To authorize the Secretary of Housing and Urban Development to insure zero-downpayment mortgages for one-unit residences.

February 3, 2004

Mr. TIBERI (for himself, Mr. SCOTT of Georgia, Mr. OXLEY, Mr. NEY, Mr. TURNER of Ohio, Mr. GREEN of Wisconsin, Mr. KING of New York, Mr. RENZI, Mr. LUCAS of Kentucky, and Mr. CLAY) introduced the following bill; which was referred to the Committee on Financial Services

To authorize the Secretary of Housing and Urban Development to insure zero-downpayment mortgages for one-unit residences.

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 `Zero Downpayment Act of 2004'.

SEC. 2. INSURANCE FOR ZERO-DOWNPAYMENT MORTGAGES.

The National Housing Act is amended as follows:

(1) Mortgage insurance authority- In Section 203 (12 U.S.C. 1709) by adding at the end the following new subsection:

`(y) Zero-Downpayment Mortgages- Notwithstanding any other provision of this section or any other section of this title, the Secretary is authorized to insure, and to commit to insure, any mortgage involving a property upon which there is located a dwelling designed principally for a 1-family residence which (1) involves a principal obligation not in excess of 100 percent of the applicable maximum dollar amount limit under subsection (b)(2)(A) for a one-unit dwelling, and (2) is not in excess of 100 percent of the appraised value of the property plus any initial service charges, appraisal, inspection, and other fees in connection with the mortgage as approved by the Secretary. The Secretary is authorized to establish any additional requirements as may be necessary, or appropriate, including requirements regarding mortgagor and property eligibility.'.

(2) General insurance fund- In section 519(e) (12 U.S.C. 1735c(e)), by striking `and 203(i)' and inserting `, 203(i), and 203(y)'.

END