Expanding American Homeownership Act of 2007

The Expanding American Homeownership Act of 2007 (H.R. 1852) was a bill in the 110th Congress "to modernize and update the National Housing Act and enable the Federal Housing Administration to use risk-based pricing to more effectively reach underserved borrowers, and for other purposes." (Official title.)

Current status


Bill summary

 * Raises the maximum amount that may be approved for multi-family mortgage insurance by the FHA to 170 percent in normal cost areas and 215 percent in high cost areas (Sec. 27).


 * Establishes the Affordable Housing Fund to provide grants that make rent and home ownership more affordable for low-income families (Sec. 31).


 * Extends the term for mortgages from 35 years to 40 years (Sec. 4).


 * Requires mortgage companies to notify foreclosure prevention counseling services and have them contact mortgagors over 60 days late with payments to offer counseling services funded by the Secretary of Housing and Urban Development (Secs. 10, 31).


 * Creates the Mutual Mortgage Insurance Fund to guarantee that mortgagors are being charged appropriate premiums for their risk level, to minimize the default risk to borrowers and the Fund, and to meet the housing needs of single family borrowers (Sec. 17).


 * Limits mortgage origination fees to 1.5 percent of the total mortgage claim (Sec. 20).


 * Allows the mortgagor to be rewarded the amount of the money not paid from escrow plus any penalties accrued or the penalty amount plus attorneys fees if a mortgagee or servicer fails to pay taxes, insurance premiums, or other charges from the mortgagor's escrow account (Sec. 23).


 * Establishes a pilot program to allow mortgagors with insufficient credit histories to obtain an alternative credit rating based on rent, utilities, and insurance payment histories (Sec. 25).


 * Sets the amount needed to fund housing counseling for mortgages insured under title II of the National Housing Act at $100 million for each of the fiscal years 2008 through 2012 (Sec. 31).


 * Authorizes the appropriation of $25 million for each fiscal year 2008 through 2012 to improve the technologies, procedures, processes, and salaries of mortgage insurance programs under title II of the National Housing Act (Sec. 31).


 * Prohibits any programs under the National Housing Act from charging mortgage insurance premiums above the October 1, 2006 amounts (Sec. 32).

Key votes

 * Vote to pass a bill that expands mortgage insurance programs under the National Housing Act.

