Short title

This Act may be cited as the

Foreclosure Prevention and Homeownership Protection Act

Findings and purpose

(a)

Findings

The Congress makes the following findings: (1)The United States is experiencing a wave of foreclosures and mortgage lending problems that has had widespread negative repercussions for world credit markets, the United States economy, and neighborhoods and families in the United States. (2)The large number of actors, the complexity of the transactions involved, and the lack of clear lines of accountability have revealed numerous opportunities to improve legislative and regulatory oversight of the industries involved. (3)This crisis has caused many Americans to lose their homes, their jobs, and their financial stability. (4)The magnitude of this crisis, the likelihood that foreclosure filings will continue to increase, and the widespread effects throughout the world economy make it critically important that a bipartisan commission undertake a comprehensive examination of the causes of this crisis, the solutions to the crisis, and the legislative and regulatory changes that will prevent such a crisis from occurring in the future. (b)

Purpose

The purpose of this Act is to establish a Commission to perform a detailed and comprehensive examination of the origins and causes of the current foreclosure crisis and to issue a report of its findings to the President and to the Congress, which shall also recommend legislative and regulatory changes that will assist homeowners who are currently in danger of losing their homes, stem the rising tide of foreclosures, and prevent the occurrence of similar crises in the future.

Establishment

There is established a bipartisan commission to be known as the Commission to Preserve the American Dream (in this Act referred to as the Commission).

Membership

(a)

Members

The Commission shall be composed of the following individuals or their designees: (1)1 member shall be appointed by the Speaker of the House of Representatives, in consultation with the majority leader of the Senate, who shall serve as chairperson of the Commission. (2)The Secretary of Housing and Urban Development. (3)The Chairman of the Board of Governors of the Federal Reserve System. (4)The chief executive officer of the Federal National Mortgage Association. (5)The chief executive officer of the Federal Home Loan Mortgage Corporation. (6)8 additional members or their designees, appointed in the following manner: (A)2 members appointed by the Speaker of the House of Representatives. (B)2 members appointed by the minority leader of the House of Representatives. (C)2 members appointed by the majority leader of the Senate. (D)2 members appointed by the minority leader of the Senate. (b)

Consultation required

The Speaker of the House of Representatives, the minority leader of the House of Representatives, the majority leader of the Senate, and the minority leader of the Senate shall consult among themselves prior to the appointment of the members of the Commission designated in subsection (a)(6) in order to achieve, to the maximum extent possible, fair and equitable representation of various points of view with respect to the matters to be studied by the Commission. (c)

Background

The members of the Commission designated in subsection (a)(6) shall have expertise in a broad range of issues, including community housing, consumer lending, real estate finance, economics, mortgage banking, loan servicing, credit risk assessment, and the operation of housing finance agencies at the State government level. (d)

Period of appointment

(1)

In general

Each member of the Commission shall be appointed for the life of the Commission. (2)

Vacancies

A vacancy on the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment was made. (e)

Quorum

(1)

Majority

A majority of the members of the Commission shall constitute a quorum, but a lesser number may hold hearings. (2)

Approval actions

All recommendations and reports of the Commission required by this Act shall be approved only by a majority vote of a quorum of the Commission. (f)

Meetings

(1)

First meeting

The Speaker of the House shall call the first meeting of the Commission not later than— (A)60 days after the date of enactment of this Act; or (B)30 days after the date of the enactment of legislation making appropriations to carry out this Act. (2)

Subsequent meetings

Except as provided in paragraph (1), the Commission shall meet at the call of the Chairperson.

Duties and purpose

(a)

Assessments

The Commission shall study and assess— (1)the adequacy of the existing legal and regulatory framework to address the current foreclosure and mortgage lending crisis and to prevent similar crises from happening in the future; (2)the role of the States versus the role of the Federal Government in ensuring homeowners are protected against unscrupulous lending practices; and (3)the effects of this crisis on the domestic and world economies. (b)

Recommendations

The Commission shall make recommendations of— (1)ways to assist homeowners currently in danger of losing their homes; (2)ways to encourage lenders and borrowers to work together to prevent foreclosure; and (3)legislative and regulatory changes that will provide protection for homeowners against unscrupulous lending practices and strengthen accountability for those involved in the mortgage lending market.

Powers

(a)

Hearings

The Commission or, at its direction, any subcommittee or member of the Commission, may, for the purpose of carrying out this Act— (1)hold such public hearings in such cities and countries, sit and act at such times and places, take such testimony, receive such evidence, and administer such oaths as the Commission or such subcommittee or member considers advisable; and (2)require, by subpoena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memoranda, papers, documents, tapes, and materials as the Commission or such subcommittee or member considers advisable. (b)

Issuance and enforcement of subpoenas

(1)

Issuance

Subpoenas issued under subsection (a) shall bear the signature of the Chairperson of the Commission and shall be served by any person or class of persons designated by the Chairperson for that purpose. (2)

Enforcement

In the case of contumacy or failure to obey a subpoena issued under subsection (a), the United States district court for the judicial district in which the subpoenaed person resides, is served, or may be found may issue an order requiring such person to appear at any designated place to testify or to produce documentary or other evidence. Any failure to obey the order of the court may be punished by the court as a contempt of that court. (c)

Witness allowances and fees

Section 1821 of title 28, United States Code, shall apply to witnesses requested or subpoenaed to appear at any hearing of the Commission. The per diem and mileage allowances for witnesses shall be paid from funds available to pay the expenses of the Commission. (d)

Information from Federal agencies

The Commission may secure directly from any Federal department or agency such information as the Commission considers necessary to perform its duties. Upon request of the Chairperson of the Commission, the head of such department or agency shall furnish such information to the Commission. (e)

Postal services

The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government.

Personnel

(a)

Compensation of members

Each member of the Commission who is not an officer or employee of the Federal Government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Commission. All members of the Commission who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States. (b)

Travel expenses

The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission. (c)

Staff

(1)

In general

The Chairperson of the Commission may, without regard to the civil service laws and regulations, appoint and terminate the employment of such personnel as may be necessary to enable the Commission to perform its duties. (2)

Compensation

The Chairperson of the Commission may fix the compensation of the personnel without regard to chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the personnel may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title. (d)

Detail of government employees

Any Federal Government employee may be detailed to the Commission without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege. (e)

Procurement of temporary and intermittent services

The Chairperson of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals that do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title. (f)

Other administrative matters

The Commission may— (1)enter into agreements with the Administrator of General Services to procure necessary financial and administrative services; (2)enter into contracts to procure supplies, services, and property; and (3)enter into contracts with Federal, State, or local agencies, or private institutions or organizations, for the conduct of research or surveys, the preparation of reports, and other activities necessary to enable the Commission to perform its duties.

Report

(a)

In general

Not later than 180 days after the appointment of the Commission members under section 4, the Commission shall submit to the President and the Congress a final report containing a detailed statement of its findings, together with any recommendations for legislation or administrative action that the Commission considers appropriate, in accordance with the requirements of section 5. (b)

Considerations

In developing any recommendations under subsection (a), the Commission shall consider— (1)the role of the Federal Government in preventing similar crises in the future and its role in assisting homeowners today; (2)ways in which to strengthen accountability of all actors involved, including homeowners, mortgage brokers, lenders, appraisers, State housing agencies, the Federal Housing Administration, Government-sponsored enterprises, credit rating agencies, investors in collateralized debt obligations, the Federal Reserve System, and other Federal agencies with jurisdiction over entities involved with the foreclosure crisis; (3)the extent to which predatory and abusive lending practices contributed to the crisis and whether new legislation is required to curb such practices; (4)the role of subprime lending practices in precipitating this crisis; and (5)ways to prevent blight and whether targeted solutions may be required for neighborhoods that have been particularly hard hit by the crisis.

Termination

The Commission shall terminate upon the expiration of the 90-day period beginning upon the date on which the Commission submits its report to the Congress under section 8(a).

10.

Authorization of appropriations

(a)

In general

There is authorized to be appropriated $3,000,000 to carry out this Act. (b)

Availability

Any amounts appropriated pursuant to this section shall remain available, without fiscal year limitation, until expended.