S.Amdt. 257

SA 257. Mr. ENZI submitted an amendment intended to be proposed to
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to
the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

At the end of division B, add the following:

TITLE VI--HOME OWNERSHIP PRESERVATION

SEC. 6001. DEFINITIONS.

As used in this title--
(1) the term ``Secretary'' means the Secretary of the
Treasury;
(2) the term ``qualifying homeowner'' means any homeowner
with an existing mortgage on their principal residence;
(3) the term ``Office'' means the Office of Home Ownership
Preservation and Foreclosure Prevention established under
this title; and
(4) the term ``Program'' means the Home Ownership
Preservation and Foreclosure Prevention Program established
under this title.

SEC. 6002. ESTABLISHMENT OF OFFICE.

There is established in the Department of the Treasury the
Office of Home Ownership Preservation and Foreclosure
Prevention.

SEC. 6003. FUNCTIONS.

(a) In General.--The Office shall be responsible for
operating and supervising the Home Ownership Preservation and
Foreclosure Prevention Program for the purpose of making
loans, subject to sections 6004 and 6005, with respect to any
qualifying homeowner.
(b) Funding.--The Secretary may issue $100,000,000,000 in
public debt for the purposes of funding the Program,
including administrative costs associated with the Program.
(c) Loan Terms.--With respect to loans made under the
Program--
(1) the interest rate applicable to such loans shall be
fixed to the interest rate of the debt issued by the
Secretary to finance the Program; and
(2) the duration of such loans shall be subject to a 30-
year amortization schedule.

SEC. 6004. LIMITATIONS.

(a) In General.--Loans originated under the Program--
(1) may not be extended to homeowners who would have a
monthly debt-to-income ratio of greater than 35 percent for
all mortgage-related after such loan is made;
(2) shall be applied to the primary residence of the
borrower only;
(3) may not exceed the lesser of 20 percent of the
principal amount of the mortgage or $80,000;
(4) may only be applied to mortgages below the conforming
loan limit used by the Federal Housing Administration; and
(5) may be used only for loans originated between January
1, 2003 and January 1, 2008.
(b) No Prepayment Penalties.--There shall be no prepayment
penalty for the early payment of a loan originated under this
title.

SEC. 6005. PROTECTIONS AGAINST TAXPAYER LIABILITY.

(a) Full Recourse.--All loans made under the Program shall
provide full recourse against the borrower for repayment on
behalf of the Department of the Treasury and the taxpayer.
(b) Priority of Obligation.--The Department of the Treasury
shall have priority repayment over all liens or interests in
the assets of the borrower during any bankruptcy or
foreclosure proceeding.
(c) No Ongoing Liability.--The United States shall have no
additional obligations to the borrower or mortgage investor
after a loan under the Program has been repaid.
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