[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 787 Reported in House (RH)]

                                                   Union Calendar No. 4
111th CONGRESS
  1st Session
                                H. R. 787

                          [Report No. 111-12]

To make improvements in the Hope for Homeowners Program, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 2009

  Mr. Frank of Massachusetts introduced the following bill; which was 
            referred to the Committee on Financial Services

                           February 10, 2009

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
To make improvements in the Hope for Homeowners Program, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.</DELETED>

<DELETED>    Section 257 of the National Housing Act (12 U.S.C. 1715z-
23) is amended--</DELETED>
        <DELETED>    (1) in subsection (e)--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking 
                subparagraph (B);</DELETED>
                <DELETED>    (B) in paragraph (2)(B), by striking ``90 
                percent'' and inserting ``93 percent'';</DELETED>
                <DELETED>    (C) by striking paragraph (7); 
                and</DELETED>
                <DELETED>    (D) by redesignating paragraphs (8), (9), 
                (10), and (11) as paragraphs (7), (8), (9), and (10), 
                respectively;</DELETED>
        <DELETED>    (2) in subsection (h)(2), by striking ``, or in 
        any case in which a mortgagor fails to make the first payment 
        on a refinanced eligible mortgage'';</DELETED>
        <DELETED>    (3) by striking subsection (i) and inserting the 
        following new subsection:</DELETED>
<DELETED>    ``(i) Annual Premiums.--</DELETED>
        <DELETED>    ``(1) In general.--For each refinanced eligible 
        mortgage insured under this section, the Secretary shall 
        establish and collect an annual premium in an amount equal to 
        not less than 0.55 percent of the amount of the remaining 
        insured principal balance of the mortgage and not more than 
        0.75 percent of such remaining insured principal balance, as 
        determined according to a schedule established by the Board 
        that assigns such annual premiums based upon the credit risk of 
        the mortgage.</DELETED>
        <DELETED>    ``(2) Reduction or termination during mortgage 
        term.--Notwithstanding paragraph (1), the Secretary may provide 
        that the annual premiums charged for refinanced eligible 
        mortgages insured under this section are reduced over the term 
        of the mortgage or that the collection of such premiums is 
        discontinued at some time during the term of the mortgage, in a 
        manner that is consistent with policies for such reduction or 
        discontinuation of annual premiums charged for mortgages in 
        accordance with section 203(c).'';</DELETED>
        <DELETED>    (4) in subsection (k)--</DELETED>
                <DELETED>    (A) by striking the subsection heading and 
                inserting ``Exit Fee'';</DELETED>
                <DELETED>    (B) in paragraph (1), in the matter 
                preceding subparagraph (A), by striking ``such sale or 
                refinancing'' and inserting ``the mortgage being 
                insured under this section''; and</DELETED>
                <DELETED>    (C) by striking paragraph (2);</DELETED>
        <DELETED>    (5) in subsection (s)(3)(A)(ii), by striking 
        ``subsection (e)(1)(B) and such other'' and inserting 
        ``such'';</DELETED>
        <DELETED>    (6) in subsection (v), by inserting after the 
        period at the end the following: ``The Board shall conform 
        documents, forms, and procedures for mortgages insured under 
        this section to those in place for mortgages insured under 
        section 203(b) to the maximum extent possible consistent with 
        the requirements of this section.'';</DELETED>
        <DELETED>    (7) in subsection (w)(1)(C), by striking 
        ``(e)(4)(A)'' and inserting ``(e)(3)(A)''; and</DELETED>
        <DELETED>    (8) by adding at the end the following new 
        subsection:</DELETED>
<DELETED>    ``(x) Payment to Existing Loan Servicer.--The Board may 
establish a payment to the servicer of the existing senior mortgage for 
every loan insured under the HOPE for Homeowners Program.''.</DELETED>

SECTION 1. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.

    Section 257 of the National Housing Act, as added by section 
1402(a) of Public Law 110-289, (12 U.S.C. 1715z-23) is amended--
            (1) in subsection (e)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Borrower certification.--
                    ``(A) No intentional default or false 
                information.--The mortgagor shall provide a 
                certification to the Secretary that the mortgagor has 
                not intentionally defaulted on the existing mortgage or 
                mortgages and has not knowingly, or willfully and with 
                actual knowledge, furnished material information known 
                to be false for the purpose of obtaining any eligible 
                mortgage.
                    ``(B) Liability for repayment.--The mortgagor shall 
                agree in writing that the mortgagor shall be liable to 
                repay to the Secretary any direct financial benefit 
                achieved from the reduction of indebtedness on the 
                existing mortgage or mortgages on the residence 
                refinanced under this section derived from 
                misrepresentations made by the mortgagor in the 
                certifications and documentation required under this 
                paragraph, subject to the discretion of the Oversight 
                Board.''.
                    (B) in paragraph (2)(B), by striking ``90 percent'' 
                and inserting ``93 percent'';
                    (C) by striking paragraph (7);
                    (D) in paragraph (9)--
                            (i) by striking ``by procuring (A) an 
                        income tax return transcript of the income tax 
                        returns of the mortgagor, or(B)'' and inserting 
                        ``in accordance with procedures and standards 
                        that the Board shall establish, which may 
                        include requiring the mortgagee to procure''; 
                        and
                            (ii) by striking ``and by any other method, 
                        in accordance with procedures and standards 
                        that the Board shall establish'';
                    (E) by redesignating paragraphs (8), (9), (10), and 
                (11) as paragraphs (7), (8), (9), and (10), 
                respectively; and
                    (F) by adding after paragraph (10) (as so 
                redesignated by subparagraph (E) of this paragraph) the 
                following new paragraph:
            ``(11) Ban on millionaires.--The mortgagor shall not have a 
        net worth, as of the date the mortgagor first applies for a 
        mortgage to be insured under the Program under this section, 
        that exceeds $1,000,000.'';
            (2) in subsection (h)(2), by striking ``, or in any case in 
        which a mortgagor fails to make the first payment on a 
        refinanced eligible mortgage'';
            (3) by striking subsection (i) and inserting the following 
        new subsection:
    ``(i) Annual Premiums.--
            ``(1) In general.--For each refinanced eligible mortgage 
        insured under this section, the Secretary shall establish and 
        collect an annual premium in an amount equal to not less than 
        0.55 percent of the amount of the remaining insured principal 
        balance of the mortgage and not more than 0.75 percent of such 
        remaining insured principal balance, as determined according to 
        a schedule established by the Board that assigns such annual 
        premiums based upon the credit risk of the mortgage.
            ``(2) Reduction or termination during mortgage term.--
        Notwithstanding paragraph (1), the Secretary may provide that 
        the annual premiums charged for refinanced eligible mortgages 
        insured under this section are reduced over the term of the 
        mortgage or that the collection of such premiums is 
        discontinued at some time during the term of the mortgage, in a 
        manner that is consistent with policies for such reduction or 
        discontinuation of annual premiums charged for mortgages in 
        accordance with section 203(c).'';
            (4) in subsection (k)--
                    (A) by striking the subsection heading and 
                inserting ``Exit Fee'' ;
                    (B) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``such sale or 
                refinancing'' and inserting ``the mortgage being 
                insured under this section''; and
                    (C) by striking paragraph (2);
            (5) in subsection (s)(3)(A)(ii), by striking ``subsection 
        (e)(1)(B) and such other'' and inserting ``such'';
            (6) in subsection (v), by inserting after the period at the 
        end the following: ``The Board shall conform documents, forms, 
        and procedures for mortgages insured under this section to 
        those in place for mortgages insured under section 203(b) to 
        the maximum extent possible consistent with the requirements of 
        this section.'';
            (7) in subsection (w)(1)(C), by striking ``(e)(4)(A)'' and 
        inserting ``(e)(3)(A)''; and
            (8) by adding at the end the following new subsection:
    ``(x) Payment to Existing Loan Servicer.--The Board may establish a 
payment to the servicer of the existing senior mortgage for every loan 
insured under the HOPE for Homeowners Program in an amount, for each 
such loan, that does not exceed $1,000.''.
                                                   Union Calendar No. 4

111th CONGRESS

  1st Session

                               H. R. 787

                          [Report No. 111-12]

_______________________________________________________________________

                                 A BILL

To make improvements in the Hope for Homeowners Program, and for other 
                               purposes.

_______________________________________________________________________

                           February 10, 2009

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed