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S.170 - Helping Responsible Homeowners Act
A bill to provide for the affordable refinancing of mortgages held by Fannie Mae and Freddie Mac.
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SECTION 1. SHORT TITLE.
SEC. 2. AFFORDABLE REFINANCING OF MORTGAGES OWNED OR GUARANTEED BY FANNIE MAE AND FREDDIE MAC.
(A) is an existing first mortgage that was made for purchase of, or refinancing another first mortgage on, a one- to four-family dwelling, including a condominium or a share in a cooperative ownership housing association, that is occupied by the mortgagor as the principal residence of the mortgagor;CommentsClose CommentsPermalink
(A) REFINANCING OF QUALIFIED MORTGAGE- The principal loan amount repayment of which is secured by the mortgage shall be used to satisfy all indebtedness under an existing qualified mortgage and any closing costs from the refinancing of the mortgage that the mortgagor chooses to include in the refinanced mortgage.CommentsClose CommentsPermalink
(C) INTEREST RATE- The mortgage shall bear a fair rate of interest, which shall not exceed 40 basis points above the required net yield for a 60-day commitment to purchase a prime conventional conforming fixed rate mortgage as published by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation at the time the interest rate is locked in.CommentsClose CommentsPermalink
(E) WAIVER OF PREPAYMENT PENALTIES- All penalties for prepayment or refinancing of the qualified mortgage that is refinanced by the mortgage, and all fees and penalties related to the default or delinquency on such mortgage, shall have been waived or forgiven.CommentsClose CommentsPermalink
(b) Authority- The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall each carry out a program under this section to provide for the refinancing of qualified mortgages on single-family housing owned by such enterprise through a refinancing mortgage, and for the purchase of and securitization of such refinancing mortgages, in accordance with this section and policies and procedures that the Director of the Federal Housing Finance Agency shall establish. Such program shall require the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to purchase or guarantee the refinancing mortgage used to refinance a qualified mortgage upon the request of the mortgagee.CommentsClose CommentsPermalink
(c) Prohibition on Loan Level Price Adjustments and Post Settlement Delivery Fees- In carrying out the program established under this section, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall not charge the mortgagee any up-front fee beyond the standard guarantee fee for the refinancing of the qualified mortgage through the refinancing mortgage.CommentsClose CommentsPermalink
(d) Resubordination of Second Liens- For any servicer or creditor holding a second lien on a qualified mortgage who refuses to resubordinate that lien, thereby preventing the refinancing of the qualified mortgage, new mortgages originated by that servicer or creditor shall be ineligible for purchase or guarantee by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.CommentsClose CommentsPermalink
(e) Termination- The requirement for an enterprise to refinance qualified mortgages under this section shall not apply to any request for refinancing made after the expiration of the 1-year period beginning on the date of the enactment of this Act. Notwithstanding the prior sentence, the Director, at his or her discretion, may extend the program established under this section, and the requirements of such program shall apply during any such extension, in 1-year increments.CommentsClose CommentsPermalink
SEC. 3. NOTICE OF THE REFINANCING PROGRAM.
The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall require each servicer of a mortgage owned or guaranteed by each such enterprise to inform each borrower of such mortgage of the refinancing program authorized and established under section 2.CommentsClose CommentsPermalink