Sec. 11. Stabilizing the HECM program

417 words·~2 min read·/bill/113/s/1376/is/section-11

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Section 255 of the National Housing Act ( 12 U.S.C. 1715z–20 ) is amended— in subsection (d)(8)— by inserting property maintenance, before insurance ; and by inserting , including matters that set forth terms and provisions for establishing escrow accounts, performing financial assessments, or limiting the amount of any payment made available under the mortgage before the semicolon; and in subsection (h)— in paragraph (1), by striking ; and and inserting a semicolon; in paragraph (2), by striking the period and inserting ; and ; and by adding at the end the following new paragraph: by notice or mortgagee letter, establish any additional or alternative requirements that the Secretary, in his or her discretion, determines necessary to more effectively carry out the purposes of the program authorized under this section, and any such notice or mortgagee letter shall take effect upon issuance and expire not later than 24 months after the date of issuance of the notice or mortgagee letter. .

In carrying out the authority provided to the Secretary of Housing and Urban Development under section 255(h)(3) of the National Housing Act, as added by subsection (a), the Secretary shall— not later than 90 days after the issuance of the notice or mortgagee letter pursuant to such section, issue a notice of proposed rulemaking addressing the same additional or alternative requirements that are the subject of the notice or mortgagee letter; and not later than 24 months after the issuance of the notice of proposed rulemaking required under subparagraph (A)— issue a final rule addressing the same additional or alternative requirements that are the subject of the notice or mortgagee letter; or withdraw the notice or mortgagee letter.

If the Secretary of Housing and Urban Development fails to issue a final rule by the end of the period described under paragraph (1)(B)— the provisions of the notice or mortgagee letter at issue shall become null and void; the Secretary— shall not have authority to reissue such notice or mortgagee letter; and may only address the requirements that are the subject of the notice or mortgagee letter at issue through the promulgation of a regulation pursuant to the rulemaking requirements of title 5, United States Code; and the Secretary and the Director of Office of Management and Budget shall appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives to provide testimony explaining the failure to comply with the requirements of this subsection.

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12 USC 1715z–20

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Sec. 11

Stabilizing the HECM program

Cite12 USC 1715z–20

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