FHA Housing Stabilization and Homeownership Retention Act of 2008

To create a voluntary FHA program that provides mortgage refinancing assistance to allow families to stay in their homes, protect neighborhoods, and help stabilize the housing market.

5/5/2008--Reported to House amended. FHA Housing Stabilization and Homeownership Retention Act of 2008 - Title I: Homeownership Retention -
(Sec. 102) Amends the National Housing Act (NHA) to create the Refinance Program Oversight Board, which shall establish and oversee a program for insuring homeownership retention mortgages. Instructs the Secretary of Housing and Urban Development (HUD) to insure any homeownership retention mortgage covering a one- to four-family residence made to pay or prepay outstanding obligations under an existing mortgage on the residence. Sets forth mortgagor eligibility criteria, including mortgagor certification that:
(1) the residence is the only residence in which the mortgagor has any present ownership interest;
(2) the mortgagor has not intentionally defaulted on the existing mortgage, nor knowingly, willfully, and with actual knowledge furnished material information known to be false for the purpose of obtaining the existing mortgage. Requires waiver or forgiveness of all:
(1) prepayment penalties; and
(2) fees and penalties related to default or delinquency on existing mortgages. Sets forth terms for required:
(1) reduction of indebtedness under an existing senior mortgage;
(2) extinguishment of debt by refinancing; and
(3) treatment of multiple mortgage liens. Requires debt service payments due under a mortgage insured under this Act to be substantially reduced from the debt service payments due under the existing mortgage or mortgages. Requires the mortgage to provide that the HUD Secretary retain a lien on the residence which shall:
(1) be subordinate to the mortgage insured under this Act, but senior to all other existing mortgages on it; and
(2) secure the repayment. Instructs the Oversight Board to prohibit borrowers from granting a new second lien on the mortgaged property during the first five years the mortgage is insured under this Act. Requires the mortgagee to document and verify mortgagor income. Requires a mortgage insured under this Act to:
(1) bear interest at a single fixed rate for the entire mortgage term; and
(2) involve a principal obligation that does not exceed the limitation that would be allowable for a mortgage insured pursuant to the Economic Stimulus Act of 2008. Requires the Oversight Board to establish specified underwriting standards for mortgages insured under this Act, including a limitation on origination fees. Sets forth criteria for appraisal independence. Subjects violations of such criteria to civil monetary penalties. Prohibits the aggregate original principal obligation of all mortgages insured under this Act from exceeding $300 billion. Directs:
(1) the Oversight Board and the HUD Secretary to monitor independent quality reviews of designated underwriters; and
(2) the Inspector General of HUD to conduct an annual compliance audit of the mortgage insurance program under this Act. Requires the HUD Secretary to ensure that securities based on and backed by a pool or trust composed of mortgages insured under this Act are available to be guaranteed by the Government National Mortgage Association (GNMA) for timely payment of principal and interest. Makes the insurance of each mortgage under this Act the obligation of the Special Risk Insurance Fund established by this Act. Sets forth a sunset date of two years after enactment of this Act for commitments to insure under it. Authorizes appropriations for FY2008-FY2009, including specified funds earmarked for:
(1) counseling for veterans recently returning from active duty in the Armed Forces; and
(2) the Neighborhood Reinvestment Corporation (NRC). Repeals the limitation on the aggregate number of home equity conversion mortgages for elderly homeowners insured under this Act.
(Sec. 103) Directs the Board of Governors of the Federal Reserve System to study and report to specified congressional committees on the need for an auction or bulk refinancing mechanism to facilitate refinancing of existing residential mortgages that are at risk for foreclosure into mortgages insured under the NHA.
(Sec. 104) Establishes a temporary increase in the maximum loan guaranty amount for certain housing loans guaranteed by the Secretary of Veterans Affairs.
(Sec. 105) Requires the Securities and Exchange Commission (SEC) to study and report to Congress on:
(1) mark-to-market accounting standards applicable to depository institutions with respect to residential mortgages at risk of foreclosure;
(2) the effects of such accounting standards upon such institutions' capacity to provide refinancing to residential mortgagors at risk of foreclosure, including residential mortgagors during periods of market value declines and increased foreclosures; and
(3) the feasibility of modifications of such standards, requirements, and regulatory actions during periods of market fluctuation in order to maintain the institution's ability to continue to carry mortgages on residential property at risk of foreclosure and assure the availability of credit to refinance such mortgages.
(Sec. 106) Instructs the Comptroller General of the United States to study and report to Congress on the effects of tightening credit markets upon prospective first-time homebuyers in selected communities that have been most detrimentally affected by subprime mortgage foreclosure crises and predatory mortgage lending. Title II: Office of Housing Counseling - Expand and Preserve Home Ownership Through Counseling Act -
(Sec. 202) Amends the Department of Housing and Urban Development Act to establish the Office of Housing Counseling.
(Sec. 203) Amends the Housing and Urban Development Act of 1968 to:
(1) prescribe homeownership and rental counseling procedures and requirements;
(2) direct the Secretary to make grants to qualified organizations for homeownership or rental counseling assistance; and
(3) require such organizations to use only HUD-certified counselors.
(Sec. 206) Directs the HUD Secretary to study and report to Congress on the root causes of home loan defaults and foreclosures, including the role of escrow accounts in helping prime and nonprime borrowers avoid defaults and foreclosures.
(Sec. 208) Amends the Real Estate Settlement Procedures Act of 1974 to require a revamping of a public information booklet regarding federally related mortgage loans, with specified contents. Title III: Combating Mortgage Fraud -
(Sec. 301) Authorizes appropriations for FY2008-FY2012 for federal prosecution of mortgage fraud.


... morehide bill summary

Sponsor

• Rep. Barney Frank [D, MA-4]
• and 43 Co-Sponsors
  • Rep. Gary Ackerman [D, NY-5]
  • Rep. Joe Baca [D, CA-43]
  • Rep. Virginia Brown-Waite [R, FL-5]
  • Rep. George Butterfield [D, NC-1]
  • Rep. Michael Capuano [D, MA-8]
  • Rep. André Carson [D, IN-7]
  • Rep. Donna Christensen [D, VI-0]
  • Rep. William Clay [D, MO-1]
  • Rep. Joe Courtney [D, CT-2]
  • Rep. Joseph Crowley [D, NY-7]
  • Rep. Elijah Cummings [D, MD-7]
  • Rep. Lincoln Davis [D, TN-4]
  • Rep. John Dingell [D, MI-15]
  • Rep. Joe Donnelly [D, IN-2]
  • Rep. Chaka Fattah [D, PA-2]
  • Rep. Al Green [D, TX-9]
  • Rep. Maurice Hinchey [D, NY-22]
  • Rep. Rubén Hinojosa [D, TX-15]
  • Rep. Paul Hodes [D, NH-2]
  • Rep. Jesse Jackson [D, IL-2]
  • Rep. James Langevin [D, RI-2]
  • Rep. Barbara Lee [D, CA-9]
  • Rep. Sander Levin [D, MI-12]
  • Rep. Stephen Lynch [D, MA-9]
  • Tim Mahoney
  • Rep. Carolyn Maloney [D, NY-14]
  • Rep. Betty McCollum [D, MN-4]
  • Rep. Gregory Meeks [D, NY-6]
  • Rep. Gwen Moore [D, WI-4]
  • Rep. Christopher Murphy [D, CT-5]
  • Rep. Ed Perlmutter [D, CO-7]
  • Rep. Janice Schakowsky [D, IL-9]
  • Rep. Joe Sestak [D, PA-7]
  • Christopher Shays
  • Rep. Brad Sherman [D, CA-27]
  • Rep. Albio Sires [D, NJ-13]
  • Rep. Niki Tsongas [D, MA-5]
  • Rep. Christopher Van Hollen [D, MD-8]
  • Rep. Maxine Waters [D, CA-35]
  • Rep. Melvin Watt [D, NC-12]
  • Rep. Robert Wexler [D, FL-19]
  • Rep. Charles Wilson [D, OH-6]
  • Rep. David Wu [D, OR-1]
  close

Committees

• House Financial Services

Amendments

This bill has no amendments.

Amendments to H.R.5830

Number	Status	Purpose

Bill Status

Make a Bill Status Widget

	OpenCongress widgets allow you to display information about bills and issue areas on your own website or blog. First, select which bill or issue you want to track, then customize the appearance of the panel, and finally paste a simple chunk of HTML into your site. Now your community will have an easy, up-to-date way to track the status of important bills and issues in Congress.

Introduced		Voted on by House		Voted on by Senate		Considered By President		Bill Becomes Law
April 17, 2008

Show All Actions (9 actions)Hide Actions

All Bill Actions

• Added to calendar on May 05, 2008: Placed on the Union Calendar, Calendar No. 386..
• May 05, 2008: Reported (Amended) by the Committee on Financial Services. H. Rept. 110-619.
• Added to calendar on May 01, 2008: Ordered to be Reported (Amended) by the Yeas and Nays: 46 - 21..
• Added to calendar on May 01, 2008: Ordered to be Reported (Amended) by Voice Vote..
• May 01, 2008: Committee Consideration and Mark-up Session Held.
• Apr 30, 2008: Committee Consideration and Mark-up Session Held.
• Apr 24, 2008: Committee Consideration and Mark-up Session Held.
• Introduced on Apr 17, 2008.
• Apr 17, 2008: Referred to the House Committee on Financial Services.

---

Related Issue Areas:

• Housing
• Accounting
• Administrative procedure
• Auctions
• 68 more
• Bankruptcy
• Budgets
• Collection of accounts
• Communications
• Computer software
• Conflict of interests
• Congress
• Congressional investigations
• Congressional reporting requirements
• Consumer education
• Consumer protection
• Consumers
• Counseling
• Criminal justice
• Criminal justice information
• Debt
• Debtor and creditor
• Department of Housing and Urban Development
• Electronic data interchange
• Eviction
• Executive departments
• Executive reorganization
• Federal advisory bodies
• Federal aid to housing
• Federally-guaranteed loans
• Fees
• Finance
• Financial services
• Fines (Penalties)
• Foreclosure
• Fraud
• Government information
• Government publications
• Government publicity
• Government trust funds
• Home ownership
• Housing finance
• Identification of criminals
• Income tax
• Inspectors general
• Insurance premiums
• Law
• Legal aid
• Liens
• Loan defaults
• Mortgage banks
• Mortgage guaranty insurance
• Mortgage interest rates
• Mortgages
• Politics and government
• Prosecution
• Public prosecutors
• Public service advertising
• Real estate appraisal
• Recruiting of employees
• Rental housing
• Risk
• Secondary mortgage market
• Securities
• Settlement costs
• Social services
• Tax returns
• Taxation
• Technology
• Telecommunication
• Veterans
• Veterans' benefits
• Warranties

Data from the Congressional Research Service

Users tracking H.R.5830 (24) are also tracking:

Show More User Statistics... Hide User Statistics

In the News

July 25, 2008 How to Stop the Foreclosures?

The House of Representatives has recently passed a bill (HR 5830, introduced by Rep. Barney Frank, D-Mass.) that is primarily a workout, ...

Was this article useful? Yes or No

Source: Dollars & Sense, MA

Did you find this article useful? Your opinion counts - together, we're finding the very best news and blog coverage about Congress available on the web.

May 21, 2008 Housing help

Still, critics of the proposal (HR 5830:hr05830: in the House and known in the Senate as the Federal Housing Finance Regulatory Reform Act of 2008) complain ...

Was this article useful? Yes or No (1 of 2 found it useful.)

Source: Los Angeles Times, CA

Did you find this article useful? Your opinion counts - together, we're finding the very best news and blog coverage about Congress available on the web.

May 12, 2008 Congressman Ron Klein weekly report

The housing legislation includes the FHA Rescue and Neighborhood Stabilization Acts, (HR 5830 and 5818) which provide mortgage refinancing assistance to ...

Was this article useful? Yes or No

Source: Boca Raton News,  USA

Did you find this article useful? Your opinion counts - together, we're finding the very best news and blog coverage about Congress available on the web.

14 more articles...
See most useful news articles

Information made available by:

Blog Coverage

January 06, 2009 For Strong Banks Mortgages Are Good Business - Example Navy ...

... guru rankings · guru real estate guru · gurus · H.R. 5830 · habits · handyman · Hank Paulson · hard money · hard money lender · hard money loan · Harry S. Dent · Haunted House

Was this article useful? Yes or No

Source: Mortgage Buy Home

Did you find this article useful? Your opinion counts - together, we're finding the very best news and blog coverage about Congress available on the web.

January 06, 2009 The Home Rescue Bill Passes Committee and is Off For A Full House ...

Washington, DC - {The House Financial Services Committee today approved H.R. 5830, the FHA Housing and Homeowner Retention Act, by a bipartisan vote of 46 to 21. The legislation, authored by Committee Chairman Barney Frank, ...

Was this article useful? Yes or No

Source: Ty's Economic Research

Did you find this article useful? Your opinion counts - together, we're finding the very best news and blog coverage about Congress available on the web.

January 05, 2009 First-Time Homebuyer Credit – Is It Really a Free Lunch ...

... guru rankings · guru real estate guru · gurus · H.R. 5830 · habits · handyman · Hank Paulson · hard money · hard money lender · hard money loan · Harry S. Dent · Haunted House

Was this article useful? Yes or No

Source: Mortgage Buy Home

Did you find this article useful? Your opinion counts - together, we're finding the very best news and blog coverage about Congress available on the web.

259 more posts...
See most useful blog posts

Information made available by: