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Version 00 · Introduced in Senate · Nov 13, 2007
FHA Modernization Act of 2007 - Amends the National Housing Act to: (1) revise requirements for the maximum principal loan obligation eligible for mortgage insurance, as well as the cash investment requirement; and (2) prohibit seller-funded downpayment assistance.
Increases the maximum up-front mortgage insurance premium the Secretary of Housing and Urban Development (HUD) may collect on mortgages secured by a one- to four-family dwelling.
Replaces the General Insurance Fund (GIF) with the Mutual Mortgage Insurance (MMI) Fund as the depository of all funds involved in rehabilitation loans for one- to four-family structures.
Showing the opening paragraphs of the official summary.
Permits the Secretary to insure any mortgage covering a one-family unit in a condominium project if the project has a certain HUD-insured blanket mortgage.
Revises requirements for the MMI Fund.
Makes insurance of a Native Hawaiian or Indian reservation mortgage the obligation of the MMI Fund (instead of the GIF).
Eliminates the limitation on the aggregate number of home equity conversion mortgages (HECMs) for elderly homeowners insured under the Act.
Authorizes the Secretary to insure a home equity conversion mortgage to: (1) enable an elderly mortgagor to purchase a one- to four-family dwelling unit, one of which the mortgagor will occupy as a primary residence; and (2) provide for any future payments to the mortgagor, based on available equity.
Establishes a single national loan limit for HECMs.
Amends the Energy Policy Act of 1992 to raise the cap on the price of cost-effective energy efficiency improvements under the energy efficiency mortgages program.
Amends the National Housing Act to require the Secretary to establish a pilot program for an automated process for providing alternative credit rating information for mortgagors and prospective mortgagors (under mortgages on one- to four-family residences) without sufficient credit history.
Requires the Secretary, the Commissioner of the Federal Housing Administration (FHA), the Neighborhood Reinvestment Corporation, and other entities involved in foreclosure prevention activities to develop and implement a plan to improve FHA's loss mitigation process.
Amends the Housing and Urban Development Act of 1968 to revise post-purchase housing counseling eligibility requirements.
Directs the Secretary to establish a pre-purchase homeownership counseling demonstration program.
Amends the federal criminal code to establish criminal penalties for certain fraudulent actions intended to influence FHA action in any way.
Places limitations on mortgage insurance premium increases.
FHA Manufactured Housing Loan Modernization Act of 2007 - Amends the National Housing Act with respect to FHA housing loan insurance for manufactured homes (or lots for such homes).
Makes any new contract of insurance for loans, credit advances, or purchases conclusive evidence of an institution's insurance eligibility. (Thus requires each loan to be insured individually instead of as part of a bundle of such loans.)
Increases manufactured home loan limits, requiring annual indexing.
Sets forth borrower premium charges, including an up-front premium of up to 2.25% and an annual premium of up to 1%.
Revises requirements for the handling and disposal of any real or personal property conveyed to or acquired by the Secretary.
Directs the Secretary to establish underwriting criteria that will ensure the manufactured housing program's financial soundness.
Amends the National Housing Act to apply the prohibition against kickbacks and unearned fees in the Real Estate Settlement Procedures Act of 1974 (RESPA) to each sale of a manufactured home financed with an FHA-insured loan or extension of credit and related services.
Prescribes certain lease requirements as prerequisites for HUD insurance of a financial institution with respect to a mortgage loan to finance a manufactured home intended to be leased in a manufactured home community.
People & committees
Sen. Dodd, Christopher J. [D-CT] · D–CT
Legislative record
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Held at the desk.
Received in the House.
Message on Senate action sent to the House.
Passed Senate with an amendment by Yea-Nay Vote. 93 - 1. Record Vote Number: 432. (text: CR S15593-15598)
Senate roll call 432 · Individual votesPassed/agreed to in Senate: Passed Senate with an amendment by Yea-Nay Vote. 93 - 1. Record Vote Number: 432.(text: CR S15593-15598)
Senate roll call 432 · Individual votesMeasure laid before Senate by unanimous consent. (consideration: CR S15580-15598)
Placed on Senate Legislative Calendar under General Orders. Calendar No. 481. (text of measure as introduced: CR S14291-14295)
Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Reid for Senator Dodd. With written report No. 110-227. Additional views filed.
Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Reid for Senator Dodd. With written report No. 110-227. Additional views filed.
Sponsor introductory remarks on measure. (CR S14290-14291)
Introduced in Senate
Committee on Banking, Housing, and Urban Affairs ordered to be reported an original measure.
Primary sources
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Source last updated: Apr 7, 2025. Consult Congress.gov for the current record.
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