under section 203 that
are in default.
``(g) MMIF.--A mortgage insured under this section shall be an
obligation of the Mutual Mortgage Insurance Fund established under
section 202(a) (12 U.S.C. 1708(a)).
``(h) Reauthorization Required.--The authority to enter into new
commitments to insure mortgages under this section shall expire upon
the conclusion of the 5-year period beginning on the date of the
enactment of this section unless otherwise specifically provided by
law.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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