[Congressional Record (Bound Edition), Volume 155 (2009), Part 15]
[House]
[Pages 19671-19672]
[From the U.S. Government Publishing Office, www.gpo.gov]




                RURAL HOMEOWNERS PROTECTION ACT OF 2009

  Mr. MOORE of Kansas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 2034) to permit refinancing of certain loans under 
the Rural Housing Service program for guaranteed loans for rural 
housing, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2034

       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 ``Rural Homeowners Protection 
     Act of 2009''.

     SEC. 2. SINGLE FAMILY HOUSING LOAN GUARANTEE PROGRAM.

       Subsection (h) of section 502 of the Housing Act of 1949 
     (42 U.S.C. 1472(h)) is amended--
       (1) in paragraph (5)(A), by striking ``paragraph (13)'' and 
     inserting ``paragraph (15)'';
       (2) in paragraph (8), by striking ``1 percent'' and 
     inserting ``2 percent'';
       (3) in paragraph (9), by striking ``Refinancing'' and 
     inserting ``Modification of guaranteed loans'';
       (4) in paragraph (14)--
       (A) by striking ``Guarantees for refinancing loans'' and 
     inserting ``Refinancing of loans made or guaranteed by 
     secretary''; and
       (B) in subparagraph (E)--
       (i) by striking ``(10)'' and inserting ``(12)''; and
       (ii) by striking ``(13)'' and inserting ``(9) or of 
     paragraphs (11) through (14)'';
       (5) by redesignating paragraphs (10), (11), (12), (13), and 
     (14) as paragraphs (12), (13), (14), (15), and (10), 
     respectively;
       (6) by transferring and inserting paragraph (10), as so 
     redesignated by paragraph (5) of this subsection, after 
     paragraph (9); and
       (7) by inserting after paragraph (10), as so redesignated 
     and transferred by paragraphs (5) and (6) of this subsection, 
     the following new paragraph:
       ``(11) Refinancing of loans made by private sector 
     lenders.--
       ``(A) Authority.--The Secretary may, in accordance with 
     this paragraph, guarantee a loan made to refinance a loan 
     made by a private lender to an individual to acquire or 
     construct a single-family residence.
       ``(B) Eligibility.--Except as provided in subparagraph (C), 
     all requirements of this subsection shall apply to loans 
     guaranteed and loan guarantees made under this paragraph.
       ``(C) Guarantee fee.--Notwithstanding paragraph (8), the 
     Secretary shall charge a guarantee fee with respect to loans 
     guaranteed under this paragraph at levels necessary, but no 
     higher than needed, to allow such class of loans to be 
     guaranteed without resulting in a need for an appropriation 
     for a credit subsidy.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Kansas (Mr. Moore) and the gentlewoman from West Virginia (Mrs. Capito) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Kansas.


                             General Leave

  Mr. MOORE. Mr. Speaker, I ask unanimous consent that all Members have 
5 legislative days within which to revise and extend their remarks on 
this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Kansas?
  There was no objection.
  Mr. MOORE of Kansas. I yield 3 minutes to the chief sponsor of this 
important legislation, the gentleman from Missouri (Mr. Clay).
  Mr. CLAY. Mr. Speaker, as the sponsor of this measure, I am pleased 
to present H.R. 2034 for consideration by the House today.
  The current foreclosure crisis affects rural America, as well as 
cities and suburbs. Many rural areas are subject to additional 
complicating factors, such as a shortage of housing, counseling 
resources, and high poverty rates. Nevertheless, homeowners with 
average incomes under $19,000 per year are 98.3 percent successful when 
serviced through section 502 single-family housing direct or guaranteed 
loan programs. The foreclosure rate in both of these programs is below 
2 percent, as compared to a 5 to 6 percent subprime foreclosure rate 
overall.
  Under current law, rural families who obtain a mortgage from a 
private lender for the purpose of acquiring or constructing a single-
family residence are not permitted to refinance such loans through the 
section 502 Rural Housing Guaranteed Loan program. To address this 
issue, the bill would provide the Secretary of Agriculture with the 
authority to permit the refinancing of such loans through the section 
502 Rural Housing Guaranteed Loan program.
  Rural families who meet current income and geographic criteria would 
be eligible to refinance their private loan. As such, this new 
authority will provide some much-needed relief to our rural housing 
community and complement efforts by the administration to stabilize 
communities by helping struggling homeowners stay in their homes.
  The Rural Housing Service estimates that this new authority would 
significantly increase loan volume under the section 502 guaranteed 
loan program. To address this issue, the bill includes a provision 
giving the Secretary of Agriculture the authority to charge a higher 
guarantee fee than the 2 percent fee that is permitted under current 
law to help ensure that the expected increased loan volume does not 
require additional congressional appropriations.
  The higher fee would apply to private loans and could be no higher 
than is necessary to ensure that no appropriation is needed. 
Consequently, the CBO has indicated that the bill is cost-neutral.
  I commend Chairman Frank and Subcommittee Chairwoman Waters for 
bringing this legislation to the floor. I urge all of my colleagues to 
support the bill.
  Mrs. CAPITO. Mr. Speaker, I yield such time as I may consume.
  Mr. Speaker, I rise in support, strong support, of H.R. 2034, the 
Rural Homeowners Protection Act of 2009. As my colleague has stated, 
the current foreclosure crisis affects rural America as well as cities 
and suburbs; and many rural areas are subject to additional 
complicating factors, such as high poverty rates.
  The section 502 Rural Housing Guaranteed Loan program is an important 
source of funding in rural areas for moderate-income families wishing 
to purchase a home. As currently structured, the 502 program guarantees 
loan origination and allows refinancing on current 502 loans. However, 
it does not allow refinancing of loans obtained through private 
lenders.
  H.R. 2034 amends the section 502 Single Family Housing Loan Guarantee

[[Page 19672]]

program to allow refinancing of private rural loans through the section 
502 program.
  To safeguard the program, the bill authorizes the Secretary of 
Agriculture to charge a higher fee for refinancing private origination 
loans to ensure that the class of loans can be guaranteed without the 
need of additional cost to the government.
  Mr. Speaker, this is an important change that will provide much-
needed assistance in our rural communities. I urge my colleagues to 
support H.R. 2034, the Rural Homeowners Protection Act of 2009.
  Mr. Speaker, I have no further speakers, and I yield back the balance 
of my time.
  Mr. MOORE of Kansas. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Kansas (Mr. Moore) that the House suspend the rules and 
pass the bill, H.R. 2034.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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