Expanding American Homeownership Act of 2007 - Introduced March 29, 2007

The bill HR 1852 passed.  Lets get back to FHA!

Amends the National Housing Act to: (1) modify requirements governing the maximum principal loan obligation; (2) extend the mortgage term; and (3) revise requirements for cash downpayment by the mortgagor in the eligibility criteria for mortgage insurance, including mortgage insurance premiums for zero- and lower-downpayment borrowers who obtain a mortgage secured by a one- to four-family dwelling. Distinguishes standard risk mortgages secured by a one- to four-family dwelling from higher-risk mortgages.

Authorizes the Secretary of Housing and Urban Development (HUD) to: (1) establish underwriting standards for higher-risk mortgages for mortgagors with a credit score equivalent to a FICO score of less than 560; (2) provide for flexible premium rate variations according to the credit risk associated with the type of mortgage product being insured; and (2) create certain payment incentives, both discretionary and mandatory. Makes certain borrower protections, including mortgagee disclosures and mortgagor counseling, mandatory for higher risk mortgages.

Permits the Secretary to insure any mortgage covering a one-family unit in a condominium project if the project has a certain HUD-insured blanket mortgage. Revises requirements for the Mutual Mortgage Insurance (MMI) Fund, specifying operating goals among other things. Makes insurance of a Native Hawaiian or Indian reservation mortgage the obligation of the MMI Fund (instead of the General Insurance Fund). Eliminates the limitation placed upon the aggregate number of home equity conversion mortgages insured under the Act.

Authorizes the Secretary to insure a home equity conversion mortgage when its primary purpose is to enable an elderly mortgagor to purchase a one- to four-family dwelling in which the mortgagor will occupy one of the units. Authorizes the Secretary to enter into agreements, for a certain period, to insure up to 100% of certain mortgages for a single family residence located in a major disaster area.

Revises multifamily housing mortgage limits in high cost areas. Requires the Secretary to consider industry standard appraisal practices in determining the market value of any multifamily real property or multifamily loan for any noncompetitive sale to a state or local government entity