H.R. 5508

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5508 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5508

To amend the National Housing Act to restrict the collection of annual 
mortgage insurance premiums when a 78 percent loan-to value ratio is 
reached, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

September 19, 2025

Mr. Meeks (for himself and Mr. Sessions) introduced the following bill; 
which was referred to the Committee on Financial Services

_______________________________________________________________________

A BILL

To amend the National Housing Act to restrict the collection of annual 
mortgage insurance premiums when a 78 percent loan-to value ratio is 
reached, 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 Insurance Freedom Act''.

SEC. 2. RESTRICTION OF COLLECTION OF ANNUAL MORTGAGE INSURANCE 
PREMIUMS.

(a) In General.--Section 203(c)(2) of the National Housing Act (12 
U.S.C. 1709(c)(2)) is amended--
(1) in subparagraph (B)--
(A) in clause (i), by striking ``For any'' and 
inserting ``Subject to subparagraph (D), for any''; and
(B) in clause (ii), by striking ``For any'' and 
inserting ``Subject to subparagraph (D), for any'';
(2) in subparagraph (C)(i), by striking ``In addition'' and 
inserting ``Subject to subparagraph (D), in addition''; and
(3) by adding at the end the following:
``(D) Restriction on annual premium collection.--
``(i) In general.--The Secretary may not 
collect any annual premiums under this 
paragraph with respect to a mortgage at any 
time that the remaining insured principal 
balance (excluding the portion of the remaining 
balance attributable to the premium collected 
under subparagraph (A)) is 78 percent or less 
than the lower of--
``(I) the sales price of the 
dwelling at the sale in connection with 
which the mortgage was made; or
``(II) the appraised value of the 
dwelling at the time of the origination 
of the mortgage.
``(ii) Exception.--If the capital ratio of 
the Mutual Mortgage Insurance Fund falls below 
2 percent--
``(I) clause (i) shall not apply 
with respect to any mortgage with 
respect the Secretary was collecting 
premiums on the date on which the 
capital ratio of the Mutual Mortgage 
Insurance Fund fell below 2 percent; 
and
``(II) clause (i) shall continue to 
apply to any mortgage with respect to 
which the Secretary had stopped 
collecting premiums under this 
paragraph before the date on which the 
capital ratio of the Mutual Mortgage 
Insurance Fund fell below 2 percent 
because the remaining insured principal 
balance met the requirements described 
in clause (i).
``(iii) Rulemaking.--The Secretary shall, 
not later than 180 days after the enactment of 
this subparagraph, issue such rules to carry 
out this subparagraph and such rules shall 
include a process for mortgagors of mortgages 
insured under this title to use to demonstrate 
to the Secretary that the insured principal 
balance of the mortgage of such mortgagor is 78 
percent or less than the lower of--
``(I) the sales price of the 
dwelling at the sale in connection with 
which the mortgage was made; or
``(II) the appraised value of the 
dwelling at the time of the origination 
of the mortgage.
``(iv) Outreach and education.--The 
Secretary shall conduct outreach and 
educational activities to inform mortgagors of 
mortgages insured under this title about--
``(I) the restriction on premium 
collection imposed by clause (i); and
``(II) and the processes the 
mortgagor may use to demonstrate to the 
Secretary that the insured principal 
balance of the mortgage of such 
mortgagor is 78 percent or less than 
the lower of--
``(bb) the sales price of 
the dwelling at the sale in 
connection with which the 
mortgage was made; or
``(cc) the appraised value 
of the dwelling at the time of 
the origination of the 
mortgage.''.
(b) Applicability.--The amendments made by subsection (a) shall 
apply with respect only to mortgages endorsed for insurance by the 
Secretary of Housing and Urban Development after the date of the 
enactment of this Act.
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