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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5508 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5508
To amend the National Housing Act to restrict the collection of annual
mortgage insurance premiums when a 78 percent loan-to value ratio is
reached, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 19, 2025
Mr. Meeks (for himself and Mr. Sessions) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the National Housing Act to restrict the collection of annual
mortgage insurance premiums when a 78 percent loan-to value ratio is
reached, 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 ``Mortgage Insurance Freedom Act''.
SEC. 2. RESTRICTION OF COLLECTION OF ANNUAL MORTGAGE INSURANCE
PREMIUMS.
(a) In General.--Section 203(c)(2) 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:
``(D) Restriction on annual premium collection.--
``(i) In general.--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.
``(ii) Exception.--If the capital ratio of
the Mutual Mortgage Insurance Fund falls below
2 percent--
``(I) clause (i) shall not apply
with respect to any mortgage with
respect the Secretary was collecting
premiums on the date on which the
capital ratio of the Mutual Mortgage
Insurance Fund fell below 2 percent;
and
``(II) clause (i) shall continue to
apply to any mortgage with respect to
which the Secretary had stopped
collecting premiums under this
paragraph before the date on which the
capital ratio of the Mutual Mortgage
Insurance Fund fell below 2 percent
because the remaining insured principal
balance met the requirements described
in clause (i).
``(iii) Rulemaking.--The Secretary shall,
not later than 180 days after the enactment of
this subparagraph, issue such rules to carry
out this subparagraph and such rules shall
include a process for mortgagors of mortgages
insured under this title to use to demonstrate
to the Secretary that the insured principal
balance of the mortgage of such mortgagor 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.
``(iv) Outreach and education.--The
Secretary shall conduct outreach and
educational activities to inform mortgagors of
mortgages insured under this title about--
``(I) the restriction on premium
collection imposed by clause (i); and
``(II) and the processes the
mortgagor may use to demonstrate to the
Secretary that the insured principal
balance of the mortgage of such
mortgagor is 78 percent or less than
the lower of--
``(bb) the sales price of
the dwelling at the sale in
connection with which the
mortgage was made; or
``(cc) the appraised value
of the dwelling at the time of
the origination of the
mortgage.''.
(b) Applicability.--The amendments made by subsection (a) shall
apply with respect only to mortgages endorsed for insurance by the
Secretary of Housing and Urban Development after the date of the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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