September 19, 2025
Mr. Meeks (for himself and Mr. Sessions) introduced the following bill; which was referred to the Committee on Financial Services
To amend the National Housing Act to restrict the collection of annual mortgage insurance premiums when a 78 percent loan-to value ratio is reached, and for other purposes.
Section 1. Short title
This Act may be cited as the Mortgage Insurance Freedom Act
.
Sec. 2. Restriction of collection of annual mortgage insurance premiums
(a) In general
Section 203(c)(2) of the National Housing Act (12 U.S.C. 1709(c)(2)) is amended—
(1)
in subparagraph (B)—
(A)
in clause (i), by striking For any
and inserting Subject to subparagraph (D), for any
; and
(B)
in clause (ii), by striking For any
and inserting Subject to subparagraph (D), for any
;
(2)
in subparagraph (C)(i), by striking In addition
and inserting Subject to subparagraph (D), in addition
; and
(3)
by adding at the end the following:
(D) Restriction on annual premium collection
(i) In general
The Secretary may not collect any annual premiums under this paragraph with respect to a mortgage at any time that the remaining insured principal balance (excluding the portion of the remaining balance attributable to the premium collected under subparagraph (A)) is 78 percent or less than the lower of—
(I)
the sales price of the dwelling at the sale in connection with which the mortgage was made; or
(II)
the appraised value of the dwelling at the time of the origination of the mortgage.
(ii) Exception
If the capital ratio of the Mutual Mortgage Insurance Fund falls below 2 percent—
(I)
clause (i) shall not apply with respect to any mortgage with respect the Secretary was collecting premiums on the date on which the capital ratio of the Mutual Mortgage Insurance Fund fell below 2 percent; and
(II)
clause (i) shall continue to apply to any mortgage with respect to which the Secretary had stopped collecting premiums under this paragraph before the date on which the capital ratio of the Mutual Mortgage Insurance Fund fell below 2 percent because the remaining insured principal balance met the requirements described in clause (i).
(iii) Rulemaking
The Secretary shall, not later than 180 days after the enactment of this subparagraph, issue such rules to carry out this subparagraph and such rules shall include a process for mortgagors of mortgages insured under this title to use to demonstrate to the Secretary that the insured principal balance of the mortgage of such mortgagor is 78 percent or less than the lower of—
(I)
the sales price of the dwelling at the sale in connection with which the mortgage was made; or
(II)
the appraised value of the dwelling at the time of the origination of the mortgage.
(iv) Outreach and education
The Secretary shall conduct outreach and educational activities to inform mortgagors of mortgages insured under this title about—
(I)
the restriction on premium collection imposed by clause (i); and
(II)
and the processes the mortgagor may use to demonstrate to the Secretary that the insured principal balance of the mortgage of such mortgagor is 78 percent or less than the lower of—
(bb)
the sales price of the dwelling at the sale in connection with which the mortgage was made; or
(cc)
the appraised value of the dwelling at the time of the origination of the mortgage.
(b) Applicability
The amendments made by subsection (a) shall apply with respect only to mortgages endorsed for insurance by the Secretary of Housing and Urban Development after the date of the enactment of this Act.