January 31, 2025
Mr. Ryan introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To require the heads of certain agencies to disclose information about loans insured and guaranteed by such agencies, and for other purposes.
Section 1. Short title
This Act may be cited as the Mortgage Rate Reduction Act
.
Sec. 2. Sense of the Congress
It is the sense of the Congress that—
(1)
the Assistant Secretary for the Office of Housing and Federal Housing Commissioner should, acting through the Federal Housing Administration, insure second mortgages under section 203 of the National Housing Act for properties for which the Federal Housing Administration has insured a first mortgage, to facilitate the assumption of such first mortgage by a subsequent purchaser of such property;
(2)
the Secretary of Agriculture should guarantee loans for eligible housing under section 502(h) of the Housing Act of 1949 that are second mortgages if the Secretary of Agriculture insures the loan that is the first mortgage against such eligible housing, to facilitate the assumption of such first mortgage by a subsequent purchaser of such eligible housing; and
(3)
the Secretary of Veterans Affairs should insure and guarantee real estate housing loans secured by second liens under subchapter I of chapter 37 of title 38, United States Code, if the Secretary of Veterans Affairs insures the first lien against such real estate, to facilitate the assumption of the first mortgage against such real estate by a subsequent purchaser of such real estate.
Sec. 3. Insurance for secondary mortgages
(a) Federal Housing Administration
(1) In general
Section 201(a) of the National Housing Act (12 U.S.C. 1707(a)) is amended—
(A)
by striking a first mortgage
each place it occurs and inserting a first mortgage or second mortgage
; and
(B)
by striking secured thereby.
and inserting the following: secured thereby; and the term
. second mortgage
means, with respect to real estate against which there is a first mortgage that has been insured under section 203, such classes of second liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate, under the laws of the State in which the real estate is located, together with the credit instrument, if any, secured thereby
(2) Conforming amendments
Section 203 of the National Housing Act (12 U.S.C. 1709) is amended by striking first mortgage
each place it occurs and inserting first mortgage or second mortgage
.
(b) Department of Veterans Affairs
Section 3703(d)(3) of title 38, United States Code, is amended—
(1)
in subparagraph (A), by striking first lien
and inserting first lien or second lien
; and
(2)
by adding at the end the following new subparagraph:
(C)
A real estate housing loan may only be secured by second lien if the Secretary insures or guarantees the first lien on such real estate.
Sec. 4. Disclosure of information about loans guaranteed and insured
(a) Loans insured by the Federal Housing Administration
The Assistant Secretary for the Office of Housing and the Federal Housing Commissioner shall, not later than 1 year after the date of the enactment of this section, publish on a public website a list of all properties for which the Federal Housing Administration has insured a mortgage under section 203 of the National Housing Act that includes the following information for each property insured:
(1)
The address of the property against which there is a mortgage insured by the Federal Housing Administration.
(2)
The date of the origination of the mortgage that is insured by the Federal Housing Administration.
(b) Loans insured by the Department of Agriculture
The Secretary of Agriculture shall, not later than 1 year after the date of the enactment of this section, publish on a public website a list of all properties for which the Department of Agriculture has guaranteed loan under section 502(h) of the Housing Act of 1949 that includes the following information for each loan insured:
(1)
The address of the property against which there is a loan guaranteed by the Department of Agriculture.
(2)
The date of the origination of the loan that is guaranteed by the Department of Agriculture.
(c) Loans insured by the Secretary of Veterans Affairs
The Secretary of Veterans Affairs shall, not later than 1 year after the date of the enactment of this section, publish on a public website a list of all properties for which the Department of Veterans Affairs has insured or guaranteed a housing loan under subchapter I of chapter 37 of part III of title 38, United States Code, that includes the following information for each housing loan insured or guaranteed:
(1)
The address of the property against which there is a housing loan insured or guaranteed by the Department of Veterans Affairs.
(2)
The date of the origination of the housing loan that is insured or guaranteed by the Department of Veterans Affairs.