To establish a 1-year pilot program to reduce up-front premiums on FHA mortgage insurance for first-time homebuyers who complete a homeownership counseling program and thereby help to reduce default rates on residential mortgages.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Homeownership Preservation Education Act of 2012''.
SEC. 2. PILOT PROGRAM FOR REDUCTION OF FHA UPFRONT-PREMIUMS FOR FIRST- TIME HOMEBUYERS.
(a) In General.--The Secretary of Housing and Urban Development (in this section referred to as the ``Secretary'') shall carry out a pilot program under this section to evaluate the effectiveness, in reducing defaults on residential mortgages, of reducing up-front premiums for mortgage insurance made available by the Secretary pursuant to title II of National Housing Act for mortgagors who are first-time homebuyers who complete a homeownership counseling program that provides for one- on-one prepurchase counseling. (b) Reduced Premiums.--Subject to subsection (c) of this section and notwithstanding the second sentence of subparagraph (A) of section 203(c)(2) of the National Housing Act (12 U.S.C. 1709(c)(2)(A)), in the case of a mortgage secured by a 1- to 4-family dwelling that is an obligation of the Mutual Mortgage Insurance Fund for which the mortgagor is a first-time homebuyer who completes a program of counseling with respect to the responsibilities and financial management involved in homeownership that is approved by the Secretary and provides for one-on-one pre-purchase counseling of the homebuyer by...