Official Summaries

Mortgage Rate Reduction Act

This bill authorizes the federal guarantee, or insurance, of certain second mortgages. Specifically, this applies to properties with a first mortgage guaranteed by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). For a second mortgage to qualify, the first mortgage on the property must be guaranteed under the same authority.

The bill also requires the publication of mortgage guarantee information by the FHA, VA, and Department of Agriculture. For each mortgage guaranteed, these agencies must publish the address of the property and the date of the loan.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 892 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 892

To require the heads of certain agencies to disclose information about 
 loans insured and guaranteed by such agencies, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            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

_______________________________________________________________________

                                 A BILL


 
To require the heads of certain agencies to disclose information about 
 loans insured and guaranteed by such agencies, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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.
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