S 488

112th CONGRESS
1st Session

S. 488

To require the FHA to equitably treat homebuyers who have repaid in full their FHA-insured mortgages, and for other purposes.

IN THE SENATE OF THE UNITED STATES

March 3, 2011

Mr. CARDIN introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs


A BILL

To require the FHA to equitably treat homebuyers who have repaid in full their FHA-insured mortgages, 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 `Reduce Excessive Interest Payments Act' or the `REIP Act'.

SEC. 2. PROHIBITION ON INTEREST CHARGES FOR ON-TIME PRINCIPAL PAYMENTS.

    Section 203 of the National Housing Act (12 U.S.C. 1709) is amended by adding at the end the following:

    `(z) Prohibition on Interest Charges for On-time Principal Payments- Each mortgagee (or servicer) with respect to a mortgage under this section may not impose, nor may the Secretary require the imposition of, any interest charge on such a mortgage as a result of the loss of any time period provided by the mortgagee (or servicer) within which the mortgagor may fully repay the principal balance amount of the mortgage, with respect to--

      `(1) any days in the billing cycle that precedes the most recent billing cycle in which such amounts were repaid; or

      `(2) any amounts repaid in the current billing cycle that were repaid within such time period.'.

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