November 18, 2013
As ordered reported by the Senate Committee on Banking, Housing, and Urban Affairs on July 31, 2013
S. 1376 would make several changes to current law aimed at improving the financial safety and soundness of the Federal Housing Administration’s (FHA’s) Mutual Mortgage Insurance (MMI) fund. That fund records the transactions of two housing programs operated by FHA: the single-family mortgage guarantee program and the Home Equity Conversion Mortgage (HECM) program. The bill would require FHA to take certain corrective actions if the annual actuarial review of the MMI fund indicates that the fund’s capital ratio has fallen below certain targets and would require FHA to make other administrative changes to the processes they use to oversee the single-family and HECM programs.
CBO estimates that implementing S. 1376 would result in a net decrease in discretionary spending of $514 million over the 2014-2018 period, assuming enactment of appropriation laws necessary to implement the legislation’s provisions. This legislation would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
S. 1376 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.