,,ii #aacth ,,congress #ast ,session ,s4 #acgc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #be1 #bjac ,mr4 ,merkley introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to increase access to refinancing for homeowners1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,rebuilding ,american ,homeownership ,act of #bjac4 #b4 ,definitions ,in this ,act1 the following definitions shall apply3 7#a7 ,current borrower ,the term current borrower means a mortgagor that-- 7,a7 has made each payment on an eligible mortgage1 within the month in which the payment was due1 during the #f-month period preceding the date of refinancing of the eligible mortgage under this ,act2 and 7,b7 has not been more than #cj days delinquent on an eligible mortgage more than once during the #a-year period preceding the date of refinancing of the mortgage under this ,act4 7#b7 ,director ,the term ,director means the ,director of the ,federal ,housing ,finance ,agency4 7#c7 ,eligible mortgage ,the term eligible mortgage-- 7,a7 means any mortgage that-- 7i7 is an existing first mortgage-- 7,i7 that was made for purchase of1 or refinancing of another first mortgage1 on a #a- to #d-;family owner-occupied dwelling1 including a condominium or a share in a cooperative ownership housing association2 and 7,,ii7 with a current loan-to-value ratio in excess of #hj percent1 but not greater than #adj percent2 7ii7 was originated on or before ,may #ca1 #bjji2 7iii7 is not owned or guaranteed by an enterprise2 and 7iv7 with respect to which1 the mortgagor is a current borrower2 and 7,b7 does not include any mortgage that is insured or guaranteed by any program of the ,federal ,housing ,administration1 the ,department of ,housing and ,urban ,development1 the ,government ,national ,mortgage ,association1 the ,department of ,agriculture1 or the ,department of ,veterans ,affairs4 7#d7 ,enterprise ,the term enterprise means the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation4 7#e7 ,guarantee fee ,the term guarantee fee has the same meaning as in section #acbg7;a7 of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #dedg7;a774 #c4 ,refinancing authority 7a7 ,enterprise refinancing authority 7#a7 ,program ,each enterprise shall establish and carry out a program under this section to provide for the refinancing of eligible mortgages4 7#b7 ,authority ,notwithstanding any provision of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agaf et seq47 and the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adea et seq471 in carrying out the refinancing program required under paragraph 7#a71 an enterprise may purchase1 guarantee1 service1 sell1 lend on the security of1 refinance1 or otherwise deal in eligible mortgages4 7b7 ,implementation authority 7#a7 ,in general ,subject to paragraph 7#b71 each enterprise may prescribe any requirements1 terms1 and conditions that such enterprise determines necessary to carry out the refinancing program required under subsection 7a71 including with respect to any underwriting criteria1 such as-- 7,a7 verification of a borrower's employment1 income1 reserves1 and assets2 7,b7 a borrower's credit history2 7,c7 property valuation requirements2 7,d7 representations and warranties2 7,e7 eligible property type and occupancy requirements2 and 7,f7 continuation of the second-lien position1 or release1 of any junior liens on the property4 7#b7 ,existing credit enhancements to be retained ,in order to participate in the refinancing program required under subsection 7a71 an eligible mortgage with existing credit enhancement coverage must continue to maintain or otherwise transfer such coverage to the new mortgage that is a result of the refinancing of the eligible mortgage authorized by this section4 7#c7 ,maximum term of the new mortgage ,the term of any new mortgage that is a result of the refinancing of an eligible mortgage authorized by this section shall not exceed #cj years4 7#d7 ,maximum loan amount ,the maximum original principal obligation of any new mortgage that is a result of the refinancing of an eligible mortgage authorized by this section shall not exceed the limitation in law governing the maximum original principal obligation on conventional mortgages that may be purchased or guaranteed by an enterprise1 as such law is in effect on the date of the closing of the new mortgage4 7c7 ,regulations ,the ,director may issue any regulations1 guidance1 or directives necessary to carry out the refinancing program required under subsection 7a74 #d4 ,guarantee fees 7a7 ,requirement ,to charge a guarantee fee ,each enterprise shall charge a guarantee fee in connection with any guarantee of the timely payment of principal and interest on securities1 notes1 and other obligations based on or backed by eligible mortgages refinanced under this ,act4 7b7 ,amount 7#a7 ,in general ,the amount of the guarantee fee required to be charged by an enterprise pursuant to subsection 7a7 shall be actuarially determined by the ,director to cover the expected risk of default on the pool of eligible mortgages refinanced under this ,act backing the security1 note1 or other obligation to which the enterprises' guarantee applies4 7#b7 ,rule of construction ,in calculating the expected risk of default pursuant to paragraph 7#a71 the ,director shall ensure that any default probability assumptions used to model such risk-- 7,a7 are reasonable1 including with respect to the arrival rate of default and the magnitude risk of default2 and 7,b7 are not unduly weighted to cover historical stress or crisis scenarios4 7#c7 ,prohibition on additional charges ,in determining the amount of any guarantee fee required to be charged pursuant to subsection 7a71 neither the ,director nor an enterprise may charge any additional fee1 price adjustment1 premium1 or other amount other than that which is determined in accordance with paragraph 7#a74 7#d7 ,prohibition on offsets ,the ,director shall prohibit an enterprise from offsetting the cost of the guarantee fee required to by charged pursuant to subsection 7a7 to mortgage originators1 borrowers1 and investors by decreasing other charges1 fees1 or premiums1 or in any other manner4 7c7 ,authority ,to limit offer of guarantee ,the ,director shall prohibit an enterprise from consummating any offer for a guarantee on any security1 note1 or other obligation based on or backed by eligible mortgages refinanced under this ,act1 if the guarantee is inconsistent with the requirements of this section4 #e4 ,reports ,the ,director shall include1 in the annual report submitted to the ,congress pursuant to section #acai;,b of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #deba71 information on the use and impact of the program established under section #c4 ,the information provided shall include-- 7#a7 a review and analysis of the effectiveness of the program in-- 7,a7 reducing the rate of mortgage default and delinquency2 7,b7 preventing foreclosure2 and 7,c7 supporting stable homeownership2 and 7#b7 any recommendations the ,director considers appropriate regarding the program4 #f4 ,sunset 7a7 ,termination ,the provisions of this ,act1 and any program or authorities established or granted therein or derived therefrom1 shall terminate on ,december #ca1 #bjad4 7b7 ,extension ,the ,director1 upon transmission of a written notification to ,congress1 may extend the authorities provided under this ,act for a #a-year period4