Report on zero-downpayment for FHA mortgage insurance

(a) In general Not later than 180 days after the date of the enactment of this section, the Secretary of Housing and Urban Development, acting through the Assistance Secretary for Housing and Federal Housing Commissioner, shall submit to the Congress a report that describes the feasability of a program that exempts first-time homebuyers who are first responders or school teachers from any cash investment required as described in section 203(b)(9) of the National Housing Act (12 U.S.C. 1709(b)(9)) for mortgage insurance under such Act, including— (1) the benefits and detriments of such a program; (2) the cost of such a program and impact on the mutual mortgage insurance fund; (3) how such a program can remain solvent using— (A) upfront fees; or (B) a combination of upfront and annual fees; (4) an analysis on how such a program would affect the ability of first responders or school teachers to buy a house; (5) an analysis of the expected premiums that would be needed for the program to have a negative credit subsidy rate; and (6) in the case that the Secretary determines that such a program is not feasible, recommendations that describe similar solutions or alternative program designs to support first-time homebuyers that are first responders or school teachers. (b) VA consultation The Secretary of Housing and Urban Development shall consult with the Secretary of Veterans Affairs with respect to the report required under subsection (a), including whether elements of the VA Home Loan Program could be incorporated into the program described in subsection (a). (c) Definitions In this section: (1) First responder The term first responder means an individual who is— (A) (i) employed full-time by a law enforcement agency of the Federal Government, a State, a Tribal government, or a unit of general local government; and (ii) in carrying out such full-time employment, sworn to uphold, and make arrests for violations of, Federal, State, county, township, municipal, or Tribal laws, or authorized by law to supervise sentenced criminal offenders or individuals with pending criminal charges; or (B) employed full-time as a firefighter, paramedic, or emergency medical technician by a fire department or emergency medical services responder unit of the Federal Government, a State, a Tribal government, or a unit of general local government. (2) School teacher The term school teacher means an individual who is employed as a full-time teacher by a State-accredited school that provides direct services to students in grades pre-kindergarten through 12.