HR 787 IHRHCommentsClose CommentsPermalink

To make improvements in the Hope for Homeowners Program, and for other purposes.CommentsClose CommentsPermalink

February 2, 2009CommentsClose CommentsPermalink

Mr. FRANK of Massachusetts introduced the following bill; which was referred to the Committee on Financial ServicesCommentsClose CommentsPermalink

To make improvements in the Hope for Homeowners Program, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.

Section 257 of the National Housing Act, as added by section 1402(a) ofPublic Law 110-289, (12 U.S.C. 1715z-23) is amended-- CommentsClose CommentsPermalink





(1) in subsection (e)-- CommentsClose CommentsPermalink





(A) inby striking paragraph (1), by striking subparagraph (B); and inserting the following: CommentsClose CommentsPermalink





‘(1) BORROWER CERTIFICATION- CommentsClose CommentsPermalink





‘(A) NO INTENTIONAL DEFAULT OR FALSE INFORMATION- The mortgagor shall provide a certification to the Secretary that the mortgagor has not intentionally defaulted on the existing mortgage or mortgages and has not knowingly, or willfully and with actual knowledge, furnished material information known to be false for the purpose of obtaining any eligible mortgage. CommentsClose CommentsPermalink





‘(B) LIABILITY FOR REPAYMENT- The mortgagor shall agree in writing that the mortgagor shall be liable to repay to the Secretary any direct financial benefit achieved from the reduction of indebtedness on the existing mortgage or mortgages on the residence refinanced under this section derived from misrepresentations made by the mortgagor in the certifications and documentation required under this paragraph, subject to the discretion of the Oversight Board.’. CommentsClose CommentsPermalink





(B) in paragraph (2)(B), by striking ‘90 percent’ and inserting ‘93 percent’; CommentsClose CommentsPermalink





(C) by striking paragraph (7); CommentsClose CommentsPermalink





and(D (D) in paragraph (9)-- CommentsClose CommentsPermalink





(i) by striking ‘by procuring (A) an income tax return transcript of the income tax returns of the mortgagor, or(B)’ and inserting ‘in accordance with procedures and standards that the Board shall establish, which may include requiring the mortgagee to procure’; and CommentsClose CommentsPermalink





(ii) by striking ‘and by any other method, in accordance with procedures and standards that the Board shall establish’; CommentsClose CommentsPermalink





(E) by redesignating paragraphs (8), (9), (10), and (11) as paragraphs (7), (8), (9), and (10), respectively;(2) in subsection and CommentsClose CommentsPermalink





(F) by adding after paragraph (10) (as so redesignated by subparagraph (E) of this paragraph) the following new paragraph: CommentsClose CommentsPermalink





‘(11) BAN ON MILLIONAIRES- The mortgagor shall not have a net worth, as of the date the mortgagor first applies for a mortgage to be insured under the Program under this section, that exceeds $1,000,000.’; CommentsClose CommentsPermalink





(2) in subsection (h)(2), by striking ‘, or in any case in which a mortgagor fails to make the first payment on a refinanced eligible mortgage’; CommentsClose CommentsPermalink





(3) by striking subsection (i) and inserting the following new subsection: CommentsClose CommentsPermalink





‘(i) Annual Premiums- CommentsClose CommentsPermalink





‘(1) IN GENERAL- For each refinanced eligible mortgage insured under this section, the Secretary shall establish and collect an annual premium in an amount equal to not less than 0.55 percent of the amount of the remaining insured principal balance of the mortgage and not more than 0.75 percent of such remaining insured principal balance, as determined according to a schedule established by the Board that assigns such annual premiums based upon the credit risk of the mortgage. CommentsClose CommentsPermalink





‘(2) REDUCTION OR TERMINATION DURING MORTGAGE TERM- Notwithstanding paragraph (1), the Secretary may provide that the annual premiums charged for refinanced eligible mortgages insured under this section are reduced over the term of the mortgage or that the collection of such premiums is discontinued at some time during the term of the mortgage, in a manner that is consistent with policies for such reduction or discontinuation of annual premiums charged for mortgages in accordance with section 203(c).’; CommentsClose CommentsPermalink





(4) in subsection (k)-- CommentsClose CommentsPermalink





(A) by striking the subsection heading and inserting ‘Exit Fee’ ; CommentsClose CommentsPermalink





(B) in paragraph (1), in the matter preceding subparagraph (A), by striking ‘such sale or refinancing’ and inserting ‘the mortgage being insured under this section’; and CommentsClose CommentsPermalink





(C) by striking paragraph (2); CommentsClose CommentsPermalink





(5) in subsection (s)(3)(A)(ii), by striking ‘subsection (e)(1)(B) and such other’ and inserting ‘such’; CommentsClose CommentsPermalink





(6) in subsection (v), by inserting after the period at the end the following: ‘The Board shall conform documents, forms, and procedures for mortgages insured under this section to those in place for mortgages insured under section 203(b) to the maximum extent possible consistent with the requirements of this section.’; CommentsClose CommentsPermalink





(7) in subsection (w)(1)(C), by striking ‘(e)(4)(A)’ and inserting ‘(e)(3)(A)’; and CommentsClose CommentsPermalink





(8) by adding at the end the following new subsection: CommentsClose CommentsPermalink





‘(x) Payment to Existing Loan Servicer- The Board may establish a payment to the servicer of the existing senior mortgage for every loan insured under the HOPE for Homeowners Program in an amount, for each such loan, that does not exceed $1,000.’. CommentsClose CommentsPermalink