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







106th CONGRESS
  2d Session
                                H. R. 3834

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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 6, 2000

 Mr. Andrews introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
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.

    (a) In General.--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.--The Secretary 
        shall guarantee a loan that is made to refinance an existing 
        loan 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 
                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.
                    ``(D) Payment status.--The borrower shall not be 
                more than 2 months delinquent in payments on the loan 
                being refinanced.
                    ``(E) Term.--The term of the refinancing loan may 
                not exceed the original term of the loan being 
                refinanced by more than 10 years.
        The provisions of the last sentence of paragraph (1) and 
        paragraphs (2), (5), (9) shall apply to loans guaranteed under 
        this subsection, and no other provisions of paragraphs (1) 
        through (12) shall apply to such loans.''.
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