The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“SENIOR CITIZEN HOME EQUITY PROTECTION ACT” mentioning the U.S. Dept of Agriculture was published in the Senate section on pages S12428-S12430 on Nov. 9, 1997.
The publication is reproduced in full below:
SENIOR CITIZEN HOME EQUITY PROTECTION ACT
Mr. SESSIONS. President, I ask the Chair lay before the Senate a message from the House of Representatives on (S. 562) to amend section 255 of the National Housing Act of to prevent the funding of unnecessary or excessive costs for obtaining a home equity conversion mortgage.
The PRESIDING OFFICER laid before the Senate the following message from the House of Representatives:
Resolved, That the bill from the Senate (S. 562) entitled
``An Act to amend section 255 of the National Housing Act to prevent the funding of unnecessary or excessive costs for obtaining a home equity conversion mortgage.'', do pass with the following amendments:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Housing Programs Extension Act of 1997''.
TITLE I--SENIOR CITIZEN HOME EQUITY PROTECTION
SEC. 101. SHORT TITLE.
This title may be cited as the ``Senior Citizen Home Equity Protection Act''.
SEC. 102. DISCLOSURE REQUIREMENTS; PROHIBITION OF FUNDING OF
UNNECESSARY OR EXCESSIVE COSTS.
Section 255(d) of the National Housing Act (12 U.S.C. 1715z-20(d)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (B), by striking ``and'' at the end;
(B) by redesignating subparagraph (C) as subparagraph (D); and
(C) by inserting after subparagraph (B) the following:
``(C) has received full disclosure of all costs to the mortgagor for obtaining the mortgage, including any costs of estate planning, financial advice, or other related services; and'';
(2) in paragraph (9)(F), by striking ``and'';
(3) in paragraph (10), by striking the period at the end and inserting ``; and''; and
(4) by adding at the end the following:
``(11) have been made with such restrictions as the Secretary determines to be appropriate to ensure that the mortgagor does not fund any unnecessary or excessive costs for obtaining the mortgage, including any costs of estate planning, financial advice, or other related services.''.
SEC. 103. IMPLEMENTATION.
(a) Notice.--The Secretary of Housing and Urban Development shall, by interim notice, implement the amendments made by section 102 in an expeditious manner, as determined by the Secretary. Such notice shall not be effective after the date of the effectiveness of the final regulations issued under subsection (b).
(b) Regulations.--The Secretary shall, not later than the expiration of the 90-day period beginning on the date of the enactment of this Act, issue final regulations to implement the amendments made by section 102. Such regulations shall be issued only after notice and opportunity for public comment pursuant to the provisions of section 553 of title 5, United States Code (notwithstanding subsections (a)(2) and (b)(B) of such section).
TITLE II--TEMPORARY EXTENSION OF PUBLIC HOUSING AND SECTION 8 RENTAL
ASSISTANCE PROVISIONS
SEC. 201. PUBLIC HOUSING CEILING RENTS AND INCOME ADJUSTMENTS
AND PREFERENCES FOR ASSISTED HOUSING.
Section 402(f) of The Balanced Budget Downpayment Act, I
(42 U.S.C. 1437aa note) is amended by striking ``and 1997'' and inserting ``, 1997, and 1998''.
SEC. 202. PUBLIC HOUSING DEMOLITION AND DISPOSITION.
Section 1002(d) of the Emergency Supplemental Appropriations for Additional Disaster Assistance, for Anti-terrorism Initiatives, for Assistance in the Recovery from the Tragedy that Occurred at Oklahoma City, and Rescissions Act, 1995 (42 U.S.C. 1437c note) is amended by striking
``September 30, 1997'' and inserting ``September 30, 1998''.
SEC. 203. PUBLIC HOUSING FUNDING FLEXIBILITY AND MIXED-
FINANCE DEVELOPMENTS.
Section 201(a)(2) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (as contained in section 101(e) of the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-134)) (42 U.S.C. 1437l note) is amended by striking ``fiscal year 1997'' and inserting
``fiscal year 1998''.
SEC. 204. MINIMUM RENTS.
Section 402(a) of The Balanced Budget Downpayment Act, I
(Public Law 104-99; 110 Stat. 40) is amended in the matter preceding paragraph (1) by striking ``fiscal year 1997'' and inserting ``fiscal years 1997 and 1998''.
SEC. 205. PROVISIONS RELATING TO SECTION 8 RENTAL ASSISTANCE
PROGRAM.
(a) Take-One-Take-All, Notice Requirements, and Endless Lease Provisions.--Section 203(d) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (as contained in section 101(e) of the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-134)) (42 U.S.C. 1437f note) is amended by striking ``and 1997'' and inserting
``, 1997, and 1998''.
(b) Fair Market Rentals.--The first sentence of section 403(a) of The Balanced Budget Downpayment Act, I (Public Law 104-99; 110 Stat. 43) is amended by striking ``fiscal year 1997'' and inserting ``fiscal years 1997 and 1998''.
TITLE III--REAUTHORIZATION OF FEDERALLY ASSISTED MULTIFAMILY RENTAL
HOUSING PROVISIONS
SEC. 301. MULTIFAMILY HOUSING FINANCE PILOT PROGRAMS.
Section 542 of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) is amended--
(1) in subsection (b)(5), by inserting before the period at the end of the first sentence the following: ``, and not more than an additional 15,000 units during fiscal year 1998''; and
(2) in the first sentence of subsection (c)(4)--
(A) by striking ``and'' and inserting a comma; and
(B) by inserting before the period at the end the following: ``, and not more than an additional 15,000 units during fiscal year 1998''.
SEC. 302. HUD DISPOSITION OF MULTIFAMILY HOUSING.
Section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is amended by inserting after ``owned by the Secretary'' the following: ``, including the provision of grants and loans from the General Insurance Fund for the necessary costs of rehabilitation or demolition,''.
SEC. 303. MULTIFAMILY MORTGAGE AUCTIONS.
Section 221(g)(4)(C) of the National Housing Act (12 U.S.C. 1715l(g)(4)(C)) is amended--
(1) in the first sentence of clause (viii), by striking
``September 30, 1996'' and inserting ``December 31, 2005''; and
(2) by adding at the end the following new clauses:
``(ix) Subject to the limitation in clause (x), the costs of any multifamily auctions under this subparagraph occurring during any fiscal year shall be paid from amounts in the General Insurance Fund established under section 519.
``(x) This authority of the Secretary to conduct multifamily auctions under this subparagraph shall be effective for any fiscal year only to the extent or in such amounts that amounts in the General Insurance Fund are or have been approved in appropriation Acts for costs of such auctions occurring during such fiscal year.''.
SEC. 304. INTEREST REDUCTION PAYMENTS IN CONNECTION WITH
SALES OF SECTION 236 MORTGAGES HELD BY HUD.
Section 236 of the National Housing Act (12 U.S.C. 1715z-1) is amended--
(1) in the first sentence of subsection (b), by inserting before the colon at the end of the first proviso the following: ``and when the mortgage is assigned or otherwise transferred to a subsequent holder or purchaser (including any successors and assignees)''; and
(2) in subsection (c)--
(A) by inserting ``(1)'' after the subsection designation; and
(B) by adding at the end the following new paragraphs:
``(2)(A) The Secretary may continue to make interest reduction payments to the holder or purchaser (including any successors and assignees) of a mortgage formerly held by the Secretary upon such terms and conditions as the Secretary may determine. In exercising the authority under the preceding sentence, upon cancellation of any contract for such interest reduction payments as a result of foreclosure or transfer of a deed in lieu of foreclosure, any amounts of budget authority which would have been available for such contract, absent cancellation, shall remain available for the project for the balance of the term of the original mortgage upon such terms and conditions as the Secretary may determine.
``(B) The Secretary may exercise the authority to make payments under this paragraph (i) only with respect to mortgage loans under this section which, at the time of the Secretary's assignment or other transfer, have a total amount of unpaid principal obligation of not more than $92,000,000, and (ii) only to the extent or in such amounts as are or have been provided in advance in appropriation Acts.
``(3) Notwithstanding subsection (i)(2) or any other provision of law, in connection with the sale of mortgages held by the Secretary, the Secretary may establish appropriate terms and conditions, based on section 42 of the Internal Revenue Code of 1986 or another appropriate standard, for determining eligibility for occupancy in the project and rental charges.''.
SEC. 305. ASSIGNMENT OF REGULATORY AGREEMENTS IN CONNECTION
WITH SALES OF MORTGAGES HELD BY HUD.
Section 203(k) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1701z-11(k)) is amended by adding at the end the following new paragraph:
``(7) Assignment of regulatory agreement in connection with sale of mortgages.--Notwithstanding any other provision of law, and upon such terms and conditions as the Secretary may prescribe, the Secretary may, in connection with the sale of mortgages held by the Secretary, provide for the assumption of all rights and responsibilities under the regulatory agreement executed by or for the benefit of the Secretary. Such assumption shall further provide for the regulatory agreement to be so assumed by any successor or assignee of the initial assuming entity. Such regulatory agreement shall continue to be binding upon the mortgagor and its successors and assignees.''.
TITLE IV--REAUTHORIZATION OF RURAL HOUSING PROGRAMS
SEC. 401. HOUSING IN UNDERSERVED AREAS PROGRAM.
The first sentence of section 509(f)(4)(A) of the Housing Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended by striking
``fiscal year 1997'' and inserting ``fiscal years 1997, 1998, and 1999''.
SEC. 402. HOUSING AND RELATED FACILITIES FOR ELDERLY PERSONS
AND FAMILIES AND OTHER LOW-INCOME PERSONS AND
FAMILIES.
(a) Authority To Make Loans.--Section 515(b)(4) of the Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking ``September 30, 1997'' and inserting ``September 30, 1999''.
(b) Set-Aside for Nonprofit Entities.--The first sentence of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1)) is amended by striking ``fiscal year 1997'' and inserting ``fiscal years 1997, 1998, and 1999''.
SEC. 403. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN
RURAL AREAS.
Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) is amended--
(1) in subsection (q), by striking paragraph (2) and inserting the following:
``(2) Annual limitation on amount of loan guarantee.--In each fiscal year, the Secretary may enter into commitments to guarantee loans under this section only to the extent that the costs of the guarantees entered into in such fiscal year do not exceed such amount as may be provided in appropriation Acts for such fiscal year.'';
(2) by striking subsection (t) and inserting the following:
``(t) Authorization of Appropriations.--There are authorized to be appropriated for each of fiscal years 1998 and 1999 for costs (as such term is defined in section 502 of the Congressional Budget Act of 1974) of loan guarantees made under this section such sums as may be necessary for such fiscal year.''; and
(3) in subsection (u), by striking ``1996'' and inserting
``1999''.
TITLE V--REAUTHORIZATION OF NATIONAL FLOOD INSURANCE PROGRAM
SEC. 501. PROGRAM EXPIRATION.
Section 1319 of the National Flood Insurance Act of 1968
(42 U.S.C. 4026) is amended by striking ``September 30, 1997'' and inserting ``September 30, 1999''.
SEC. 502. BORROWING AUTHORITY.
Section 1309(a)(2) of the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)(2)) is amended by striking
``September 30, 1997'' and inserting ``September 30, 1999''.
SEC. 503. EMERGENCY IMPLEMENTATION OF PROGRAM.
Section 1336(a) of the National Flood Insurance Act of 1968
(42 U.S.C. 4056(a)) is amended by striking ``September 30, 1996'' and inserting ``September 30, 1999''.
SEC. 504. AUTHORIZATION OF APPROPRIATIONS FOR STUDIES.
Subsection (c) of section 1376 of the National Flood Insurance Act of 1968 (42 U.S.C. 4127(c)) is amended to read as follows:
``(c) For studies under this title, there are authorized to be appropriated such sums as may be necessary for each of fiscal years 1998 and 1999, which shall remain available until expended.''.
Amend the title so as to read: ``An Act to provide for the temporary extension of certain programs relating to public housing, to reauthorize certain programs relating to housing assistance, and to amend section 255 of the National Housing Act to prevent the funding of unnecessary or excessive costs for obtaining a home equity conversion mortgage, and for other purposes.''.
Amendment No. 1630
Mr. SESSIONS. Mr. President, I move that the Senate concur in the amendments of the House with a further amendment which is at the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Alabama [Mr. Sessions], for Mr. D'Amato, proposes an amendment numbered 1630.
Mr. SESSIONS. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
(The text of the amendment is printed in today's Record under
``Amendments Submitted.'')
Mr. D'AMATO. Mr. President, I rise to support immediate passage of the ``Senior Citizen Home Equity Protection Act'' (S. 562). This legislation contains essential provisions which are urgently required to protect our senior citizens from further exploitation by fraudulent operators who are manipulating the Department of Housing and Urban Development's (HUD) home equity conversion mortgage program. The bill also contains a number of housing and flood insurance program reauthorizations and technical corrections which are needed to ensure the effective and efficient continuation of existing programs.
The Senior Citizen Home Equity Protection Act, which I introduced on April 10, 1997, was originally passed by the Senate on April 25, 1997. It seeks to prevent unscrupulous middlemen, posing as ``estate planners'', from taking advantage of seniors by charging unnecessary and excessive fees to assist them in obtaining a home equity conversion mortgage. These predators have charged elderly homeowners fees ranging from 6 to 12 percent of the loan amount. Hundreds of very low-income seniors have been manipulated into paying several thousand dollars in return for ministerial and often meaningless services. HUD provides information on reverse mortgages at no charge.
These abuses must be halted at once. This bill provides two important safeguards to stop such exploitation. First, it provides a requirement that the mortgagor has received a full disclosure of all costs of obtaining the mortgage, including any costs of estate planning, financial advice or other related services. Second, it clarifies that the HUD Secretary has authority to impose restrictions to ensure that the mortgagor is not charged any unnecessary or excessive costs for obtaining a reverse mortgage.
This legislation also provides temporary extensions of certain public and assisted housing policy reforms which have been previously extended in VA-HUD appropriations legislation since Fiscal Year 1996. An owner's right to prepay a Federal Housing Administration-insured multifamily mortgage, subject to certain conditions, is clarified.
The bill reauthorizes several federally assisted multifamily rental housing programs under the jurisdiction of HUD and the Rural Housing Service of the Department of Agriculture. Such extensions will assure that much needed rental programs for low-income families continue in an uninterrupted fashion. The National Flood Insurance Program, which is vital for our homeowners residing in floodplain and coastal areas, is also reauthorized.
Last fall, Congress passed the Native American Housing Assistance and Self-Determination Act of 1996. The legislation presented before you today makes technical and conforming changes to ensure the effective implementation of that Act.
I would like to commend Senator Connie Mack, Chairman of the Banking Committee's Subcommittee on Housing Opportunity and Community Development, for his leadership in the development of this legislation. I applaud Senator Mack, Ranking Minority Member Paul Sarbanes and Subcommittee Ranking Minority Member John Kerry for their fine stewardship of housing and community development programs under the Banking Committee's jurisdiction.
Mr. President, S. 562 should be law by now. By delaying action on the bill for 5 months, the House of Representatives has left our senior citizens unprotected and vulnerable to predatory practices--and for no reason other than to engage in parliamentary gamesmanship. Mr. President, I cannot condone this delay.
I urge the House of Representatives to pass this bill, which now contains additional provisions the House has insisted upon. There is no opposition to this bill to my knowledge.
I respectfully urge the Senate and the House of Representatives to grant passage of this bill before adjournment. It is imperative that we ensure that our nation's most vulnerable homeowners are no longer victimized. Without final passage of this bill, our very low-income elderly homeowners may continue to be preyed upon. I ask for immediate support of this vital legislation.
The PRESIDING OFFICER. The question is on agreeing to the motion.
The motion was agreed to.
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