Amendment altered the FHA mortgage insurance program by phasing out over five years the current 3.8% insurance premium paid at the time of settlement, and required instead that a 1.35% premium be paid at the time of settlement and that 0.6% be paid annually over the life of the loan. It prohibited the issuance of FHA mortgages exceeding the market value of a property and eliminated the rebate of unearned insurance premiums when mortgages were prepaid.

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Amendment Number
648
Description
Amendment altered the FHA mortgage insurance program by phasing out over five years the current 3.8% insurance premium paid at the time of settlement, and required instead that a 1.35% premium be paid at the time of settlement and that 0.6% be paid annually over the life of the loan. It prohibited the issuance of FHA mortgages exceeding the market value of a property and eliminated the rebate of unearned insurance premiums when mortgages were prepaid.
Purpose
An amendment to alter the FHA mortgage insurance program by phasing out over five years the 3.8% insurance premium paid at the time of settlement. The amendmnet would require 1.35% premium be paid at the time of settlement and 0.6% be paid annually over the life of the loan. The amendment would also prohibit the issuance of FHA mortgages that exceed the market value of a property and eliminate the rebate of unearned insurance premiums when mortgages are prepaid.
Congress
101
Type
HAMDT
Latest Action Date
Jul 31, 1990
Latest Action Text
On agreeing to the Vento amendment (A017) Agreed to by recorded vote: 418 - 2 (Roll no. 290).
Latest Action Time
19:06:59
Submitted Date
Jul 31, 1990
Chamber
House of Representatives
Update Date
Jul 1, 2021
Amendment 648 — Informed