Sec. 227. Residual income requirement
229 words·~1 min read·
/bill/115/hr/6746/ih/section-227A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The FHA may not newly insure, under any provision of this title, the National Housing Act, or title V of the Housing Act of 1949, or under any FHA program, any mortgage on a 1- to 4-family residential property unless the mortgagor under such mortgage meets such requirements as the FHA shall, by regulation, establish to ensure that the mortgagor has sufficient residual income. For purposes of this section, the term residual income means, with respect to a mortgagor, the net monthly income of the mortgagor, as provided by regulation by the FHA, after taking into consideration— any assets of the mortgagor other than the property subject to such mortgage; and any monthly obligations of the mortgagor with respect to mortgage payments, insurance payment, and taxes for the property subject to the mortgage, income and other taxes, maintenance, and utility expenses for the property, child care expenses, auto, consumer, and any other debt obligations, alimony and child support expenses, and such other expenses as the FHA may provide.
This section shall take effect on the date of the enactment of this Act. During the transition period under section 551, any reference in this section to the FHA shall be construed to refer to the Secretary of Housing and Urban Development to the extent the Secretary has not delegated authority under this section to the FHA pursuant to section 552(1).