,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #djfb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,febru>y #ad1 #bjad   
,mr4 ,mc,dermott introduc$ ! foll[+     
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to ext5d 
! income exclusion = dis*>ge ( qualifi$ 
pr9cipal resid5ce indebt$ness1 to       
provide exclusions f income = c]ta9     
paym5ts "u ! ,national ,mortgage        
,settlem5t1 & = o!r purposes4  #a4 ,%ort
 title ,?is ,act may be cit$ z !        
,home[n] ,tax ,fairness ,act4  #b4      
,ext5sion ( income exclusion = dis*>ge (
 qualifi$ pr9cipal resid5ce indebt$ness 
7a7 ,9 g5]al ,subp>agraph 7,e7 ( section
 #ajh7;a77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by /rik+ ,janu>y #a1  
#bjad & ins]t+ ,janu>y #a1 #bjag4  7b7  
,application to c]ta9 agreem5ts         
,subp>agraph 7,e7 ( section #ajh7;a77#a7
 ( su* ,code1 z am5d$ by subsection 7a71
 is am5d$ by ins]t+ be=e ! p]iod !      
foll[+3 1 or :i* is dis*>g$ aft] su*    

date pursuant to an agreem5t ent]$ into 
be=e su* date "u ! programs creat$      
pursuant to1 or us+ funds au?oriz$ by ! 
,em]g5cy ,economic ,/abilization ,act ( 
#bjjh4  7c7 ,effective date  7#a7       
,subsection 7a7 ,! am5dm5t made by      
subsection 7a7 %all apply to dis*>ges 9 
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjac4  7#b7 ,subsection 7b7 ,! am5dm5t 
made by subsection 7b7 %all take effect 
on ! date ( ! enactm5t ( ?is ,act4  #c4 
,ext5sion ( d$uction = mortgage         
insurance premiums  7a7 ,9 g5]al        
,subclause 7,i7 ( section               
#afc7;h77#c77;,e77iv7 ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
,decemb] #ca1 #bjac & ins]t+ ,decemb]   
#ca1 #bjae4  7b7 ,effective date ,!     
am5dm5t made by ?is section %all apply  
to am\nts paid or accru$ aft] ,decemb]  
#ca1 #bjac4  #d4 ,exclusions relat+ to  
,national ,mortgage ,settlem5t paym5ts  
7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b (  
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf 7relat+ to items specifically     

exclud$ f gross income7 is am5d$ by     
ins]t+ be=e section #adj ! foll[+ new   
section3  #aci;,f4 ,national ,mortgage  
,settlem5t  7a7 ,g5]al rule ,9 ! case ( 
an individual1 gross income %all n      
include any ,national ,mortgage         
,settlem5t am\nt4  7b7 ,national        
,mortgage ,settlem5t am\nt def9$ ,=     
purposes ( subsection 7a71 ! t]m        
,national ,mortgage ,settlem5t am\nt    
means1 ) respect to any am\nt receiv$ "u
 ! ,national ,mortgage ,settlem5t1 an   
am\nt :i* is--  7#a7 a paym5t =         
transitional assi/ance1  7#b7 a paym5t f
 ! ,borr[] ,paym5t ,fund "u ! ,national 
,mortgage ,settlem5t to a borr[] ^:     
qualifi$ pr9cipal resid5ce 0 sold or    
tak5 9 =eclosure aft] ,decemb] #ca1     
#bjjg1 & be=e ,janu>y #a1 #bjad1 or     
7#c7 a paym5t receiv$ z a result ( a    
=eclosure or excess *>ge ( int]e/ t !   
,unit$ ,/ates ,dep>tm5t ( ,ju/ice has   
det]m9$ 0 n 9 compliance ) !            
,s]vicememb]s ,civil ,relief ,act4  7c7 
,disreg>d ( refund ( excess mortgage    

int]e/ & relat$ damages ,9 ! case ( an  
individual1 ! am\nt ( int]e/ refund$ &  
damages paid "u ! ,national ,mortgage   
,settlem5t = excess *>ges ( mortgage    
int]e/ describ$ 9 subsection 7b77#c7--  
7#a7 %all be disreg>d$ = purposes ( ?is 
*apt]1 &  7#b7 no adju/m5t ( ! d$uction 
all[able "u section #afc7;h7 %all be    
made z a result ( su* refund4  7d7      
,national ,mortgage ,settlem5t ,=       
purposes ( ?is section1 ! t]m ,national 
,mortgage ,settlem5t means any cons5t   
agreem5t ent]$ into 9 settlem5t ( !     
action entitl$ ,! ,unit$ ,/ates (       
,am]ica1 et al4 aga9/ ,bank ( ,am]ica   
,corporation1 et al41 fil$ 9 ! ,unit$   
,/ates ,di/rict ,c\rt = ! ,di/rict (    
,columbia on ,m>* #ab1 #bjab 7case      
numb]$ #a3ab-;cv-#jjcfa-,,rmc74  4  7b7 
,cl]ical am5dm5t ,! table ( sections =  
su* "p ,,iii is am5d$ by ins]t+ be=e !  
item relat+ to section #adj ! foll[+ new
 item3  ,sec4 #aci;,f4 ,national        
,mortgage ,settlem5t4  4  7c7 ,effective
 date ,! am5dm5ts made by ?is section   

%all apply to am\nts paid on or aft]    
,febru>y #i1 #bjab1 9 taxable ye>s end+ 
aft] su* date4  #e4 ,d5ial ( bus9ess    
d$uction = ,national ,mortgage          
,settlem5t paym5ts  7a7 ,9 g5]al        
,section #afb ( su* ,code is am5d$ by   
r$esignat+ subsection 7q7 z subsection  
7r7 & by ins]t+ aft] subsection 7p7 !   
foll[+ new subsection3  7q7 ,national   
,mortgage ,settlem5t  7#a7 ,9 g5]al ,no 
d$uction %all be all[$ "u ?is *apt] =   
any ,national ,mortgage ,settlem5t am\nt
 t 0 paid 9 ex*ange = a full release ( !
 ,unit$ ,/ates pot5tial civil claims "u 
! ,s]vicememb]s ,civil ,relief ,act4    
7#b7 ,national ,mortgage ,settlem5t     
am\nt ,! t]m ,national ,mortgage        
,settlem5t am\nt has ! mean+ giv5 su*   
t]m by section #aci;,f4  4  7b7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts paid 9     
taxable ye>s end+ aft] ,febru>y #a1     
#bjad4