,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #abee  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #ai1 #bjac ,mr4  
,g>y ,g4 ,mill] ( ,cali=nia 7= himself &
 ,mrs4 ,mc,carthy ( ,new ,york7         
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,f9ancial ,s]vices  ,a 
,,bill  ,to enable ,f$]al & ,/ate *>t]$ 
banks & ?rifts to meet ! cr$it ne$s ( ! 
,nation's home build]s1 & to provide    
liquidity & ensure /able cr$it = meet+ !
 ,nation's ne$ = new homes4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,home   
,con/ruction ,l5d+ ,regulatory          
,improvem5t ,act ( #bjac4  #b4 ,purpose 
,x is ! purpose ( ?is ,act to--  7#a7   
imm$iately provide au?ority & guidance t
 ,f$]al & ,/ate bank regulators c use to
 ensure t ,f$]al & ,/ate *>t]$ banks &  
?rifts t provide f9anc+ to ,am]ica's    
home build]s are p]mitt$ to make loans1 
provide ongo+ liquidity1 & ensure /able 
f9anc+ to su* home build]s2 &  7#b7     
enable ,f$]al & ,/ate *>t]$ banks &     
?rifts to provide initial & ongo+ cr$it 

to ,am]ica's home build]s to aid 9      
re/or+ liquidity to ! home build+ sector
 & to re/ore vitality to ! ,unit$ ,/ates
 resid5tial h\s+ m>ket4  #c4 ,coord9at$ 
rulemak+  7a7 ,initiation ( proce$+s ,n 
lat] ?an #ij days aft] ! enactm5t ( ?is 
,act1 ! appropriate ,f$]al bank+ ag5cies
 %all initiate a coord9at$ rulemak+ )   
respect to f9ancial in/itutions "u _!   
respective jurisdictions t make real    
e/ate loans to home build]s4 ,su*       
rulemak+ %all provide = ! foll[+3  7#a7 
,elim9ation ( ! #ajj p]c5t ( bank       
capital measurem5t  7,a7 ,loan          
orig9ation ,if any qualifi$ f9ancial    
in/itution is hold+ real e/ate loans 9  
its l5d+ portfolio t 9 ! aggregate      
repres5t #ajj p]c5t or m ( its total    
capital1 ! appropriate ,f$]al bank+     
ag5cy %all n prohibit any su* in/itution
 f cont9u+ to make su* loans to home    
build]s4  7,b7 ,l5d+ decisions ,!       
appropriate ,f$]al bank+ ag5cy %all n   
prev5t a qualifi$ f9ancial in/itution f 
mak+ a real e/ate loan to a home build] 

t has a viable project4  7,c7 ,qualifi$ 
f9ancial in/itution def9$ ,= purposes ( 
?is p>agraph1 ! t]m qualifi$ f9ancial   
in/itution means a f9ancial in/itution t
 receiv$1 9 ! mo/ rec5t exam9ation ( !  
in/itution1 a ,,camel composite rat+ (  
#a1 #b1 or #c "u ! ,uni=m ,f9ancial     
,in/itutions ,rat+ ,sy/em4  7#b7        
,reali/ic m>ket bas$ appraisals  7,a7   
,valuation /&>d ,! appropriate ,f$]al   
bank+ ag5cy %all require t entities us$ 
by f9ancial in/itutions to assess !     
value ( collat]al1 ) respect to a real  
e/ate loan1 associat$ ) any viable      
project 9 su* in/itution's l5d+         
portfolio utilize an z complet$         
valuation to make su* an assessm5t4     
7,b7 ,arms l5g? transactions ,!         
appropriate ,f$]al bank+ ag5cy %all     
require t entities us$ by f9ancial      
in/itutions to assess or review         
und]writ+ /&>ds & collat]al values =    
real e/ate loans made by su* in/itutions
 aft] ! date ( ! enactm5t ( ?is ,act use
 comp>able sales involv+ arms l5g?      

transactions to make su* an assessm5t or
 review4  7#c7 ,prohibition on compell+ 
l5d]s to call or curtail loans 9 good   
/&+  7,a7 ,home build]s 9 good /&+ ,!   
appropriate ,f$]al bank+ ag5cy %all n   
compel a f9ancial in/itution to call or 
curtail a real e/ate loan ( a home      
build] t is 9 good /&+4  7,b7 ,maximum  
m>ket valuation  7i7 ,9 g5]al ,!        
appropriate ,f$]al bank+ ag5cy %all1 9 !
 case t a home build] is 9 good /&+ on a
 real e/ate loan b ! home build]'s      
collat]al1 ) respect to t loan1 has     
decreas$ 9 value bas$ on an z complet$  
valuation1 p]mit a f9ancial in/itution  
to "w ) su* home build] to realize !    
maximum curr5t m>ket valuation ( su*    
collat]al us+ work\t me?ods or o!r      
appropriate means4  7ii7 ,p]iod ( work\t
 me?ods ,work\t me?ods may be utiliz$ up
 to a #bd-mon? p]iod foll[+ ! issuance (
 f9al regulations "u subsection 7c74 ,9 
no case %all any real e/ate loan be     
requir$ to be *>g$ (f until ! f9ancial  
in/itution hold+ su* loan has work$ 9   

good fai? to exhau/ all work\t me?ods or
 o!r appropriate means4  7,c7           
,reclassification ( loans ,! appropriate
 ,f$]al bank+ ag5cy %all n require a    
f9ancial in/itution to reclassify any   
real e/ate loan 9 ?is p>agraph on su*   
in/itution's balance %eet1 unless !re is
 a significant reason "u ,f9ancial      
,acc\nt+ ,/&>ds ,bo>d ,acc\nt+ ,/&>ds   
,codification #caj-aj-ce-ee or          
#caj-aj-ce-eg4  7#d7 ,wait+ p]iod ,if ! 
enactm5t ( p>agraphs #b or #c ( ?is     
subsection helps to improve a f9ancial  
in/itution's ,,camel composite rat+ "u !
 ,uni=m ,f9ancial ,in/itutions ,rat+    
,sy/em f a #d or #e to a #a1 #b1 or #c 9
 su* in/itution's next exam9ation t     
beg9s aft] ! date t f9al regulations are
 issu$ pursuant to subsection 7c71 su*  
in/itution's improv$ rat+ %all take     
effect no e>li] ?an #bd mon?s aft] su*  
rat+ 0 receiv$4  7b7 ,coord9ation1      
consi/5cy1 & comp>ability ,ea* ( !      
ag5cies ) au?orities ref]r$ to 9        
subsection 7a7 %all consult & coord9ate 

) ! o!r su* ag5cies & au?orities = !    
purpose ( assur+1 to ! ext5t possible1 t
 ! regulations by ea* su* ag5cy &       
au?ority are consi/5t & comp>able ) ^?  
prescrib$ by ! o!r su* ag5cies &        
au?orities4  7c7 ,deadl9e ,n lat] ?an #f
 mon?s aft] ! enactm5t ( ?is ,act1 ea* (
 ! ag5cies ) au?orities ref]r$ to 9     
subsection 7a7 %all issue f9al          
regulations to implem5t rules issu$ "u  
?is ,act4  7d7 ,ag5cy au?ority ,! rules 
issu$ "u ?is ,act %all be en=c$ by !    
appropriate ,f$]al bank+ ag5cies )      
respect to f9ancial in/itutions "u _!   
respective jurisdictions4  7e7 ,effect  
on ,/ate law ,! rules issu$ "u ?is ,act 
%all n sup]c$e ! law ( any ,/ate except 
to ! ext5t t su* law is inconsi/5t ) su*
 rule1 & !n only to ! ext5t ( !         
inconsi/5cy4  #d4 ,def9itions ,9 ?is    
,act3  7#a7 ,appropriate ,f$]al bank+   
ag5cy ,! t]m appropriate ,f$]al bank+   
ag5cy has ! same mean+ z is giv5 su* t]m
 9 section #c7q7 ( ! ,f$]al ,deposit    
,insurance ,act 7#ab ,u4,s4,c4          

#ahac7q774  7#b7 ,arms l5g? transaction 
7,a7 ,9 g5]al ,! t]m arms l5g?          
transaction means a negotiat$ real e/ate
 transaction betwe5 a buy] & sell] 9 :i*
 su* buy] & sell] act indep5d5tly ( ea* 
o!r4  7,b7 ,transactions exclud$ ,su*   
t]m %all n include any transaction      
involv+ a %ort sale or =eclos$ prop]ty  
or any o!r di/ress$ real prop]ty4  7#c7 
,z complet$ valuation ,! t]m z complet$ 
valuation means ! e/imat$ m>ket value ( 
collat]al aft] ! full completion &      
absorption ( ! developm5t & con/ruction 
associat$ ) ! highe/ & be/ use ( !      
collat]al4  7#d7 ,f9ancial in/itution ,!
 t]m f9ancial in/itution means an entity
 regulat$ by1 & "u ! sup]vision (1 any  
appropriate ,f$]al bank+ ag5cy4  7#e7   
,good /&+ ,! t]m good /&+ means mak+    
paym5ts on a real e/ate loan 9          
accordance ) ! agreem5t ( su* loan4     
7#f7 ,real e/ate loan ,! t]m real e/ate 
loan means any indebtness 7secur$ by a  
mortgage1 de$ ( tru/1 or o!r equival5t  
cons5sual security int]e/ on real       

prop]ty7 acquir$ = ! purpose ( pur*as+  
or improv+ real prop]ty1 includ+        
indebtness acquir$ =--  7,a7 l&         
acquisition2  7,b7 l& developm5t2 &     
7,c7 resid5tial con/ruction projects4   
7#g7 ,total capital ,! t]m total capital
 means ! total risk-bas$ capital ( a    
f9ancial in/itution z report$           
p]iodically by su* in/itution 9 ! ,f$]al
 ,f9ancial ,in/itutions ,exam9ation     
,c\ncil's ,call ,report or ,?rift       
,f9ancial ,reports1 z applicable4  7#h7 
,viable project ,! t]m viable project   
means a real e/ate project t a f9ancial 
in/itution has det]m9$ cont9ues to h a  
reasonable prospect ( rea*+ completion &
 sale4  7#i7 ,work\t me?ods ,! t]m      
work\t me?ods means te*niques to prev5t 
a real e/ate loan default+1 includ+     
work\t assi/ance1 loan modifications1   
loan write d[ns1 & flexibility on       
reappraisal me?ods4