[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3834 Engrossed in House (EH)]


  2d Session

                               H. R. 3834

_______________________________________________________________________

                                 AN ACT

To amend the rural housing loan guarantee program under section 502(h) 
of the Housing Act of 1949 to provide loan guarantees for loans made to 
    refinance existing mortgage loans guaranteed under such section.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  2d Session
                                H. R. 3834

_______________________________________________________________________

                                 AN ACT


 
To amend the rural housing loan guarantee program under section 502(h) 
of the Housing Act of 1949 to provide loan guarantees for loans made to 
    refinance existing mortgage loans guaranteed under such section.

    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 ``Homeowners Financing Protection 
Act''.

SEC. 2. GUARANTEES FOR REFINANCING LOANS.

    Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h)) is 
amended by adding at the end the following new paragraph:
            ``(13) Guarantees for refinancing loans.--Upon the request 
        of the borrower, the Secretary shall, to the extent provided in 
        appropriation Acts, guarantee a loan that is made to refinance 
        an existing loan that is made under this section or guaranteed 
        under this subsection, and that the Secretary determines 
        complies with the following requirements:
                    ``(A) Interest rate.--The refinancing loan shall 
                have a rate of interest that is fixed over the term of 
                the loan and does not exceed the interest rate of the 
                loan being refinanced.
                    ``(B) Security.--The refinancing loan shall be 
                secured by the same single-family residence as was the 
                loan being refinanced, which shall be owned by the 
                borrower and occupied by the borrower as the principal 
                residence of the borrower.
                    ``(C) Amount.--The principal obligation under the 
                refinancing loan shall not exceed an amount equal to 
                the sum of the balance of the loan being refinanced and 
                such closing costs as may be authorized by the 
                Secretary, which shall include a discount not exceeding 
                2 basis points and an origination fee not exceeding 
                such amount as the Secretary shall prescribe.
        The provisions of the last sentence of paragraph (1) and 
        paragraphs (2), (5), (6)(A), (7), and (9) shall apply to loans 
        guaranteed under this subsection, and no other provisions of 
        paragraphs (1) through (12) shall apply to such loans.''.

            Passed the House of Representatives September 19, 2000.

            Attest:

                                                                 Clerk.