[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 607 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                     November 13, 1997.
      Resolved, That the bill from the House of Representatives (H.R. 
607) entitled ``An Act to amend the Real Estate Settlement Procedures 
Act of 1974 to require notice of cancellation rights with respect to 
private mortgage insurance which is required as a condition of entering 
into certain federally related mortgage loans and to provide for 
cancellation of such insurance, and for other purposes.'', do pass with 
the following

                              AMENDMENTS:

            Strike out all after the enacting clause and insert:

SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.

             TITLE I--SENIOR CITIZEN HOME EQUITY PROTECTION

Sec. 101. Short title.

           Subtitle A--Senior Citizen Home Equity Protection

Sec. 111. Disclosure requirements; prohibition of funding of 
                            unnecessary or excessive costs.
Sec. 112. Implementation.

Subtitle B--Temporary Extension of Public Housing and Section 8 Rental 
                         Assistance Provisions

Sec. 121. Public housing ceiling rents and income adjustments and 
                            preferences for assisted housing.
Sec. 122. Public housing demolition and disposition.
Sec. 123. Public housing funding flexibility and mixed-finance 
                            developments.
Sec. 124. Minimum rents.
Sec. 125. Provisions relating to section 8 rental assistance program.

 Subtitle C--Reauthorization of Federally Assisted Multifamily Rental 
                           Housing Provisions

Sec. 131. Multifamily housing finance pilot programs.
Sec. 132. Hud disposition of multifamily housing.
Sec. 133. Multifamily mortgage auctions.
Sec. 134. Clarification of owner's right to prepay.

         Subtitle D--Reauthorization of Rural Housing Programs

Sec. 141. Housing in underserved areas program.
Sec. 142. Housing and related facilities for elderly persons and 
                            families and other low-income persons and 
                            families.
Sec. 143. Loan guarantees for multifamily rental housing in rural 
                            areas.

    Subtitle E--Reauthorization of National Flood Insurance Program

Sec. 151. Program expiration.
Sec. 152. Borrowing authority.
Sec. 153. Emergency implementation of program.
Sec. 154. Authorization of appropriations for studies.

             Subtitle F--Native American Housing Assistance

Sec. 161. Subsidy layering certification.
Sec. 162. Inclusion of homebuyer selection policies and criteria.
Sec. 163. Repayment of grant amounts for violation of affordable 
                            housing requirement.
Sec. 164. United States Housing Act of 1937.
Sec. 165. Miscellaneous.

                  TITLE II--HOMEOWNERS PROTECTION ACT

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Termination of private mortgage insurance.
Sec. 204. Disclosure requirements.
Sec. 205. Notification upon cancellation or termination.
Sec. 206. Disclosure requirements for lender paid mortgage insurance.
Sec. 207. Fees for disclosures.
Sec. 208. Civil liability.
Sec. 209. Effect on other laws and agreements.
Sec. 210. Enforcement.
Sec. 211. Construction.
Sec. 212. Effective date.

  TITLE III--ABOLISHMENT OF THE THRIFT DEPOSITOR PROTECTION OVERSIGHT 
                                 BOARD

Sec. 301. Abolishment.

             TITLE I--SENIOR CITIZEN HOME EQUITY PROTECTION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Senior Citizen Home Equity 
Protection Act''.

           Subtitle A--Senior Citizen Home Equity Protection

SEC. 111. DISCLOSURE REQUIREMENTS; PROHIBITION OF FUNDING OF 
              UNNECESSARY OR EXCESSIVE COSTS.

    Section 255(d) of the National Housing Act (12 U.S.C. 1715z-20(d)) 
is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) has received full disclosure of all costs to 
                the mortgagor for obtaining the mortgage, including any 
                costs of estate planning, financial advice, or other 
                related services; and'';
            (2) in paragraph (9)(F), by striking ``and'';
            (3) in paragraph (10), by striking the period at the end 
        and inserting ``; and''; and
            (4) 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.''.

SEC. 112. IMPLEMENTATION.

    (a) Notice.--The Secretary of Housing and Urban Development shall, 
by interim notice, implement the amendments made by section 111 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 subsection (b).
    (b) Regulations.--The Secretary shall, not later than the 
expiration of the 90-day period beginning on the date of enactment of 
this Act, issue final regulations to implement the amendments made by 
section 111. 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 subsections (a)(2) 
and (b)(3)(B) of that section).

Subtitle B--Temporary Extension of Public Housing and Section 8 Rental 
                         Assistance Provisions

SEC. 121. PUBLIC HOUSING CEILING RENTS AND INCOME ADJUSTMENTS AND 
              PREFERENCES FOR ASSISTED HOUSING.

    Section 402(f) of The Balanced Budget Downpayment Act, I (42 U.S.C. 
1437aa note) is amended by striking ``and 1997'' and inserting ``, 
1997, and 1998''.

SEC. 122. PUBLIC HOUSING DEMOLITION AND DISPOSITION.

    Section 1002(d) of the Emergency Supplemental Appropriations for 
Additional Disaster Assistance, for Anti-terrorism Initiatives, for 
Assistance in the Recovery from the Tragedy that Occurred at Oklahoma 
City, and Rescissions Act, 1995 (42 U.S.C. 1437c note) is amended by 
striking ``September 30, 1997'' and inserting ``September 30, 1998''.

SEC. 123. PUBLIC HOUSING FUNDING FLEXIBILITY AND MIXED-FINANCE 
              DEVELOPMENTS.

    (a) Extension of Authority.--Section 201(a)(2) of the Departments 
of Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 (42 U.S.C. 1437l note) is amended to 
read as follows:
            ``(2) Applicability.--Section 14(q) of the United States 
        Housing Act of 1937 shall be effective only with respect to 
        assistance provided from funds made available for fiscal year 
        1998 or any preceding fiscal year, except that the authority in 
        the first sentence of section 14(q)(1) of that Act to use up to 
        10 percent of the allocation of certain funds for any operating 
        subsidy purpose shall not apply to amounts made available for 
        fiscal year 1998.''.
    (b) Mixed Finance.--Section 14(q)(1) of the United States Housing 
Act of 1937 (42 U.S.C. 1437l(q)(1)) is amended by inserting after the 
first sentence the following: ``Such assistance may involve the 
drawdown of funds on a schedule commensurate with construction draws 
for deposit into an interest earning escrow account to serve as 
collateral or credit enhancement for bonds issued by a public agency 
for the construction or rehabilitation of the development.''.

SEC. 124. MINIMUM RENTS.

    Section 402(a) of The Balanced Budget Downpayment Act, I (Public 
Law 104-99; 110 Stat. 40) is amended in the matter preceding paragraph 
(1) by striking ``fiscal year 1997'' and inserting ``fiscal years 1997 
and 1998''.

SEC. 125. PROVISIONS RELATING TO SECTION 8 RENTAL ASSISTANCE PROGRAM.

    Section 203(d) of the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1996 (as contained in section 101(e) of the Omnibus Consolidated 
Rescissions and Appropriations Act of 1996 (Public Law 104-134)) (42 
U.S.C. 1437f note) is amended by striking ``and 1997'' and inserting 
``, 1997, and 1998''.

 Subtitle C--Reauthorization of Federally Assisted Multifamily Rental 
                           Housing Provisions

SEC. 131. MULTIFAMILY HOUSING FINANCE PILOT PROGRAMS.

    Section 542 of the Housing and Community Development Act of 1992 
(12 U.S.C. 1707 note) is amended--
            (1) in subsection (b)(5), by inserting before the period at 
        the end of the first sentence the following: ``, and not more 
        than an additional 15,000 units during fiscal year 1998''; and
            (2) in the first sentence of subsection (c)(4)--
                    (A) by striking ``and'' and inserting a comma; and
                    (B) by inserting before the period at the end the 
                following: ``, and not more than an additional 15,000 
                units during fiscal year 1998''.

SEC. 132. HUD DISPOSITION OF MULTIFAMILY HOUSING.

    Section 204 of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997 
(12 U.S.C. 1715z-11a) is amended by inserting after ``owned by the 
Secretary'' the following: ``, including the provision of grants and 
loans from the General Insurance Fund for the necessary costs of 
rehabilitation or demolition,''.

SEC. 133. MULTIFAMILY MORTGAGE AUCTIONS.

    Section 221(g)(4)(C) of the National Housing Act (12 U.S.C. 
1715l(g)(4)(C)) is amended--
            (1) in the first sentence of clause (viii), by striking 
        ``September 30, 1996'' and inserting ``December 31, 2000''; and
            (2) by adding at the end the following:
            ``(ix) The authority of the Secretary to conduct 
        multifamily auctions under this subparagraph shall be effective 
        for any fiscal year only to the extent and in such amounts as 
        are approved in appropriations Acts for the costs of loan 
        guarantees (as defined in section 502 of the Congressional 
        Budget Act of 1974), including the cost of modifying loans.''.

SEC. 134. CLARIFICATION OF OWNER'S RIGHT TO PREPAY.

    (a) Prepayment Right.--Notwithstanding section 211 of the Housing 
and Community Development Act of 1987 or section 221 of the Housing and 
Community Development Act of 1987 (as in effect pursuant to section 
604(c) of the Cranston-Gonzalez National Affordable Housing Act), 
subject to subsection (b), with respect to any project that is eligible 
low-income housing (as that term is defined in section 229 of the 
Housing and Community Development Act of 1987)--
            (1) the owner of the project may prepay, and the mortgagee 
        may accept prepayment of, the mortgage on the project, and
            (2) the owner may request voluntary termination of a 
        mortgage insurance contract with respect to such project and 
        the contract may be terminated notwithstanding any requirements 
        under sections 229 and 250 of the National Housing Act.
    (b) Conditions.--Any prepayment of a mortgage or termination of an 
insurance contract authorized under subsection (a) may be made--
            (1) only to the extent that such prepayment or termination 
        is consistent with the terms and conditions of the mortgage on 
        or mortgage insurance contract for the project; and
            (2) only if owner of the project involved agrees not to 
        increase the rent charges for any dwelling unit in the project 
        during the 60-day period beginning upon such prepayment or 
        termination.
    (c) Applicability.--This section shall apply only during the period 
beginning on October 1, 1997, and ending at the end of September 30, 
1998.

         Subtitle D--Reauthorization of Rural Housing Programs

SEC. 141. HOUSING IN UNDERSERVED AREAS PROGRAM.

    The first sentence of section 509(f)(4)(A) of the Housing Act of 
1949 (42 U.S.C. 1479(f)(4)(A)) is amended by striking ``fiscal year 
1997'' and inserting ``fiscal years 1997, 1998, and 1999''.

SEC. 142. HOUSING AND RELATED FACILITIES FOR ELDERLY PERSONS AND 
              FAMILIES AND OTHER LOW-INCOME PERSONS AND FAMILIES.

    (a) Authority To Make Loans.--Section 515(b)(4) of the Housing Act 
of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking ``September 30, 
1997'' and inserting ``September 30, 1999''.
    (b) Set-Aside for Nonprofit Entities.--The first sentence of 
section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1)) is 
amended by striking ``fiscal year 1997'' and inserting ``fiscal years 
1997, 1998, and 1999''.

SEC. 143. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN RURAL 
              AREAS.

    Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) is 
amended--
            (1) in subsection (q), by striking paragraph (2) and 
        inserting the following:
            ``(2) Annual limitation on amount of loan guarantee.--In 
        each fiscal year, the Secretary may enter into commitments to 
        guarantee loans under this section only to the extent that the 
        costs of the guarantees entered into in such fiscal year do not 
        exceed such amount as may be provided in appropriation Acts for 
        such fiscal year.'';
            (2) by striking subsection (t) and inserting the following:
    ``(t) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 1998 and 1999 for costs (as such 
term is defined in section 502 of the Congressional Budget Act of 1974) 
of loan guarantees made under this section such sums as may be 
necessary for such fiscal year.''; and
            (3) in subsection (u), by striking ``1996'' and inserting 
        ``1999''.

    Subtitle E--Reauthorization of National Flood Insurance Program

SEC. 151. PROGRAM EXPIRATION.

    Section 1319 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4026) is amended by striking ``September 30, 1997'' and inserting 
``September 30, 1999''.

SEC. 152. BORROWING AUTHORITY.

    Section 1309(a)(2) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4016(a)(2)) is amended by striking ``September 30, 1997'' and 
inserting ``September 30, 1999''.

SEC. 153. EMERGENCY IMPLEMENTATION OF PROGRAM.

    Section 1336(a) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4056(a)) is amended by striking ``September 30, 1996'' and 
inserting ``September 30, 1999''.

SEC. 154. AUTHORIZATION OF APPROPRIATIONS FOR STUDIES.

    Subsection (c) of section 1376 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4127(c)) is amended to read as follows:
    ``(c) For studies under this title, there are authorized to be 
appropriated such sums as may be necessary for each of fiscal years 
1998 and 1999, which shall remain available until expended.''.

             Subtitle F--Native American Housing Assistance

SEC. 161. SUBSIDY LAYERING CERTIFICATION.

    Section 206 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4136) is amended--
            (1) by striking ``certification by the Secretary'' and 
        inserting ``certification by a recipient to the Secretary''; 
        and
            (2) by striking ``any housing project'' and inserting ``the 
        housing project involved''.

SEC. 162. INCLUSION OF HOMEBUYER SELECTION POLICIES AND CRITERIA.

    Section 207(b) of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4137(b)) is amended--
            (1) by striking ``Tenant Selection.--'' and inserting 
        ``Tenant and Homebuyer Selection.--'';
            (2) in the matter preceding paragraph (1), by inserting 
        ``and homebuyer'' after ``tenant''; and
            (3) in paragraph (3)(A), by inserting ``and homebuyers'' 
        after ``tenants''.

SEC. 163. REPAYMENT OF GRANT AMOUNTS FOR VIOLATION OF AFFORDABLE 
              HOUSING REQUIREMENT.

    Section 209 of the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4139) is amended by striking 
``section 205(2)'' and inserting ``section 205(a)(2)''.

SEC. 164. UNITED STATES HOUSING ACT OF 1937.

    (a) In General.--Section 501(b) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (110 Stat. 4042) is 
amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) through (11) as 
        paragraphs (4) through (10), respectively.
    (b) United States Housing Act of 1937.--Section 7 of the United 
States Housing Act of 1937 (42 U.S.C. 1437e) is amended by striking 
subsection (h).

SEC. 165. MISCELLANEOUS.

    (a) Definition of Indian Areas.--Section 4(10) of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4103(10)) is amended to read as follows:
            ``(10) Indian area.--The term `Indian area' means the area 
        within which an Indian tribe or a tribally designated housing 
        entity, as authorized by 1 or more Indian tribes, provides 
        assistance under this Act for affordable housing.''.
    (b) Cross-Reference.--Section 4(12)(C)(i)(II) of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4103(12)(C)(i)(II)) is amended by striking ``section 107'' and 
inserting ``section 705''.
    (c) Clarification of Certain Exemptions.--Section 101(c) of the 
Native American Housing Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4111(c)) is amended by adding at the end the following: 
``This subsection applies only to rental dwelling units (other than 
lease-purchase dwelling units) developed under--
            ``(1) the United States Housing Act of 1937 (42 U.S.C. 1437 
        et seq.); or
            ``(2) this Act.''.
    (d) Applicability.--Section 101(d)(1) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4111(d)(1)) is amended by inserting before the semicolon at the end the 
following: ``, except that this paragraph only applies to rental 
dwelling units (other than lease-purchase dwelling units) developed 
under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) or 
under this Act''.
    (e) Submission of Indian Housing Plan.--Section 102(a) of the 
Native American Housing Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4112(a)) is amended--
            (1) in paragraph (1), by inserting ``(A)'' after ``(1)'';
            (2) in paragraph (1)(A), as so designated by paragraph (1) 
        of this subsection, by adding ``or'' at the end;
            (3) by striking ``(2)'' and inserting ``(B)''; and
            (4) by striking ``(3)'' and inserting ``(2)''.
    (f) Clarification.--Section 103(c)(3) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4113(c)(3)) is amended by inserting ``not'' before ``prohibited''.
    (g) Applicability of Provisions of Civil Rights.--Section 201(b)(5) 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4131(b)(5)) is amended--
            (1) by striking ``Indian tribes'' and inserting ``federally 
        recognized tribes and the tribally designated housing entities 
        of those tribes''; and
            (2) by striking ``under this subsection'' and inserting 
        ``under this Act''.
    (h) Eligibility.--Section 205(a)(1) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4135(a)(1)) is 
amended--
            (1) in subparagraph (A), by striking ``and'' at the end; 
        and
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) in the case of a contract to purchase 
                existing housing, is made available for purchase only 
                by a family that is a low-income family at the time of 
                purchase;
                    ``(C) in the case of a lease-purchase agreement for 
                existing housing or for housing to be constructed, is 
                made available for lease-purchase only by a family that 
                is a low-income family at the time the agreement is 
                entered into; and
                    ``(D) in the case of a contract to purchase housing 
                to be constructed, is made available for purchase only 
                by a family that is a low-income family at the time the 
                contract is entered into; and''.
    (i) Tenant Selection.--Section 207(b)(3)(B) of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
4137(b)(3)(B)) is amended by striking ``of any rejected applicant of 
the grounds for any rejection'' and inserting ``to any rejected 
applicant of that rejection and the grounds for that rejection''.
    (j) Availability of Records.--Section 208 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4138) 
is amended--
            (1) in subsection (a), by striking ``paragraph (2)'' and 
        inserting ``subsection (b)''; and
            (2) in subsection (b), by striking ``paragraph (1)'' and 
        inserting ``subsection (a)''.
    (k) IHP Requirement.--Section 184(b)(2) of the Housing and 
Community Development Act of 1992 (12 U.S.C. 1715z-13a(b)(2)) is 
amended by striking ``that is under the jurisdiction of an Indian 
tribe'' and all that follows before the period at the end.
    (l) Authorization of Appropriations.--Section 184(i)(5)(C) of the 
Housing and Community Development Act of 1992 (12 U.S.C. 1715z-
13a(i)(5)(C)) is amended by striking ``note'' and inserting ``not''.
    (m) Environmental Review Under the Indian Housing Loan Guarantee 
Program.--Section 184 of the Housing and Community Development Act of 
1992 (12 U.S.C. 1715z-13a) is amended--
            (1) by redesignating subsection (k) as subsection (l); and
            (2) by inserting after subsection (j) the following:
    ``(k) Environmental Review.--For purposes of environmental, review, 
decisionmaking, and action under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) and any other law that furthers the 
purposes of that Act, a loan guarantee under this section shall--
            ``(1) be treated as a grant under the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4101 et seq.); and
            ``(2) be subject to the regulations promulgated by the 
        Secretary to carry out section 105 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4115).''.
    (n) Public Availability of Information.--
            (1) In general.--Title IV of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4161 
        et seq.) is amended by adding at the end the following:

``SEC. 408. PUBLIC AVAILABILITY OF INFORMATION.

    ``Each recipient shall make any housing plan, policy, or annual 
report prepared by the recipient available to the general public.''.
            (2) Table of contents.--Section 1(b) of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4101 note) is amended in the table of contents by 
        inserting after the item relating to section 407 the following:

``Sec. 408. Public availability of information.''.
    (o) Non-Federal Funds.--Section 520(l)(5)(B) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 11903a(l)(5)(B)) is 
amended by striking ``and Indian housing authorities'' and inserting 
``and units of general local government''.
    (p) Ineligibility of Indian Tribes.--Section 460 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12899h-1) is 
amended by striking ``fiscal year 1997'' and inserting ``fiscal year 
1998''.
    (q) Indian Housing Early Childhood Development Program.--
            (1) Repeal.--Section 518 of the Cranston-Gonzalez National 
        Affordable Housing Act (12 U.S.C. 1701z-11 note) is repealed.
            (2) Technical correction.--
                    (A) In general.--Section 501(d)(1) of the Native 
                American Housing Assistance and Self-Determination Act 
                of 1996 (110 Stat. 4042), and the amendment made by 
                that section, is repealed.
                    (B) Applicability.--Section 519 of Cranston-
                Gonzalez National Affordable Housing Act (42 U.S.C. 
                1437a-1) shall be applied and administered as if 
                section 501(d)(1) of the Native American Housing 
                Assistance and Self-Determination Act of 1996 (104 
                Stat. 4042) had not been enacted.
            (3) Effective date.--This subsection and the amendments 
        made by this subsection shall be construed to have taken effect 
        on October 26, 1996.
    (r) Tribal Eligibility Under the Drug Elimination Program.--The 
Public and Assisted Housing Elimination Act of 1990 (42 U.S.C. 11901 et 
seq.) is amended--
            (1) in section 5123, by inserting ``Indian tribes,'' after 
        ``tribally designated housing entities,'';
            (2) in section 5124(a)(7), by inserting ``, Indian tribe,'' 
        after ``agency'';
            (3) in section 5125(a), by inserting ``Indian tribe,'' 
        after ``entity,''; and
            (4) in section 5126, by adding at the end the following:
            ``(6) Indian tribe.--The term `Indian tribe' has the 
        meaning given that term in section 4 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4103).''.
    (s) Reference in the Public and Assisted Housing Drug Elimination 
Act of 1990.--Section 5126(4)(D) of the Public and Assisted Housing 
Drug Elimination Act of 1990 (42 U.S.C. 11905(4)(D)) is amended by 
inserting ``of 1996'' before the period.

                  TITLE II--HOMEOWNERS PROTECTION ACT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Homeowners Protection Act of 
1997''.

SEC. 202. DEFINITIONS.

    In this title, the following definitions shall apply:
            (1) Adjustable rate mortgage.--The term ``adjustable rate 
        mortgage'' means a residential mortgage that has an interest 
        rate that is subject to change.
            (2) Cancellation date.--The term ``cancellation date'' 
        means--
                    (A) with respect to a fixed rate mortgage, at the 
                option of the mortgagor, the date on which the 
                principal balance of the mortgage--
                            (i) based solely on the initial 
                        amortization schedule for that mortgage, and 
                        irrespective of the outstanding balance for 
                        that mortgage on that date, is first scheduled 
                        to reach 80 percent of the original value of 
                        the property securing the loan; or
                            (ii) based solely on actual payments, 
                        reaches 80 percent of the original value of the 
                        property securing the loan; and
                    (B) with respect to an adjustable rate mortgage, at 
                the option of the mortgagor, the date on which the 
                principal balance of the mortgage--
                            (i) based solely on amortization schedules 
                        for that mortgage, and irrespective of the 
                        outstanding balance for that mortgage on that 
                        date, is first scheduled to reach 80 percent of 
                        the original value of the property securing the 
                        loan; or
                            (ii) based solely on actual payments, first 
                        reaches 80 percent of the original value of the 
                        property securing the loan.
            (3) Fixed rate mortgage.--The term ``fixed rate mortgage'' 
        means a residential mortgage that has an interest rate that is 
        not subject to change.
            (4) Good payment history.--The term ``good payment 
        history'' means, with respect to a mortgagor, that the 
        mortgagor has not--
                    (A) made a mortgage payment that was 60 days or 
                longer past due during the 12-month period beginning 24 
                months before the date on which the mortgage reaches 
                the cancellation date; or
                    (B) made a mortgage payment that was 30 days or 
                longer past due during the 12-month period preceding 
                the date on which the mortgage reaches the cancellation 
                date.
            (5) Initial amortization schedule.--The term ``initial 
        amortization schedule'' means a schedule established at the 
        time at which a residential mortgage transaction is consummated 
        with respect to a fixed rate mortgage, showing--
                    (A) the amount of principal and interest that is 
                due at regular intervals to retire the principal 
                balance and accrued interest over the amortization 
                period of the loan; and
                    (B) the unpaid principal balance of the loan after 
                each scheduled payment is made.
            (6) Mortgage insurance.--The term ``mortgage insurance'' 
        means insurance, including any mortgage guaranty insurance, 
        against the nonpayment of, or default on, an individual 
        mortgage or loan involved in a residential mortgage 
        transaction.
            (7) Mortgage insurer.--The term ``mortgage insurer'' means 
        a provider of private mortgage insurance, as described in this 
        title, that is authorized to transact such business in the 
        State in which the provider is transacting such business.
            (8) Mortgagee.--The term ``mortgagee'' means the holder of 
        a residential mortgage at the time at which that mortgage 
        transaction is consummated.
            (9) Mortgagor.--The term ``mortgagor'' means the original 
        borrower under a residential mortgage or his or her successors 
        or assignees.
            (10) Original value.--The term ``original value'', with 
        respect to a residential mortgage, means the lesser of the 
        sales price of the property securing the mortgage, as reflected 
        in the contract, or the appraised value at the time at which 
        the subject residential mortgage transaction was consummated.
            (11) Private mortgage insurance.--The term ``private 
        mortgage insurance'' means mortgage insurance other than 
        mortgage insurance made available under the National Housing 
        Act, title 38 of the United States Code, or title V of the 
        Housing Act of 1949.
            (12) Residential mortgage.--The term ``residential 
        mortgage'' means a mortgage, loan, or other evidence of a 
        security interest created with respect to a single-family 
        dwelling that is the primary residence of the mortgagor.
            (13) Residential mortgage transaction.--The term 
        ``residential mortgage transaction'' means a transaction 
        consummated on or after the date that is 1 year after the date 
        of enactment of this Act, in which a mortgage, deed of trust, 
        purchase money security interest arising under an installment 
        sales contract, or equivalent consensual security interest is 
        created or retained against a single-family dwelling that is 
        the primary residence of the mortgagor to finance the 
        acquisition, initial construction, or refinancing of that 
        dwelling.
            (14) Servicer.--The term ``servicer'' has the same meaning 
        as in section 6(i)(2) of the Real Estate Settlement Procedures 
        Act of 1974, with respect to a residential mortgage.
            (15) Single-family dwelling.--The term ``single-family 
        dwelling'' means a residence consisting of 1 family dwelling 
        unit.
            (16) Termination date.--The term ``termination date'' 
        means--
                    (A) with respect to a fixed rate mortgage, the date 
                on which the principal balance of the mortgage, based 
                solely on the initial amortization schedule for that 
                mortgage, and irrespective of the outstanding balance 
                for that mortgage on that date, is first scheduled to 
                reach 78 percent of the original value of the property 
                securing the loan; and
                    (B) with respect to an adjustable rate mortgage, 
                the date on which the principal balance of the 
                mortgage, based solely on amortization schedules for 
                that mortgage, and irrespective of the outstanding 
                balance for that mortgage on that date, is first 
                scheduled to reach 78 percent of the original value of 
                the property securing the loan.

SEC. 203. TERMINATION OF PRIVATE MORTGAGE INSURANCE.

    (a) Borrower Cancellation.--A requirement for private mortgage 
insurance in connection with a residential mortgage transaction shall 
be canceled on the cancellation date, if the mortgagor--
            (1) submits a request in writing to the servicer that 
        cancellation be initiated;
            (2) has a good payment history with respect to the 
        residential mortgage; and
            (3) has satisfied any requirement of the holder of the 
        mortgage (as of the date of a request under paragraph (1)) 
        for--
                    (A) evidence (of a type established in advance and 
                made known to the mortgagor by the servicer promptly 
                upon receipt of a request under paragraph (1)) that the 
                value of the property securing the mortgage has not 
                declined below the original value of the property; and
                    (B) certification that the equity of the mortgagor 
                in the residence securing the mortgage is unencumbered 
                by a subordinate lien.
    (b) Automatic Termination.--A requirement for private mortgage 
insurance in connection with a residential mortgage transaction shall 
terminate with respect to payments for that mortgage insurance made by 
the mortgagor--
            (1) on the termination date if, on that date, the mortgagor 
        is current on the payments required by the terms of the 
        residential mortgage transaction; or
            (2) on the date after the termination date on which the 
        mortgagor becomes current on the payments required by the terms 
        of the residential mortgage transaction.
    (c) Final Termination.--If a requirement for private mortgage 
insurance is not otherwise canceled or terminated in accordance with 
subsection (a) or (b), in no case may such a requirement be imposed 
beyond the first day of the month immediately following the date that 
is the midpoint of the amortization period of the loan if the mortgagor 
is current on the payments required by the terms of the mortgage.
    (d) No Further Payments.--No payments or premiums may be required 
from the mortgagor in connection with a private mortgage insurance 
requirement terminated or canceled under this section--
            (1) in the case of cancellation under subsection (a), more 
        than 30 days after the later of--
                    (A) the date on which a request under subsection 
                (a)(1) is received; or
                    (B) the date on which the mortgagor satisfies any 
                evidence and certification requirements under 
                subsection (a)(3);
            (2) in the case of termination under subsection (b), more 
        than 30 days after the termination date or the date referred to 
        in subsection (b)(2), as applicable; and
            (3) in the case of termination under subsection (c), more 
        than 30 days after the final termination date established under 
        that subsection.
    (e) Return of Unearned Premiums.--
            (1) In general.--Not later than 45 days after the 
        termination or cancellation of a private mortgage insurance 
        requirement under this section, all unearned premiums for 
        private mortgage insurance shall be returned to the mortgagor 
        by the servicer.
            (2) Transfer of funds to servicer.--Not later than 30 days 
        after notification by the servicer of termination or 
        cancellation of private mortgage insurance under this title 
        with respect to a mortgagor, a mortgage insurer that is in 
        possession of any unearned premiums of that mortgagor shall 
        transfer to the servicer of the subject mortgage an amount 
        equal to the amount of the unearned premiums for repayment in 
        accordance with paragraph (1).
    (f) Exceptions for High Risk Loans.--
            (1) In general.--The termination and cancellation 
        provisions in subsections (a) and (b) do not apply to any 
        residential mortgage or mortgage transaction that, at the time 
        at which the residential mortgage transaction is consummated, 
        has high risks associated with the extension of the loan--
                    (A) as determined in accordance with guidelines 
                established by the Federal National Mortgage 
                Association or the Federal Home Loan Mortgage 
                Corporation, in the case of a mortgage loan with an 
                original principal balance that does not exceed the 
                applicable annual conforming loan limit for the 
                secondary market established pursuant to section 
                305(a)(2) of the Federal Home Loan Mortgage Corporation 
                Act, so as to require the imposition or continuation of 
                a private mortgage insurance requirement beyond the 
                terms specified in subsection (a) or (b) of this 
                section; or
                    (B) as determined by the mortgagee in the case of 
                any other mortgage, except that termination shall 
                occur--
                            (i) with respect to a fixed rate mortgage, 
                        on the date on which the principal balance of 
                        the mortgage, based solely on the initial 
                        amortization schedule for that mortgage, and 
                        irrespective of the outstanding balance for 
                        that mortgage on that date, is first scheduled 
                        to reach 77 percent of the original value of 
                        the property securing the loan; and
                            (ii) with respect to an adjustable rate 
                        mortgage, on the date on which the principal 
                        balance of the mortgage, based solely on 
                        amortization schedules for that mortgage, and 
                        irrespective of the outstanding balance for 
                        that mortgage on that date, is first scheduled 
                        to reach 77 percent of the original value of 
                        the property securing the loan.
            (2) Termination at midpoint.--A private mortgage insurance 
        requirement in connection with a residential mortgage or 
        mortgage transaction described in paragraph (1) shall terminate 
        in accordance with subsection (c).
            (3) Rule of construction.--Nothing in this subsection may 
        be construed to require a mortgage or mortgage transaction 
        described in paragraph (1)(A) to be purchased by the Federal 
        National Mortgage Association or the Federal Home Loan Mortgage 
        Corporation.

SEC. 204. DISCLOSURE REQUIREMENTS.

    (a) Disclosures for New Mortgages at Time of Transaction.--
            (1) Disclosures for non-exempted transactions.--In any case 
        in which private mortgage insurance is required in connection 
        with a residential mortgage or mortgage transaction (other than 
        a mortgage or mortgage transaction described in section 
        203(f)(1)), at the time at which the transaction is 
        consummated, the mortgagee shall provide to the mortgagor--
                    (A) if the transaction relates to a fixed rate 
                mortgage--
                            (i) a written initial amortization 
                        schedule; and
                            (ii) written notice--
                                    (I) that the mortgagor may cancel 
                                the requirement in accordance with 
                                section 203(a) of this Act indicating 
                                the date on which the mortgagor may 
                                request cancellation, based solely on 
                                the initial amortization schedule;
                                    (II) that the mortgagor may request 
                                cancellation in accordance with section 
                                203(a) of this Act earlier than 
                                provided for in the initial 
                                amortization schedule, based on actual 
                                payments;
                                    (III) that the requirement for 
                                private mortgage insurance will 
                                automatically terminate on the 
                                termination date in accordance with 
                                section 203(b) of this Act, and what 
                                that termination date is with respect 
                                to that mortgage; and
                                    (IV) that there are exemptions to 
                                the right to cancellation and automatic 
                                termination of a requirement for 
                                private mortgage insurance in 
                                accordance with section 203(f) of this 
                                Act, and whether such an exemption 
                                applies at that time to that 
                                transaction; and
                    (B) if the transaction relates to an adjustable 
                rate mortgage, a written notice that--
                            (i) the mortgagor may cancel the 
                        requirement in accordance with section 203(a) 
                        of this Act on the cancellation date, and that 
                        the servicer will notify the mortgagor when the 
                        cancellation date is reached;
                            (ii) the requirement for private mortgage 
                        insurance will automatically terminate on the 
                        termination date, and that on the termination 
                        date, the mortgagor will be notified of the 
                        termination or that the requirement will be 
                        terminated as soon as the mortgagor is current 
                        on loan payments; and
                            (iii) there are exemptions to the right of 
                        cancellation and automatic termination of a 
                        requirement for private mortgage insurance in 
                        accordance with section 203(f) of this Act, and 
                        whether such an exemption applies at that time 
                        to that transaction.
            (2) Disclosures for excepted transactions.--In the case of 
        a mortgage or mortgage transaction described in section 
        203(f)(1), at the time at which the transaction is consummated, 
        the mortgagee shall provide written notice to the mortgagor 
        that in no case may private mortgage insurance be required 
        beyond the date that is the midpoint of the amortization period 
        of the loan, if the mortgagor is current on payments required 
        by the terms of the residential mortgage.
            (3) Annual disclosures.--If private mortgage insurance is 
        required in connection with a residential mortgage transaction, 
        the servicer shall disclose to the mortgagor in each such 
        transaction in an annual written statement--
                    (A) the rights of the mortgagor under this title to 
                cancellation or termination of the private mortgage 
                insurance requirement; and
                    (B) an address and telephone number that the 
                mortgagor may use to contact the servicer to determine 
                whether the mortgagor may cancel the private mortgage 
                insurance.
            (4) Applicability.--Paragraphs (1) through (3) shall apply 
        with respect to each residential mortgage transaction 
        consummated on or after the date that is 1 year after the date 
        of enactment of this Act.
    (b) Disclosures for Existing Mortgages.--If private mortgage 
insurance was required in connection with a residential mortgage 
entered into at any time before the effective date of this title, the 
servicer shall disclose to the mortgagor in each such transaction in an 
annual written statement--
            (1) that the private mortgage insurance may, under certain 
        circumstances, be canceled by the mortgagor (with the consent 
        of the mortgagee or in accordance with applicable State law); 
        and
            (2) an address and telephone number that the mortgagor may 
        use to contact the servicer to determine whether the mortgagor 
        may cancel the private mortgage insurance.
    (c) Inclusion in Other Annual Notices.--The information and 
disclosures required under subsection (b) and paragraphs (1)(B) and (3) 
of subsection (a) may be provided on the annual disclosure relating to 
the escrow account made as required under the Real Estate Settlement 
Procedures Act of 1974, or as part of the annual disclosure of interest 
payments made pursuant to Internal Revenue Service regulations, and on 
a form promulgated by the Internal Revenue Service for that purpose.
    (d) Standardized Forms.--The mortgagee or servicer may use 
standardized forms for the provision of disclosures required under this 
section.

SEC. 205. NOTIFICATION UPON CANCELLATION OR TERMINATION.

    (a) In General.--Not later than 30 days after the date of 
cancellation or termination of a private mortgage insurance requirement 
in accordance with this title, the servicer shall notify the mortgagor 
in writing--
            (1) that the private mortgage insurance has terminated and 
        that the mortgagor no longer has private mortgage insurance; 
        and
            (2) that no further premiums, payments, or other fees shall 
        be due or payable by the mortgagor in connection with the 
        private mortgage insurance.
    (b) Notice of Grounds.--
            (1) In general.--If a servicer determines that a mortgage 
        did not meet the requirements for termination or cancellation 
        of private mortgage insurance under subsection (a) or (b) of 
        section 203, the servicer shall provide written notice to the 
        mortgagor of the grounds relied on to make the determination 
        (including the results of any appraisal used to make the 
        determination).
            (2) Timing.--Notice required by paragraph (1) shall be 
        provided--
                    (A) with respect to cancellation of private 
                mortgage insurance under section 203(a), not later than 
                30 days after the later of--
                            (i) the date on which a request is received 
                        under section 203(a)(1); or
                            (ii) the date on which the mortgagor 
                        satisfies any evidence and certification 
                        requirements under section 203(a)(3); and
                    (B) with respect to termination of private mortgage 
                insurance under section 203(b), not later than 30 days 
                after the scheduled termination date.

SEC. 206. DISCLOSURE REQUIREMENTS FOR LENDER PAID MORTGAGE INSURANCE.

    (a) Definitions.--For purposes of this section--
            (1) the term ``borrower paid mortgage insurance'' means 
        private mortgage insurance that is required in connection with 
        a residential mortgage transaction, payments for which are made 
        by the borrower;
            (2) the term ``lender paid mortgage insurance'' means 
        private mortgage insurance that is required in connection with 
        a residential mortgage transaction, payments for which are made 
        by a person other than the borrower; and
            (3) the term ``loan commitment'' means a prospective 
        mortgagee's written confirmation of its approval, including any 
        applicable closing conditions, of the application of a 
        prospective mortgagor for a residential mortgage loan.
    (b) Exclusion.--Sections 203 through 205 do not apply in the case 
of lender paid mortgage insurance.
    (c) Notices to Mortgagor.--In the case of lender paid mortgage 
insurance that is required in connection with a residential mortgage or 
a residential mortgage transaction--
            (1) not later than the date on which a loan commitment is 
        made for the residential mortgage transaction, the prospective 
        mortgagee shall provide to the prospective mortgagor a written 
        notice--
                    (A) that lender paid mortgage insurance differs 
                from borrower paid mortgage insurance, in that lender 
                paid mortgage insurance may not be canceled by the 
                mortgagor, while borrower paid mortgage insurance could 
                be cancelable by the mortgagor in accordance with 
                section 203(a) of this Act, and could automatically 
                terminate on the termination date in accordance with 
                section 203(b) of this Act;
                    (B) that lender paid mortgage insurance--
                            (i) usually results in a residential 
                        mortgage having a higher interest rate than it 
                        would in the case of borrower paid mortgage 
                        insurance; and
                            (ii) terminates only when the residential 
                        mortgage is refinanced, paid off, or otherwise 
                        terminated;
                    (C) that lender paid mortgage insurance and 
                borrower paid mortgage insurance both have benefits and 
                disadvantages, including a generic analysis of the 
                differing costs and benefits of a residential mortgage 
                in the case lender paid mortgage insurance versus 
                borrower paid mortgage insurance over a 10-year period, 
                assuming prevailing interest and property appreciation 
                rates; and
                    (D) that lender paid mortgage insurance may be tax-
                deductible for purposes of Federal income taxes, if the 
                mortgagor itemizes expenses for that purpose; and
            (2) not later than 30 days after the termination date that 
        would apply in the case of borrower paid mortgage insurance, 
        the servicer shall provide to the mortgagor a written notice 
        indicating that the mortgagor may wish to review financing 
        options that could eliminate the requirement for private 
        mortgage insurance in connection with the residential mortgage.
    (d) Standard Forms.--The servicer of a residential mortgage may 
develop and use a standardized form or forms for the provision of 
notices to the mortgagor, as required under subsection (c).

SEC. 207. FEES FOR DISCLOSURES.

    No fee or other cost may be imposed on any mortgagor with respect 
to the provision of any notice or information to the mortgagor pursuant 
to this title.

SEC. 208. CIVIL LIABILITY.

    (a) In General.--Any servicer, mortgagee, or mortgage insurer that 
violates a provision of this title shall be liable to each mortgagor to 
whom the violation relates for--
            (1) in the case of an action by an individual, or a class 
        action in which the liable party is not subject to section 210, 
        any actual damages sustained by the mortgagor as a result of 
        the violation, including interest (at a rate determined by the 
        court) on the amount of actual damages, accruing from the date 
        on which the violation commences;
            (2) in the case of--
                    (A) an action by an individual, such statutory 
                damages as the court may allow, not to exceed $2,000; 
                and
                    (B) in the case of a class action--
                            (i) in which the liable party is subject to 
                        section 210, such amount as the court may 
                        allow, except that the total recovery under 
                        this subparagraph in any class action or series 
                        of class actions arising out of the same 
                        violation by the same liable party shall not 
                        exceed the lesser of $500,000 or 1 percent of 
                        the net worth of the liable party, as 
                        determined by the court; and
                            (ii) in which the liable party is not 
                        subject to section 210, such amount as the 
                        court may allow, not to exceed $1000 as to each 
                        member of the class, except that the total 
                        recovery under this subparagraph in any class 
                        action or series of class actions arising out 
                        of the same violation by the same liable party 
                        shall not exceed the lesser of $500,000 or 1 
                        percent of the gross revenues of the liable 
                        party, as determined by the court;
            (3) costs of the action; and
            (4) reasonable attorney fees, as determined by the court.
    (b) Timing of actions.--No action may be brought by a mortgagor 
under subsection (a) later than 2 years after the date of the discovery 
of the violation that is the subject of the action.
    (c) Limitations on Liability.--
            (1) In general.--With respect to a residential mortgage 
        transaction, the failure of a servicer to comply with the 
        requirements of this title due to the failure of a mortgage 
        insurer or a mortgagee to comply with the requirements of this 
        title, shall not be construed to be a violation of this title 
        by the servicer.
            (2) Rule of construction.--Nothing in paragraph (1) shall 
        be construed to impose any additional requirement or liability 
        on a mortgage insurer, a mortgagee, or a holder of a 
        residential mortgage.

SEC. 209. EFFECT ON OTHER LAWS AND AGREEMENTS.

    (a) Effect on State Law.--
            (1) In general.--With respect to any residential mortgage 
        or residential mortgage transaction consummated after the 
        effective date of this title, and except as provided in 
        paragraph (2), the provisions of this title shall supersede any 
        provisions of the law of any State relating to requirements for 
        obtaining or maintaining private mortgage insurance in 
        connection with residential mortgage transactions, cancellation 
        or automatic termination of such private mortgage insurance, 
        any disclosure of information addressed by this title, and any 
        other matter specifically addressed by this title.
            (2) Continued application of certain provisions.--This 
        title does not supersede any provision of the law of a State in 
        effect on or before September 1, 1989, pertaining to the 
        termination of private mortgage insurance or other mortgage 
        guaranty insurance, to the extent that such law requires 
        termination of such insurance at an earlier date or when a 
        lower mortgage loan principal balance is achieved than as 
        provided in this title.
    (b) Effect on Other Agreements.--The provisions of this title shall 
supersede any conflicting provision contained in any agreement relating 
to the servicing of a residential mortgage loan entered into by the 
Federal National Mortgage Association, the Federal Home Loan Mortgage 
Corporation, or any private investor or note holder (or any successors 
thereto).

SEC. 210. ENFORCEMENT.

    (a) In General.--Compliance with the requirements imposed under 
this title shall be enforced under--
            (1) section 8 of the Federal Deposit Insurance Act--
                    (A) by the appropriate Federal banking agency (as 
                defined in section 3(q) of the Federal Deposit 
                Insurance Act) in the case of insured depository 
                institutions (as defined in section 3(c)(2) of that 
                Act);
                    (B) by the Federal Deposit Insurance Corporation in 
                the case of depository institutions described in clause 
                (i), (ii), or (iii) of section 19(b)(1)(A) of the 
                Federal Reserve Act that are not insured depository 
                institutions (as defined in section 3(c)(2) of the 
                Federal Deposit Insurance Act); and
                    (C) by the Director of the Office of Thrift 
                Supervision in the case of depository institutions 
                described in clause (v) and or (vi) of section 
                19(b)(1)(A) of the Federal Reserve Act that are not 
                insured depository institutions (as defined in section 
                3(c)(2) of the Federal Deposit Insurance Act);
            (2) the Federal Credit Union Act, by the National Credit 
        Union Administration Board in the case of depository 
        institutions described in clause (iv) of section 19(b)(1)(A) of 
        the Federal Reserve Act; and
            (3) part C of title V of the Farm Credit Act of 1971 (12 
        U.S.C. 2261 et seq.), by the Farm Credit Administration in the 
        case of an institution that is a member of the Farm Credit 
        System.
    (b) Additional Enforcement Powers.--
            (1) Violation of this title treated as violation of other 
        acts.--For purposes of the exercise by any agency referred to 
        in subsection (a) of such agency's powers under any Act 
        referred to in such subsection, a violation of a requirement 
        imposed under this title shall be deemed to be a violation of a 
        requirement imposed under that Act.
            (2) Enforcement authority under other acts.--In addition to 
        the powers of any agency referred to in subsection (a) under 
        any provision of law specifically referred to in such 
        subsection, each such agency may exercise, for purposes of 
        enforcing compliance with any requirement imposed under this 
        title, any other authority conferred on such agency by law.
    (c) Enforcement and Reimbursement.--In carrying out its enforcement 
activities under this section, each agency referred to in subsection 
(a) shall--
            (1) notify the mortgagee or servicer of any failure of the 
        mortgagee or servicer to comply with 1 or more provisions of 
        this title;
            (2) with respect to each such failure to comply, require 
        the mortgagee or servicer, as applicable, to correct the 
        account of the mortgagor to reflect the date on which the 
        mortgage insurance should have been canceled or terminated 
        under this title; and
            (3) require the mortgagee or servicer, as applicable, to 
        reimburse the mortgagor in an amount equal to the total 
        unearned premiums paid by the mortgagor after the date on which 
        the obligation to pay those premiums ceased under this title.

SEC. 211. CONSTRUCTION.

    Nothing in this title shall be construed to impose any requirement 
for private mortgage insurance in connection with a residential 
mortgage transaction.

SEC. 212. EFFECTIVE DATE.

    This title shall become effective 1 year after the date of 
enactment of this Act.

  TITLE III--ABOLISHMENT OF THE THRIFT DEPOSITOR PROTECTION OVERSIGHT 
                                 BOARD

SEC. 301. ABOLISHMENT.

    (a) In General.--Effective at the end of the 3-month period 
beginning on the date of enactment of this Act, the Thrift Depositor 
Protection Oversight Board established under section 21A of the Federal 
Home Loan Bank Act (hereafter in this section referred to as the 
``Oversight Board'') is hereby abolished.
    (b) Disposition of Affairs.--
            (1) Power of chairperson.--Effective on the date of 
        enactment of this Act, the Chairperson of the Oversight Board 
        (or the designee of the Chairperson) may exercise on behalf of 
        the Oversight Board any power of the Oversight Board necessary 
        to settle and conclude the affairs of the Oversight Board.
            (2) Availability of funds.--Funds available to the 
        Oversight Board shall be available to the Chairperson of the 
        Oversight Board to pay expenses incurred in carrying out 
        paragraph (1).
    (c) Savings Provision.--
            (1) Existing rights, duties, and obligations not 
        affected.--No provision of this section shall be construed as 
        affecting the validity of any right, duty, or obligation of the 
        United States, the Oversight Board, the Resolution Trust 
        Corporation, or any other person that--
                    (A) arises under or pursuant to the Federal Home 
                Loan Bank Act, or any other provision of law applicable 
                with respect to the Oversight Board; and
                    (B) existed on the day before the abolishment of 
                the Oversight Board in accordance with subsection (a).
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Oversight Board with respect to any 
        function of the Oversight Board shall abate by reason of the 
        enactment of this section.
            (3) Liabilities.--
                    (A) In general.--All liabilities arising out of the 
                operation of the Oversight Board during the period 
                beginning on August 9, 1989, and the date that is 3 
                months after the date of enactment of this Act shall 
                remain the direct liabilities of the United States.
                    (B) No substitution.--The Secretary of the Treasury 
                shall not be substituted for the Oversight Board as a 
                party to any action or proceeding referred to in 
                subparagraph (A).
            (4) Continuations of orders, resolutions, determinations, 
        and regulations pertaining to the resolution funding 
        corporation.--
                    (A) In general.--All orders, resolutions, 
                determinations, and regulations regarding the 
                Resolution Funding Corporation shall continue in effect 
                according to the terms of such orders, resolutions, 
                determinations, and regulations until modified, 
                terminated, set aside, or superseded in accordance with 
                applicable law if such orders, resolutions, 
                determinations, or regulations--
                            (i) have been issued, made, and prescribed, 
                        or allowed to become effective by the Oversight 
                        Board, or by a court of competent jurisdiction, 
                        in the performance of functions transferred by 
                        this section; and
                            (ii) are in effect at the end of the 3-
                        month period beginning on the date of enactment 
                        of this section.
                    (B) Enforceability of orders, resolutions, 
                determinations, and regulations before transfer.--
                Before the effective date of the transfer of the 
                authority and duties of the Resolution Funding 
                Corporation to the Secretary of the Treasury under 
                subsection (d), all orders, resolutions, 
                determinations, and regulations pertaining to the 
                Resolution Funding Corporation shall be enforceable by 
                and against the United States.
                    (C) Enforceability of orders, resolutions, 
                determinations, and regulations after transfer.--On and 
                after the effective date of the transfer of the 
                authority and duties of the Resolution Funding 
                Corporation to the Secretary of the Treasury under 
                subsection (d), all orders, resolutions, 
                determinations, and regulations pertaining to the 
                Resolution Funding Corporation shall be enforceable by 
                and against the Secretary of the Treasury.
    (d) Transfer of Thrift Depositor Protection Oversight Board 
Authority and Duties of Resolution Funding Corporation to Secretary of 
the Treasury.--Effective at the end of the 3-month period beginning on 
the date of enactment of this Act, the authority and duties of the 
Oversight Board under sections 21A(a)(6)(I) and 21B of the Federal Home 
Loan Bank Act are transferred to the Secretary of the Treasury (or the 
designee of the Secretary).
    (e) Membership of the Affordable Housing Advisory Board.--Effective 
on the date of enactment of this Act, section 14(b)(2) of the 
Resolution Trust Corporation Completion Act (12 U.S.C. 1831q note) is 
amended--
            (1) by striking subparagraph (C); and
            (2) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (C) and (D), respectively.
    (f) Time of Meetings of the Affordable Housing Advisory Board.--
            (1) In general.--Section 14(b)(6)(A) of the Resolution 
        Trust Corporation Completion Act (12 U.S.C. 1831q note) is 
        amended--
                    (A) by striking ``4 times a year, or more 
                frequently if requested by the Thrift Depositor 
                Protection Oversight Board or'' and inserting ``2 times 
                a year or at the request of''; and
                    (B) by striking the second sentence.
            (2) Clerical amendment.--Section 14(b)(6)(A) of the 
        Resolution Trust Corporation Completion Act (12 U.S.C. 1831q 
        note) is amended, in the subparagraph heading, by striking 
        ``and location''.

            Amend the title so as to read: ``An Act to amend the 
        National Housing Act to prevent the funding of unnecessary or 
        excessive costs for obtaining a home equity conversion 
        mortgage, to require automatic cancellation and notice of 
        cancellation rights with respect to private mortgage insurance 
        required as a condition for entering into a residential 
        mortgage transaction, to abolish the Thrift Depositor 
        Protection Oversight Board, and for other purposes.''.

            Attest:

                                                             Secretary.
105th CONGRESS

  1st Session

                               H. R. 607

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                               AMENDMENTS