[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2072 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2072

   To discourage disincentives to the housing missions of government 
   sponsored enterprises and require consistent putback risks at the 
                   enterprises to assist homeowners.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 6, 2012

 Mr. Franken (for himself and Mr. Blumenthal) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To discourage disincentives to the housing missions of government 
   sponsored enterprises and require consistent putback risks at the 
                   enterprises to assist homeowners.

    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 Homeowners Refinance Act''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``Director'' means the Director of the Federal 
        Housing Finance Agency;
            (2) the term ``enterprise'' has the same meaning as in 
        section 1303 of the Federal Housing Enterprises Financial 
        Safety and Soundness Act of 1992 (12 U.S.C. 4502); and
            (3) the term ``putback risk'' means the probability that an 
        enterprise would require a loan originator to repurchase a loan 
        purchased by the enterprise.

SEC. 3. FINANCIAL DISINCENTIVES.

    Not later than 30 days after the date of enactment of this Act, the 
Director shall promulgate rules prohibiting the enterprises from 
holding any possessory interest in or otherwise owning, in whole or in 
part, any financial market instrument that would, in the discretion of 
the Director, substantially reduce the financial incentive to carry out 
the statutory mission of the enterprises to provide liquidity, 
stability, and affordability to the United States housing market under 
the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1415 et seq.) 
and the Federal National Mortgage Association Charter Act (12 U.S.C. 
1716 et seq.).

SEC. 4. GOVERNMENT SPONSORED ENTERPRISES PUTBACK RISK POLICIES.

    (a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Federal Home Loan Mortgage Corporation shall implement 
policies to reduce the putback risk, including any putback risk 
associated with loan refinancing, regardless of the loan-to-value ratio 
on that mortgage, to be consistent with those of the Federal National 
Mortgage Association in effect as of February 1, 2012.
    (b) Applicability to Financial Institutions.--The enterprises shall 
apply the same putback risks, including any putback risk identified in 
subsection (a), to all financial institutions that refinance mortgage 
loans owned or guaranteed by an enterprise, regardless of whether the 
loans being refinanced were originated by the same institution that is 
originating the new loan.
    (c) Application of Section.--The policies implemented under 
subsection (a) and the provisions of subsection (b) shall only apply to 
loans with a resettlement date on or before May 31, 2009.

SEC. 5. WAIVER AUTHORITY.

    The Director may waive any rule under section 3 or the application 
of the putback risk described in section 4, if the Director certifies 
in writing to Congress that the safety and soundness of the enterprise 
is put at risk by the applicability of the putback risk.

SEC. 6. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to affect, be applicable to, 
or include purchase money originations.

SEC. 7. REPORT TO CONGRESS.

    Not later than 24 months after the date of enactment of this Act, 
the Director shall submit a report to Congress on the implementation of 
the provisions of this Act.
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