PROTECTION OF SENIOR HOMEOWNERS UNDER REVERSE MORTGAGE PROGRAM.

SEC. 593. PROTECTION OF SENIOR HOMEOWNERS UNDER REVERSE MORTGAGE PROGRAM. (a) Mortgage Insurance Authority.— Section 255(g) of the National Housing Act (12 U.S.C. 1715z–20(g)) is amended by striking the first 2 sentences and inserting the following new sentence: “The aggregate number of mortgages insured under this section may not exceed 150,000.”. (b) Other Approaches to Consumer Education.— Section 255(f) of the National Housing Act (12 U.S.C. 1715z–20(f)) is amended by adding after paragraph (5) the following: “The Secretary shall consult with consumer groups, industry representatives, representatives of counseling organizations, and other interested parties to identify alternative approaches to providing consumer information required by this subsection that may be feasible and desirable for home equity conversion mortgages insured under this section and other types of reverse mortgages. The Secretary may, in lieu of providing the consumer education required by this subsection, adopt alternative approaches to consumer education that may be developed as a result of such consultations, but only if the alternative approaches provide all of the information specified in this subsection.”. (c) Funding for Counseling and Consumer Education and Outreach.— Section 255 of the National Housing Act (12 U.S.C.1715z–20) is amended by adding at the end the following new subsection: “(l) Funding for Counseling and Consumer Education and outreach.— Of any amounts made available for any of fiscal years 2000 through 2003 for housing counseling under section 106 of the Housing and Urban Development Act of 1968, up to a total of $1,000,000 shall be available to the Secretary in each such fiscal year, in such amounts as the Secretary determines appropriate, for the following purposes in connection with home equity conversion mortgages insured under this section: “(1) Counseling.— For housing counseling authorized by section 106 of the Housing and Urban Development Act of 1968. “(2) Consumer education.— For transfer to the departmental salaries and expenses account for consumer education and outreach activities.”. (d) Conforming Amendments.— Section 255 of the National Housing Act (12 U.S.C. 1715z–20) is amended— (1) in the section heading, by striking “demonstration program of”; (2) in subsections (a) and (i)(1), by striking “demonstration” each place it appears; (3) in subsection (a)— (A) in paragraph (1), by inserting “and” after the semi-colon at the end; (B) in paragraph (2), by striking “; and” at the end and inserting a period; and (C) by striking paragraph (3); (4) by striking subsection (k) (relating to reports to Congress); and 112 STAT. 2655 (5) by redesignating subsection (1) (as added by subsection(c) of this section) as subsection (k). (e) Disclosure Requirements and Prohibition of Funding of Unnecessary or Excessive Costs.— (1) In general.— Section 255(d) of the National Housing Act (12 U.S.C. 1715z-20(d)) is amended— (A) in paragraph (2)— (i) in subparagraph (B), by striking “and” at the end; (ii) by redesignating subparagraph (C) as subparagraph (D); and (iii) by inserting after subparagraph (B) the following: “(C) has received full disclosure, as prescribed by the Secretary, of all costs charged to the mortgagor, including costs of estate planning, financial advice, and other services that are related to the mortgage but are not required to obtain the mortgage, which disclosure shall clearly state which charges are required to obtain the mortgage and which are not required to obtain the mortgage; and” (B) in paragraph (9)(F), by striking “and”; (C) in paragraph (10), by striking the period at the end and inserting “; and”; and (D) 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.”. (2) Implementation.— (A) Notice.— The Secretary of Housing and Urban Development shall, by interim notice, implement the amendments made by paragraph (1) 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 subparagraph (B) of this paragraph. (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 paragraph (1). 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 sub-sections (a)(2) and (b)(3)(B) of such section). (f) Effective Date.— This section shall take effect on, and the amendments made by this section are made on, and shall apply beginning upon, the date of the enactment of this Act.