[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 170 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 170

 To provide for the affordable refinancing of mortgages held by Fannie 
                          Mae and Freddie Mac.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 25 (legislative day, January 5), 2011

  Mrs. Boxer introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To provide for the affordable refinancing of mortgages held by Fannie 
                          Mae and Freddie Mac.

    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 ``Helping Responsible Homeowners 
Act''.

SEC. 2. AFFORDABLE REFINANCING OF MORTGAGES OWNED OR GUARANTEED BY 
              FANNIE MAE AND FREDDIE MAC.

    (a) Definitions.--As used in 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) Qualified mortgage.--The term ``qualified mortgage'' 
        means a mortgage that--
                    (A) is an existing first mortgage that was made for 
                purchase of, or refinancing another first mortgage on, 
                a one- to four-family dwelling, including a condominium 
                or a share in a cooperative ownership housing 
                association, that is occupied by the mortgagor as the 
                principal residence of the mortgagor;
                    (B) is owned or guaranteed by the Federal National 
                Mortgage Association or the Federal Home Loan Mortgage 
                Corporation; and
                    (C) the mortgagor is current on payments due under 
                the mortgage.
            (4) Refinancing mortgage.--The term ``refinancing 
        mortgage'' means a mortgage that meets the following 
        requirements:
                    (A) Refinancing of qualified mortgage.--The 
                principal loan amount repayment of which is secured by 
                the mortgage shall be used to satisfy all indebtedness 
                under an existing qualified mortgage and any closing 
                costs from the refinancing of the mortgage that the 
                mortgagor chooses to include in the refinanced 
                mortgage.
                    (B) Single-family housing.--The property that is 
                subject to the mortgage shall be the same property that 
                is subject to the qualified mortgage being refinanced.
                    (C) Interest rate.--The mortgage shall bear a fair 
                rate of interest, which shall not exceed 40 basis 
                points above the required net yield for a 60-day 
                commitment to purchase a prime conventional conforming 
                fixed rate mortgage as published by the Federal 
                National Mortgage Association or the Federal Home Loan 
                Mortgage Corporation at the time the interest rate is 
                locked in.
                    (D) Loan to value.--The mortgage shall not be 
                limited by the loan-to-value ratio.
                    (E) Waiver of prepayment penalties.--All penalties 
                for prepayment or refinancing of the qualified mortgage 
                that is refinanced by the mortgage, and all fees and 
                penalties related to the default or delinquency on such 
                mortgage, shall have been waived or forgiven.
                    (F) Term to maturity.--The mortgage shall have a 
                term to maturity of not more than 40 years from the 
                date of the beginning of the amortization of the 
                mortgage.
    (b) Authority.--The Federal National Mortgage Association and the 
Federal Home Loan Mortgage Corporation shall each carry out a program 
under this section to provide for the refinancing of qualified 
mortgages on single-family housing owned by such enterprise through a 
refinancing mortgage, and for the purchase of and securitization of 
such refinancing mortgages, in accordance with this section and 
policies and procedures that the Director of the Federal Housing 
Finance Agency shall establish. Such program shall require the Federal 
National Mortgage Association and the Federal Home Loan Mortgage 
Corporation to purchase or guarantee the refinancing mortgage used to 
refinance a qualified mortgage upon the request of the mortgagee.
    (c) Prohibition on Loan Level Price Adjustments and Post Settlement 
Delivery Fees.--In carrying out the program established under this 
section, the Federal National Mortgage Association and the Federal Home 
Loan Mortgage Corporation shall not charge the mortgagee any up-front 
fee beyond the standard guarantee fee for the refinancing of the 
qualified mortgage through the refinancing mortgage.
    (d) Resubordination of Second Liens.--For any servicer or creditor 
holding a second lien on a qualified mortgage who refuses to 
resubordinate that lien, thereby preventing the refinancing of the 
qualified mortgage, new mortgages originated by that servicer or 
creditor shall be ineligible for purchase or guarantee by the Federal 
National Mortgage Association or the Federal Home Loan Mortgage 
Corporation.
    (e) Termination.--The requirement for an enterprise to refinance 
qualified mortgages under this section shall not apply to any request 
for refinancing made after the expiration of the 1-year period 
beginning on the date of the enactment of this Act. Notwithstanding the 
prior sentence, the Director, at his or her discretion, may extend the 
program established under this section, and the requirements of such 
program shall apply during any such extension, in 1-year increments.
    (f) Regulations.--The Director shall issue any regulations or 
guidance necessary to carry out the program established under this 
section.

SEC. 3. NOTICE OF THE REFINANCING PROGRAM.

    The Federal National Mortgage Association and the Federal Home Loan 
Mortgage Corporation shall require each servicer of a mortgage owned or 
guaranteed by each such enterprise to inform each borrower of such 
mortgage of the refinancing program authorized and established under 
section 2.

SEC. 4. REPORT.

    The Director shall, as part of the monthly Foreclosure Prevention & 
Refinance Report published by the Director, include information on the 
progress of the refinancing program authorized and established under 
section 2.
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