[House Report 111-503]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-503
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5072) TO IMPROVE THE
FINANCIAL SAFETY AND SOUNDNESS OF THE FHA MORTGAGE INSURANCE PROGRAM,
AND PROVIDING FOR CONSIDERATION OF MOTIONS TO SUSPEND THE RULES
_______
June 8, 2010.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Perlmutter, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 1424]
The Committee on Rules, having had under consideration
House Resolution 1424, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 5072, the
``FHA Reform Act of 2010,'' under a structured rule. The
resolution waives all points of order against consideration of
the bill except those arising under clause 9 or 10 of rule XXI.
The resolution provides one hour of general debate equally
divided and controlled by the chair and ranking minority member
of the Committee on Financial Services. The resolution provides
that the amendment in the nature of a substitute recommended by
the Committee on Financial Services now printed in the bill
shall be considered as an original bill for the purpose of
amendment and shall be considered as read. The rule waives all
points of order against the amendment in the nature of a
substitute except for clause 10 of rule XXI. This waiver does
not affect the point of order available under clause 9 of rule
XXI (regarding earmark disclosure). The rule further makes in
order only those amendments printed in this report. The
amendments made in order may be offered only in the order
printed in this report, may be offered only by a Member
designated in this report, shall be considered as read, shall
be debatable for the time specified in this report equally
divided and controlled by the proponent and an opponent, shall
not be subject to amendment, and shall not be subject to a
demand for division of the question. All points of order
against the amendments except for clauses 9 and 10 of rule XXI
are waived. The rule provides one motion to recommit with or
without instructions. The resolution provides that the Chair
may entertain a motion that the Committee rise only if offered
by the chair of the Committee on Financial Services or a
designee. The resolution provides that the Chair may not
entertain a motion to strike out the enacting words of the
bill. The resolution authorizes the Speaker to entertain
motions that the House suspend the rules at any time through
the legislative day of June 11, 2010. The Speaker or her
designee shall consult with the Minority Leader or his designee
on the designation of any matter for consideration pursuant to
this resolution.
EXPLANATION OF WAIVERS
Although the resolution waives all points of order against
consideration of the bill (except for clauses 9 and 10 of rule
XXI) and all points of order against the amendment in the
nature of a substitute (except for clause 10 of rule XXI), the
Committee is not aware of any points of order. The waivers of
all points of order are prophylactic.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 440
Date: June 8, 2010.
Measure: H.R. 5072.
Motion by: Mr. Dreier.
Summary of motion: To report an open rule.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay;
Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; Polis--Nay;
Dreier--Yea; Diaz-Balart, L.--Yea; Sessions--Yea; Slaughter--
Nay.
Rules Committee record vote No. 441
Date: June 8, 2010.
Measure: H.R. 5072.
Motion by: Mr. Lincoln Diaz-Balart of Florida.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Garrett (NJ), #4, which would
require FHA-approved private lenders to retain 5% of the risk
of the loans they write by allowing FHA to insure only 95% of
each loan.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay;
Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; Polis--Nay;
Dreier--Yea; Diaz-Balart, L.--Yea; Sessions--Yea; Slaughter--
Nay.
Rules Committee record vote No. 442
Date: June 8, 2010.
Measure: H.R. 5072.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Roskam (IL), #14, which would
set a compensation limit at the level of the Chairman of the
Joint Chiefs of Staff of the Armed Forces for executives at
Fannie Mae and Freddie Mac while either is in conservatorship
or receivership.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay;
Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-Balart, L.--Yea;
Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 443
Date: June 8, 2010.
Measure: H.R. 5072.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Garrett (NJ), #2, which would
prohibit the Up-Front Premium from being financed into the loan
amount.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay;
Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-Balart, L.--Yea;
Sessions--Yea; Slaughter--Nay.
SUMMARY OF AMENDMENTS MADE IN ORDER
1. Waters (CA): Would (1) provide for various technical
corrections, (2) make modifications to the GAO report in
section 15 of the bill, (3) provide that the Secretary may
increase loan limits for micropolitan counties surrounded by
higher cost areas and experiencing significant growth, and (4)
address documentation standards for FHA loans. (10 minutes)
2. Cardoza (CA): Would prioritize foreclosure counseling
services to areas of the country that have been the hardest-hit
by the housing crisis. (10 minutes)
3. Cao (LA): Would include information about credit risk
and financial counseling services to mortgagors in addition to
the housing and loan modification information currently
included in the bill. (10 minutes)
4. Bean (IL): Would require HUD to submit an annual report
to Congress discussing proposed or actual increases in the
minimum cash investment requirements (downpayment requirements)
in the FHA program. It would further give HUD the authority to
establish higher minimum cash investment requirements for all
or class(es) of borrowers and requires HUD to take into
consideration the findings of the annual report. (10 minutes)
5. Garrett (NJ): Would raise the FHA down payment
requirement from 3.5% to 5% and prohibit closing costs from
being rolled in as well. (10 minutes)
6. Tierney (MA): Would (1) direct the Secretary of the
Department of Housing and Urban Development to provide mortgage
insurance premium refunds to eligible borrowers of FHA insured
loans, which were closed prior to December 8, 2004, but which
were not endorsed until December 8, 2004 or after that date,
and; (2) authorize such sums as may be necessary for such
refunds. (10 minutes)
7. Price, Tom (GA): Would cap the number of mortgages the
FHA can issue to 10% of total loans originated in the U.S. each
year. Within 90 days of enactment, FHA must submit a plan to
Congress to roll back FHA market share to 10% of loans
originated each year by 2012. (10 minutes)
8. Weiner (NY), Miller, Gary (CA): Would increase loan
limits for the construction or rehabilitation of multifamily
housing with elevators including rentals, cooperatives,
condominiums to ensure that they represent today's construction
costs. Would create an ``extremely high cost area'' category
for FHA Multifamily Insurance for those areas, similar to those
in Alaska, Guam, Hawaii, and the Virgin Islands. (10 minutes)
9. Turner (OH): Would repeal the emergency authority that
allows the FHA to insure loans up to $720,000 in certain high
cost areas. The amendment would create a maximum loan limit of
$500,000 for a single family unit and a percentage of the same
ratio for 2-, 3- or 4-family residences. (10 minutes)
10. Clarke (NY), Cuellar (TX): Would direct the GAO to
include in its FHA report an analysis on the effectiveness of
HUD's loss mitigation home retention options in assisting
individuals, particularly low income borrowers, in avoiding
home foreclosure for mortgages. (10 minutes)
11. Nye (VA): Would instruct the Federal Housing
Administration to continue the Special Forbearance program, as
it relates to Chinese Drywall, until the end of FY 2011. (10
minutes)
12. Edwards, Chet (TX): Would require individuals to
certify that they have not been convicted of a sex offense
against a minor in order to get an FHA mortgage. (10 minutes)
13. Adler (NJ): Would state that no funds authorized under
the act may be used to pay the salary of an employee who has
been officially disciplined for viewing, downloading, or
exchanging pornography (including child pornography) on a
Federal Government computer or while performing official
Federal Government duties. (10 minutes)
TEXT OF AMENDMENTS TO BE MADE IN ORDER
1. An Amendment To Be Offered by Representative Waters of California,
or Her Designee, Debatable for 10 Minutes
Page 9, line 19, after ``single family'' insert
``residences''.
Page 18, line 24, strike ``12-month'' and insert ``18-
month''.
Page 14, after line 16, insert the following new section:
SEC. 13. AUTHORIZATION TO PARTICIPATE IN THE ORIGINATION OF FHA-INSURED
LOANS.
(a) Single Family Mortgages.--Section 203(b) of the National
Housing Act (12 U.S.C. 1709(b)) is amended by striking
paragraph (1) and inserting the following new paragraph:
``(1) Have been made to a mortgagee approved by the
Secretary or to a person or entity authorized by the
Secretary under section 202(d)(1) to participate in the
origination of the mortgage, and be held by a mortgagee
approved by the Secretary as responsible and able to
service the mortgage properly.''.
(b) Home Equity Conversion Mortgages.--Section 255(d) of the
National Housing Act (12 U.S.C. 1715z-20(d)) is amended by
striking paragraph (1) and inserting the following new
paragraph:
``(1) have been originated by a mortgagee approved
by, or by a person or entity authorized under section
202(d)(1) to participate in the origination by, the
Secretary;''.
Page 14, line 17, strike ``13'' and insert ``14''.
Page 15, line 14, strike ``14'' and insert ``15''.
Strike line 23 on page 18 and all that follows through page
22, line 20, and insert the following:
SEC. 16. GAO REPORT ON FHA.
Not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, the
Comptroller General of the United States shall submit to the
Congress a report on the single family mortgage insurance
programs of the Secretary of Housing and Urban Development and
the Mutual Mortgage Insurance Fund established under section
202(a) of the National Housing Act (12 U.S.C. 1708(a)) that--
(1) analyzes such Fund, the economic net worth,
capital ratio, and unamortized insurance-in-force (as
such terms are defined in section 205(f)(4) of such Act
(12 U.S.C. 1711(f)(4))) of such Fund, the risks to the
Fund, how the capital ratio of the Fund affects the
mortgage insurance programs under the Fund and the
broader housing market, the extent to which the housing
markets are more dependent on mortgage insurance
provided through the Fund since the financial crisis
began in 2008, and the exposure of the taxpayers for
obligations of the Fund;
(2) analyzes the methodology for determining the
Fund's capital ratio under section 205(f) of such Act
and examines alternative methods for assessing the
Fund's financial condition and their potential impacts
on the Fund's ability to meet the operational goals
under section 202(a)(7) of such Act;
(3) analyzes the potential effects of the increases
in the limits on the maximum principal obligation of
mortgages made by the FHA Modernization Act of 2008
(title I of division B of Public Law 110-289), section
202 of the Economic Stimulus Act of 2008 (Public Law
110-185; 122 Stat. 620), section 1202 of division A of
the American Recovery and Reinvestment Act of 2009
(Public Law 111-5; 123 Stat. 225), and section 166 of
the Continuing Appropriations Resolution, 2010 (as
added by section 104 of division B of Public Law 111-
88; 123 Stat. 29723) on--
(A) the risks to and safety and soundness of
the Fund;
(B) the impact on the affordability and
availability of mortgage credit for borrowers
for loans authorized under such higher loan
limits;
(C) the private market for residential
mortgage loans that are not insured by the
Secretary of Housing and Urban Development; and
(D) the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation;
and
(4) analyzes the impact on affordability to FHA
borrowers, and the impact to the Fund, of seller
concessions or contributions to a borrower purchasing a
residence using a mortgage that is insured by the
Secretary.
At the end of the bill, add the following new sections:
SEC. 17. INCREASED LOAN LIMITS FOR DESIGNATED COUNTIES.
(a) Authority.--Notwithstanding any other provision of law,
the Secretary of Housing and Urban Development (in this section
referred to as the ``Secretary'') may increase the dollar
amount limitations on the principal obligation of mortgages
otherwise determined under section 203(b)(2) of the National
Housing Act for any county that is designated under this
section.
(b) Procedure.--
(1) Federal register notice.--Any designation of a
county under this section shall be made only pursuant
to application by the county for such designation, in
accordance with procedures that the Secretary may
establish. The Secretary may establish such procedures
only by publication in the Federal Register not later
than 60 days after the date of the enactment of this
Act.
(2) Final determination.--If the Secretary
establishes procedures for applications under paragraph
(1) and receives a completed application for
designation under this section of a county in
accordance with such procedures, the Secretary shall
issue a final determination regarding such application
for designation, based on the criteria under subsection
(c), not later than 60 days after such receipt.
(c) Determination Criteria.--The Secretary may designate an
applicant county under this section only if the county is
located within a micropolitan area (as such term is defined by
the Director of the Office of Management and Budget) and meets
the following criteria:
(1) More than 70 percent of the border of the
applicant county abuts two or more metropolitan
statistical areas (as such term is defined by the
Director of the Office of Management and Budget) for
which each dollar amount limitation on the principal
obligation of a mortgage that may be insured under
section 203 of the National Housing Act, in effect at
the time of such determination, is at least 40 percent
greater than the dollar amount limitation for the same
size residence for the applicant county. For purposes
of such calculation, the dollar amount limitations of
such abutting counties shall not include any increase
attributable to the authority under this section.
(2) The applicant county has experienced significant
population growth, as evidenced by an increase of 15
percent or more during the 10 years preceding the
application, according to statistics of the United
States Census Bureau or such other appropriate criteria
as the Secretary shall establish.
(3) The dollar amount limitation on the principal
obligation of a mortgage on housing in the applicant
county that may be insured under section 203 of the
National Housing Act, in effect at the time of such
application, is the minimum such dollar amount
limitation allowable under the matter that follows
clause (ii) in section 203(b)(2)(A) of the National
Housing Act.
(d) Establishment of Loan Limits.--For a county designated
under this section, the Secretary may increase the maximum
dollar amount limitations on the principal obligation of
mortgages otherwise determined under section 203(b)(2) of the
National Housing Act to such levels as are appropriate, taking
into consideration the criteria established for such
designation, but not to exceed the dollar amount limitations
for the abutting metropolitan statistical area meeting the
requirements of subsection (c)(1) that has the lowest such
dollar amount limitations.
(e) Effective Date and Term of Designation of New Countywide
Loan Limits.--A designation of a county under this section, and
the maximum dollar amount limitations for such county pursuant
to subsection (d), shall--
(1) take effect upon the expiration of the 60-day
period that begins upon the final determination for the
county referred to in subsection (b)(2); and
(2) remain in effect until the end of the calendar
year in which such designation takes effect.
(f) Loan Limits for Succeeding Years.--With respect to each
calendar year immediately following the calendar year in which
a county is designated under this subsection, the Secretary
may, notwithstanding any other provision of law, continue or
adjust the dollar amount limitations in effect pursuant to this
section for such designated county for such preceding year, as
appropriate, consistent with the criteria under this section.
SEC. 18. IDENTIFICATION REQUIREMENTS FOR BORROWERS.
Section 203 of the National Housing Act (12 U.S.C. 1709), as
amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
``(z) Identification Requirements for Borrowers.--No mortgage
on a 1- to 4-family dwelling may be insured under this title
unless the mortgagor under such mortgage--
``(1) provides a valid Social Security Number; and
``(2) is (A) a United States citizen, (B) a lawful
permanent resident alien, or (C) a non-permanent
resident alien who legally resides in and is authorized
to work in the United States.
The Secretary shall establish policies under which mortgagees
verify compliance with the requirements under this
subsection.''.
----------
2. An Amendment To Be Offered by Representative Cardoza of California,
or His Designee, Debatable for 10 Minutes
Page 15, line 20, strike ``(e)'' and insert ``(f)''.
Page 18, after line 16, insert the following new subsection:
(e) Priority.--In providing reimbursements under this
section, the Secretary of Housing and Urban Development shall
provide priority to independent third parties serving
mortgagors under covered mortgages in areas experiencing a
mortgage foreclosure rate and unemployment rate higher than the
national average for the most recent 12-month period for which
satisfactory data are available.
Page 18, line 17, strike ``(e)'' and insert ``(f)''.
----------
3. An Amendment To Be Offered by Representative Cao of Louisiana, or
His Designee, Debatable for 10 Minutes
Page 16, line 4, strike ``and''.
Page 16, line 6, strike the period and insert ``; and''.
Page 16, after line 6, insert the following:
(3) available counseling regarding financial
management and credit risk.
----------
4. An Amendment To Be Offered by Representative Bean of Illinois, or
Her Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 16. AUTHORITY TO ESTABLISH HIGHER MINIMUM CASH INVESTMENT
REQUIREMENT.
(a) Authority.--Paragraph (9) of section 203(b) of the
National Housing Act (12 U.S.C. 1709(b)(9)) is amended by
adding at the end the following new subparagraph:
``(D) Authority to establish higher minimum
requirement.--The Secretary may establish a
higher minimum cash investment requirement than
the minimum requirement under subsection (a),
for all mortgagors or a certain class or
classes of mortgagors, which may be based on
criteria related to borrowers' credit scores or
other industry standards related to borrowers'
financial soundness. In establishing such a
higher minimum cash investment requirement, the
Secretary shall take into consideration the
findings of the most recent annual report to
the Congress on minimum cash investments
pursuant to section 16(b) of the FHA Reform Act
of 2010.''.
(b) Report.--Not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act and
annually thereafter, the Secretary of Housing and Urban
Development shall submit to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report detailing the
implementation of the minimum cash investment requirements
under section 203(b)(9) of the National Housing Act (12 U.S.C.
1709(b)(9)) and discussing and analyzing options for proposed
changes to such requirements, including changes that would take
into account borrowers' credit scores or other industry
standards related to borrowers' financial soundness. Such
report shall--
(1) analyze the impacts that any actual or proposed
such changes are projected to have on--
(A) the financial soundness of the Mutual
Mortgage Insurance Fund;
(B) the housing finance market of the United
States; and
(C) the number of borrowers served by the
Federal Housing Administration;
(2) explain the reasons for any actual or proposed
such changes in the such requirements made since the
last report under this subsection;
(3) evaluate the impact of any actual or proposed
such changes in such requirements on the Mutual
Mortgage Insurance Fund;
(4) evaluate the impacts of any actual or proposed
such changes on potential mortgagors under mortgages on
one- to four-family dwellings insured by the Secretary
under the National Housing Act; and
(5) evaluate the impact of any actual or proposed
such changes on the soundness of the housing market in
the United States.
----------
5. An Amendment To Be Offered by Representative Garrett of New Jersey,
or His Designee, Debatable for 10 Minutes
Page 3, after line 16, insert the following new section:
SEC. 3. DOWNPAYMENT REQUIREMENT OF 5 PERCENT AND PROHIBITION OF
FINANCING OF CLOSING COSTS.
Section 203 of the National Housing Act (12 U.S.C. 1709) is
amended--
(1) in subsection (b)(9)(A), by striking ``3.5
percent'' and inserting ``5.0 percent''; and
(2) in subsections (b)(2) and (k)(3)(A), by striking
``(including such initial service charges, appraisal,
inspection, and other fees as the Secretary shall
approve)'' each place such term appears and inserting
``(which may not include any initial service charges,
appraisal, inspection, or other fees or closing costs
as the Secretary shall prohibit)''.
----------
6. An Amendment To Be Offered by Representative Tierney of
Massachusetts, or His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 16. MORTGAGE INSURANCE PREMIUM REFUNDS.
(a) Authority.--The Secretary of Housing and Urban
Development shall, to the extent that amounts are made
available pursuant to subsection (c), provide refunds of
unearned premium charges paid at the time of insurance for
mortgage insurance under title II of the National Housing Act
(12 U.S.C. 1707 et seq.) to or on behalf of mortgagors under
mortgages described in subsection (b).
(b) Eligible Mortgages.--A mortgage described in this section
is a mortgage on a one- to four-family dwelling that--
(1) was insured under title II of the National
Housing Act (12 U.S.C. 1707 et seq.);
(2) is otherwise eligible, under the last sentence of
subparagraph (A) of section 203(c)(2) of such Act (12
U.S.C. 1709(c)(2)(A)), for a refund of all unearned
premium charges paid on the mortgage pursuant to such
subparagraph, except that the mortgage--
(A) was closed before December 8, 2004; and
(B) was endorsed on or after such date.
(c) Authorization of Appropriations.--There is authorized to
be appropriated for each fiscal year such sums as may be
necessary to provide refunds of unearned mortgage insurance
premiums pursuant to this section.
----------
7. An Amendment To Be Offered by Representative Tom Price of Georgia,
or His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 16. LIMITATION ON FHA SHARE OF MORTGAGE MARKET.
(a) 10 Percent Limitation.--Section 203 of the National
Housing Act (12 U.S.C. 1709) is amended by inserting after
subsection (h) the following new subsection:
``(i) Limitation on FHA Market Share.--Notwithstanding any
other provision of law, the aggregate number of mortgages
secured by one- to four-family dwellings that are insured under
this title in fiscal year 2012 or any fiscal year thereafter
may not exceed 10 percent of the aggregate number of mortgages
on such dwellings originated in the United States (but not
including mortgages insured under this title), as determined by
the Secretary after consultation with appropriate Federal
financial regulatory agencies, during the preceding fiscal
year.''.
(b) Plan.--Not later than the expiration of the 90-day period
beginning upon the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit to the
Congress a plan setting forth a strategy and actions to be
taken to ensure compliance with section 203(i) of the National
Housing Act, as added by the amendment made by subsection (a)
of this section.
----------
8. An Amendment To Be Offered by Representative Weiner of New York, or
His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 16. MAXIMUM MORTGAGE AMOUNT LIMITS FOR MULTIFAMILY HOUSING.
(a) Elevator-Type Structures.--
(1) Amendments.--The National Housing Act is amended
in each of the provisions specified in paragraph (2)--
(A) by inserting ``with sound standards of
construction and design'' after ``elevator-type
structures'' the first place such term appears;
and
(B) by striking ``to not to exceed'' and all
that follows through ``sound standards of
construction and design'' each place such terms
appear and inserting ``by not more than 50
percent of the amounts specified for each unit
size''.
(2) Provisions amended.--The provisions of the
National Housing Act specified in this paragraph are as
follows:
(A) Subparagraph (A) of section 207(c)(3) (12
U.S.C. 1713(c)(3)(A)).
(B) Subparagraph (A) of section 213(b)(2) (12
U.S.C. 1715e(b)(2)(A)).
(C) Subclause (I) of section
220(d)(3)(B)(iii) (12 U.S.C.
1715k(d)(3)(B)(iii)(I)).
(D) In section 221(d) (12 U.S.C. 1715l(d))--
(i) subclause (I) of paragraph
(3)(ii); and
(ii) subclause (I) of paragraph
(4)(ii).
(E) Subparagraph (A) of section 231(c)(2) (12
U.S.C. 1715v(c)(2)(A)).
(F) Subparagraph (A) of section 234(e)(3) (12
U.S.C. 1715y(e)(3)(A)).
(b) Extremely High-Cost Areas.--Section 214 of the National
Housing Act (12 U.S.C. 1715d) is amended--
(1) in the first sentence--
(A) by inserting ``, or with respect to
projects consisting of more than four dwelling
units located in an extremely high-cost area as
determined by the Secretary'' after ``or the
Virgin Islands'' the first place such term
appears;
(B) by inserting ``, or to construct projects
consisting of more than four dwelling units on
property located in an extremely high-cost area
as determined by the Secretary'' after ``or the
Virgin Islands'' the second place such term
appears; and
(C) by inserting ``, or with respect to
projects consisting of more than four dwelling
units located in an extremely high-cost area as
determined by the Secretary'' after ``or the
Virgin Islands'' the third place such term
appears;
(2) in the second sentence--
(A) by inserting ``, or with respect to a
project consisting of more than four dwelling
units located in an extremely high-cost area as
determined by the Secretary,'' after ``or the
Virgin Islands'' the first place such term
appears; and
(B) by inserting ``, or in the case of a
project consisting of more than four dwelling
units in an extremely high-cost area as
determined by the Secretary, in such extremely
high-cost area,'' after ``or the Virgin
Islands'' the second place such term appears;
and
(3) in the section heading, by striking ``and the
virgin islands'' and inserting ``the virgin islands,
and extremely high-cost areas''.
(c) Effective Date.--The amendments made by this section
shall apply to mortgages insured under title II of the National
Housing Act after September 30, 2010.
----------
9. An Amendment To Be Offered by Representative Turner of Ohio, or His
Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 16. FHA MAXIMUM LOAN LIMITS FOR 2010.
Section 166 of the Continuing Appropriations Resolution, 2010
(as added by section 104 of Public Law 111-88; 123 Stat. 2972)
is amended--
(1) in subsection (a), by striking ``For'' and
inserting ``Except as provided in subsection (c),
for'';
(2) in subsection (b), by inserting ``the lesser of
the applicable amount under subsection (c) of this
section or'' after ``but in no case to an amount that
exceeds''; and
(3) by adding at the end the following new
subsection:
``(c) Absolute Ceiling Limits.--Notwithstanding any other
provision of this section, the maximum dollar amount limitation
on the principal obligation of a mortgage determined under this
section for any area or subarea may not exceed, in the case of
a one-family residence, $500,000, and in the case of a 2-, 3-,
or 4-family residence, the percentage of such amount that bears
the same ratio to such amount as the dollar amount limitation
determined under the sixth sentence of section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act for a 2-, 3-, or 4-
family residence, respectively, bears to the dollar amount
limitation determined under such section for a 1-family
residence.''.
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10. An Amendment To Be Offered by Representative Clarke of New York, or
Her Designee, Debatable for 10 Minutes
Page 21, line 3, strike ``and''.
Page 21, line 8, strike the period and insert ``; and''.
Page 21, after line 8, insert the following:
(E) analyzes the effectiveness of the loss
mitigation home retention options of the
Department of Housing and Urban Development in
assisting individuals in avoiding home
foreclosure for mortgages on 1- to 4-family
residences insured under subsection (b) or (k)
of section 203, section 234(c), or section 251
of the National Housing Act, particularly for
low-income individuals (as such term is defined
in section 103 of the Riegle Community
Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4702)).
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11. An Amendment To Be Offered by Representative Nye of Virginia, or
His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 16. SPECIAL FORBEARANCE FOR MORTGAGORS WITH CHINESE DRYWALL.
The provisions of Mortgagee Letter 2002-17 of the Secretary
of Housing and Urban Development (regarding ``Special
Forbearance: Program Changes and Updates'') relating to Type I
Special Forbearance shall apply, until the conclusion of fiscal
year 2011 and may not be revoked, annulled, repealed, or
rescinded during such period, with respect to mortgagees of
mortgages insured under title II of the National Housing Act
that are secured by one- to four-family dwellings that have
problem or damaging drywall products.
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12. An Amendment To Be Offered by Representative Chet Edwards of Texas,
or His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 16. REQUIRED CERTIFICATIONS.
Section 203 of the National Housing Act (12 U.S.C. 1709), as
amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
``(z) Required Certifications.--Notwithstanding any other
provision of law, the Secretary may not insure any mortgage
secured by a one- to four-family dwelling unless the mortgagor
under such mortgage certifies, under penalty of perjury, that
the mortgagor has not been convicted of a sex offense against a
minor (as such terms are defined in section 111 of the Sex
Offender Registration and Notification Act (42 U.S.C.
16911)).''.
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13. An Amendment To Be Offered by Representative Adler of New Jersey,
or His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new section:
SEC. 16. PROHIBITION ON USE OF FUNDS FOR CERTAIN FEDERAL EMPLOYEES.
None of the funds authorized under this Act or any amendment
made by this Act may be used to pay the salary of any
individual engaged in activities related to title II of the
National Housing Act who has been officially disciplined for
violations of subpart G of the Standards of Ethical Conduct for
Employees of the Executive Branch for viewing, downloading, or
exchanging pornography, including child pornography, on a
Federal Government computer or while performing official
Federal Government duties.