S.1376 - FHA Solvency Act of 2013
A bill to improve the Federal Housing Administration and to ensure the solvency of the Mutual Mortgage Insurance Fund, and for other purposes. view all titles (3)
All Bill Titles
- Short: FHA Solvency Act of 2013 as reported to senate.
- Official: A bill to improve the Federal Housing Administration and to ensure the solvency of the Mutual Mortgage Insurance Fund, and for other purposes. as introduced.
- Short: FHA Solvency Act of 2013 as introduced.
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Official SummaryFHA Solvency Act of 2013 - Amends the National Housing Act with respect to mortgage insurance. Requires the Secretary of Housing and Urban Development (HUD) (who currently is merely authorized) to establish and collect annual premium payments in an amount between 0.55% and 2.0% (currently,
Official SummaryFHA Solvency Act of 2013 - Amends the National Housing Act with respect to mortgage insurance. Requires the Secretary of Housing and Urban Development (HUD) (who currently is merely authorized) to establish and collect annual premium payments in an amount between 0.55% and 2.0% (currently, not exceeding 1.5%) of the remaining insured principal balance. Directs the Secretary to review annually the amount of the annual and up-front premiums collected and the expected losses to the Mutual Mortgage Insurance Fund. Authorizes the Secretary to require a mortgagee to indemnify HUD for the loss if a mortgage executed by an approved or insured mortgagee contains such a material defect that the mortgage should not have been approved or endorsed for insurance, and a loan becomes delinquent within 36 months of such approval or endorsement leading to a default, or the Secretary pays a claim within 36 months after such approval or endorsement, regardless of whether the violation caused the mortgage default. Requires the Secretary to deposit any indemnified amounts collected in the Mutual Mortgage Insurance Fund. Revises requirements for review of mortgagee performance and specifications for application of the Secretary's authority to terminate approval of a mortgagee. Requires the Secretary to issue a single, uniform resource guide to inform lenders and servicers of the policies, processes, and procedures applicable to insured mortgages. Directs the Secretary to:
(1) evaluate and revise as necessary the underwriting standards for mortgages eligible to be insured, and
(2) ensure that the Fund attains a capital ratio of at least 3% (currently 2%) within 10 years after the enactment of this Act and maintains it at all times thereafter. Requires specified corrective actions, including imposition of premium surcharges, when the Fund is undercapitalized, significantly undercapitalized, or critically undercapitalized. Amends the Department of Housing and Urban Development Act to establish, within the Federal Housing Administration, a Deputy Assistant Secretary and Chief Risk Officer, appointed by the Secretary and responsible to the Federal Housing Commissioner for all matters relating to managing and mitigating risk to HUD mortgage insurance funds and ensuring the performance of insured mortgages. Amends the National Housing Act with respect to:
(1) disclosure to the Secretary by an independent actuary of unforeseen events that occur after the annual independent actuarial study is completed but before it is submitted to Congress, and
(2) the Home Equity Conversion Mortgage for elderly homeowners program. Requires the Comptroller General to study the relevant information disclosed by the Secretary in conjunction with the release of the annual actuarial report. Directs the Secretary to issue and publish its final rule to implement a proposed rule for limiting seller contributions towards purchase-related expenses of a borrower without reducing the maximum insured amount of an insured mortgage.
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Organizations Supporting S.1376
- American Bankers Association
Organizations Opposing S.1376
- None via MapLight at this time.