H.R.607 - An Act to amend the National Housing Act to prevent the funding of unnecessary or excessive costs for obtaining a home equity conversion mortgage, to require automatic cancellation and notice of cancellation rights with respect to private mortgage insurance required as a condition for entering into a residential mortagage transaction, to abolish the Thrift Depositor Protection Oversight Board, and for other purposes.105th Congress (1997-1998)
|Sponsor:||Rep. Hansen, James V. [R-UT-1] (Introduced 02/05/1997)|
|Committees:||House - Banking and Financial Services|
|Committee Reports:||H. Rept. 105-55|
|Latest Action:||01/27/1998 Message on Senate action sent to the House.|
|Major Recorded Votes:||04/16/1997 : Passed House|
This bill has the status Passed Senate
Here are the steps for Status of Legislation:
- Passed House
- Passed Senate
Subject — Policy Area:
- Finance and Financial Sector
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Summary: H.R.607 — 105th Congress (1997-1998)All Bill Information (Except Text)
Passed Senate amended (11/13/1997)
TABLE OF CONTENTS:
Title I: Senior Citizen Home Equity Protection
Subtitle A: Senior Citizen Home Equity Protection
Subtitle B: Temporary Extension of Public Housing and
Section 8 Rental Assistance Provisions
Subtitle C: Reauthorization of Federally Assisted
Multifamily Rental Housing Provisions
Subtitle D: Reauthorization of Rural Housing Programs
Subtitle E: Reauthorization of National Flood Insurance
Subtitle F: Native American Housing Assistance
Title II: Homeowners Protection Act
Title III: Abolishment of the Thrift Depositor Protection
Title I: Senior Citizen Home Equity Protection - Senior Citizen Home Equity Protection Act - Subtitle A: Senior Citizen Home Equity Protection - Amends the National Housing Act with respect to home equity conversion mortgages to: (1) require full disclosure to the mortgagor of all mortgage costs, including estate planning, financial advice, or other related costs; and (2) provide for the Secretary of Housing and Urban Development (Secretary) to impose restrictions to ensure that the mortgagor is not charged for such costs.
(Sec. 112) Provides for implementation of such provisions by the Secretary.
Subtitle B: Temporary Extension of Public Housing and Section 8 Rental Assistance Provisions - Amends the Balanced Budget Downpayment Act, I to extend through FY 1998 provisions regarding public housing ceiling rents, the definition of income adjustments, and repeal of Federal preferences for assisted housing.
(Sec. 122) Amends the Emergency Supplemental Appropriations for Additional Disaster Assistance, for Anti-terrorism Initiatives, for Assistance in the Recovery from the Tragedy that Occurred in Oklahoma City, and Rescissions Act, 1995 to extend through FY 1998 the suspension of the public housing demolition and disposition one-for-one replacement requirement.
(Sec. 123) Amends the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 to extend through FY 1998 provisions regarding use of public housing modernization funding for mixed income developments.
(Sec. 124) Amends the Balanced Budget Downpayment Act, I to extend minimum rent provisions through FY 1998.
(Sec. 125) Amends the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 to extend through FY 1998 suspension of certain provisions (take-one-take-all, notice of contract termination, and endless lease) of the section 8 rental assistance program.
Subtitle C: Reauthorization of Federally Assisted Multifamily Rental Housing Provisions - Amends the Housing and Community Development Act of 1992 to increase the number of units and extend through FY 1998 the risk-sharing and housing finance agency multifamily housing finance pilot programs.
(Sec. 132) Amends the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 to state that the Secretary's authority to manage and dispose of multifamily housing includes the provision of grants and loans from the General Insurance Fund.
(Sec. 134) Sets forth owner mortgage prepayment and voluntary mortgage insurance termination provisions, which shall be applicable during the period October 1, 1997, through March 31, 1998.
Subtitle D: Reauthorization of Rural Housing Programs - Amends the Housing Act of 1949 to extend through FY 1999: (1) set-aside authority for targeted rural underserved areas and colonias, and for rural rental housing funds; (2) loan authority for housing and related facilities for elderly persons and families and other low-income persons and families; and (3) authorization of appropriations for multifamily rural rental housing loan guarantees.
Subtitle E: Reauthorization of National Flood Insurance Program - Amends the National Flood Insurance Act of 1968 to extend through FY 1999 flood insurance program authority, borrowing authority, and emergency implementation authority. Authorizes appropriations through FY 1999 for related studies.
Subtitle F: Native American Housing Assistance - Makes specified technical changes to the Native American Housing Assistance and Self-Determination Act of 1996, the United States Housing Act of 1937, the Housing and Community Development Act of 1992, the Cranston-Gonzalez National Affordable Housing Act, and the Public and Assisted Housing Drug Elimination Act of 1990.
(Sec. 164) Amends the United States Housing Act of 1937 to make the provisions permitting designation of housing for elderly and disabled families applicable to Indian housing.
(Sec. 165) Amends the Native American Housing Assistance and Self-Determination Act of 1996 with respect to: (1) the definition of "Indian area"; (2) block grant tax exemption; (3) civil rights applicability; (4) low-income requirements; (5) tenant selection; (6) environmental review under the Indian housing loan guarantee program; and (7) public availability of information.
Amends the Cranston-Gonzalez National Affordable Housing Act to repeal authority for the Indian housing early childhood development program.
Amends the Public and Assisted Housing Drug Elimination Act of 1990 to provide for tribal eligibility under the drug elimination program.
Title II: Homeowners Protection Act - Prescribes guidelines for mandatory termination of private mortgage insurance (PMI) for a residential mortgage when the principal balance is first scheduled to reach or actually reaches 80 percent of the original value of the property securing the mortgage loan, including: (1) a mortgagor's written cancellation request; (2) automatic termination; (3) final termination; (4) no further payments; and (5) return of unearned premiums. Cites exceptions for high risk loans.
(Sec. 204) Prescribes disclosure requirements for PMI amortization schedules, including for: (1) new mortgages at the time of transaction; (2) high-risk mortgages; (3) mortgage transactions entered into prior to enactment of this Act; (4) annual written updates; (5) PMI cancellation or termination; and (6) lender paid mortgage insurance.
(Sec. 207) Prohibits fees for such disclosures.
(Sec. 208) Subjects any servicer, mortgagee, or mortgage insurer in violation of this Act to civil liability for damages incurred by each mortgagor to whom the violation relates.
(Sec. 209) Preempts: (1) State law governing PMI, unless such law requires PMI termination at an earlier date or when a lower mortgage loan principal balance is achieved; and (2) servicing agreements entered into by Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or any private investor or note holder.
(Sec. 210) Prescribes enforcement guidelines for Federal banking agencies.
Title III: Abolishment of the Thrift Depositor Protection Oversight Board - Abolishes the Thrift Depositor Protection Oversight Board. Provides for the continuation of Resolution Funding Corporation orders, resolutions, determinations, and regulations. Transfers to the Secretary of the Treasury the authority of the Thrift Depositor Protection Oversight Board, and the duties of the Resolution Funding Corporation.
(Sec. 301) Amends the Resolution Trust Corporation Completion Act to remove the Chairperson of the Thrift Depositor Protection Oversight Board from mandatory membership on the Affordable Housing Advisory Board. Repeals the directive that such Board conduct its meetings where substantial residential property assets of the Federal Deposit Insurance Corporation or the Resolution Trust Corporation are located.