The latest I have seen about HR 6694 is that it made it out of the House Financial Services Committee with huge support.  Apparently, the committee is composed almost entirely of the bill’s supporters so there was no shortage of enthusiasm.  The bill should make its way to the floor of the House of Representatives soon.  If it carries majority support, it will then be off to the Senate and then to “W”.

If you’d like to see the hearing you may watch it here.

Two amendments were also introduced and were approved by verbal
vote.  The first amendment was offered by Representative Brown-Waite
and sponsored by Representative Charlie Wilson.  The amendment provides
civil money penalties for influencing an appraisal (click here to view amendment # 1)

Amendment # 2 was offered by the bill’s original sponsors (Mr.
Green, Mr. Miller, Mr. Shays, and Ms. Waters) and provides
clarification for risk based premiums as follows (click here to view amendment):

  • Credit Score at or greater than 680, no risk based premium regardless of down payment source.
  • Loans involving seller-funded down payment assistance with credit
    scores between 620 and 679: mortgage insurance premiums would rise to
    3.0% upfront and 1.25% annually.  This is an increase from current
    premiums of 1.75% upfront and .55% annually. 
  • Loans involving seller-funded down payment assistance with credit
    scores below 620: HUD would have the option of creating a program for
    these borrowers that requires a higher upfront and annual premium
    structure to offset the risk to the FHA program.
  • Loans not involving down payment assistance with credit scores
    below 600: HUD would have the option of creating a program and premium
    structure for these borrowers to offset the risk to the FHA program. 
    Said premium structure would require a lower upfront premium and higher
    annual premium.
  • Payment Incentives: Authorizes the refund of all or part of the
    difference of the higher risk based premiums after a period of
    satisfactory payment between 3 and 5 years for loans subject to
    risk-based premiums.

For more information on H.R. 6694, click here for a link to the bill summary and status page on the Thomas Library of Congress site.