In the nature of a substitute.

SA 1018. Mr. DODD (for himself and Mr. Shelby) submitted an amendment
intended to be proposed by him to the bill S. 896, to prevent mortgage
foreclosures and enhance mortgage credit availability; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Helping
Families Save Their Homes Act of 2009''.
(b) Table of Contents.--The table of contents of this Act
is the following:

Sec. 1. Short title; table of contents.

TITLE I--PREVENTION OF MORTGAGE FORECLOSURES

Sec. 101. Guaranteed rural housing loans.
Sec. 102. Modification of housing loans guaranteed by the Department of
Veterans Affairs.
Sec. 103. Additional funding for HUD programs to assist individuals to
better withstand the current mortgage crisis.
Sec. 104. Mortgage modification data collecting and reporting.

TITLE II--FORECLOSURE MITIGATION AND CREDIT AVAILABILITY

Sec. 201. Servicer safe harbor for mortgage loan modifications.
Sec. 202. Changes to HOPE for Homeowners Program.
Sec. 203. Requirements for FHA-approved mortgagees.
Sec. 204. Enhancement of liquidity and stability of insured depository
institutions to ensure availability of credit and
reduction of foreclosures.
Sec. 205. Application of GSE conforming loan limit to mortgages
assisted with TARP funds.
Sec. 206. Mortgages on certain homes on leased land.
Sec. 207. Sense of Congress regarding mortgage revenue bond purchases.

TITLE III--MORTGAGE FRAUD TASK FORCE

Sec. 301. Sense of the Congress on establishment of a Nationwide
Mortgage Fraud Task Force.

TITLE IV--FORECLOSURE MORATORIUM PROVISIONS

Sec. 401. Sense of the Congress on foreclosures.

TITLE I--PREVENTION OF MORTGAGE FORECLOSURES

SEC. 101. GUARANTEED RURAL HOUSING LOANS.

(a) Guaranteed Rural Housing Loans.--Section 502(h) of the
Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
(1) by redesignating paragraphs (13) and (14) as paragraphs
(16) and (17), respectively; and
(2) by inserting after paragraph (12) the following new
paragraphs:
``(13) Loss mitigation.--Upon default or imminent default
of any mortgage guaranteed under this subsection, mortgagees
shall engage in loss mitigation actions for the purpose of
providing an alternative to foreclosure (including actions
such as special forbearance, loan modification, pre-
foreclosure sale, deed in lieu of foreclosure, as required,
support for borrower housing counseling, subordinate lien
resolution, and borrower relocation), as provided for by the
Secretary.
``(14) Payment of partial claims and mortgage
modifications.--The Secretary may authorize the modification
of mortgages, and establish a program for payment of a
partial claim to a mortgagee that agrees to apply the claim
amount to payment of a mortgage on a 1- to 4-family
residence, for mortgages that are in default or face imminent
default, as defined by the Secretary. Any payment under such
program directed to the mortgagee shall be made at the sole
discretion of the Secretary and on terms and conditions
acceptable to the Secretary, except that--
``(A) the amount of the partial claim payment shall be in
an amount determined by the Secretary, and shall not exceed
an amount equivalent to 30 percent of the unpaid principal
balance of the mortgage and any costs that are approved by
the Secretary;
``(B) the amount of the partial claim payment shall be
applied first to any outstanding indebtedness on the
mortgage, including any arrearage, but may also include
principal reduction;
``(C) the mortgagor shall agree to repay the amount of the
partial claim to the Secretary upon terms and conditions
acceptable to the Secretary;
``(D) expenses related to a partial claim or modification
are not to be charged to the borrower;
``(E) the Secretary may authorize compensation to the
mortgagee for lost income on monthly mortgage payments due to
interest rate reduction;
``(F) the Secretary may reimburse the mortgagee from the
appropriate guaranty fund in connection with any activities
that the mortgagee is required to undertake concerning
repayment by the mortgagor of the amount owed to the
Secretary;

[[Page S4985]]

``(G) the Secretary may authorize payments to the mortgagee
on behalf of the borrower, under such terms and conditions as
are defined by the Secretary, based on successful performance
under the terms of the mortgage modification, which shall be
used to reduce the principal obligation under the modified
mortgage; and
``(H) the Secretary may authorize the modification of
mortgages with terms extended up to 40 years from the date of
modification.
``(15) Assignment.--
``(A) Program authority.--The Secretary may establish a
program for assignment to the Secretary, upon request of the
mortgagee, of a mortgage on a 1- to 4-family residence
guaranteed under this chapter.
``(B) Program requirements.--
``(i) In general.--The Secretary may encourage loan
modifications for eligible delinquent mortgages or mortgages
facing imminent default, as defined by the Secretary, through
the payment of the guaranty and assignment of the mortgage to
the Secretary and the subsequent modification of the terms of
the mortgage according to a loan modification approved under
this section.
``(ii) Acceptance of assignment.--The Secretary may accept
assignment of a mortgage under a program under this
subsection only if--

``(I) the mortgage is in default or facing imminent
default;
``(II) the mortgagee has modified the mortgage or qualified
the mortgage for modification sufficient to cure the default
and provide for mortgage payments the mortgagor is reasonably
able to pay, at interest rates not exceeding current market
interest rates; and
``(III) the Secretary arranges for servicing of the
assigned mortgage by a mortgagee (which may include the
assigning mortgagee) through procedures that the Secretary
has determined to be in the best interests of the appropriate
guaranty fund.

``(C) Payment of guaranty.--Under the program under this
paragraph, the Secretary may pay the guaranty for a mortgage,
in the amount determined in accordance with paragraph (2),
without reduction for any amounts modified, but only upon the
assignment, transfer, and delivery to the Secretary of all
rights, interest, claims, evidence, and records with respect
to the mortgage, as defined by the Secretary.
``(D) Disposition.--After modification of a mortgage
pursuant to this paragraph, and assignment of the mortgage,
the Secretary may provide guarantees under this subsection
for the mortgage. The Secretary may subsequently--
``(i) re-assign the mortgage to the mortgagee under terms
and conditions as are agreed to by the mortgagee and the
Secretary;
``(ii) act as a Government National Mortgage Association
issuer, or contract with an entity for such purpose, in order
to pool the mortgage into a Government National Mortgage
Association security; or
``(iii) re-sell the mortgage in accordance with any program
that has been established for purchase by the Federal
Government of mortgages insured under this title, and the
Secretary may coordinate standards for interest rate
reductions available for loan modification with interest
rates established for such purchase.
``(E) Loan servicing.--In carrying out the program under
this subsection, the Secretary may require the existing
servicer of a mortgage assigned to the Secretary under the
program to continue servicing the mortgage as an agent of the
Secretary during the period that the Secretary acquires and
holds the mortgage for the purpose of modifying the terms of
the mortgage. If the mortgage is resold pursuant to
subparagraph (D)(iii), the Secretary may provide for the
existing servicer to continue to service the mortgage or may
engage another entity to service the mortgage.''.
(b) Technical Amendments.--Subsection (h) of section 502 of
the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
(1) in paragraph (5)(A), by striking ``(as defined in
paragraph (13)'' and inserting ``(as defined in paragraph
(17)''; and
(2) in paragraph (18)(E)(as so redesignated by subsection
(a)(2)), by--
(A) striking ``paragraphs (3), (6), (7)(A), (8), and (10)''
and inserting ``paragraphs (3), (6), (7)(A), (8), (10), (13),
and (14)''; and
(B) striking ``paragraphs (2) through (13)'' and inserting
``paragraphs (2) through (15)''.
(c) Procedure.--
(1) In general.--The promulgation of regulations
necessitated and the administration actions required by the
amendments made by this section shall be made without regard
to--
(A) the notice and comment provisions of section 553 of
title 5, United States Code;
(B) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(C) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(2) Congressional review of agency rulemaking.--In carrying
out this section, and the amendments made by this section,
the Secretary shall use the authority provided under section
808 of title 5, United States Code.

SEC. 102. MODIFICATION OF HOUSING LOANS GUARANTEED BY THE
DEPARTMENT OF VETERANS AFFAIRS.

(a) Maturity of Housing Loans.--Section 3703(d)(1) of title
38, United States Code, is amended by inserting ``at the time
of origination'' after ``loan''.
(b) Implementation.--The Secretary of Veterans Affairs may
implement the amendments made by this section through notice,
procedure notice, or administrative notice.

SEC. 103. ADDITIONAL FUNDING FOR HUD PROGRAMS TO ASSIST
INDIVIDUALS TO BETTER WITHSTAND THE CURRENT
MORTGAGE CRISIS.

(a) Additional Appropriations for Advertising to Increase
Public Awareness of Mortgage Scams and Counseling
Assistance.--In addition to any amounts that may be
appropriated for each of the fiscal years 2010 and 2011 for
such purpose, there is authorized to be appropriated to the
Secretary of Housing and Urban Development, to remain
available until expended, $10,000,000 for each of the fiscal
years 2010 and 2011 for purposes of providing additional
resources to be used for advertising to raise awareness of
mortgage fraud and to support HUD programs and approved
counseling agencies, provided that such amounts are used to
advertise in the 100 metropolitan statistical areas with the
highest rate of home foreclosures, and provided, further that
up to $5,000,000 of such amounts are used for advertisements
designed to reach and inform broad segments of the community.
(b) Additional Appropriations for the Housing Counseling
Assistance Program.--In addition to any amounts that may be
appropriated for each of the fiscal years 2010 and 2011 for
such purpose, there is authorized to be appropriated to the
Secretary of Housing and Urban Development, to remain
available until expended, $50,000,000 for each of the fiscal
years 2010 and 2011 to carry out the Housing Counseling
Assistance Program established within the Department of
Housing and Urban Development, provided that such amounts are
used to fund HUD-certified housing-counseling agencies
located in the 100 metropolitan statistical areas with the
highest rate of home foreclosures for the purpose of
assisting homeowners with inquiries regarding mortgage-
modification assistance and mortgage scams.
(c) Additional Appropriations for Personnel at the Office
of Fair Housing and Equal Opportunity.--In addition to any
amounts that may be appropriated for each of the fiscal years
2010 and 2011 for such purpose, there is authorized to be
appropriated to the Secretary of Housing and Urban
Development, to remain available until expended, $5,000,000
for each of the fiscal years 2010 and 2011 for purposes of
hiring additional personnel at the Office of Fair Housing and
Equal Opportunity within the Department of Housing and Urban
Development, provided that such amounts are used to hire
personnel at the local branches of such Office located in the
100 metropolitan statistical areas with the highest rate of
home foreclosures.

SEC. 104. MORTGAGE MODIFICATION DATA COLLECTING AND
REPORTING.

(a) Reporting Requirements.--Not later than 120 days after
the date of the enactment of this Act, and quarterly
thereafter, the Comptroller of the Currency and the Director
of the Office of Thrift Supervision, shall jointly submit a
report to the Committee on Banking, Housing, and Urban
Affairs of the Senate, the Committee on Financial Services of
the House of Representatives on the volume of mortgage
modifications reported to the Office of the Comptroller of
the Currency and the Office of Thrift Supervision, under the
mortgage metrics program of each such Office, during the
previous quarter, including the following:
(1) A copy of the data collection instrument currently used
by the Office of the Comptroller of the Currency and the
Office of Thrift Supervision to collect data on loan
modifications.
(2) The total number of mortgage modifications resulting in
each of the following:
(A) Additions of delinquent payments and fees to loan
balances.
(B) Interest rate reductions and freezes.
(C) Term extensions.
(D) Reductions of principal.
(E) Deferrals of principal.
(F) Combinations of modifications described in subparagraph
(A), (B), (C), (D), or (E).
(3) The total number of mortgage modifications in which the
total monthly principal and interest payment resulted in the
following:
(A) An increase.
(B) Remained the same.
(C) Decreased less than 10 percent.
(D) Decreased between 10 percent and 20 percent.
(E) Decreased 20 percent or more.
(4) The total number of loans that have been modified and
then entered into default, where the loan modification
resulted in--
(A) higher monthly payments by the homeowner;
(B) equivalent monthly payments by the homeowner;
(C) lower monthly payments by the homeowner of up to 10
percent;
(D) lower monthly payments by the homeowner of between 10
percent to 20 percent; or
(E) lower monthly payments by the homeowner of more than 20
percent.
(b) Data Collection.--
(1) Required.--
(A) In general.--Not later than 60 days after the date of
the enactment of this Act, the Comptroller of the Currency
and the Director of the Office of Thrift Supervision,

[[Page S4986]]

shall issue mortgage modification data collection and
reporting requirements to institutions covered under the
reporting requirement of the mortgage metrics program of the
Comptroller or the Director.
(B) Inclusiveness of collections.--The requirements under
subparagraph (A) shall provide for the collection of all
mortgage modification data needed by the Comptroller of the
Currency and the Director of the Office of Thrift Supervision
to fulfill the reporting requirements under subsection (a).
(2) Report.--The Comptroller of the Currency shall report
all requirements established under paragraph (1) to each
committee receiving the report required under subsection (a).

TITLE II--FORECLOSURE MITIGATION AND CREDIT AVAILABILITY

SEC. 201. SERVICER SAFE HARBOR FOR MORTGAGE LOAN
MODIFICATIONS.

(a) Congressional Findings.--Congress finds the following:
(1) Increasing numbers of mortgage foreclosures are not
only depriving many Americans of their homes, but are also
destabilizing property values and negatively affecting State
and local economies as well as the national economy.
(2) In order to reduce the number of foreclosures and to
stabilize property values, local economies, and the national
economy, servicers must be given--
(A) authorization to--
(i) modify mortgage loans and engage in other loss
mitigation activities consistent with applicable guidelines
issued by the Secretary of the Treasury or his designee under
the Emergency Economic Stabilization Act of 2008; and
(ii) refinance mortgage loans under the Hope for Homeowners
program; and
(B) a safe harbor to enable such servicers to exercise
these authorities.
(b) Safe Harbor.--Section 129A of the Truth in Lending Act
(15 U.S.C. 1639a) is amended to read as follows:

``SEC. 129. DUTY OF SERVICERS OF RESIDENTIAL MORTGAGES.

``(a) In General.--Notwithstanding any other provision of
law, whenever a servicer of residential mortgages agrees to
enter into a qualified loss mitigation plan with respect to 1
or more residential mortgages originated before the date of
enactment of the Helping Families Save Their Homes Act of
2009, including mortgages held in a securitization or other
investment vehicle--
``(1) to the extent that the servicer owes a duty to
investors or other parties to maximize the net present value
of such mortgages, the duty shall be construed to apply to
all such investors and parties, and not to any individual
party or group of parties; and
``(2) the servicer shall be deemed to have satisfied the
duty set forth in paragraph (1) if, before December 31, 2012,
the servicer implements a qualified loss mitigation plan that
meets the following criteria:
``(A) Default on the payment of such mortgage has occurred,
is imminent, or is reasonably foreseeable, as such terms are
defined by guidelines issued by the Secretary of the Treasury
or his designee under the Emergency Economic Stabilization
Act of 2008.
``(B) The mortgagor occupies the property securing the
mortgage as his or her principal residence.
``(C) The servicer reasonably determined, consistent with
the guidelines issued by the Secretary of the Treasury or his
designee, that the application of such qualified loss
mitigation plan to a mortgage or class of mortgages will
likely provide an anticipated recovery on the outstanding
principal mortgage debt that will exceed the anticipated
recovery through foreclosures.
``(b) No Liability.--A servicer that is deemed to be acting
in the best interests of all investors or other parties under
this section shall not be liable to any party who is owed a
duty under subsection (a)(1), and shall not be subject to any
injunction, stay, or other equitable relief to such party,
based solely upon the implementation by the servicer of a
qualified loss mitigation plan.
``(c) Standard Industry Practice.--The qualified loss
mitigation plan guidelines issued by the Secretary of the
Treasury under the Emergency Economic Stabilization Act of
2008 shall constitute standard industry practice for purposes
of all Federal and State laws.
``(d) Scope of Safe Harbor.--Any person, including a
trustee, issuer, and loan originator, shall not be liable for
monetary damages or be subject to an injunction, stay, or
other equitable relief, based solely upon the cooperation of
such person with a servicer when such cooperation is
necessary for the servicer to implement a qualified loss
mitigation plan that meets the requirements of subsection
(a).
``(e) Reporting.--Each servicer that engages in qualified
loss mitigation plans under this section shall regularly
report to the Secretary of the Treasury the extent, scope,
and results of the servicer's modification activities. The
Secretary of the Treasury shall prescribe regulations or
guidance specifying the form, content, and timing of such
reports.
``(f) Definitions.--As used in this section--
``(1) the term `qualified loss mitigation plan' means--
``(A) a residential loan modification, workout, or other
loss mitigation plan, including to the extent that the
Secretary of the Treasury determines appropriate, a loan
sale, real property disposition, trial modification, pre-
foreclosure sale, and deed in lieu of foreclosure, that is
described or authorized in guidelines issued by the Secretary
of the Treasury or his designee under the Emergency Economic
Stabilization Act of 2008; and
``(B) a refinancing of a mortgage under the Hope for
Homeowners program;
``(2) the term `servicer' means the person responsible for
the servicing for others of residential mortgage
loans(including of a pool of residential mortgage loans); and
``(3) the term `securitization vehicle' means a trust,
special purpose entity, or other legal structure that is used
to facilitate the issuing of securities, participation
certificates, or similar instruments backed by or referring
to a pool of assets that includes residential mortgages (or
instruments that are related to residential mortgages such as
credit-linked notes).''.

SEC. 202. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.

(a) Program Changes.--Section 257 of the National Housing
Act (12 U.S.C. 1715z-23) is amended--
(1) in subsection (c)--
(A) in the heading for paragraph (1), by striking ``the
board'' and inserting ``secretary'';
(B) in paragraph (1), by striking ``Board'' inserting
``Secretary, after consultation with the Board,'';
(C) in paragraph (1)(A), by inserting ``consistent with
section 203(b) to the maximum extent possible'' before the
semicolon; and
(D) by adding after paragraph (2) the following:
``(3) Duties of board.--The Board shall advise the
Secretary regarding the establishment and implementation of
the HOPE for Homeowners Program.'';
(2) by striking ``Board'' each place such term appears in
subsections (e), (h)(1), (h)(3), (j), (l), (n), (s)(3), and
(v) and inserting ``Secretary'';
(3) in subsection (e)--
(A) by striking paragraph (1) and inserting the following:
``(1) Borrower certification.--
``(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 or any other substantial debt within
the last 5 years and has not knowingly, or willfully and with
actual knowledge, furnished material information known to be
false for the purpose of obtaining the eligible mortgage to
be insured and has not been convicted under Federal or State
law for fraud during the 10-year period ending upon the
insurance of the mortgage under this section.
``(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 Secretary.
``(C) Current borrower debt-to-income ratio.--As of the
date of application for a commitment to insure or insurance
under this section, the mortgagor shall have had, or
thereafter is likely to have, due to the terms of the
mortgage being reset, a ratio of mortgage debt to income,
taking into consideration all existing mortgages of that
mortgagor at such time, greater than 31 percent (or such
higher amount as the Secretary determines appropriate).'';
(B) in paragraph (4)--
(i) in subparagraph (A), by striking ``, subject to
standards established by the Board under subparagraph (B),'';
and
(ii) in subparagraph (B)(i), by striking ``shall'' and
inserting ``may''; and
(C) in paragraph (7), by striking ``; and provided that''
and all that follows through ``new second lien'';
(D) in paragraph (9)--
(i) by striking ``by procuring (A) an income tax return
transcript of the income tax return of the mortgagor, or
(B)'' and inserting ``in accordance with procedures and
standards that the Secretary shall establish (provided that
such procedures and standards are consistent with section
203(b) to the maximum extent possible) which may include
requiring the mortgagee to procure''; and
(ii) by striking ``and by any other method, in accordance
with procedures and standards that the Board shall
establish'';
(E) in paragraph (10)--
(i) by striking ``The mortgagor shall not'' and inserting
the following:
``(A) Prohibition.--The mortgagor shall not''; and
(ii) by adding at the end the following:
``(B) Duty of mortgagee.--The duty of the mortgagee to
ensure that the mortgagor is in compliance with the
prohibition under subparagraph (A) shall be satisfied if the
mortgagee makes a good faith effort to determine that the
mortgagor has not been convicted under Federal or State law
for fraud during the period described in subparagraph (A).'';
(F) in paragraph (11), by inserting before the period at
the end the following: ``, except that the Secretary may
provide exceptions to such latter requirement (relating to
present ownership interest) for any mortgagor who has
inherited a property''; and
(G) by adding at the end:
``(12) Ban on millionaires.--The mortgagor shall not have a
net worth, as of the

[[Page S4987]]

date the mortgagor first applies for a mortgage to be insured
under the Program under this section, that exceeds
$1,000,000.'';
(4) in subsection (h)(2), by striking ``The Board shall
prohibit the Secretary from paying'' and inserting ``The
Secretary shall not pay''; and
(5) in subsection (i)--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and adjusting the
margins accordingly;
(B) in the matter preceding subparagraph (A), as
redesignated by this paragraph, by striking ``For each'' and
inserting the following:
``(1) Premiums.--For each'';
(C) in subparagraph (A), as redesignated by this paragraph,
by striking ``equal to 3 percent'' and inserting ``not more
than 3 percent''; and
(D) in subparagraph (B), as redesignated by this paragraph,
by striking ``equal to 1.5 percent'' and inserting ``not more
than 1.5 percent'';
(E) by adding at the end the following:
``(2) Considerations.--In setting the premium under this
subsection, the Secretary shall consider--
``(A) the financial integrity of the HOPE for Homeowners
Program; and
``(B) the purposes of the HOPE for Homeowners Program
described in subsection (b).'';
(6) in subsection (k)--
(A) by striking the subsection heading and inserting ``Exit
Fee'';
(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
(C) in paragraph (2), by striking ``and the mortgagor'' and
all that follows through the end and inserting ``may, upon
any sale or disposition of the property to which the mortgage
relates, be entitled to up to 50 percent of appreciation, up
to the appraised value of the home at the time when the
mortgage being refinanced under this section was originally
made. The Secretary may share any amounts received under this
paragraph with the holder of the existing senior mortgage on
the eligible mortgage, the holder of any existing subordinate
mortgage on the eligible mortgage, or both.'';
(7) in the heading for subsection (n), by striking ``the
Board'' and inserting ``Secretary'';
(8) in subsection (p), by striking ``Under the direction of
the Board, the'' and inserting ``The'';
(9) in subsection (s)--
(A) in the first sentence of paragraph (2), by striking
``Board of Directors of'' and inserting ``Advisory Board
for''; and
(B) in paragraph (3)(A)(ii), by striking ``subsection
(e)(1)(B) and such other'' and inserting ``such'';
(10) in subsection (v), by inserting after the period at
the end the following: ``The Secretary 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.''; and
(11) by adding at the end the following new subsections:
``(x) Payments to Servicers and Originators.--The Secretary
may establish a payment to the--
``(1) servicer of the existing senior mortgage for every
loan insured under the HOPE for Homeowners Program; and
``(2) originator of each new loan insured under the HOPE
for Homeowners Program.
``(y) Auctions.--The Secretary, with the concurrence of the
Board, shall, if feasible, establish a structure and organize
procedures for an auction to refinance eligible mortgages on
a wholesale or bulk basis.''.
(b) Reducing TARP Funds To Offset Costs of Program
Changes.--Paragraph (3) of section 115(a) of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5225) is
amended by inserting ``, as such amount is reduced by
$2,316,000,000,'' after ``$700,000,000,000''.
(c) Technical Correction.--The second section 257 of the
National Housing Act (Public Law 110-289; 122 Stat. 2839; 12
U.S.C. 1715z-24) is amended by striking the section heading
and inserting the following:

``SEC. 258. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS
WITHOUT SUFFICIENT CREDIT HISTORY.''.

SEC. 203. REQUIREMENTS FOR FHA-APPROVED MORTGAGEES.

(a) Mortgagee Review Board.--
(1) In general.--Section 202(c)(2) of the National Housing
Act (12 U.S.C. 1708(c)) is amended--
(A) in subparagraph (E), by inserting ``and'' after the
semicolon;
(B) in subparagraph (F), by striking ``; and'' and
inserting ``or their designees.''; and
(C) by striking subparagraph (G).
(2) Prohibition against limitations on mortgagee review
board's power to take action against mortgagees.--Section
202(c) of the National Housing Act (12 U.S.C. 1708(c)) is
amended by adding at the end the following new paragraph:
``(9) Prohibition against limitations on mortgagee review
board's power to take action against mortgagees.--No State or
local law, and no Federal law (except a Federal law enacted
expressly in limitation of this subsection after the
effective date of this sentence), shall preclude or limit the
exercise by the Board of its power to take any action
authorized under paragraphs (3) and (6) of this subsection
against any mortgagee.''.
(b) Limitations on Participation and Mortgagee Approval and
Use of Name.--Section 202 of the National Housing Act (12
U.S.C. 1708) is amended--
(1) by redesignating subsections (d), (e), and (f) as
subsections (e), (f), and (g), respectively;
(2) by inserting after subsection (c) the following new
subsection:
``(d) Limitations on Participation in Origination and
Mortgagee Approval.--
``(1) Requirement.--Any person or entity that is not
approved by the Secretary to serve as a mortgagee, as such
term is defined in subsection (c)(7), shall not participate
in the origination of an FHA-insured loan except as
authorized by the Secretary.
``(2) Eligibility for approval.--In order to be eligible
for approval by the Secretary, an applicant mortgagee shall
not be, and shall not have any officer, partner, director,
principal, manager, supervisor, loan processor, loan
underwriter, or loan originator of the applicant mortgagee
who is--
``(A) currently suspended, debarred, under a limited denial
of participation (LDP), or otherwise restricted under part 25
of title 24 of the Code of Federal Regulations, 2 Code of
Federal Regulations, part 180 as implemented by part 2424, or
any successor regulations to such parts, or under similar
provisions of any other Federal agency;
``(B) under indictment for, or has been convicted of, an
offense that reflects adversely upon the applicant's
integrity, competence or fitness to meet the responsibilities
of an approved mortgagee;
``(C) subject to unresolved findings contained in a
Department of Housing and Urban Development or other
governmental audit, investigation, or review;
``(D) engaged in business practices that do not conform to
generally accepted practices of prudent mortgagees or that
demonstrate irresponsibility;
``(E) convicted of, or who has pled guilty or nolo
contendre to, a felony related to participation in the real
estate or mortgage loan industry--
``(i) during the 7-year period preceding the date of the
application for licensing and registration; or
``(ii) at any time preceding such date of application, if
such felony involved an act of fraud, dishonesty, or a breach
of trust, or money laundering;
``(F) in violation of provisions of the S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any
applicable provision of State law; or
``(G) in violation of any other requirement as established
by the Secretary.
``(3) Rulemaking and implementation.--The Secretary shall
conduct a rulemaking to carry out this subsection. The
Secretary shall implement this subsection not later than the
expiration of the 60-day period beginning upon the date of
the enactment of this subsection by notice, mortgagee letter,
or interim final regulations, which shall take effect upon
issuance.''; and
(3) by adding at the end the following new subsection:
``(h) Use of Name.--The Secretary shall, by regulation,
require each mortgagee approved by the Secretary for
participation in the FHA mortgage insurance programs of the
Secretary--
``(1) to use the business name of the mortgagee that is
registered with the Secretary in connection with such
approval in all advertisements and promotional materials, as
such terms are defined by the Secretary, relating to the
business of such mortgagee in such mortgage insurance
programs; and
``(2) to maintain copies of all such advertisements and
promotional materials, in such form and for such period as
the Secretary requires.''.
(c) Payment for Loss Mitigation.--Section 204(a)(2) of the
National Housing Act (12 U.S.C. 1710(a)(2)) is amended--
(1) by inserting ``or faces imminent default, as defined by
the Secretary'' after ``default'';
(2) by inserting ``support for borrower housing counseling,
partial claims, borrower incentives, preforeclosure sale,''
after ``loan modification,''; and
(3) by striking ``204(a)(1)(A)'' and inserting ``subsection
(a)(1)(A) or section 203(c)''.
(d) Payment of FHA Mortgage Insurance Benefits.--
(1) Additional loss mitigation actions.--Section 230(a) of
the National Housing Act (12 U.S.C. 1715u(a)) is amended--
(A) by inserting ``or imminent default, as defined by the
Secretary'' after ``default'';
(B) by striking ``loss'' and inserting ``loan'';
(C) by inserting ``preforeclosure sale, support for
borrower housing counseling, subordinate lien resolution,
borrower incentives,'' after ``loan modification,'';
(D) by inserting ``as required,'' after ``deeds in lieu of
foreclosure,''; and
(E) by inserting ``or section 230(c),'' before ``as
provided''.
(2) Amendment to partial claim authority.--Section 230(b)
of the National Housing Act (12 U.S.C. 1715u(b)) is amended
to read as follows:
``(b) Payment of Partial Claim.--
``(1) Establishment of program.--The Secretary may
establish a program for payment of a partial claim to a
mortgagee that agrees to apply the claim amount to payment of
a mortgage on a 1- to 4-family residence that is in default
or faces imminent default, as defined by the Secretary.

[[Page S4988]]

``(2) Payments and exceptions.--Any payment of a partial
claim under the program established in paragraph (1) to a
mortgagee shall be made in the sole discretion of the
Secretary and on terms and conditions acceptable to the
Secretary, except that--
``(A) the amount of the payment shall be in an amount
determined by the Secretary, not to exceed an amount
equivalent to 30 percent of the unpaid principal balance of
the mortgage and any costs that are approved by the
Secretary;
``(B) the amount of the partial claim payment shall first
be applied to any arrearage on the mortgage, and may also be
applied to achieve principal reduction;
``(C) the mortgagor shall agree to repay the amount of the
insurance claim to the Secretary upon terms and conditions
acceptable to the Secretary;
``(D) the Secretary may permit compensation to the
mortgagee for lost income on monthly payments, due to a
reduction in the interest rate charged on the mortgage;
``(E) expenses related to the partial claim or modification
may not be charged to the borrower;
``(F) loans may be modified to extend the term of the
mortgage to a maximum of 40 years from the date of the
modification; and
``(G) the Secretary may permit incentive payments to the
mortgagee, on the borrower's behalf, based on successful
performance of a modified mortgage, which shall be used to
reduce the amount of principal indebtedness.
``(3) Payments in connection with certain activities.--The
Secretary may pay the mortgagee, from the appropriate
insurance fund, in connection with any activities that the
mortgagee is required to undertake concerning repayment by
the mortgagor of the amount owed to the Secretary.''.
(3) Assignment.--Section 230(c) of the National Housing Act
(12 U.S.C. 1715u(c)) is amended--
(A) by inserting ``(1)'' after ``(c)'';
(B) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively;
(C) in paragraph (1)(B) (as so redesignated)--
(i) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively;
(ii) in the matter preceding clause (i) (as so
redesignated), by striking ``under a program under this
subsection'' and inserting ``under this paragraph''; and
(iii) in clause (i) (as so redesignated), by inserting ``or
facing imminent default, as defined by the Secretary'' after
``default'';
(D) in paragraph (1)(C) (as so redesignated), by striking
``under a program under this subsection'' and inserting
``under this paragraph''; and
(E) by adding at the end the following:
``(2) Assignment and loan modification.--
``(A) Authority.--The Secretary may encourage loan
modifications for eligible delinquent mortgages or mortgages
facing imminent default, as defined by the Secretary, through
the payment of insurance benefits and assignment of the
mortgage to the Secretary and the subsequent modification of
the terms of the mortgage according to a loan modification
approved by the mortgagee.
``(B) Payment of benefits and assignment.--In carrying out
this paragraph, the Secretary may pay insurance benefits for
a mortgage, in the amount determined in accordance with
section 204(a)(5), without reduction for any amounts
modified, but only upon the assignment, transfer, and
delivery to the Secretary of all rights, interest, claims,
evidence, and records with respect to the mortgage specified
in clauses (i) through (iv) of section 204(a)(1)(A).
``(C) Disposition.--After modification of a mortgage
pursuant to this paragraph, the Secretary may provide
insurance under this title for the mortgage. The Secretary
may subsequently--
``(i) re-assign the mortgage to the mortgagee under terms
and conditions as are agreed to by the mortgagee and the
Secretary;
``(ii) act as a Government National Mortgage Association
issuer, or contract with an entity for such purpose, in order
to pool the mortgage into a Government National Mortgage
Association security; or
``(iii) re-sell the mortgage in accordance with any program
that has been established for purchase by the Federal
Government of mortgages insured under this title, and the
Secretary may coordinate standards for interest rate
reductions available for loan modification with interest
rates established for such purchase.
``(D) Loan servicing.--In carrying out this paragraph, the
Secretary may require the existing servicer of a mortgage
assigned to the Secretary to continue servicing the mortgage
as an agent of the Secretary during the period that the
Secretary acquires and holds the mortgage for the purpose of
modifying the terms of the mortgage, provided that the
Secretary compensates the existing servicer appropriately, as
such compensation is determined by the Secretary consistent,
to the maximum extent possible, with section 203(b). If the
mortgage is resold pursuant to subparagraph (C)(iii), the
Secretary may provide for the existing servicer to continue
to service the mortgage or may engage another entity to
service the mortgage.''.
(4) Implementation.--The Secretary of Housing and Urban
Development may implement the amendments made by this
subsection through notice or mortgagee letter.
(e) Change of Status.--The National Housing Act is amended
by striking section 532 (12 U.S.C. 1735f-10) and inserting
the following new section:

``SEC. 532. CHANGE OF MORTGAGEE STATUS.

``(a) Notification.--Upon the occurrence of any action
described in subsection (b), an approved mortgagee shall
immediately submit to the Secretary, in writing, notification
of such occurrence.
``(b) Actions.--The actions described in this subsection
are as follows:
``(1) The debarment, suspension or a Limited Denial of
Participation (LDP), or application of other sanctions, other
exclusions, fines, or penalties applied to the mortgagee or
to any officer, partner, director, principal, manager,
supervisor, loan processor, loan underwriter, or loan
originator of the mortgagee pursuant to applicable provisions
of State or Federal law.
``(2) The revocation of a State-issued mortgage loan
originator license issued pursuant to the S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any other
similar declaration of ineligibility pursuant to State
law.''.
(f) Civil Money Penalties.--Section 536 of the National
Housing Act (12 U.S.C. 1735f-14) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A), by inserting
``or any of its owners, officers, or directors'' after
``mortgagee or lender'';
(ii) in subparagraph (H), by striking ``title I'' and all
that follows through ``under this Act.'' and inserting
``title I or II of this Act, or any implementing regulation,
handbook, or mortgagee letter that is issued under this
Act.''; and
(iii) by inserting after subparagraph (J) the following:
``(K) Violation of section 202(d) of this Act (12 U.S.C.
1708(d)).
``(L) Use of `Federal Housing Administration', `Department
of Housing and Urban Development', `Government National
Mortgage Association', `Ginnie Mae', the acronyms `HUD',
`FHA', or `GNMA', or any official seal or logo of the
Department of Housing and Urban Development, except as
authorized by the Secretary.'';
(B) in paragraph (2)--
(i) in subparagraph (B), by striking ``or'' at the end;
(ii) in subparagraph (C), by striking the period at the end
and inserting ``; or''; and
(iii) by adding at the end the following new subparagraph:
``(D) causing or participating in any of the violations set
forth in paragraph (1) of this subsection.''; and
(C) by amending paragraph (3) to read as follows:
``(3) Prohibition against misleading use of federal entity
designation.--The Secretary may impose a civil money penalty,
as adjusted from time to time, under subsection (a) for any
use of `Federal Housing Administration', `Department of
Housing and Urban Development', `Government National Mortgage
Association', `Ginnie Mae', the acronyms `HUD', `FHA', or
`GNMA', or any official seal or logo of the Department of
Housing and Urban Development, by any person, party, company,
firm, partnership, or business, including sellers of real
estate, closing agents, title companies, real estate agents,
mortgage brokers, appraisers, loan correspondents, and
dealers, except as authorized by the Secretary.''; and
(2) in subsection (g), by striking ``The term'' and all
that follows through the end of the sentence and inserting
``For purposes of this section, a person acts knowingly when
a person has actual knowledge of acts or should have known of
the acts.''.
(g) Expanded Review of FHA Mortgagee Applicants and Newly
Approved Mortgagees.--Not later than the expiration of the 3-
month period beginning upon the date of the enactment of this
Act, the Secretary of Housing and Urban Development shall--
(1) expand the existing process for reviewing new
applicants for approval for participation in the mortgage
insurance programs of the Secretary for mortgages on 1- to 4-
family residences for the purpose of identifying applicants
who represent a high risk to the Mutual Mortgage Insurance
Fund; and
(2) implement procedures that, for mortgagees approved
during the 12-month period ending upon such date of
enactment--
(A) expand the number of mortgages originated by such
mortgagees that are reviewed for compliance with applicable
laws, regulations, and policies; and
(B) include a process for random reviews of such mortgagees
and a process for reviews that is based on volume of
mortgages originated by such mortgagees.

SEC. 204. ENHANCEMENT OF LIQUIDITY AND STABILITY OF INSURED
DEPOSITORY INSTITUTIONS TO ENSURE AVAILABILITY
OF CREDIT AND REDUCTION OF FORECLOSURES.

(a) Temporary Increase in Deposit Insurance Extended.--
Section 136 of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5241) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``December 31, 2009'' and
inserting ``December 31, 2013'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph (2); and

[[Page S4989]]

(D) in paragraph (2), as so redesignated, by striking
``December 31, 2009'' and inserting ``December 31, 2013'';
and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``December 31, 2009'' and
inserting ``December 31, 2013'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph (2); and
(D) in paragraph (2), as so redesignated, by striking
``December 31, 2009'' and inserting ``December 31, 2013'';
and
(b) Extension of Restoration Plan Period.--Section
7(b)(3)(E)(ii) of the Federal Deposit Insurance Act (12
U.S.C. 1817(b)(3)(E)(ii)) is amended by striking ``5-year
period'' and inserting ``8-year period''.
(c) FDIC and NCUA Borrowing Authority.--
(1) FDIC.--Section 14(a) of the Federal Deposit Insurance
Act (12 U.S.C. 1824(a)) is amended--
(A) by striking ``$30,000,000,000'' and inserting
``$100,000,000,000'';
(B) by striking ``The Corporation is authorized'' and
inserting the following:
``(1) In general.--The Corporation is authorized'';
(C) by striking ``There are hereby'' and inserting the
following:
``(2) Funding.--There are hereby''; and
(D) by adding at the end the following:
``(3) Temporary increases authorized.--
``(A) Recommendations for increase.--During the period
beginning on the date of enactment of this paragraph and
ending on December 31, 2010, if, upon the written
recommendation of the Board of Directors (upon a vote of not
less than two-thirds of the members of the Board of
Directors) and the Board of Governors of the Federal Reserve
System (upon a vote of not less than two-thirds of the
members of such Board), the Secretary of the Treasury (in
consultation with the President) determines that additional
amounts above the $100,000,000,000 amount specified in
paragraph (1) are necessary, such amount shall be increased
to the amount so determined to be necessary, not to exceed
$500,000,000,000.
``(B) Report required.--If the borrowing authority of the
Corporation is increased above $100,000,000,000 pursuant to
subparagraph (A), the Corporation shall promptly submit a
report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives describing the reasons and
need for the additional borrowing authority and its intended
uses.
``(C) Restriction on usage.--The Corporation may not borrow
pursuant to subparagraph (A) to fund obligations of the
Corporation incurred as a part of a program established by
the Secretary of the Treasury pursuant to the Emergency
Economic Stabilization Act of 2008 to purchase or guarantee
assets.''.
(2) NCUA.--Section 203(d)(1) of the Federal Credit Union
Act (12 U.S.C. 1783(d)(1)) is amended to read as follows:
``(1) If, in the judgment of the Board, a loan to the
insurance fund, or to the stabilization fund described in
section 217 of this title, is required at any time for
purposes of this subchapter, the Secretary of the Treasury
shall make the loan, but loans under this paragraph shall not
exceed in the aggregate $6,000,000,000 outstanding at any one
time. Except as otherwise provided in this subsection,
section 217, and in subsection (e) of this section, each loan
under this paragraph shall be made on such terms as may be
fixed by agreement between the Board and the Secretary of the
Treasury.''.
(3) Temporary increases of borrowing authority for ncua.--
Section 203(d) of the Federal Credit Union Act (12 U.S.C.
1783(d)) is amended by adding at the end the following:
``(4) Temporary increases authorized.--
``(A) Recommendations for increase.--During the period
beginning on the date of enactment of this paragraph and
ending on December 31, 2010, if, upon the written
recommendation of the Board (upon a vote of not less than
two-thirds of the members of the Board) and the Board of
Governors of the Federal Reserve System (upon a vote of not
less than two-thirds of the members of such Board), the
Secretary of the Treasury (in consultation with the
President) determines that additional amounts above the
$6,000,000,000 amount specified in paragraph (1) are
necessary, such amount shall be increased to the amount so
determined to be necessary, not to exceed $30,000,000,000.
``(B) Report required.--If the borrowing authority of the
Board is increased above $6,000,000,000 pursuant to
subparagraph (A), the Board shall promptly submit a report to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives describing the reasons and need for the
additional borrowing authority and its intended uses.''.
(d) Expanding Systemic Risk Special Assessments.--Section
13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12
U.S.C. 1823(c)(4)(G)(ii)) is amended to read as follows:
``(ii) Repayment of loss.--

``(I) In general.--The Corporation shall recover the loss
to the Deposit Insurance Fund arising from any action taken
or assistance provided with respect to an insured depository
institution under clause (i) from 1 or more special
assessments on insured depository institutions, depository
institution holding companies (with the concurrence of the
Secretary of the Treasury with respect to holding companies),
or both, as the Corporation determines to be appropriate.
``(II) Treatment of depository institution holding
companies.--For purposes of this clause, sections 7(c)(2) and
18(h) shall apply to depository institution holding companies
as if they were insured depository institutions.
``(III) Regulations.--The Corporation shall prescribe such
regulations as it deems necessary to implement this clause.
In prescribing such regulations, defining terms, and setting
the appropriate assessment rate or rates, the Corporation
shall establish rates sufficient to cover the losses incurred
as a result of the actions of the Corporation under clause
(i) and shall consider: the types of entities that benefit
from any action taken or assistance provided under this
subparagraph; economic conditions, the effects on the
industry, and such other factors as the Corporation deems
appropriate and relevant to the action taken or the
assistance provided. Any funds so collected that exceed
actual losses shall be placed in the Deposit Insurance
Fund.''.

(e) Establishment of a National Credit Union Share
Insurance Fund Restoration Plan Period.--Section 202(c)(2) of
the Federal Credit Union Act (12 U.S.C. 1782(c)(2)) is
amended by adding at the end the following new subparagraph:
``(D) Fund restoration plans.--
``(i) In general.--Whenever--

``(I) the Board projects that the equity ratio of the Fund
will, within 6 months of such determination, fall below the
minimum amount specified in subparagraph (C); or
``(II) the equity ratio of the Fund actually falls below
the minimum amount specified in subparagraph (C) without any
determination under sub-clause (I) having been made,

the Board shall establish and implement a restoration plan
within 90 days that meets the requirements of clause (ii) and
such other conditions as the Board determines to be
appropriate.
``(ii) Requirements of restoration plan.--A restoration
plan meets the requirements of this clause if the plan
provides that the equity ratio of the Fund will meet or
exceed the minimum amount specified in subparagraph (C)
before the end of the 8-year period beginning upon the
implementation of the plan (or such longer period as the
Board may determine to be necessary due to extraordinary
circumstances).
``(iii) Transparency.--Not more than 30 days after the
Board establishes and implements a restoration plan under
clause (i), the Board shall publish in the Federal Register a
detailed analysis of the factors considered and the basis for
the actions taken with regard to the plan.''.
(f) Temporary Corporate Credit Union Stabilization Fund.--
(1) Establishment of stabilization fund.--Title II of the
Federal Credit Union Act (12 U.S.C. 1781 et seq.) is amended
by adding at the end the following new section:

``SEC. 217. TEMPORARY CORPORATE CREDIT UNION STABILIZATION
FUND.

``(a) Establishment of Stabilization Fund.--There is hereby
created in the Treasury of the United States a fund to be
known as the `Temporary Corporate Credit Union Stabilization
Fund.' The Board will administer the Stabilization Fund as
prescribed by section 209.
``(b) Expenditures From Stabilization Fund.--Money in the
Stabilization Fund shall be available upon requisition by the
Board, without fiscal year limitation, for making payments
for the purposes described in section 203(a), subject to the
following additional limitations:
``(1) All payments other than administrative payments shall
be connected to the conservatorship, liquidation, or
threatened conservatorship or liquidation, of a corporate
credit union.
``(2) Prior to authorizing each payment the Board shall--
``(A) certify that, absent the existence of the
Stabilization Fund, the Board would have made the identical
payment out of the National Credit Union Share Insurance Fund
(Insurance Fund); and
``(B) report each such certification to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives.
``(c) Authority to Borrow.--
``(1) In general.--The Stabilization Fund is authorized to
borrow from the Secretary of the Treasury from time-to-time
as deemed necessary by the Board. The maximum outstanding
amount of all borrowings from the Treasury by the
Stabilization Fund and the National Credit Union Share
Insurance Fund, combined, is limited to the amount provided
for in section 203(d)(1), including any authorized increases
in that amount.
``(2) Repayment of advances.--
``(A) In general.--The advances made under this section
shall be repaid by the Stabilization Fund, and interest on
such advance shall be paid, to the General fund of the
Treasury.
``(B) Variable rate of interest.--The Secretary of the
Treasury shall make the first rate determination at the time
of the first advance under this section and shall reset the
rate again for all advances on each anniversary of the first
advance. The interest rate shall be equal to the average
market yield on outstanding marketable obligations of the
United States with remaining periods to maturity equal to 12
months.

[[Page S4990]]

``(3) Repayment schedule.--The Stabilization Fund shall
repay the advances on a first-in, first-out basis, with
interest on the amount repaid, at times and dates determined
by the Board at its discretion. All advances shall be repaid
not later than the date of the seventh anniversary of the
first advance to the Stabilization Fund, unless the Board
extends this final repayment date. The Board shall obtain the
concurrence of the Secretary of the Treasury on any proposed
extension, including the terms and conditions of the extended
repayment.
``(d) Assessment to Repay Advances.--At least 90 days prior
to each repayment described in subsection (c)(3), the Board
shall set the amount of the upcoming repayment and determine
if the Stabilization Fund will have sufficient funds to make
the repayment. If the Stabilization Fund might not have
sufficient funds to make the repayment, the Board shall
assess each federally insured credit union a special premium
due and payable within 60 days in an aggregate amount
calculated to ensure the Stabilization Fund is able to make
the repayment. The premium charge for each credit union shall
be stated as a percentage of its insured shares as
represented on the credit union's previous call report. The
percentage shall be identical for each credit union. Any
credit union that fails to make timely payment of the special
premium is subject to the procedures and penalties described
under subsections (d), (e), and (f) of section 202.
``(e) Distributions From Insurance Fund.--At the end of any
calendar year in which the Stabilization Fund has an
outstanding advance from the Treasury, the Insurance Fund is
prohibited from making the distribution to insured credit
unions described in section 202(c)(3). In lieu of the
distribution described in that section, the Insurance Fund
shall make a distribution to the Stabilization Fund of the
maximum amount possible that does not reduce the Insurance
Fund's equity ratio below the normal operating level and does
not reduce the Insurance Fund's available assets ratio below
1.0 percent.
``(f) Investment of Stabilization Fund Assets.--The Board
may request the Secretary of the Treasury to invest such
portion of the Stabilization Fund as is not, in the Board's
judgment, required to meet the current needs of the
Stabilization Fund. Such investments shall be made by the
Secretary of the Treasury in public debt securities, with
maturities suitable to the needs of the Stabilization Fund,
as determined by the Board, and bearing interest at a rate
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding marketable
obligations of the United States of comparable maturity.
``(g) Reports.--The Board shall submit an annual report to
Congress on the financial condition and the results of the
operation of the Stabilization Fund. The report is due to
Congress within 30 days after each anniversary of the first
advance made under subsection (c)(1). Because the Fund will
use advances from the Treasury to meet corporate
stabilization costs with full repayment of borrowings to
Treasury at the Board's discretion not due until 7 years from
the initial advance, to the extent operating expenses of the
Fund exceed income, the financial condition of the Fund may
reflect a deficit. With planned and required future
repayments, the Board shall resolve all deficits prior to
termination of the Fund.
``(h) Closing of Stabilization Fund.--Within 90 days
following the seventh anniversary of the initial
Stabilization Fund advance, or earlier at the Board's
discretion, the Board shall distribute any funds, property,
or other assets remaining in the Stabilization Fund to the
Insurance Fund and shall close the Stabilization Fund. If the
Board extends the final repayment date as permitted under
subsection (c)(3), the mandatory date for closing the
Stabilization Fund shall be extended by the same number of
days.''.
(2) Conforming amendment.--Section 202(c)(3)(A) of the
Federal Credit Union Act (12 U.S.C. 1782(c)(3)(A)) is amended
by inserting ``, subject to the requirements of section
217(e),'' after ``The Board shall''.

SEC. 205. APPLICATION OF GSE CONFORMING LOAN LIMIT TO
MORTGAGES ASSISTED WITH TARP FUNDS.

In making any assistance available to prevent and mitigate
foreclosures on residential properties, including any
assistance for mortgage modifications, using any amounts made
available to the Secretary of the Treasury under title I of
the Emergency Economic Stabilization Act of 2008, the
Secretary shall provide that the limitation on the maximum
original principal obligation of a mortgage that may be
modified, refinanced, made, guaranteed, insured, or otherwise
assisted, using such amounts shall not be less than the
dollar amount limitation on the maximum original principal
obligation of a mortgage that may be purchased by the Federal
Home Loan Mortgage Corporation that is in effect, at the time
that the mortgage is modified, refinanced, made, guaranteed,
insured, or otherwise assisted using such amounts, for the
area in which the property involved in the transaction is
located.

SEC. 206. MORTGAGES ON CERTAIN HOMES ON LEASED LAND.

Section 255(b)(4) of the National Housing Act (12 U.S.C.
1715z-20(b)(4)) is amended by striking subparagraph (B) and
inserting:
``(B) under a lease that has a term that ends no earlier
than the minimum number of years, as specified by the
Secretary, beyond the actuarial life expectancy of the
mortgagor or comortgagor, whichever is the later date.''.

SEC. 207. SENSE OF CONGRESS REGARDING MORTGAGE REVENUE BOND
PURCHASES.

It is the sense of the Congress that the Secretary of the
Treasury should use amounts made available in this Act to
purchase mortgage revenue bonds for single-family housing
issued through State housing finance agencies and through
units of local government and agencies thereof.

TITLE III--MORTGAGE FRAUD TASK FORCE

SEC. 301. SENSE OF CONGRESS ON ESTABLISHMENT OF A NATIONWIDE
MORTGAGE FRAUD TASK FORCE.

(a) In General.--It is the sense of the Congress that the
Department of Justice establish a Nationwide Mortgage Fraud
Task Force (hereinafter referred to in this section as the
``Task Force'') to address mortgage fraud in the United
States.
(b) Support.--If the Department of Justice establishes the
Task Force referred to in subsection (a), it is the sense of
the Congress that the Attorney General should provide the
Task Force with the appropriate staff, administrative
support, and other resources necessary to carry out the
duties of the Task Force.
(c) Mandatory Functions.--If the Department of Justice
establishes the Task Force referred to in subsection (a), it
is the sense of the Congress that the Attorney General
should--
(1) establish coordinating entities, and solicit the
voluntary participation of Federal, State, and local law
enforcement and prosecutorial agencies in such entities, to
organize initiatives to address mortgage fraud, including
initiatives to enforce State mortgage fraud laws and other
related Federal and State laws;
(2) provide training to Federal, State, and local law
enforcement and prosecutorial agencies with respect to
mortgage fraud, including related Federal and State laws;
(3) collect and disseminate data with respect to mortgage
fraud, including Federal, State, and local data relating to
mortgage fraud investigations and prosecutions; and
(4) perform other functions determined by the Attorney
General to enhance the detection of, prevention of, and
response to mortgage fraud in the United States.
(d) Optional Functions.--If the Department of Justice
establishes the Task Force referred to in subsection (a), it
is the sense of the Congress that the Task Force should--
(1) initiate and coordinate Federal mortgage fraud
investigations and, through the coordinating entities
described under subsection (c), State and local mortgage
fraud investigations;
(2) establish a toll-free hotline for--
(A) reporting mortgage fraud;
(B) providing the public with access to information and
resources with respect to mortgage fraud; and
(C) directing reports of mortgage fraud to the appropriate
Federal, State, and local law enforcement and prosecutorial
agency, including to the appropriate branch of the Task Force
established under subsection (d);
(3) create a database with respect to suspensions and
revocations of mortgage industry licenses and certifications
to facilitate the sharing of such information by States;
(4) make recommendations with respect to the need for and
resources available to provide the equipment and training
necessary for the Task Force to combat mortgage fraud; and
(5) propose legislation to Federal, State, and local
legislative bodies with respect to the elimination and
prevention of mortgage fraud, including measures to address
mortgage loan procedures and property appraiser practices
that provide opportunities for mortgage fraud.

TITLE IV--FORECLOSURE MORATORIUM PROVISIONS

SEC. 401. SENSE OF THE CONGRESS ON FORECLOSURES.

(a) In General.--It is the sense of the Congress that
mortgage holders, institutions, and mortgage servicers should
not initiate a foreclosure proceeding or a foreclosure sale
on any homeowner until the foreclosure mitigation provisions,
like the Hope for Homeowners program, as required under title
II, and the President's ``Homeowner Affordability and
Stability Plan'' have been implemented and determined to be
operational by the Secretary of Housing and Urban Development
and the Secretary of the Treasury.
(b) Scope of Moratorium.--The foreclosure moratorium
referred to in subsection (a) should apply only for first
mortgages secured by the owner's principal dwelling.
(c) FHA-Regulated Loan Modification Agreements.--If a
mortgage holder, institution, or mortgage servicer to which
subsection (a) applies reaches a loan modification agreement
with a homeowner under the auspices of the Federal Housing
Administration before any plan referred to in such subsection
takes effect, subsection (a) shall cease to apply to such
institution as of the effective date of the loan modification
agreement.
(d) Duty of Consumer to Maintain Property.--Any homeowner
for whose benefit any foreclosure proceeding or sale is
barred under subsection (a) from being instituted, continued
, or consummated with respect to

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any homeowner mortgage should not, with respect to any
property securing such mortgage, destroy, damage, or impair
such property, allow the property to deteriorate, or commit
waste on the property.
(e) Duty of Consumer to Respond to Reasonable Inquiries.--
Any homeowner for whose benefit any foreclosure proceeding or
sale is barred under subsection (a) from being instituted,
continued, or consummated with respect to any homeowner
mortgage should respond to reasonable inquiries from a
creditor or servicer during the period during which such
foreclosure proceeding or sale is barred.
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