Mortgage Insurance Freedom Act

This bill changes federal rules for home loans insured by the Federal Housing Administration (FHA). It would stop the Secretary of Housing and Urban Development (HUD) from collecting annual mortgage insurance premiums once the remaining loan balance is 78 percent or less of the home's original sales price or appraised value, whichever is lower. If the FHA's Mutual Mortgage Insurance Fund capital ratio drops below 2 percent, HUD could keep collecting premiums on loans still paying them at that time. HUD would have 180 days to write rules, including a process for borrowers to show they have reached the 78 percent level, and would have to inform borrowers about the change. The bill applies only to mortgages insured after it becomes law.

Full text and official record on Congress.gov

Sponsors

• Gregory W. Meeks Democrat sponsor
• 4 cosponsors