H.R. 5981: To increase the flexibility of the HUD Secretary with respect to premiums charged for FHA single family housing mortgage insurance, and for other purposes.

H.R. 5981

To increase the flexibility of the HUD Secretary with respect to premiums charged for FHA single family housing mortgage insurance, and for other purposes.

Date
July 30, 2010 (111th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

The House is expected to consider H.R. 5981, on the House floor on Friday, July 30, 2010, under a motion to suspend the rules, requiring a two-thirds majority vote for passage.  This legislation was introduced by Rep. Barney Frank (D-MA).

Bill Summary

The bill would allow FHA to raise its annual premiums to borrowers up to 1.55 percent (currently capped in law at 0.55 percent). 

Background

On June 10, 2010, the House voted to approve H.R. 5072 by a vote of 406–4.  One reform included in H.R. 5072 was providing FHA with the authority to raise the annual mortgage insurance premium for new borrowers from the current cap of 0.55 percent to 1.55 percent for borrowers with mortgages at or below 95 percent of value and from 0.50 to 1.50 percent for borrowers with mortgages below 95 percent of value.  The Senate has yet to consider H.R. 5072.

Cost

A CBO cost estimate of H.R. 5981 is not yet available.