[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 230 Introduced in House (IH)]







111th CONGRESS
  1st Session
                                H. R. 230

To prevent foreclosure of home mortgages and increase the availability 
                      of affordable new mortgages.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2009

 Mr. Cardoza introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To prevent foreclosure of home mortgages and increase the availability 
                      of affordable new mortgages.

    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 ``Housing Opportunity and Mortgage 
Equity Act of 2009''.

SEC. 2. AFFORDABLE REFINANCING MORTGAGES AND NEW MORTGAGES.

    (a) Authority.--The Federal National Mortgage Association and the 
Federal Home Loan Mortgage Corporation shall each carry out a program 
under this section to purchase and securitize qualified refinancing 
mortgages and qualified new mortgages on single-family housing, in 
accordance with this section and policies and procedures that the 
Director of the Federal Housing Finance Agency shall establish.
    (b) Purchase of Qualified Mortgages.--
            (1) Requirement to purchase.--If a lender proffers to an 
        enterprise, in accordance with requirements established by the 
        Director, a mortgage or mortgages for purchase under this 
        section, the enterprise shall make a determination of whether 
        such mortgage or mortgages are qualified mortgages. Subject to 
        subsection (g), if the enterprise determines that such mortgage 
        or mortgages meet the requirements for qualified mortgages, the 
        enterprise shall make a commitment to purchase, and shall 
        purchase, the mortgage or mortgages.
            (2) Advance commitments.--The Director shall require each 
        enterprise to establish a procedure for approval of lenders to 
        receive commitments, in advance of the origination of qualified 
        mortgages, for purchase of such mortgages under this section by 
        the enterprise.
    (c) Qualified Mortgages.--
            (1) Qualified mortgage.--For purposes of this section, the 
        term ``qualified mortgage'' means a mortgage that is a 
        qualified refinancing mortgage or a qualified new mortgage.
            (2) Qualified refinancing mortgage.--For purposes of this 
        section, the term ``qualified refinancing mortgage'' means a 
        mortgage that meets the following requirements:
                    (A) Single-family housing.--The property subject to 
                the mortgage shall be a one- to four-family dwelling, 
                including a condominium or a share in a cooperative 
                ownership housing association.
                    (B) Principal residence.--The mortgagor under the 
                mortgage shall occupy the property subject to the 
                mortgage as his or her principal residence.
                    (C) Refinancing.--The principal loan amount 
                repayment of which is secured by the mortgage shall be 
                used to satisfy all indebtedness under an existing 
                first mortgage that--
                            (i) was made for purchase of, or 
                        refinancing another first mortgage on, the same 
                        property that is subject to the qualified 
                        refinancing mortgage; and
                            (ii) was originated on or before January 1, 
                        2008.
                    (D) Interest rate; term to maturity.--The mortgage 
                shall--
                            (i) bear interest at a single rate that is 
                        fixed for the entire term of the mortgage, 
                        which shall not exceed 4.0 percent annually; 
                        and
                            (ii) have a term to maturity of not less 
                        than 30 years and not more than 40 years from 
                        the date of the beginning of the amortization 
                        of the mortgage.
                    (E) Underwriting standards.--The mortgage shall 
                meet such underwriting standards as the Director shall 
                require.
                    (F) Waiver of prepayment penalties.--All penalties 
                for prepayment or refinancing of the underlying 
                mortgage refinanced by the mortgage, and all fees and 
                penalties related to the default or delinquency on such 
                mortgage, shall have been waived or forgiven.
            (3) Qualified new mortgage.--For purposes of this section, 
        the term ``qualified new mortgage'' means a mortgage that meets 
        the following requirements:
                    (A) Terms.--The mortgage meets the requirements 
                under subparagraphs (A), (B), (D), and (E) of paragraph 
                (2).
                    (B) Home purchase.--The principal loan amount 
                repayment of which is secured by the mortgage shall be 
                used to purchase the property that is subject to the 
                qualified new mortgage.
                    (C) New mortgages.--The mortgage was originated on 
                or after the date of the enactment of this Act.
    (d) Exceptions to Underwriting Standards.--Each enterprise shall 
establish such exceptions to the underwriting standards of the 
enterprise, including downpayment and credit rating standards, that 
conform to the underwriting standards established pursuant to 
subsection (c)(5), as may be necessary to allow the enterprise to 
purchase and securitize qualified refinancing mortgages and qualified 
new mortgages under this section, in accordance with such requirements 
as the Director shall establish.
    (e) Securitization.--
            (1) Requirement.--Each enterprise shall, upon such terms 
        and conditions as it may prescribe, set aside any qualified 
        mortgages purchased by it under this section and, upon approval 
        of the Secretary of the Treasury, issue and sell securities 
        based upon such mortgages set aside.
            (2) Form.--Securities issued under this subsection may be 
        in the form of debt obligations or trust certificates of 
        beneficial interest, or both.
            (3) Terms.--Securities issued under this subsection shall 
        have such maturities and bear such rate or rates of interest as 
        may be determined by the enterprise with the approval of the 
        Secretary.
            (4) Exemption.--Securities issued by an enterprise under 
        this subsection shall, to the same extent as securities which 
        are direct obligations of or obligations guaranteed as to 
        principal and interest by the United States, be deemed to be 
        exempt securities within the meaning of laws administered by 
        the Securities and Exchange Commission.
            (5) Principal and interest payments.--Mortgages set aside 
        pursuant to this subsection shall at all times be adequate to 
        enable the issuing enterprise to make timely principal and 
        interest payments on the securities issued and sold pursuant to 
        this subsection.
            (6) Required disclosure.--Each enterprise shall insert 
        appropriate language in all of the securities issued under this 
        subsection clearly indicating that such securities, together 
        with the interest thereon, are not guaranteed by the United 
        States and do not constitute a debt or obligation of the United 
        States or any agency or instrumentality thereof other than the 
        enterprise.
    (f) Federal Reserve Financing Facility.--The Board of Governors of 
the Federal Reserve System shall establish a credit facility of the 
Federal Reserve System to make credit available to the enterprises at 
interest rates comparable to rates on securities issued by the 
Secretary of the Treasury under chapter 31 of title 31, United States 
Code, and having comparable terms, as determined by the Board.
    (g) Termination.--The requirement under subsection (b)(1) for the 
enterprises to purchase mortgages shall not apply to any mortgage 
proferred to an enterprise after December 31, 2010.

SEC. 3. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Director.--The term ``Director'' means the Director of 
        the Federal Housing Finance Agency.
            (2) Enterprise.--The term ``enterprise'' means the Federal 
        National Mortgage Association and the Federal Home Loan 
        Mortgage Corporation.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
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