An amendment numbered 4 printed in House Report 111-503 to require HUD to submit an annual report to Congress discussing proposed or actual increases in the minimum cash investment requirements (downpayment requirements) in the FHA program. It further gives HUD the authority to establish higher minimum cash investment requirements for all or class(es) of borrowers and requires HUD to take into consideration the findings of the annual report.

1. Adds SEC. 16. AUTHORITY TO ESTABLISH HIGHER MINIMUM CASH INVESTMENT REQUIREMENT at the end of the bill

   Adds a section

   Inserted: SEC. 16. AUTHORITY TO ESTABLISH HIGHER MINIMUM CASH INVESTMENT REQUIREMENT.

   Inserted: (a) Authority.--Paragraph (9) of section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(9)) is amended by adding at the end the following new subparagraph:

   Inserted: "(D) Authority to establish higher minimum requirement.--The Secretary may establish a higher minimum cash investment requirement than the minimum requirement under subsection (a), for all mortgagors or a certain class or classes of mortgagors, which may be based on criteria related to borrowers' credit scores or other industry standards related to borrowers' financial soundness. In establishing such a higher minimum cash investment requirement, the Secretary shall take into consideration the findings of the most recent annual report to the Congress on minimum cash investments pursuant to section 16(b) of the FHA Reform Act of 2010.".

   Inserted: (b) Report.--Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act and annually thereafter, the Secretary of Housing and Urban Development shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report detailing the implementation of the minimum cash investment requirements under section 203(b)(9) of the National Housing Act (12 U.S.C. 1709(b)(9)) and discussing and analyzing options for proposed changes to such requirements, including changes that would take into account borrowers' credit scores or other industry standards related to borrowers' financial soundness. Such report shall--

   Inserted: (1) analyze the impacts that any actual or proposed such changes are projected to have on--

   Inserted: (A) the financial soundness of the Mutual Mortgage Insurance Fund;

   Inserted: (B) the housing finance market of the United States; and

   Inserted: (C) the number of borrowers served by the Federal Housing Administration;

   Inserted: (2) explain the reasons for any actual or proposed such changes in the such requirements made since the last report under this subsection;

   Inserted: (3) evaluate the impact of any actual or proposed such changes in such requirements on the Mutual Mortgage Insurance Fund;

   Inserted: (4) evaluate the impacts of any actual or proposed such changes on potential mortgagors under mortgages on one- to four-family dwellings insured by the Secretary under the National Housing Act; and

   Inserted: (5) evaluate the impact of any actual or proposed such changes on the soundness of the housing market in the United States.

   Original wording

   At the end of the bill, add the following new section:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed