,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #djfb  ,,in ,,the ,,house ,,of  
,,representatives  ,february #ad1 #bjad 
,mr4 ,mc,dermott introduced the         
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to extend the income    
exclusion for discharge of qualified    
principal residence indebtedness1 to    
provide exclusions from income for      
certain payments under the ,national    
,mortgage ,settlement1 and for other    
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,homeowner ,tax     
,fairness ,act4  #b4 ,extension of      
income exclusion for discharge of       
qualified principal residence           
indebtedness  7a7 ,in general           
,subparagraph 7,e7 of section           
#ajh7;a77#a7 of the ,internal ,revenue  
,code of #aihf is amended by striking   
,january #a1 #bjad and inserting        
,january #a1 #bjag4  7b7 ,application to
 certain agreements ,subparagraph 7,e7  

of section #ajh7;a77#a7 of such ,code1  
as amended by subsection 7a71 is amended
 by inserting before the period the     
following3 1 or which is discharged     
after such date pursuant to an agreement
 entered into before such date under the
 programs created pursuant to1 or using 
funds authorized by the ,emergency      
,economic ,stabilization ,act of #bjjh4 
7c7 ,effective date  7#a7 ,subsection   
7a7 ,the amendment made by subsection   
7a7 shall apply to discharges in taxable
 years beginning after ,december #ca1   
#bjac4  7#b7 ,subsection 7b7 ,the       
amendment made by subsection 7b7 shall  
take effect on the date of the enactment
 of this ,act4  #c4 ,extension of       
deduction for mortgage insurance        
premiums  7a7 ,in general ,subclause    
7,i7 of section #afc7;h77#c77;,e77iv7 of
 the ,internal ,revenue ,code of #aihf  
is amended by striking ,december #ca1   
#bjac and inserting ,december #ca1      
#bjae4  7b7 ,effective date ,the        
amendment made by this section shall    

apply to amounts paid or accrued after  
,december #ca1 #bjac4  #d4 ,exclusions  
relating to ,national ,mortgage         
,settlement payments  7a7 ,in general   
,part ,,iii of subchapter ,b of chapter 
#a of the ,internal ,revenue ,code of   
#aihf 7relating to items specifically   
excluded from gross income7 is amended  
by inserting before section #adj the    
following new section3  #aci;,f4        
,national ,mortgage ,settlement  7a7    
,general rule ,in the case of an        
individual1 gross income shall not      
include any ,national ,mortgage         
,settlement amount4  7b7 ,national      
,mortgage ,settlement amount defined    
,for purposes of subsection 7a71 the    
term ,national ,mortgage ,settlement    
amount means1 with respect to any amount
 received under the ,national ,mortgage 
,settlement1 an amount which is--  7#a7 
a payment for transitional assistance1  
7#b7 a payment from the ,borrower       
,payment ,fund under the ,national      
,mortgage ,settlement to a borrower     

whose qualified principal residence was 
sold or taken in foreclosure after      
,december #ca1 #bjjg1 and before        
,january #a1 #bjad1 or  7#c7 a payment  
received as a result of a foreclosure or
 excess charge of interest that the     
,united ,states ,department of ,justice 
has determined was not in compliance    
with the ,servicemembers ,civil ,relief 
,act4  7c7 ,disregard of refund of      
excess mortgage interest and related    
damages ,in the case of an individual1  
the amount of interest refunded and     
damages paid under the ,national        
,mortgage ,settlement for excess charges
 of mortgage interest described in      
subsection 7b77#c7--  7#a7 shall be     
disregarded for purposes of this        
chapter1 and  7#b7 no adjustment of the 
deduction allowable under section       
#afc7;h7 shall be made as a result of   
such refund4  7d7 ,national ,mortgage   
,settlement ,for purposes of this       
section1 the term ,national ,mortgage   
,settlement means any consent agreement 

entered into in settlement of the action
 entitled ,the ,united ,states of       
,america1 et al4 against ,bank of       
,america ,corporation1 et al41 filed in 
the ,united ,states ,district ,court for
 the ,district of ,columbia on ,march   
#ab1 #bjab 7case numbered               
#a3ab-;cv-#jjcfa-,,rmc74  4  7b7        
,clerical amendment ,the table of       
sections for such part ,,iii is amended 
by inserting before the item relating to
 section #adj the following new item3   
,sec4 #aci;,f4 ,national ,mortgage      
,settlement4  4  7c7 ,effective date    
,the amendments made by this section    
shall apply to amounts paid on or after 
,february #i1 #bjab1 in taxable years   
ending after such date4  #e4 ,denial of 
business deduction for ,national        
,mortgage ,settlement payments  7a7 ,in 
general ,section #afb of such ,code is  
amended by redesignating subsection 7q7 
as subsection 7r7 and by inserting after
 subsection 7p7 the following new       
subsection3  7q7 ,national ,mortgage    

,settlement  7#a7 ,in general ,no       
deduction shall be allowed under this   
chapter for any ,national ,mortgage     
,settlement amount that was paid in     
exchange for a full release of the      
,united ,states potential civil claims  
under the ,servicemembers ,civil ,relief
 ,act4  7#b7 ,national ,mortgage        
,settlement amount ,the term ,national  
,mortgage ,settlement amount has the    
meaning given such term by section      
#aci;,f4  4  7b7 ,effective date ,the   
amendments made by this section shall   
apply to amounts paid in taxable years  
ending after ,february #a1 #bjad4