FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008
Latest action · Oct 2, 2008 Placed on the Union Calendar, Calendar No. 582.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedJul 31, 2008
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 - (Sec. 2) Amends the National Housing Act to make exceptions to the prohibition against mortgage insurance for mortgages involving a downpayment using funds furnished by: (1) the seller or any party that benefits financially from the transaction (seller-financed downpayment); or (2) any third party that is reimbursed by the seller or any such party.
Makes eligible for mortgage insurance, in spite of a seller-financed downpayment, any mortagors with credit scores equivalent to a FICO score of: (1) 680 or more; (2) at least 620 but less than 680; or (3) 619 or less. Prescribes conditions for mortgage insurance in the latter two situations.
Requires entities participating in a governmental or private nonprofit program that provides downpayment assistance for such a mortgage to offer and make available, before loan closing, counseling about the responsibilities and financial management involved in homeownership.
Authorizes the Secretary of Housing and Urban Development to impose civil money penalties for improperly influencing appraisals.
(Sec. 3) Prohibits the Secretary from implementing: (1) risk-based premiums designed for mortgage lenders to offer a Federal Housing Administration (FHA)-insured product that provides a range of mortgage insurance premium pricing based upon a specified risk that the insurance contract represents; or (2) any other risk-based premium product for mortgage insurance on a single family residence where the premium price for such new product is based upon the borrower's Decision Credit Score.
Makes an exception from such prohibition for flexible risk-based premiums. Authorizes the Secretary to establish, for a mortgagor whose FICO credit score is under 600, a mortgage insurance premium structure with a variable rate that reflects the mortgagor's credit risk, if the basis for determining such rate is established before the mortgage is executed.
Requires notice to mortgagees and to Congress before such a premium structure is established or changed.
Requires the Secretary to consider specified factors when premiums are established and collected under a flexible risk-based premium structure.
Authorizes the Secretary to provide for variations in such rates according to the credit risk associated with the type of mortgage product that is being insured.
Requires the Secretary to make payment incentives to a mortgagor, in the form of certain refunds, upon payment in full of timely mortgage payments.
Authorizes the Secretary, for mortgages with a flexible risk-based premium, to establish a higher annual premium in lieu of a higher up-front premium.
Cosponsors 28
Members who signed on, in the order they did. Signatures ran from Jul 31, 2008 to Oct 2, 2008; 3 are original cosponsors, there from the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| R-CT | Christopher Shays | Original | Jul 31, 2008 |
| R-CA | Gary G. Miller | Original | Jul 31, 2008 |
| D-CA | Maxine Waters | Original | Jul 31, 2008 |
| D-NJ | Albio Sires | Sep 15, 2008 | |
| D-IN | André Carson | Sep 15, 2008 | |
| D-CA | Barbara Lee | Sep 15, 2008 | |
| D-NJ | Bill Pascrell, Jr. | Sep 15, 2008 | |
| D-OH | Charles A. Wilson | Sep 15, 2008 | |
| D-CA | Dennis A. Cardoza | Sep 15, 2008 | |
| D-CA | Doris O. Matsui | Sep 15, 2008 | |
| D-TX | Eddie Bernice Johnson | Sep 15, 2008 | |
| D-MO | Emanuel Cleaver | Sep 15, 2008 | |
| R-NE | Lee Terry | Sep 15, 2008 | |
| R-OH | Patrick J. Tiberi | Sep 15, 2008 | |
| D-NJ | Steven R. Rothman | Sep 15, 2008 |
Committees 1
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| House | Financial Services Committee | Referred Jul 31, 2008Markup Sep 16, 2008Reported Oct 2, 2008 |
Actions 6
Everything that happened, newest first.
- Oct 2, 2008Reported (Amended) by the Committee on Financial Services. H. Rept. 110-905.
- Oct 2, 2008Placed on the Union Calendar, Calendar No. 582.
- Sep 16, 2008Committee Consideration and Mark-up Session Held.
- Sep 16, 2008Ordered to be Reported (Amended) by Voice Vote.
- Jul 31, 2008Introduced in House
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Committee report
Congressional Budget Office cost estimates 2
- Sep 29, 2008H.R. 6694, FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008<p>Cost estimate for the bill as ordered reported by the House Committee on Financial Services on September 16, 2008</p>
- Sep 29, 2008H.R. 6694, FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008Cost estimate for the bill as ordered reported by the House Committee on Financial Services on September 16, 2008
Printed hearings 1
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| Serial No. 110-136 | THE EFFECTS OF THE FORECLOSURE CRISIS ON NEIGHBORHOODS IN CALIFORNIA'S CENTRAL VALLEY: CHALLENGES AND SOLUTIONS140 pages | Financial Services Committee | Sep 6, 2008 |
Titles 3
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- To revise the requirements for seller-financed downpayments for mortgages for single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act and to authorize risk-based insurance premiums for certain mortgagors under such mortgages.
- Short Titles as Introduced
- FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008
- Short Titles as Reported to House
- FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008
Subjects
Assigned by the Library of Congress. Policy area: Housing and Community Development.
Text 2
Each version as it was printed, newest first.
- Oct 2, 2008Reported in House
- Jul 31, 2008Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.
