An amendment numbered 26 printed in the Congressional Record to add a new section providing for consideration of location and energy efficiency in enterprise underwriting guidelines.

1. Adds SEC. 134. CONSIDERATION OF LOCATION AND ENERGY EFFICIENCY IN ENTERPRISE UNDERWRITING GUIDELINES on page 93, line 9

   Adds a sectionPrinted page

   Inserted: SEC. 134. CONSIDERATION OF LOCATION AND ENERGY EFFICIENCY IN ENTERPRISE UNDERWRITING GUIDELINES.

   Inserted: (a) Fannie Mae.--Section 302(b) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)) is amended by adding at the end the following new paragraph:

   Inserted: "(7)(A) In establishing requirements with respect to quality, type, class, and other purchase standards for mortgages on one- to four-family residences, the corporation shall--

   Inserted: "(i) consider the location efficiency and energy efficiency of the residence;

   Inserted: "(ii) treat any savings resulting from location efficiency or energy efficiency as an equivalent reduction in recurrent monthly expenses of the mortgagor; and

   Inserted: "(iii) increase any limit on the amount of debt under the mortgage allowable for the mortgagor that is based on mortgagor income to account for the present value of location efficiency savings and for the present value of energy efficiency savings.

   Inserted: "(B) For purposes of this paragraph, the following definitions shall apply:

   Inserted: "(i) The term 'location efficiency' means, with respect to a mortgage for a residence, the difference between--

   Inserted: "(I) the average monthly transportation expenses predicted for the family of the mortgagor residing in the residence subject to the mortgage; and

   Inserted: "(II) the average monthly transportation expenses, for families of the same size and income as the family of the mortgagor, residing in the lower quintile of homes in the same metropolitan area or in the nation as a whole.

   Inserted: Location efficiency shall be determined on a neighborhood-scale basis by the use of statistically valid methods.

   Inserted: "(ii) The term 'present value of location efficiency savings' means, with respect to a mortgage, the monthly value of location efficiency savings multiplied by the number of months in the term of the mortgage.

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   Inserted: "(iii) The term 'energy efficiency' means, with respect to a residence, the difference between the average monthly energy consumption predicted for the residence and the average monthly energy consumption for a similar home that minimally complies with State and local laws, codes, and regulations regarding housing quality and safety.

   Inserted: "(iv) The term 'present value of energy efficiency savings' means, with respect to a mortgage, the monthly value of energy efficiency savings multiplied by the number of months in the term of the mortgage.

   Inserted: "(v) The term 'recurrent monthly expenses' includes, with respect to a mortgage, the monthly amount of principal and interest due under the mortgage and the monthly amount paid for taxes and insurance for the residence subject to the mortgage, as calculated in accordance with standard practices in the financial services industry for calculating the qualifying ratio for a mortgagor.".

   Inserted: (b) Freddie Mac.--Section 305(a) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)) is amended by adding at the end the following new paragraph:

   Inserted: "(6)(A) In establishing requirements with respect to quality, type, class, and other purchase standards for mortgages on one- to four-family residences, the Corporation shall--

   Inserted: "(i) consider the location efficiency and energy efficiency of the residence;

   Inserted: "(ii) treat any savings resulting from location efficiency or energy efficiency as an equivalent reduction in recurrent monthly expenses of the mortgagor; and

   Inserted: "(iii) increase any limit on the amount of debt under the mortgage allowable for the mortgagor that is based on mortgagor income to account for the present value of location efficiency savings and for the present value of energy efficiency savings.

   Inserted: "(B) For purposes of this paragraph, the following definitions shall apply:

   Inserted: "(i) The term 'location efficiency' means, with respect to a mortgage for a residence, the difference between--

   Inserted: "(I) the average monthly transportation expenses predicted for the family of the mortgagor residing in the residence subject to the mortgage; and

   Inserted: "(II) the average monthly transportation expenses, for families of the same size and income as the family of the mortgagor, residing in the lower quintile of homes in the same metropolitan area or in the nation as a whole.

   Inserted: Location efficiency shall be determined on a neighborhood-scale basis by the use of statistically valid methods.

   Inserted: "(ii) The term 'present value of location efficiency savings' means, with respect to a mortgage, the monthly value of location efficiency savings multiplied by the number of months in the term of the mortgage.

   Inserted: "(iii) The term 'energy efficiency' means, with respect to a residence, the difference between the average monthly energy consumption predicted for the residence and the average monthly energy consumption for a similar home that minimally complies with State and local laws, codes, and regulations regarding housing quality and safety.

   Inserted: "(iv) The term 'present value of energy efficiency savings' means, with respect to a mortgage, the monthly value of energy efficiency savings multiplied by the number of months in the term of the mortgage.

   Inserted: "(v) The term 'recurrent monthly expenses' includes, with respect to a mortgage, the monthly amount of principal and interest due under the mortgage and the monthly amount paid for taxes and insurance for the residence subject to the mortgage, as calculated in accordance with standard practices in the financial services industry for calculating the qualifying ratio for a mortgagor.".

   Original wording

   Page 93, after line 9, insert the following new section:

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As printed