,,ii  #aac? ,,congress  #a/ ,session    
,s4 #ajjb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #ba1 #bjac ,mr4   
,m55dez 7= himself & ,mr4 ,isakson7     
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to enable ,f$]al & ,/ate *>t]$ 
banks & ?rifts to meet ! cr$it ne$s (   
home build]s 9 ! ,unit$ ,/ates1 & to    
provide liquidity & ensure /able cr$it 9
 ord] to meet ! ne$ = new homes 9 !     
,unit$ ,/ates4  #a4 ,%ort title ,?is    
,act may be cit$ z ! ,home ,build+ ,l5d+
 ,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+2 &  7#b7 enable ,f$]al & ,/ate   
*>t]$ banks & ?rifts to provide initial 
& ongo+ cr$it 9 a s\nd mann] to         

,am]ica's home build]s to aid 9 re/or+  
liquidity & vitality to ! h\s+ m>ket4   
#c4 ,coord9at$ rulemak+  7a7 ,initiation
 ( proce$+s ,n lat] ?an #c mon?s aft] ! 
date ( enactm5t ( ?is ,act1 !           
appropriate ,f$]al bank+ ag5cies %all   
ea* initiate guidance or rulemak+ )     
respect to f9ancial in/itutions "u _!   
respective jurisdictions t make real    
e/ate loans to home build]s4 ,su*       
guidance or rulemak+ %all provide = !   
foll[+3  7#a7 ,adju/m5t ( ! #ajj p]c5t (
 bank capital measurem5t  7,a7 ,loan    
orig9ation ,not)/&+ any o!r provision ( 
law1 ! measurem5t ( con/ruction loans t 
trigg]s additional scrut9y ( real e/ate 
loans 9 ! l5d+ portfolio ( any qualifi$ 
f9ancial in/itution %all be #abe p]c5t (
 bank capital4 ,! ,f$]al bank+ ag5cies  
%all n treat ! #abe p]c5t measurem5t z a
 h>d cap beyond :i* loans _c be made1 b 
%all consid] o!r relevant factors       
besides ! conc5tration ( su* loans1 su* 
z :e!r ! f9ancial in/itution has 9 place
 effective risk managem5t practices t   

are appropriate = ! level & nature ( !  
risk ( su* loans4  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]
 9 good /&+ t is secur$ by a viable     
project1 unless !re is a legitimate     
sup]visory or acc\nt+ reason to d s4    
7#b7 ,prohibition on compell+ l5d]s to  
call loans 9 good /&+  7,a7 ,home       
build]s 9 good /&+ ,! appropriate ,f$]al
 bank+ ag5cy %all n compel a f9ancial   
in/itution to call a real e/ate loan ( a
 home build] t is 9 good /&+4  7,b7     
,work\t activities  7i7 ,9 g5]al ,9 any 
case 9 :i* a home build] is 9 good /&+  
on a real e/ate loan1 b ! collat]al ( ! 
home build] ) respect to t loan has     
decreas$ 9 value1 bas$ on a project$    
valuation ( a project z complet$1 !     
appropriate ,f$]al bank+ ag5cy %all     
p]mit a f9ancial in/itution to engage 9 
work\t activities ) ! home build] to    
improve ! prospects = repaym5t (        
pr9cipal & int]e/ 9 a mann] t is        

consi/5t ) safe & s\nd bank+ pr9ciples &
 ! ne$ = cr$it = home build+4  7ii7     
,p]iod ( work\t activities ,work\t      
activities au?oriz$ "u clause 7i7 may be
 und]tak5 dur+ ! #bd-mon? p]iod foll[+ !
 date ( issuance ( f9al guidance or     
regulations "u subsection 7c74  7iii7   
,effects ,no real e/ate loan may be     
requir$ to be *>g$ (f dur+ ! p]iod      
e/abli%$ 9 clause 7ii7 until !          
appropriate ,f$]al bank+ ag5cy has      
det]m9$ t--  7,i7 ! f9ancial in/itution 
hold+ su* loan has work$ 9 good fai? to 
consid] reasonable work\t activities &  
has adequately provid$ = any impairm5t 9
 su* loan2 or  7,,ii7 ! f9ancial        
in/itution has n consid]$ reasonable    
work\t activities 9 a timely mann]4     
7,c7 ,reclassification ( loans ,!       
appropriate ,f$]al bank+ ag5cy %all n   
require a f9ancial in/itution to        
reclassify any real e/ate loan to a     
homebuild] 9 good /&+ on ! balance %eet 
( su* in/itution1 unless !re is a       
legitimate sup]visory or acc\nt+ reason 

to d s4  7#c7 ,no ,wait+ p]iod ,if !    
provisions ( p>agraph 7#b7 help to      
improve ! ,,camel composite rat+ ( a    
f9ancial in/itution "u ! ,uni=m         
,f9ancial ,in/itutions ,rat+ ,sy/em f   
#c1 #d1 or #e to #a or #b 9 ! next      
occurr+ exam9ation ( ! f9ancial         
in/itution t beg9s aft] ! date on :i*   
f9al guidance or regulations are issu$  
pursuant to subsection 7c71 su* improv$ 
rat+ %all take effect imm$iately aft] ! 
date on :i* su* rat+ 0 receiv$4  7b7    
,coord9ation1 consi/5cy1 & comp>ability 
,ea* ,f$]al bank+ ag5cy %all consult &  
coord9ate ) ! o!r ,f$]al bank+ ag5cies =
 ! purpose ( assur+1 to ! ext5t         
possible1 t ! guidance or regulations by
 ea* ( ! ag5cies & au?orities are       
consi/5t & comp>able ) ^? prescrib$ by !
 o!r ag5cies & au?orities4  7c7 ,deadl9e
 ,ea* ,f$]al bank+ ag5cy %all issue f9al
 guidance or regulations to implem5t ?is
 ,act n lat] ?an ! e>li] (--  7#a7 #f   
mon?s aft] ! date ( enactm5t ( ?is ,act2
 or  7#b7 #c mon?s aft] ! guidance or   

regulations are propos$4  7d7 ,ag5cy    
au?ority ,! guidance & regulations issu$
 "u ?is ,act %all be en=c$ by !         
appropriate ,f$]al bank+ ag5cies4  7e7  
,effect on ,/ate law ,! guidance &      
regulations issu$ "u ?is ,act %all n    
sup]s$e ! law ( any ,/ate1 except to !  
ext5t t ! ,/ate law is inconsi/5t ) !   
guidance & regulations1 & !n only to !  
ext5t ( ! inconsi/5cy4  #d4 ,def9itions 
,9 ?is ,act1 ! foll[+ def9itions %all   
apply3  7#a7 ,appropriate ,f$]al bank+  
ag5cy2 f$]al bank+ ag5cy ,! t]ms        
appropriate ,f$]al bank+ ag5cy & ,f$]al 
bank+ ag5cy h ! same mean+s z 9 section 
#c ( ! ,f$]al ,deposit ,insurance ,act  
7#ab ,u4,s4,c4 #ahac74  7#b7 ,f9ancial  
in/itution ,! t]m f9ancial in/itution   
means an entity regulat$ by1 & "u !     
sup]vision (1 any ,f$]al bank+ ag5cy4   
7#c7 ,good /&+ ,! t]m good /&+ means !  
borr[] has made all paym5ts on a real   
e/ate loan & any o!r ext5sions ( cr$it  
to ! borr[] or any affiliat$ entities 9 
accordance ) ! agreem5ts = ! loans4     

7#d7 ,real e/ate loan ,! t]m real e/ate 
loan means any indebt$ness secur$ by a  
mortgage1 de$ ( tru/1 or o!r equival5t  
cons5sual security int]e/ on real       
prop]ty1 =--  7,a7 l& acquisition =     
resid5tial con/ruction projects2  7,b7  
l& developm5t = resid5tial con/ruction  
projects2 or  7,c7 resid5tial           
con/ruction projects4  7#e7 ,total      
capital ,! t]m total capital means !    
total risk-bas$ capital ( a f9ancial    
in/itution z report$ p]iodically by !   
f9ancial in/itution 9 ! ,call ,report or
 ,?rift ,f9ancial ,reports ( ! ,f$]al   
,f9ancial ,in/itutions ,exam9ation      
,c\ncil1 z applicable4  7#f7 ,viable    
project ,! t]m viable project means a   
real e/ate project t cont9ues to h a    
reasonable prospect ( rea*+ completion &
 sale )9 a reasonable timeframe1 & at a 
m>ket price t provides = ! ord]ly &     
timely repaym5t ( ! real e/ate loan4    
7#g7 ,work\t activities ,! t]m work\t   
activities means te*niques to prev5t    
default on a real e/ate loan1 includ+ a 

r5ewal or ext5sion ( loan t]ms1 ext5sion
 ( additional cr$it1 re/ructur+1 loan   
write d[ns1 or flexibility on us+       
reappraisal me?ods t /ill provide       
cr$ible value conclusions4  7#h7        
,qualifi$ f9ancial in/itution ,! t]m    
qualifi$ f9ancial in/itution means a    
f9ancial in/itution t receiv$1 9 ! mo/  
rec5t exam9ation ( ! in/itution1 a      
,,camel composite rat+ ( #a or #b "u !  
,uni=m ,f9ancial ,in/itutions ,rat+     
,sy/em4