[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4795 Introduced in House (IH)]
2d Session
H. R. 4795
To amend the National Housing Act to require partial rebates of FHA
mortgage insurance premiums to certain mortgagors upon payment of their
FHA-insured mortgages.
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IN THE HOUSE OF REPRESENTATIVES
June 29, 2000
Mr. Lazio introduced the following bill; which was referred to the
Committee on Banking and Financial Services
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A BILL
To amend the National Housing Act to require partial rebates of FHA
mortgage insurance premiums to certain mortgagors upon payment of their
FHA-insured mortgages.
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 ``Homeowners Rebate Act of 2000''.
SEC. 2. PAYMENT OF DISTRIBUTIVE SHARES FROM MUTUAL MORTGAGE INSURANCE
FUND RESERVES.
(a) In General.--Subsection (c) of section 205 of the National
Housing Act (12 U.S.C. 1711(c)) is amended to read as follows:
``(c) Distribution of Reserves.--Upon termination of an insurance
obligation of the Mutual Mortgage Insurance Fund by payment of the
mortgage insured thereunder, if the Secretary determines (in accordance
with subsection (e)) that there is a surplus for distribution under
this section to mortgagors, the Participating Reserve Account shall be
subject to distribution as follows:
``(1) Required distribution.--In the case of a mortgage
paid after November 5, 1990, and insured for 7 years or more
before such termination, the Secretary shall distribute to the
mortgagor a share of such Account in such manner and amount as
the Secretary shall determine to be equitable and in accordance
with sound actuarial and accounting practice, subject to
paragraphs (3) and (4).
``(2) Discretionary distribution.--In the case of a
mortgage not described in paragraph (1), the Secretary is
authorized to distribute to the mortgagor a share of such
Account in such manner and amount as the Secretary shall
determine to be equitable and in accordance with sound
actuarial and accounting practice, subject to paragraphs (3)
and (4).
``(3) Limitation on amount.--In no event shall the amount
any such distributable share exceed the aggregate scheduled
annual premiums of the mortgagor to the year of termination of
the insurance.
``(4) Application requirement.--The Secretary shall not
distribute any share to an eligible mortgagor under this
subsection beginning on the date which is 6 years after the
date that the Secretary first transmitted written notification
of eligibility to the last known address of the mortgagor,
unless the mortgagor has applied in accordance with procedures
prescribed by the Secretary for payment of the share within the
6-year period. The Secretary shall transfer from the
Participating Reserve Account to the General Surplus Account
any amounts that, pursuant to the preceding sentence, are no
longer eligible for distribution.''.
(b) Determination of Surplus.--
(1) In general.--Section 205(e) of the National Housing Act
(12 U.S.C. 1711(e)) is amended by adding at the end the
following new sentences: ``Notwithstanding any other provision
of this section, if, at the time of such a determination, the
capital ratio (as such term is defined in subsection (f)) for
the Fund is 3.0 percent or greater, the Secretary shall
determine that there is a surplus for distribution under this
section to mortgagors.''.
(2) GAO report.--Not later than 1 year after the date of
the enactment of this Act, the Comptroller General shall submit
a report to the Congress that evaluates the adequacy of the
capital ratio requirement under section 205(f)(2) of the
National Housing Act (12 U.S.C. 1711(f)(2)) for ensuring the
safety and soundness of the Mutual Mortgage Insurance Fund.
Such report shall also evaluate the adequacy of the capital
ratio level established under section 205(e)(1) of the National
Housing Act, as amended by paragraph (1) of this section and
shall include a recommendation of a capital ratio level that,
if made effective under such section upon the expiration of the
2-year period beginning on the date of the enactment of this
Act, would provide for distributions of shares under section
205(c) of such Act in a manner adequate to ensure the safety
and soundness of such Fund.
(c) Retroactive Payments.--
(1) Timing.--Not later than 3 months after the date of the
enactment of this Act, the Secretary of Housing and Urban
Development shall determine the amount of each distributable
share for each mortgage described in paragraph (2) to be paid
and shall make payment of such share.
(2) Mortgages covered.--A mortgage described in this
paragraph is a mortgage for which--
(A) the insurance obligation of the Mutual Mortgage
Insurance Fund was terminated by payment of the
mortgage before the date of the enactment of this Act;
(B) a distributable share is required to be paid to
the mortgagor under section 205(c)(1) of the National
Housing Act (12 U.S.C. 1711(c)(1)), as amended by
subsection (a) of this section; and
(C) no distributable share was paid pursuant to
section 205(c) of the National Housing Act upon
termination of the insurance obligation of such Fund.
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