S.Amdt. 2166

1. Adds SEC. 321. HOME MORTGAGE PROTECTION REVOLVING LOAN FUND on page 348, between lines 5 and 6

   Adds a sectionPrinted page

   Inserted: SEC. 321. HOME MORTGAGE PROTECTION REVOLVING LOAN FUND.

   Inserted: (a) Establishment.--There is established in the Treasury of the United States the Home Mortgage Protection Revolving Loan Fund (hereafter referred to in this section as the "Fund") to carry out the lending and guarantee functions authorized under this section.

   Inserted: (b) Capital.--Except as provided under subsection (j), the capital of the Fund shall remain available until expended.

   Inserted: (c) Authorities, Scope, and Purposes; Conditions; Interest Rate; Repayment.--

   Inserted: (1) Loans authorized.--The Secretary is authorized to make or guarantee loans, either directly or in cooperation with banks or other organizations through agreements to participate on an immediate or deferred basis, to eligible financial institutions, for the purposes described in subsection (e).

   Inserted: (2) Conditions.--No loans, guarantees, or other financial assistance shall be provided under this section unless the Secretary determines that--

   Inserted: (A) there is reasonable assurance of repayment of the loan;

   Inserted: (B) the loan is not otherwise available on reasonable terms from private sources or other Federal, State, or local programs; and

   Inserted: (C) the amount of the loan, together with other funds available, is adequate to assure completion or achievement of the purposes for which the loan is made.

   Inserted: (3) Limitations.--

   Inserted: (A) In general.--The Secretary may not loan amounts out of the Fund to an eligible financial institution for mortgage payments deferred under subsection (g) in an amount in excess of the sum of 6 deferred mortgage payments.

   Inserted: (B) Exclusion.--The amount calculated under subparagraph (A) shall not include any deferrals that an eligible financial institution granted to a mortgagor prior to the date of enactment of this section.

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   Inserted: (C) Outstanding loan amount.--The total amount of outstanding loan amounts under this section may not exceed $2,000,000,000.

   Inserted: (4) Interest rate.--Loans made by the Secretary pursuant to this section shall bear interest at a rate equal to not less than a rate determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding Treasury obligations of comparable maturity, plus such additional charge, if any, toward covering other costs of the program, as the Secretary may determine to be consistent with its purposes.

   Inserted: (5) Repayment.--All loans made under this section shall be repayable within a period of not more than 30 years.

   Inserted: (6) Adjustment of interest rates, moratorium on principal and interest.--The Secretary is authorized to adjust interest rates, grant moratoriums on repayment of principal and interest, collect or compromise any obligations held by the Secretary, and to take such other actions in respect to such loans as the Secretary shall determine to be necessary or appropriate, consistent with the purposes of this section.

   Inserted: (d) Application.--An eligible financial institution seeking a loan under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require, including providing proper documentation to the Secretary that--

   Inserted: (1) such financial institution is the holder of a mortgage;

   Inserted: (2) mortgage payments have been deferred for 6 months under subsection (g);

   Inserted: (3) the property secured by the mortgage is located in an affected area;

   Inserted: (4) the property secured by mortgage was rendered unusable or uninhabitable, or was completely destroyed, as a result of Hurricane Katrina or Hurricane Rita; and

   Inserted: (5) such financial institution has not initiated any foreclosure proceeding against any property held by a mortgagor for which the financial institution is seeking a loan.

   Inserted: (e) Use of Funds.--Amounts in the Fund may only be used to provide loans to eligible financial institutions to reimburse such financial institutions for mortgage payments deferred under subsection (g).

   Inserted: (f) Foreclosures.--

   Inserted: (1) In general.--An eligible financial institution that does not seek a loan under this section, may not foreclose on property held by a mortgagor in an affected area, if the mortgagor can demonstrate that the property meets the requirements listed under subsection (d).

   Inserted: (2) Reimbursement from fund.--If an eligible financial institution is unable to foreclose under paragraph (1), such financial institution may seek a loan under this section in accordance with the provisions of this section.

   Inserted: (3) Limitation.--An eligible financial institution may not receive a loan under this section for mortgage payments deferred under subsection (g) for any foreclosure proceeding initiated prior to August 26, 2005.

   Inserted: (4) Repayment for any property seized.--If an eligible financial institution forecloses, or otherwise seizes or disposes of, property held by a mortgagor in an affected area, such financial institution shall repay to the Fund any loan amounts received under this section.

   Inserted: (g) Deferral of Mortgage Payments.--

   Inserted: (1) In general.--An eligible financial institution shall extend for an additional 6 months any deferral of mortgage payments of a mortgagor initiated prior to August 26, 2005.

   Inserted: (2) Reimbursement for extension.--An eligible financial institution that extends the deferral of any mortgage payments under paragraph (1) may seek a loan under this section for reimbursement for the deferral of such mortgage payments.

   Inserted: (3) Refinance, reamortization, or restructuring of mortgages.--An eligible financial institution may refinance, reamortize, or restructure any mortgage deferred under paragraph (1) to extend the term of such mortgage to cover any mortgage payments missed or deferred under that paragraph.

   Inserted: (4) Limitation on refinancing.--If an eligible financial institution exercises its authority to refinance, reamortize, or restructure a mortgage under paragraph (3), such institution shall repay to the Fund any amounts received under paragraph (2).

   Inserted: (5) Ineligibility of certain mortgagors.--An eligible financial institution shall not extend the deferral of any mortgage payments under paragraph (1), if the mortgagor has a homeowners or other insurance policy that includes coverage of mortgage payments.

   Inserted: (h) Credit Protection.--A failure by a mortgagor to make a mortgage payment on any property located in an affected area shall not be reported to any consumer reporting agency, as such term is defined under section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a).

   Inserted: (i) Deposits.--

   Inserted: (1) Investment.--To the extent that amounts in the Fund at any time exceed the immediate needs of the Fund, the excess shall be invested in short-term obligations of the United States.

   Inserted: (2) Interest.--To the extent that interest accrues on any funds invested under paragraph (1), that interest shall remain in the fund and shall be made available for the purposes of this section.

   Inserted: (j) Reversion of Funds To the Treasury.--Any amounts in the Fund that are unexpended and unobligated after March 30, 2007, shall be covered into the General Fund of the Treasury as miscellaneous receipts, and the Fund shall be terminated.

   Inserted: (k) Regulations.--Not later than 15 days after the date of enactment of this section, the Secretary shall issue regulations necessary to carry out the administration of this section and to ensure that the purposes of this section are accomplished.

   Inserted: (l) Definitions.--In this section, the following definitions shall apply:

   Inserted: (1) Affected area.--The term "affected area" means any area--

   Inserted: (A) with respect to which the President has declared a major disaster pursuant to title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) as a result of Hurricane Katrina or Hurricane Rita; or

   Inserted: (B) that is determined to be eligible for disaster relief under other Federal law by reason of damage related to Hurricane Katrina or Hurricane Rita.

   Inserted: (2) Eligible financial institution.--The term "eligible financial institution" means any--

   Inserted: (A) commercial bank;

   Inserted: (B) community bank;

   Inserted: (C) mortgage bank;

   Inserted: (D) credit union;

   Inserted: (E) enterprise, as that term is defined in section 1303 of the Housing and Community Development Act of 1992 (12 U.S.C. 4502);

   Inserted: (F) Bank, as that term is used in the Housing and Community Development Act of 1992 (12 U.S.C. 4501 et seq.); or

   Inserted: (G) other lender approved by the Secretary as eligible for insurance under section 2 of the National Housing Act (12 U.S.C. 1703).

   Inserted: (3) Secretary.--The term "Secretary" means the Secretary of Housing and Urban Development.

   Inserted: (m) Funding.--The Fund shall consist of the remaining amounts provided for in the Disaster Relief Fund under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), as in effect on the date of enactment of this section, and includes such funds as may be deposited in the Disaster Relief Fund from funds made available by this or any other Act.

   Original wording

   On page 348, between lines 5 and 6, insert the following:

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As printed