US HB5508

Prohibits HUD from collecting annual FHA mortgage insurance premiums once the loan-to-value ratio reaches 78% or less, based on the lower of the original sales price or appraised value at origination

Creates an exception allowing premium collection to continue if the Mutual Mortgage Insurance Fund's capital ratio falls below 2%, but only for mortgages still paying premiums at that time

Requires HUD to issue implementing rules within 180 days, including a process for borrowers to demonstrate they have reached the 78% threshold

Mandates HUD conduct outreach and education to inform FHA borrowers about the premium cancellation restriction and how to qualify

Applies only to mortgages endorsed for FHA insurance after the bill's enactment date