[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3520 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3520

  To require a portion of closing costs to be paid by the enterprises 
   with respect to certain refinanced mortgage loans, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 2, 2012

 Mr. Merkley (for himself, Mr. Akaka, Mr. Begich, Mr. Blumenthal, Mr. 
 Franken, Ms. Landrieu, Mr. Lautenberg, and Mr. Levin) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To require a portion of closing costs to be paid by the enterprises 
   with respect to certain refinanced mortgage loans, and for other 
                               purposes.

    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 ``Rebuilding Equity Act of 2012''.

SEC. 2. REBUILDING EQUITY PROGRAM.

    (a) In General.--
            (1) Voluntary program.--The Federal National Mortgage 
        Association and the Federal Home Loan Mortgage Corporation (in 
        this Act referred to as the ``enterprises'') shall each 
        establish a voluntary program for borrowers described in 
        paragraph (2), under which the enterprises shall pay not more 
        than $1,000 of the closing costs associated with applying for 
        and receiving the refinancing when the borrower agrees to 
        refinance into a fully amortizing loan with a term of not 
        longer than 20 years.
            (2) Eligible borrowers.--The program required by paragraph 
        (1) shall be for any borrower--
                    (A) who qualifies for the Home Affordable Refinance 
                Program carried out by the enterprises;
                    (B) whose subject property has a loan-to-value 
                ratio of not less than 105 percent; and
                    (C) who refinances from a loan with an original 
                term of 30 years to a loan with a term of 20 years or 
                less.
    (b) Definitions.--As used in this section, the following 
definitions shall apply:
            (1) Loan-to-value ratio.--The term ``loan-to-value ratio'' 
        means the ratio of the amount of the primary mortgage on a 
        property to the value of that property.
            (2) Closing costs.--The term ``closing costs''--
                    (A) means all reasonable and actual costs charged 
                to the borrower by a third party to the refinancing 
                transaction;
                    (B) includes--
                            (i) appraisal and inspection fees;
                            (ii) fees associated with obtaining a 
                        borrower's credit report;
                            (iii) title insurance and title examination 
                        costs;
                            (iv) attorneys' fees associated with 
                        closing the transaction, other than attorneys' 
                        fees associated with disputes arising out of 
                        the transaction or otherwise ancillary to 
                        closing the transaction;
                            (v) document preparation costs, if 
                        completed by a third party not controlled by 
                        the lender;
                            (vi) transfer stamps, recording fees, 
                        courier fees, wire transfer fees, and 
                        reconveyance fees; and
                            (vii) test and certification fees; and
                    (C) does not include any costs charged to the 
                borrower by the lender, including--
                            (i) lender application fees; and
                            (ii) lender origination fees.
                                 <all>