Meeks, Sessions Reintroduce “The Mortgage Insurance Freedom Act”

WASHINGTON, D.C. - Today, U.S. Reps. Gregory W. Meeks (D-NY-05), a Senior Member of the Financial Services Committee introduced The Mortgage Insurance Freedom Act, with Pete Sessions (R-TX-17).

This bill is designed to allow borrowers to stop paying Federal Housing Administration (FHA) mortgage insurance premiums (MIP) once they have built up a certain amount of equity in their home. Whereas private mortgage insurance premiums are automatically eliminated once the homeowner's loan-to-value (LTV) ratio reaches 78%, that is not the case for FHA borrowers, who are required to pay mortgage insurance premiums for the entire life of their loan. This ends up disproportionately impacting hardworking families and those striving to achieve the American Dream of homeownership.

"This legislation is designed to help Americans keep more of their hard-earned money while making homeownership more attainable," Congressman Meeks said. "The Mortgage Insurance Freedom Actlowers monthly costs for first-time buyers and young families, helping them build equity faster. By saving FHA borrowers hundreds of dollars annually, it gives families greater financial flexibility to put toward savings, investments, and daily needs. I'm proud to reintroduce this bill to expand access to affordable homeownership and strengthen financial stability for working families."

"I'm proud to once again co-lead this effort to promote fairness and allow American families to retain their hard-earned money," Congressman Sessions said. "The Mortgage Insurance Freedom Act address a key inequity in the FHA system by eliminating unnecessary mortgage insurance premiums for individuals who have built significant equity. This practical bill rewards financial responsibility and delivers meaningful relief to homeowners across the country."

"The Mortgage Bankers Association supports the introduction of the Mortgage Insurance Freedom Act, which would eliminate the Federal Housing Administration's life-of-loan mortgage insurance premium requirement," said Bill Killmer, SVP Legislative and Political Affairs, Mortgage Bankers Association. "We believe borrowers with FHA-insured mortgages, who are primarily first-time and low- to moderate-income homebuyers, should have financing options comparable to those with conventional mortgages. Urging HUD to eliminate FHA's life-of-loan requirement through a data-driven process would be a meaningful step toward making homeownership more affordable and attainable for American families."

"Countless homeowners are still paying PMI each month even though they've built enough equity that there's no real risk of foreclosure," said Brendan McKay, Chief Advocacy Officer, Broker Action Coalition. "FHA is holding over 400% more in reserves than required, and it's time to turn off the faucet. The BAC thanks Congressman Gregory Meeks and Congressman Sessions for introducing common-sense legislation to get money back where it belongs. In the hands of the American homeowners."

"The National Urban League strongly supports the Mortgage Insurance Freedom Act, championed by Representative Gregory Meeks," said Marc H. Morial, President and CEO of the National Urban League. "FHA's current lifetime mortgage insurance premium requirement disproportionately impacts first-time, lower-income, and minority homebuyers - the very families who rely on FHA loans as a pathway to sustainable homeownership. By aligning FHA with private mortgage insurance practices, this legislation ensures fairness, reduces unnecessary costs, and helps homeowners build equity more quickly. At a time when housing affordability is out of reach for far too many, this bill represents a meaningful step toward addressing the nation's housing affordability crisis and closing the racial wealth gap."

Read the full bill text here.

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