H.R. 3146: 21st Century FHA Housing Act of 2009

H.R. 3146

21st Century FHA Housing Act of 2009

September 15, 2009 (111th Congress, 1st Session)

Staff Contact

Floor Situation

The House is expected to consider H.R. 3146 in the House on Tuesday, September 15, 2009, under a motion to suspend the rules, requiring a two-thirds majority vote for passage. This legislation was introduced by Rep. John Adler (D-NJ) on July 9, 2009.

Bill Summary

H.R. 3146 would increase the size of the FHA. It would provide for additional FHA personnel and technological upgrades of HUD, and it would provide for personnel training and education of any HUD personnel that work with FHA mortgage insurance programs. The training would focus on improving the responses provided by government personnel with the goal of ensuring that lenders can rely on information from office to office and to prevent lenders from soliciting different answers to the same question from different centers.

H.R. 3146 would require HUD to conduct on ongoing review of the first 90-days of single family household mortgages begun within the last 12-months, insured under this act, and delinquent for at least 60-days. The goal of the review is to determine which mortgages should not be originated or insured. The bill would require HUD to analyze lender performance over a one-year study period to help identify problem lenders and allow earlier intervention and sanctions.

H.R. 3146 would authorize HUD to carry out "demonstration programs" to analyze alternative methods of avoiding foreclosure on mortgages insured by FHA.

The bill includes a sense of Congress that warehouse loans are a critical link in the housing finance chain and claims that lenders use warehouse lines of credit for up to 40 percent of mortgage loans and nearly 55 percent of FHA loans, while warehouse lending availability has dropped 90 percent, possibly creating a shortfall in home mortgage availability of hundred of billions of dollars. It concludes that Treasury, HUD, and the FHA should use their existing authority to support warehouse lenders.

The bill's miscellaneous provisions would specify that the Secretary of HUD is not subject to the National Environmental Policy Act of 1969, and that HUD should work with other government agencies to set comparable salary tables.


The Congressional Budget Office (CBO) has not yet produced a cost estimate for H.R. 3146.