[Congressional Record Volume 143, Number 160 (Thursday, November 13, 1997)]
[Senate]
[Pages S12619-S12625]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                THE HOMEOWNERS INSURANCE PROTECTION ACT

                                 ______
                                 

                       D'AMATO AMENDMENT NO. 1637

  Mr. LOTT (for Mr. D'Amato) proposed an amendment to the bill (H.R. 
607) to amend the Truth in Lending Act to require notice of 
cancellation rights with respect to private mortgage insurance which is 
required by a creditor as a condition for entering into a residential 
mortgage transaction, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

             TITLE I--SENIOR CITIZEN HOME EQUITY PROTECTION

Sec. 101. Short title.

           Subtitle A--Senior Citizen Home Equity Protection

Sec. 111. Disclosure requirements; prohibition of funding of 
              unnecessary or excessive costs.
Sec. 112. Implementation.

Subtitle B--Temporary Extension of Public Housing and Section 8 Rental 
                         Assistance Provisions

Sec. 121. Public housing ceiling rents and income adjustments and 
              preferences for assisted housing.
Sec. 122. Public housing demolition and disposition.
Sec. 123. Public housing funding flexibility and mixed-finance 
              developments.
Sec. 124. Minimum rents.
Sec. 125. Provisions relating to section 8 rental assistance program.

 Subtitle C--Reauthorization of Federally Assisted Multifamily Rental 
                           Housing Provisions

Sec. 131. Multifamily housing finance pilot programs.
Sec. 132. Hud disposition of multifamily housing.
Sec. 133. Multifamily mortgage auctions.
Sec. 134. Clarification of owner's right to prepay.

         Subtitle D--Reauthorization of Rural Housing Programs

Sec. 141. Housing in underserved areas program.
Sec. 142. Housing and related facilities for elderly persons and 
              families and other low-income persons and families.
Sec. 143. Loan guarantees for multifamily rental housing in rural 
              areas.

    Subtitle E--Reauthorization of National Flood Insurance Program

Sec. 151. Program expiration.
Sec. 152. Borrowing authority.
Sec. 153. Emergency implementation of program.
Sec. 154. Authorization of appropriations for studies.

             Subtitle F--Native American Housing Assistance

Sec. 161. Subsidy layering certification.
Sec. 162. Inclusion of homebuyer selection policies and criteria.
Sec. 163. Repayment of grant amounts for violation of affordable 
              housing requirement.
Sec. 164. United States Housing Act of 1937.
Sec. 165. Miscellaneous.

                  TITLE II--HOMEOWNERS PROTECTION ACT

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Termination of private mortgage insurance.
Sec. 204. Disclosure requirements.
Sec. 205. Notification upon cancellation or termination.
Sec. 206. Disclosure requirements for lender paid mortgage insurance.
Sec. 207. Fees for disclosures.
Sec. 208. Civil liability.
Sec. 209. Effect on other laws and agreements.
Sec. 210. Enforcement.
Sec. 211. Construction.
Sec. 212. Effective date.

  TITLE III--ABOLISHMENT OF THE THRIFT DEPOSITOR PROTECTION OVERSIGHT 
                                 BOARD

Sec. 301. Abolishment.

[[Page S12620]]

             TITLE I--SENIOR CITIZEN HOME EQUITY PROTECTION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Senior Citizen Home Equity 
     Protection Act''.
           Subtitle A--Senior Citizen Home Equity Protection

     SEC. 111. DISCLOSURE REQUIREMENTS; PROHIBITION OF FUNDING OF 
                   UNNECESSARY OR EXCESSIVE COSTS.

       Section 255(d) of the National Housing Act (12 U.S.C. 
     1715z-20(d)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (C) by inserting after subparagraph (B) the following:
       ``(C) has received full disclosure of all costs to the 
     mortgagor for obtaining the mortgage, including any costs of 
     estate planning, financial advice, or other related services; 
     and'';
       (2) in paragraph (9)(F), by striking ``and'';
       (3) in paragraph (10), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(11) have been made with such restrictions as the 
     Secretary determines to be appropriate to ensure that the 
     mortgagor does not fund any unnecessary or excessive costs 
     for obtaining the mortgage, including any costs of estate 
     planning, financial advice, or other related services.''.

     SEC. 112. IMPLEMENTATION.

       (a) Notice.--The Secretary of Housing and Urban Development 
     shall, by interim notice, implement the amendments made by 
     section 111 in an expeditious manner, as determined by the 
     Secretary. Such notice shall not be effective after the date 
     of the effectiveness of the final regulations issued under 
     subsection (b).
       (b) Regulations.--The Secretary shall, not later than the 
     expiration of the 90-day period beginning on the date of 
     enactment of this Act, issue final regulations to implement 
     the amendments made by section 111. Such regulations shall be 
     issued only after notice and opportunity for public comment 
     pursuant to the provisions of section 553 of title 5, United 
     States Code (notwithstanding subsections (a)(2) and (b)(3)(B) 
     of that section).
Subtitle B--Temporary Extension of Public Housing and Section 8 Rental 
                         Assistance Provisions

     SEC. 121. PUBLIC HOUSING CEILING RENTS AND INCOME ADJUSTMENTS 
                   AND PREFERENCES FOR ASSISTED HOUSING.

       Section 402(f) of The Balanced Budget Downpayment Act, I 
     (42 U.S.C. 1437aa note) is amended by striking ``and 1997'' 
     and inserting ``, 1997, and 1998''.

     SEC. 122. PUBLIC HOUSING DEMOLITION AND DISPOSITION.

       Section 1002(d) of the Emergency Supplemental 
     Appropriations for Additional Disaster Assistance, for Anti-
     terrorism Initiatives, for Assistance in the Recovery from 
     the Tragedy that Occurred at Oklahoma City, and Rescissions 
     Act, 1995 (42 U.S.C. 1437c note) is amended by striking 
     ``September 30, 1997'' and inserting ``September 30, 1998''.

     SEC. 123. PUBLIC HOUSING FUNDING FLEXIBILITY AND MIXED-
                   FINANCE DEVELOPMENTS.

       (a) Extension of Authority.--Section 201(a)(2) of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1996 (42 U.S.C. 1437l note) is amended to read as follows:
       ``(2) Applicability.--Section 14(q) of the United States 
     Housing Act of 1937 shall be effective only with respect to 
     assistance provided from funds made available for fiscal year 
     1998 or any preceding fiscal year, except that the authority 
     in the first sentence of section 14(q)(1) of that Act to use 
     up to 10 percent of the allocation of certain funds for any 
     operating subsidy purpose shall not apply to amounts made 
     available for fiscal year 1998.''.
       (b) Mixed Finance.--Section 14(q)(1) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437l(q)(1)) is amended by 
     inserting after the first sentence the following: ``Such 
     assistance may involve the drawdown of funds on a schedule 
     commensurate with construction draws for deposit into an 
     interest earning escrow account to serve as collateral or 
     credit enhancement for bonds issued by a public agency for 
     the construction or rehabilitation of the development.''.

     SEC. 124. MINIMUM RENTS.

       Section 402(a) of The Balanced Budget Downpayment Act, I 
     (Public Law 104-99; 110 Stat. 40) is amended in the matter 
     preceding paragraph (1) by striking ``fiscal year 1997'' and 
     inserting ``fiscal years 1997 and 1998''.

     SEC. 125. PROVISIONS RELATING TO SECTION 8 RENTAL ASSISTANCE 
                   PROGRAM.

       Section 203(d) of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1996 (as contained in section 101(e) of 
     the Omnibus Consolidated Rescissions and Appropriations Act 
     of 1996 (Public Law 104-134)) (42 U.S.C. 1437f note) is 
     amended by striking ``and 1997'' and inserting ``, 1997, and 
     1998''.
 Subtitle C--Reauthorization of Federally Assisted Multifamily Rental 
                           Housing Provisions

     SEC. 131. MULTIFAMILY HOUSING FINANCE PILOT PROGRAMS.

       Section 542 of the Housing and Community Development Act of 
     1992 (12 U.S.C. 1707 note) is amended--
       (1) in subsection (b)(5), by inserting before the period at 
     the end of the first sentence the following: ``, and not more 
     than an additional 15,000 units during fiscal year 1998''; 
     and
       (2) in the first sentence of subsection (c)(4)--
       (A) by striking ``and'' and inserting a comma; and
       (B) by inserting before the period at the end the 
     following: ``, and not more than an additional 15,000 units 
     during fiscal year 1998''.

     SEC. 132. HUD DISPOSITION OF MULTIFAMILY HOUSING.

       Section 204 of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is amended by 
     inserting after ``owned by the Secretary'' the following: ``, 
     including the provision of grants and loans from the General 
     Insurance Fund for the necessary costs of rehabilitation or 
     demolition,''.

     SEC. 133. MULTIFAMILY MORTGAGE AUCTIONS.

       Section 221(g)(4)(C) of the National Housing Act (12 U.S.C. 
     1715l(g)(4)(C)) is amended--
       (1) in the first sentence of clause (viii), by striking 
     ``September 30, 1996'' and inserting ``December 31, 2000''; 
     and
       (2) by adding at the end the following:
       ``(ix) The authority of the Secretary to conduct 
     multifamily auctions under this subparagraph shall be 
     effective for any fiscal year only to the extent and in such 
     amounts as are approved in appropriations Acts for the costs 
     of loan guarantees (as defined in section 502 of the 
     Congressional Budget Act of 1974), including the cost of 
     modifying loans.''.

     SEC. 134. CLARIFICATION OF OWNER'S RIGHT TO PREPAY.

       (a) Prepayment Right.--Notwithstanding section 211 of the 
     Housing and Community Development Act of 1987 or section 221 
     of the Housing and Community Development Act of 1987 (as in 
     effect pursuant to section 604(c) of the Cranston-Gonzalez 
     National Affordable Housing Act), subject to subsection (b), 
     with respect to any project that is eligible low-income 
     housing (as that term is defined in section 229 of the 
     Housing and Community Development Act of 1987)--
       (1) the owner of the project may prepay, and the mortgagee 
     may accept prepayment of, the mortgage on the project, and
       (2) the owner may request voluntary termination of a 
     mortgage insurance contract with respect to such project and 
     the contract may be terminated notwithstanding any 
     requirements under sections 229 and 250 of the National 
     Housing Act.
       (b) Conditions.--Any prepayment of a mortgage or 
     termination of an insurance contract authorized under 
     subsection (a) may be made--
       (1) only to the extent that such prepayment or termination 
     is consistent with the terms and conditions of the mortgage 
     on or mortgage insurance contract for the project; and
       (2) only if owner of the project involved agrees not to 
     increase the rent charges for any dwelling unit in the 
     project during the 60-day period beginning upon such 
     prepayment or termination.
       (c) Applicability.--This section shall apply only during 
     the period beginning on October 1, 1997, and ending at the 
     end of September 30, 1998.
         Subtitle D--Reauthorization of Rural Housing Programs

     SEC. 141. HOUSING IN UNDERSERVED AREAS PROGRAM.

       The first sentence of section 509(f)(4)(A) of the Housing 
     Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended by striking 
     ``fiscal year 1997'' and inserting ``fiscal years 1997, 1998, 
     and 1999''.

     SEC. 142. HOUSING AND RELATED FACILITIES FOR ELDERLY PERSONS 
                   AND FAMILIES AND OTHER LOW-INCOME PERSONS AND 
                   FAMILIES.

       (a) Authority To Make Loans.--Section 515(b)(4) of the 
     Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by 
     striking ``September 30, 1997'' and inserting ``September 30, 
     1999''.
       (b) Set-Aside for Nonprofit Entities.--The first sentence 
     of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 
     1485(w)(1)) is amended by striking ``fiscal year 1997'' and 
     inserting ``fiscal years 1997, 1998, and 1999''.

     SEC. 143. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN 
                   RURAL AREAS.

       Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p-2) 
     is amended--
       (1) in subsection (q), by striking paragraph (2) and 
     inserting the following:
       ``(2) Annual limitation on amount of loan guarantee.--In 
     each fiscal year, the Secretary may enter into commitments to 
     guarantee loans under this section only to the extent that 
     the costs of the guarantees entered into in such fiscal year 
     do not exceed such amount as may be provided in appropriation 
     Acts for such fiscal year.'';
       (2) by striking subsection (t) and inserting the following:
       ``(t) Authorization of Appropriations.--There are 
     authorized to be appropriated for each of fiscal years 1998 
     and 1999 for costs (as such term is defined in section 502 of 
     the Congressional Budget Act of 1974) of loan guarantees made 
     under this section such sums as may be necessary for such 
     fiscal year.''; and

[[Page S12621]]

       (3) in subsection (u), by striking ``1996'' and inserting 
     ``1999''.
    Subtitle E--Reauthorization of National Flood Insurance Program

     SEC. 151. PROGRAM EXPIRATION.

       Section 1319 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4026) is amended by striking ``September 30, 
     1997'' and inserting ``September 30, 1999''.

     SEC. 152. BORROWING AUTHORITY.

       Section 1309(a)(2) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4016(a)(2)) is amended by striking 
     ``September 30, 1997'' and inserting ``September 30, 1999''.

     SEC. 153. EMERGENCY IMPLEMENTATION OF PROGRAM.

       Section 1336(a) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4056(a)) is amended by striking ``September 30, 
     1996'' and inserting ``September 30, 1999''.

     SEC. 154. AUTHORIZATION OF APPROPRIATIONS FOR STUDIES.

       Subsection (c) of section 1376 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4127(c)) is amended to read 
     as follows:
       ``(c) For studies under this title, there are authorized to 
     be appropriated such sums as may be necessary for each of 
     fiscal years 1998 and 1999, which shall remain available 
     until expended.''.
             Subtitle F--Native American Housing Assistance

     SEC. 161. SUBSIDY LAYERING CERTIFICATION.

       Section 206 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4136) is amended--
       (1) by striking ``certification by the Secretary'' and 
     inserting ``certification by a recipient to the Secretary''; 
     and
       (2) by striking ``any housing project'' and inserting ``the 
     housing project involved''.

     SEC. 162. INCLUSION OF HOMEBUYER SELECTION POLICIES AND 
                   CRITERIA.

       Section 207(b) of the Native American Housing Assistance 
     and Self-Determination Act of 1996 (25 U.S.C. 4137(b)) is 
     amended--
       (1) by striking ``Tenant Selection.--'' and inserting 
     ``Tenant and Homebuyer 
     Selection.--'';
       (2) in the matter preceding paragraph (1), by inserting 
     ``and homebuyer'' after ``tenant''; and
       (3) in paragraph (3)(A), by inserting ``and homebuyers'' 
     after ``tenants''.

     SEC. 163. REPAYMENT OF GRANT AMOUNTS FOR VIOLATION OF 
                   AFFORDABLE HOUSING REQUIREMENT.

       Section 209 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4139) is amended by 
     striking ``section 205(2)'' and inserting ``section 
     205(a)(2)''.

     SEC. 164. UNITED STATES HOUSING ACT OF 1937.

       (a) In General.--Section 501(b) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (110 
     Stat. 4042) is amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraphs (5) through (11) as 
     paragraphs (4) through (10), respectively.
       (b) United States Housing Act of 1937.--Section 7 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437e) is 
     amended by striking subsection (h).

     SEC. 165. MISCELLANEOUS.

       (a) Definition of Indian Areas.--Section 4(10) of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4103(10)) is amended to read as follows:
       ``(10) Indian area.--The term `Indian area' means the area 
     within which an Indian tribe or a tribally designated housing 
     entity, as authorized by 1 or more Indian tribes, provides 
     assistance under this Act for affordable housing.''.
       (b) Cross-Reference.--Section 4(12)(C)(i)(II) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4103(12)(C)(i)(II)) is amended by striking 
     ``section 107'' and inserting ``section 705''.
       (c) Clarification of Certain Exemptions.--Section 101(c) of 
     the Native American Housing Assistance and Self-Determination 
     Act of 1996 (25 U.S.C. 4111(c)) is amended by adding at the 
     end the following: ``This subsection applies only to rental 
     dwelling units (other than lease-purchase dwelling units) 
     developed under--
       ``(1) the United States Housing Act of 1937 (42 U.S.C. 1437 
     et seq.); or
       ``(2) this Act.''.
       (d) Applicability.--Section 101(d)(1) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4111(d)(1)) is amended by inserting before 
     the semicolon at the end the following: ``, except that this 
     paragraph only applies to rental dwelling units (other than 
     lease-purchase dwelling units) developed under the United 
     States Housing Act of 1937 (42 U.S.C. 1437 et seq.) or under 
     this Act''.
       (e) Submission of Indian Housing Plan.--Section 102(a) of 
     the Native American Housing Assistance and Self-Determination 
     Act of 1996 (25 U.S.C. 4112(a)) is amended--
       (1) in paragraph (1), by inserting ``(A)'' after ``(1)'';
       (2) in paragraph (1)(A), as so designated by paragraph (1) 
     of this subsection, by adding ``or'' at the end;
       (3) by striking ``(2)'' and inserting ``(B)''; and
       (4) by striking ``(3)'' and inserting ``(2)''.
       (f) Clarification.--Section 103(c)(3) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4113(c)(3)) is amended by inserting ``not'' 
     before ``prohibited''.
       (g) Applicability of Provisions of Civil Rights.--Section 
     201(b)(5) of the Native American Housing Assistance and Self-
     Determination Act of 1996 (25 U.S.C. 4131(b)(5)) is amended--
       (1) by striking ``Indian tribes'' and inserting ``federally 
     recognized tribes and the tribally designated housing 
     entities of those tribes''; and
       (2) by striking ``under this subsection'' and inserting 
     ``under this Act''.
       (h) Eligibility.--Section 205(a)(1) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4135(a)(1)) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end; 
     and
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) in the case of a contract to purchase existing 
     housing, is made available for purchase only by a family that 
     is a low-income family at the time of purchase;
       ``(C) in the case of a lease-purchase agreement for 
     existing housing or for housing to be constructed, is made 
     available for lease-purchase only by a family that is a low-
     income family at the time the agreement is entered into; and
       ``(D) in the case of a contract to purchase housing to be 
     constructed, is made available for purchase only by a family 
     that is a low-income family at the time the contract is 
     entered into; and''.
       (i) Tenant Selection.--Section 207(b)(3)(B) of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4137(b)(3)(B)) is amended by striking ``of 
     any rejected applicant of the grounds for any rejection'' and 
     inserting ``to any rejected applicant of that rejection and 
     the grounds for that rejection''.
       (j) Availability of Records.--Section 208 of the Native 
     American Housing Assistance and Self-Determination Act of 
     1996 (25 U.S.C. 4138) is amended--
       (1) in subsection (a), by striking ``paragraph (2)'' and 
     inserting ``subsection (b)''; and
       (2) in subsection (b), by striking ``paragraph (1)'' and 
     inserting ``subsection (a)''.
       (k) IHP Requirement.--Section 184(b)(2) of the Housing and 
     Community Development Act of 1992 (12 U.S.C. 1715z-13a(b)(2)) 
     is amended by striking ``that is under the jurisdiction of an 
     Indian tribe'' and all that follows before the period at the 
     end.
       (l) Authorization of Appropriations.--Section 184(i)(5)(C) 
     of the Housing and Community Development Act of 1992 (12 
     U.S.C. 1715z-13a(i)(5)(C)) is amended by striking ``note'' 
     and inserting ``not''.
       (m) Environmental Review Under the Indian Housing Loan 
     Guarantee Program.--Section 184 of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
       (1) by redesignating subsection (k) as subsection (l); and
       (2) by inserting after subsection (j) the following:
       ``(k) Environmental Review.--For purposes of environmental, 
     review, decisionmaking, and action under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
     any other law that furthers the purposes of that Act, a loan 
     guarantee under this section shall--
       ``(1) be treated as a grant under the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4101 et seq.); and
       ``(2) be subject to the regulations promulgated by the 
     Secretary to carry out section 105 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4115).''.
       (n) Public Availability of Information.--
       (1) In general.--Title IV of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 4161 
     et seq.) is amended by adding at the end the following:

     ``SEC. 408. PUBLIC AVAILABILITY OF INFORMATION.

       ``Each recipient shall make any housing plan, policy, or 
     annual report prepared by the recipient available to the 
     general public.''.
       (2) Table of contents.--Section 1(b) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4101 note) is amended in the table of contents by 
     inserting after the item relating to section 407 the 
     following:

``Sec. 408. Public availability of information.''.

       (o) Non-Federal Funds.--Section 520(l)(5)(B) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     11903a(l)(5)(B)) is amended by striking ``and Indian housing 
     authorities'' and inserting ``and units of general local 
     government''.
       (p) Ineligibility of Indian Tribes.--Section 460 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12899h-1) is amended by striking ``fiscal year 1997'' and 
     inserting ``fiscal year 1998''.
       (q) Indian Housing Early Childhood Development Program.--
       (1) Repeal.--Section 518 of the Cranston-Gonzalez National 
     Affordable Housing Act (12 U.S.C. 1701z-11 note) is repealed.
       (2) Technical correction.--
       (A) In general.--Section 501(d)(1) of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (110 
     Stat. 4042), and the amendment made by that section, is 
     repealed.
       (B) Applicability.--Section 519 of Cranston-Gonzalez 
     National Affordable Housing

[[Page S12622]]

     Act (42 U.S.C. 1437a-1) shall be applied and administered as 
     if section 501(d)(1) of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (104 Stat. 
     4042) had not been enacted.
       (3) Effective date.--This subsection and the amendments 
     made by this subsection shall be construed to have taken 
     effect on October 26, 1996.
       (r) Tribal Eligibility Under the Drug Elimination 
     Program.--The Public and Assisted Housing Elimination Act of 
     1990 (42 U.S.C. 11901 et seq.) is amended--
       (1) in section 5123, by inserting ``Indian tribes,'' after 
     ``tribally designated housing entities,'';
       (2) in section 5124(a)(7), by inserting ``, Indian tribe,'' 
     after ``agency'';
       (3) in section 5125(a), by inserting ``Indian tribe,'' 
     after ``entity,''; and
       (4) in section 5126, by adding at the end the following:
       ``(6) Indian tribe.--The term `Indian tribe' has the 
     meaning given that term in section 4 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4103).''.
       (s) Reference in the Public and Assisted Housing Drug 
     Elimination Act of 1990.--Section 5126(4)(D) of the Public 
     and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 
     11905(4)(D)) is amended by inserting ``of 1996'' before the 
     period.
                  TITLE II--HOMEOWNERS PROTECTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Homeowners Protection Act 
     of 1997''.

     SEC. 202. DEFINITIONS.

       In this title, the following definitions shall apply:
       (1) Adjustable rate mortgage.--The term ``adjustable rate 
     mortgage'' means a residential mortgage that has an interest 
     rate that is subject to change.
       (2) Cancellation date.--The term ``cancellation date'' 
     means--
       (A) with respect to a fixed rate mortgage, at the option of 
     the mortgagor, the date on which the principal balance of the 
     mortgage--
       (i) based solely on the initial amortization schedule for 
     that mortgage, and irrespective of the outstanding balance 
     for that mortgage on that date, is first scheduled to reach 
     80 percent of the original value of the property securing the 
     loan; or
       (ii) based solely on actual payments, reaches 80 percent of 
     the original value of the property securing the loan; and
       (B) with respect to an adjustable rate mortgage, at the 
     option of the mortgagor, the date on which the principal 
     balance of the mortgage--
       (i) based solely on amortization schedules for that 
     mortgage, and irrespective of the outstanding balance for 
     that mortgage on that date, is first scheduled to reach 80 
     percent of the original value of the property securing the 
     loan; or
       (ii) based solely on actual payments, first reaches 80 
     percent of the original value of the property securing the 
     loan.
       (3) Fixed rate mortgage.--The term ``fixed rate mortgage'' 
     means a residential mortgage that has an interest rate that 
     is not subject to change.
       (4) Good payment history.--The term ``good payment 
     history'' means, with respect to a mortgagor, that the 
     mortgagor has not--
       (A) made a mortgage payment that was 60 days or longer past 
     due during the 12-month period beginning 24 months before the 
     date on which the mortgage reaches the cancellation date; or
       (B) made a mortgage payment that was 30 days or longer past 
     due during the 12-month period preceding the date on which 
     the mortgage reaches the cancellation date.
       (5) Initial amortization schedule.--The term ``initial 
     amortization schedule'' means a schedule established at the 
     time at which a residential mortgage transaction is 
     consummated with respect to a fixed rate mortgage, showing--
       (A) the amount of principal and interest that is due at 
     regular intervals to retire the principal balance and accrued 
     interest over the amortization period of the loan; and
       (B) the unpaid principal balance of the loan after each 
     scheduled payment is made.
       (6) Mortgage insurance.--The term ``mortgage insurance'' 
     means insurance, including any mortgage guaranty insurance, 
     against the nonpayment of, or default on, an individual 
     mortgage or loan involved in a residential mortgage 
     transaction.
       (7) Mortgage insurer.--The term ``mortgage insurer'' means 
     a provider of private mortgage insurance, as described in 
     this title, that is authorized to transact such business in 
     the State in which the provider is transacting such business.
       (8) Mortgagee.--The term ``mortgagee'' means the holder of 
     a residential mortgage at the time at which that mortgage 
     transaction is consummated.
       (9) Mortgagor.--The term ``mortgagor'' means the original 
     borrower under a residential mortgage or his or her 
     successors or assignees.
       (10) Original value.--The term ``original value'', with 
     respect to a residential mortgage, means the lesser of the 
     sales price of the property securing the mortgage, as 
     reflected in the contract, or the appraised value at the time 
     at which the subject residential mortgage transaction was 
     consummated.
       (11) Private mortgage insurance.--The term ``private 
     mortgage insurance'' means mortgage insurance other than 
     mortgage insurance made available under the National Housing 
     Act, title 38 of the United States Code, or title V of the 
     Housing Act of 1949.
       (12) Residential mortgage.--The term ``residential 
     mortgage'' means a mortgage, loan, or other evidence of a 
     security interest created with respect to a single-family 
     dwelling that is the primary residence of the mortgagor.
       (13) Residential mortgage transaction.--The term 
     ``residential mortgage transaction'' means a transaction 
     consummated on or after the date that is 1 year after the 
     date of enactment of this Act, in which a mortgage, deed of 
     trust, purchase money security interest arising under an 
     installment sales contract, or equivalent consensual security 
     interest is created or retained against a single-family 
     dwelling that is the primary residence of the mortgagor to 
     finance the acquisition, initial construction, or refinancing 
     of that dwelling.
       (14) Servicer.--The term ``servicer'' has the same meaning 
     as in section 6(i)(2) of the Real Estate Settlement 
     Procedures Act of 1974, with respect to a residential 
     mortgage.
       (15) Single-family dwelling.--The term ``single-family 
     dwelling'' means a residence consisting of 1 family dwelling 
     unit.
       (16) Termination date.--The term ``termination date'' 
     means--
       (A) with respect to a fixed rate mortgage, the date on 
     which the principal balance of the mortgage, based solely on 
     the initial amortization schedule for that mortgage, and 
     irrespective of the outstanding balance for that mortgage on 
     that date, is first scheduled to reach 78 percent of the 
     original value of the property securing the loan; and
       (B) with respect to an adjustable rate mortgage, the date 
     on which the principal balance of the mortgage, based solely 
     on amortization schedules for that mortgage, and irrespective 
     of the outstanding balance for that mortgage on that date, is 
     first scheduled to reach 78 percent of the original value of 
     the property securing the loan.

     SEC. 203. TERMINATION OF PRIVATE MORTGAGE INSURANCE.

       (a) Borrower Cancellation.--A requirement for private 
     mortgage insurance in connection with a residential mortgage 
     transaction shall be canceled on the cancellation date, if 
     the mortgagor--
       (1) submits a request in writing to the servicer that 
     cancellation be initiated;
       (2) has a good payment history with respect to the 
     residential mortgage; and
       (3) has satisfied any requirement of the holder of the 
     mortgage (as of the date of a request under paragraph (1)) 
     for--
       (A) evidence (of a type established in advance and made 
     known to the mortgagor by the servicer promptly upon receipt 
     of a request under paragraph (1)) that the value of the 
     property securing the mortgage has not declined below the 
     original value of the property; and
       (B) certification that the equity of the mortgagor in the 
     residence securing the mortgage is unencumbered by a 
     subordinate lien.
       (b) Automatic Termination.--A requirement for private 
     mortgage insurance in connection with a residential mortgage 
     transaction shall terminate with respect to payments for that 
     mortgage insurance made by the mortgagor--
       (1) on the termination date if, on that date, the mortgagor 
     is current on the payments required by the terms of the 
     residential mortgage transaction; or
       (2) on the date after the termination date on which the 
     mortgagor becomes current on the payments required by the 
     terms of the residential mortgage transaction.
       (c) Final Termination.--If a requirement for private 
     mortgage insurance is not otherwise canceled or terminated in 
     accordance with subsection (a) or (b), in no case may such a 
     requirement be imposed beyond the first day of the month 
     immediately following the date that is the midpoint of the 
     amortization period of the loan if the mortgagor is current 
     on the payments required by the terms of the mortgage.
       (d) No Further Payments.--No payments or premiums may be 
     required from the mortgagor in connection with a private 
     mortgage insurance requirement terminated or canceled under 
     this section--
       (1) in the case of cancellation under subsection (a), more 
     than 30 days after the later of--
       (A) the date on which a request under subsection (a)(1) is 
     received; or
       (B) the date on which the mortgagor satisfies any evidence 
     and certification requirements under subsection (a)(3);
       (2) in the case of termination under subsection (b), more 
     than 30 days after the termination date or the date referred 
     to in subsection (b)(2), as applicable; and
       (3) in the case of termination under subsection (c), more 
     than 30 days after the final termination date established 
     under that subsection.
       (e) Return of Unearned Premiums.--
       (1) In general.--Not later than 45 days after the 
     termination or cancellation of a private mortgage insurance 
     requirement under this section, all unearned premiums for 
     private mortgage insurance shall be returned to the mortgagor 
     by the servicer.
       (2) Transfer of funds to servicer.--Not later than 30 days 
     after notification by the servicer of termination or 
     cancellation of private mortgage insurance under this title 
     with respect to a mortgagor, a mortgage insurer that is in 
     possession of any unearned premiums of that mortgagor shall 
     transfer

[[Page S12623]]

     to the servicer of the subject mortgage an amount equal to 
     the amount of the unearned premiums for repayment in 
     accordance with paragraph (1).
       (f) Exceptions for High Risk Loans.--
       (1) In general.--The termination and cancellation 
     provisions in subsections (a) and (b) do not apply to any 
     residential mortgage or mortgage transaction that, at the 
     time at which the residential mortgage transaction is 
     consummated, has high risks associated with the extension of 
     the loan--
       (A) as determined in accordance with guidelines established 
     by the Federal National Mortgage Association or the Federal 
     Home Loan Mortgage Corporation, in the case of a mortgage 
     loan with an original principal balance that does not exceed 
     the applicable annual conforming loan limit for the secondary 
     market established pursuant to section 305(a)(2) of the 
     Federal Home Loan Mortgage Corporation Act, so as to require 
     the imposition or continuation of a private mortgage 
     insurance requirement beyond the terms specified in 
     subsection (a) or (b) of this section; or
       (B) as determined by the mortgagee in the case of any other 
     mortgage, except that termination shall occur--
       (i) with respect to a fixed rate mortgage, on the date on 
     which the principal balance of the mortgage, based solely on 
     the initial amortization schedule for that mortgage, and 
     irrespective of the outstanding balance for that mortgage on 
     that date, is first scheduled to reach 77 percent of the 
     original value of the property securing the loan; and
       (ii) with respect to an adjustable rate mortgage, on the 
     date on which the principal balance of the mortgage, based 
     solely on amortization schedules for that mortgage, and 
     irrespective of the outstanding balance for that mortgage on 
     that date, is first scheduled to reach 77 percent of the 
     original value of the property securing the loan.
       (2) Termination at midpoint.--A private mortgage insurance 
     requirement in connection with a residential mortgage or 
     mortgage transaction described in paragraph (1) shall 
     terminate in accordance with subsection (c).
       (3) Rule of construction.--Nothing in this subsection may 
     be construed to require a mortgage or mortgage transaction 
     described in paragraph (1)(A) to be purchased by the Federal 
     National Mortgage Association or the Federal Home Loan 
     Mortgage Corporation.

     SEC. 204. DISCLOSURE REQUIREMENTS.

       (a) Disclosures for New Mortgages at Time of Transaction.--
       (1) Disclosures for non-exempted transactions.--In any case 
     in which private mortgage insurance is required in connection 
     with a residential mortgage or mortgage transaction (other 
     than a mortgage or mortgage transaction described in section 
     203(f)(1)), at the time at which the transaction is 
     consummated, the mortgagee shall provide to the mortgagor--
       (A) if the transaction relates to a fixed rate mortgage--
       (i) a written initial amortization schedule; and
       (ii) written notice--

       (I) that the mortgagor may cancel the requirement in 
     accordance with section 203(a) of this Act indicating the 
     date on which the mortgagor may request cancellation, based 
     solely on the initial amortization schedule;
       (II) that the mortgagor may request cancellation in 
     accordance with section 203(a) of this Act earlier than 
     provided for in the initial amortization schedule, based on 
     actual payments;
       (III) that the requirement for private mortgage insurance 
     will automatically terminate on the termination date in 
     accordance with section 203(b) of this Act, and what that 
     termination date is with respect to that mortgage; and
       (IV) that there are exemptions to the right to cancellation 
     and automatic termination of a requirement for private 
     mortgage insurance in accordance with section 203(f) of this 
     Act, and whether such an exemption applies at that time to 
     that transaction; and

       (B) if the transaction relates to an adjustable rate 
     mortgage, a written notice that--
       (i) the mortgagor may cancel the requirement in accordance 
     with section 203(a) of this Act on the cancellation date, and 
     that the servicer will notify the mortgagor when the 
     cancellation date is reached;
       (ii) the requirement for private mortgage insurance will 
     automatically terminate on the termination date, and that on 
     the termination date, the mortgagor will be notified of the 
     termination or that the requirement will be terminated as 
     soon as the mortgagor is current on loan payments; and
       (iii) there are exemptions to the right of cancellation and 
     automatic termination of a requirement for private mortgage 
     insurance in accordance with section 203(f) of this Act, and 
     whether such an exemption applies at that time to that 
     transaction.
       (2) Disclosures for excepted transactions.--In the case of 
     a mortgage or mortgage transaction described in section 
     203(f)(1), at the time at which the transaction is 
     consummated, the mortgagee shall provide written notice to 
     the mortgagor that in no case may private mortgage insurance 
     be required beyond the date that is the midpoint of the 
     amortization period of the loan, if the mortgagor is current 
     on payments required by the terms of the residential 
     mortgage.
       (3) Annual disclosures.--If private mortgage insurance is 
     required in connection with a residential mortgage 
     transaction, the servicer shall disclose to the mortgagor in 
     each such transaction in an annual written statement--
       (A) the rights of the mortgagor under this title to 
     cancellation or termination of the private mortgage insurance 
     requirement; and
       (B) an address and telephone number that the mortgagor may 
     use to contact the servicer to determine whether the 
     mortgagor may cancel the private mortgage insurance.
       (4) Applicability.--Paragraphs (1) through (3) shall apply 
     with respect to each residential mortgage transaction 
     consummated on or after the date that is 1 year after the 
     date of enactment of this Act.
       (b) Disclosures for Existing Mortgages.--If private 
     mortgage insurance was required in connection with a 
     residential mortgage entered into at any time before the 
     effective date of this title, the servicer shall disclose to 
     the mortgagor in each such transaction in an annual written 
     statement--
       (1) that the private mortgage insurance may, under certain 
     circumstances, be canceled by the mortgagor (with the consent 
     of the mortgagee or in accordance with applicable State law); 
     and
       (2) an address and telephone number that the mortgagor may 
     use to contact the servicer to determine whether the 
     mortgagor may cancel the private mortgage insurance.
       (c) Inclusion in Other Annual Notices.--The information and 
     disclosures required under subsection (b) and paragraphs 
     (1)(B) and (3) of subsection (a) may be provided on the 
     annual disclosure relating to the escrow account made as 
     required under the Real Estate Settlement Procedures Act of 
     1974, or as part of the annual disclosure of interest 
     payments made pursuant to Internal Revenue Service 
     regulations, and on a form promulgated by the Internal 
     Revenue Service for that purpose.
       (d) Standardized Forms.--The mortgagee or servicer may use 
     standardized forms for the provision of disclosures required 
     under this section.

     SEC. 205. NOTIFICATION UPON CANCELLATION OR TERMINATION.

       (a) In General.--Not later than 30 days after the date of 
     cancellation or termination of a private mortgage insurance 
     requirement in accordance with this title, the servicer shall 
     notify the mortgagor in writing--
       (1) that the private mortgage insurance has terminated and 
     that the mortgagor no longer has private mortgage insurance; 
     and
       (2) that no further premiums, payments, or other fees shall 
     be due or payable by the mortgagor in connection with the 
     private mortgage insurance.
       (b) Notice of Grounds.--
       (1) In general.--If a servicer determines that a mortgage 
     did not meet the requirements for termination or cancellation 
     of private mortgage insurance under subsection (a) or (b) of 
     section 203, the servicer shall provide written notice to the 
     mortgagor of the grounds relied on to make the determination 
     (including the results of any appraisal used to make the 
     determination).
       (2) Timing.--Notice required by paragraph (1) shall be 
     provided--
       (A) with respect to cancellation of private mortgage 
     insurance under section 203(a), not later than 30 days after 
     the later of--
       (i) the date on which a request is received under section 
     203(a)(1); or
       (ii) the date on which the mortgagor satisfies any evidence 
     and certification requirements under section 203(a)(3); and
       (B) with respect to termination of private mortgage 
     insurance under section 203(b), not later than 30 days after 
     the scheduled termination date.

     SEC. 206. DISCLOSURE REQUIREMENTS FOR LENDER PAID MORTGAGE 
                   INSURANCE.

       (a) Definitions.--For purposes of this section--
       (1) the term ``borrower paid mortgage insurance'' means 
     private mortgage insurance that is required in connection 
     with a residential mortgage transaction, payments for which 
     are made by the borrower;
       (2) the term ``lender paid mortgage insurance'' means 
     private mortgage insurance that is required in connection 
     with a residential mortgage transaction, payments for which 
     are made by a person other than the borrower; and
       (3) the term ``loan commitment'' means a prospective 
     mortgagee's written confirmation of its approval, including 
     any applicable closing conditions, of the application of a 
     prospective mortgagor for a residential mortgage loan.
       (b) Exclusion.--Sections 203 through 205 do not apply in 
     the case of lender paid mortgage insurance.
       (c) Notices to Mortgagor.--In the case of lender paid 
     mortgage insurance that is required in connection with a 
     residential mortgage or a residential mortgage transaction--
       (1) not later than the date on which a loan commitment is 
     made for the residential mortgage transaction, the 
     prospective mortgagee shall provide to the prospective 
     mortgagor a written notice--
       (A) that lender paid mortgage insurance differs from 
     borrower paid mortgage insurance, in that lender paid 
     mortgage insurance may not be canceled by the mortgagor, 
     while borrower paid mortgage insurance could be cancelable by 
     the mortgagor in accordance with section 203(a) of this Act, 
     and could automatically terminate on the termination date in 
     accordance with section 203(b) of this Act;

[[Page S12624]]

       (B) that lender paid mortgage insurance--
       (i) usually results in a residential mortgage having a 
     higher interest rate than it would in the case of borrower 
     paid mortgage insurance; and
       (ii) terminates only when the residential mortgage is 
     refinanced, paid off, or otherwise terminated;
       (C) that lender paid mortgage insurance and borrower paid 
     mortgage insurance both have benefits and disadvantages, 
     including a generic analysis of the differing costs and 
     benefits of a residential mortgage in the case lender paid 
     mortgage insurance versus borrower paid mortgage insurance 
     over a 10-year period, assuming prevailing interest and 
     property appreciation rates; and
       (D) that lender paid mortgage insurance may be tax-
     deductible for purposes of Federal income taxes, if the 
     mortgagor itemizes expenses for that purpose; and
       (2) not later than 30 days after the termination date that 
     would apply in the case of borrower paid mortgage insurance, 
     the servicer shall provide to the mortgagor a written notice 
     indicating that the mortgagor may wish to review financing 
     options that could eliminate the requirement for private 
     mortgage insurance in connection with the residential 
     mortgage.
       (d) Standard Forms.--The servicer of a residential mortgage 
     may develop and use a standardized form or forms for the 
     provision of notices to the mortgagor, as required under 
     subsection (c).

     SEC. 207. FEES FOR DISCLOSURES.

       No fee or other cost may be imposed on any mortgagor with 
     respect to the provision of any notice or information to the 
     mortgagor pursuant to this title.

     SEC. 208. CIVIL LIABILITY.

       (a) In General.--Any servicer, mortgagee, or mortgage 
     insurer that violates a provision of this title shall be 
     liable to each mortgagor to whom the violation relates for--
       (1) in the case of an action by an individual, or a class 
     action in which the liable party is not subject to section 
     210, any actual damages sustained by the mortgagor as a 
     result of the violation, including interest (at a rate 
     determined by the court) on the amount of actual damages, 
     accruing from the date on which the violation commences;
       (2) in the case of--
       (A) an action by an individual, such statutory damages as 
     the court may allow, not to exceed $2,000; and
       (B) in the case of a class action--
       (i) in which the liable party is subject to section 210, 
     such amount as the court may allow, except that the total 
     recovery under this subparagraph in any class action or 
     series of class actions arising out of the same violation by 
     the same liable party shall not exceed the lesser of $500,000 
     or 1 percent of the net worth of the liable party, as 
     determined by the court; and
       (ii) in which the liable party is not subject to section 
     210, such amount as the court may allow, not to exceed $1000 
     as to each member of the class, except that the total 
     recovery under this subparagraph in any class action or 
     series of class actions arising out of the same violation by 
     the same liable party shall not exceed the lesser of $500,000 
     or 1 percent of the gross revenues of the liable party, as 
     determined by the court;
       (3) costs of the action; and
       (4) reasonable attorney fees, as determined by the court.
       (b) Timing of actions.--No action may be brought by a 
     mortgagor under subsection (a) later than 2 years after the 
     date of the discovery of the violation that is the subject of 
     the action.
       (c) Limitations on Liability.--
       (1) In general.--With respect to a residential mortgage 
     transaction, the failure of a servicer to comply with the 
     requirements of this title due to the failure of a mortgage 
     insurer or a mortgagee to comply with the requirements of 
     this title, shall not be construed to be a violation of this 
     title by the servicer.
       (2) Rule of construction.--Nothing in paragraph (1) shall 
     be construed to impose any additional requirement or 
     liability on a mortgage insurer, a mortgagee, or a holder of 
     a residential mortgage.

     SEC. 209. EFFECT ON OTHER LAWS AND AGREEMENTS.

       (a) Effect on State Law.--
       (1) In general.--With respect to any residential mortgage 
     or residential mortgage transaction consummated after the 
     effective date of this title, and except as provided in 
     paragraph (2), the provisions of this title shall supersede 
     any provisions of the law of any State relating to 
     requirements for obtaining or maintaining private mortgage 
     insurance in connection with residential mortgage 
     transactions, cancellation or automatic termination of such 
     private mortgage insurance, any disclosure of information 
     addressed by this title, and any other matter specifically 
     addressed by this title.
       (2) Continued application of certain provisions.--This 
     title does not supersede any provision of the law of a State 
     in effect on or before September 1, 1989, pertaining to the 
     termination of private mortgage insurance or other mortgage 
     guaranty insurance, to the extent that such law requires 
     termination of such insurance at an earlier date or when a 
     lower mortgage loan principal balance is achieved than as 
     provided in this title.
       (b) Effect on Other Agreements.--The provisions of this 
     title shall supersede any conflicting provision contained in 
     any agreement relating to the servicing of a residential 
     mortgage loan entered into by the Federal National Mortgage 
     Association, the Federal Home Loan Mortgage Corporation, or 
     any private investor or note holder (or any successors 
     thereto).

     SEC. 210. ENFORCEMENT.

       (a) In General.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act--
       (A) by the appropriate Federal banking agency (as defined 
     in section 3(q) of the Federal Deposit Insurance Act) in the 
     case of insured depository institutions (as defined in 
     section 3(c)(2) of that Act);
       (B) by the Federal Deposit Insurance Corporation in the 
     case of depository institutions described in clause (i), 
     (ii), or (iii) of section 19(b)(1)(A) of the Federal Reserve 
     Act that are not insured depository institutions (as defined 
     in section 3(c)(2) of the Federal Deposit Insurance Act); and
       (C) by the Director of the Office of Thrift Supervision in 
     the case of depository institutions described in clause (v) 
     and or (vi) of section 19(b)(1)(A) of the Federal Reserve Act 
     that are not insured depository institutions (as defined in 
     section 3(c)(2) of the Federal Deposit Insurance Act);
       (2) the Federal Credit Union Act, by the National Credit 
     Union Administration Board in the case of depository 
     institutions described in clause (iv) of section 19(b)(1)(A) 
     of the Federal Reserve Act; and
       (3) part C of title V of the Farm Credit Act of 1971 (12 
     U.S.C. 2261 et seq.), by the Farm Credit Administration in 
     the case of an institution that is a member of the Farm 
     Credit System.
       (b) Additional Enforcement Powers.--
       (1) Violation of this title treated as violation of other 
     acts.--For purposes of the exercise by any agency referred to 
     in subsection (a) of such agency's powers under any Act 
     referred to in such subsection, a violation of a requirement 
     imposed under this title shall be deemed to be a violation of 
     a requirement imposed under that Act.
       (2) Enforcement authority under other acts.--In addition to 
     the powers of any agency referred to in subsection (a) under 
     any provision of law specifically referred to in such 
     subsection, each such agency may exercise, for purposes of 
     enforcing compliance with any requirement imposed under this 
     title, any other authority conferred on such agency by law.
       (c) Enforcement and Reimbursement.--In carrying out its 
     enforcement activities under this section, each agency 
     referred to in subsection (a) shall--
       (1) notify the mortgagee or servicer of any failure of the 
     mortgagee or servicer to comply with 1 or more provisions of 
     this title;
       (2) with respect to each such failure to comply, require 
     the mortgagee or servicer, as applicable, to correct the 
     account of the mortgagor to reflect the date on which the 
     mortgage insurance should have been canceled or terminated 
     under this title; and
       (3) require the mortgagee or servicer, as applicable, to 
     reimburse the mortgagor in an amount equal to the total 
     unearned premiums paid by the mortgagor after the date on 
     which the obligation to pay those premiums ceased under this 
     title.

     SEC. 211. CONSTRUCTION.

       Nothing in this title shall be construed to impose any 
     requirement for private mortgage insurance in connection with 
     a residential mortgage transaction.

     SEC. 212. EFFECTIVE DATE.

       This title shall become effective 1 year after the date of 
     enactment of this Act.
  TITLE III--ABOLISHMENT OF THE THRIFT DEPOSITOR PROTECTION OVERSIGHT 
                                 BOARD

     SEC. 301. ABOLISHMENT.

       (a) In General.--Effective at the end of the 3-month period 
     beginning on the date of enactment of this Act, the Thrift 
     Depositor Protection Oversight Board established under 
     section 21A of the Federal Home Loan Bank Act (hereafter in 
     this section referred to as the ``Oversight Board'') is 
     hereby abolished.
       (b) Disposition of Affairs.--
       (1) Power of chairperson.--Effective on the date of 
     enactment of this Act, the Chairperson of the Oversight Board 
     (or the designee of the Chairperson) may exercise on behalf 
     of the Oversight Board any power of the Oversight Board 
     necessary to settle and conclude the affairs of the Oversight 
     Board.
       (2) Availability of funds.--Funds available to the 
     Oversight Board shall be available to the Chairperson of the 
     Oversight Board to pay expenses incurred in carrying out 
     paragraph (1).
       (c) Savings Provision.--
       (1) Existing rights, duties, and obligations not 
     affected.--No provision of this section shall be construed as 
     affecting the validity of any right, duty, or obligation of 
     the United States, the Oversight Board, the Resolution Trust 
     Corporation, or any other person that--
       (A) arises under or pursuant to the Federal Home Loan Bank 
     Act, or any other provision of law applicable with respect to 
     the Oversight Board; and
       (B) existed on the day before the abolishment of the 
     Oversight Board in accordance with subsection (a).
       (2) Continuation of suits.--No action or other proceeding 
     commenced by or against the Oversight Board with respect to 
     any function of the Oversight Board shall abate by reason of 
     the enactment of this section.
       (3) Liabilities.--

[[Page S12625]]

       (A) In general.--All liabilities arising out of the 
     operation of the Oversight Board during the period beginning 
     on August 9, 1989, and the date that is 3 months after the 
     date of enactment of this Act shall remain the direct 
     liabilities of the United States.
       (B) No substitution.--The Secretary of the Treasury shall 
     not be substituted for the Oversight Board as a party to any 
     action or proceeding referred to in subparagraph (A).
       (4) Continuations of orders, resolutions, determinations, 
     and regulations pertaining to the resolution funding 
     corporation.--
       (A) In general.--All orders, resolutions, determinations, 
     and regulations regarding the Resolution Funding Corporation 
     shall continue in effect according to the terms of such 
     orders, resolutions, determinations, and regulations until 
     modified, terminated, set aside, or superseded in accordance 
     with applicable law if such orders, resolutions, 
     determinations, or regulations--
       (i) have been issued, made, and prescribed, or allowed to 
     become effective by the Oversight Board, or by a court of 
     competent jurisdiction, in the performance of functions 
     transferred by this section; and
       (ii) are in effect at the end of the 3-month period 
     beginning on the date of enactment of this section.
       (B) Enforceability of orders, resolutions, determinations, 
     and regulations before transfer.--Before the effective date 
     of the transfer of the authority and duties of the Resolution 
     Funding Corporation to the Secretary of the Treasury under 
     subsection (d), all orders, resolutions, determinations, and 
     regulations pertaining to the Resolution Funding Corporation 
     shall be enforceable by and against the United States.
       (C) Enforceability of orders, resolutions, determinations, 
     and regulations after transfer.--On and after the effective 
     date of the transfer of the authority and duties of the 
     Resolution Funding Corporation to the Secretary of the 
     Treasury under subsection (d), all orders, resolutions, 
     determinations, and regulations pertaining to the Resolution 
     Funding Corporation shall be enforceable by and against the 
     Secretary of the Treasury.
       (d) Transfer of Thrift Depositor Protection Oversight Board 
     Authority and Duties of Resolution Funding Corporation to 
     Secretary of the Treasury.--Effective at the end of the 3-
     month period beginning on the date of enactment of this Act, 
     the authority and duties of the Oversight Board under 
     sections 21A(a)(6)(I) and 21B of the Federal Home Loan Bank 
     Act are transferred to the Secretary of the Treasury (or the 
     designee of the Secretary).
       (e) Membership of the Affordable Housing Advisory Board.--
     Effective on the date of enactment of this Act, section 
     14(b)(2) of the Resolution Trust Corporation Completion Act 
     (12 U.S.C. 1831q note) is amended--
       (1) by striking subparagraph (C); and
       (2) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively.
       (f) Time of Meetings of the Affordable Housing Advisory 
     Board.--
       (1) In general.--Section 14(b)(6)(A) of the Resolution 
     Trust Corporation Completion Act (12 U.S.C. 1831q note) is 
     amended--
       (A) by striking ``4 times a year, or more frequently if 
     requested by the Thrift Depositor Protection Oversight Board 
     or'' and inserting ``2 times a year or at the request of''; 
     and
       (B) by striking the second sentence.
       (2) Clerical amendment.--Section 14(b)(6)(A) of the 
     Resolution Trust Corporation Completion Act (12 U.S.C. 1831q 
     note) is amended, in the subparagraph heading, by striking 
     ``and location''.
       Amend the title so as to read: ``An Act to amend the 
     National Housing Act to prevent the funding of unnecessary or 
     excessive costs for obtaining a home equity conversion 
     mortgage, to require automatic cancellation and notice of 
     cancellation rights with respect to private mortgage 
     insurance required as a condition for entering into a 
     residential mortgage transaction, to abolish the Thrift 
     Depositor Protection Oversight Board, and for other 
     purposes.''.

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