,,ii  #aacth ,,congress  #ast ,session  
,s4 #acge  ,,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 require a portion of closing
 costs to be paid by the enterprises    
with respect to certain refinanced      
mortgage loans1 and for other purposes4 
#a4 ,short title ,this ,act may be cited
 as the ,rebuilding ,equity ,act of     
#bjac4  #b4 ,rebuilding equity program  
7a7 ,establishment of voluntary program 
7#a7 ,establishment  7,a7 ,payment of   
closing costs ,the ,federal ,national   
,mortgage ,association and the ,federal 
,home ,loan ,mortgage ,corporation 7in  
this ,act referred to as the            
enterprises7 shall each establish a     
voluntary program for borrowers         
described in paragraph 7#b71 under which
 the enterprises shall pay #a1jjj toward
 the closing costs associated with      

applying for and receiving the          
refinancing when the borrower agrees to 
refinance into a fully amortizing loan  
with a term of not longer than #bj      
years4  7,b7 ,first year of program     
,during the #ab-month period that begins
 on the date of enactment of this ,act1 
the amount of the closing costs that    
each enterprise shall pay under the     
program shall not vary based on the term
 of the mortgage that the borrower      
agrees to refinance into4  7,c7         
,subsequent years  7i7 ,annual          
recalculation of closing costs payment  
,upon the expiration of the #ab-month   
period set forth under subparagraph     
7,b71 and for each of the next two      
#ab-month periods thereafter1 the       
,director of the ,federal ,housing      
,finance ,agency--  7,i7 shall adjust   
the amount of the portion of the closing
 costs that each enterprise will pay    
under the program--  7aa7 by an amount  
that results in such program being      
revenue neutral for such #ab-month      

period2 and  7bb7 based on economic     
conditions generally affecting the      
mortgage and housing markets2 and       
7,,ii7 may adjust the amount of the     
closing costs that each enterprise will 
pay under the program based on the term 
of the mortgage that the borrower agrees
 to refinance into4  7ii7 ,report ,the  
,director of the ,federal ,housing      
,finance ,agency shall report any       
adjustments made pursuant to the        
requirements of clause 7i7 to the ,chair
 and ,ranking ,member of the ,committee 
on ,banking1 ,housing1 and ,urban       
,affairs of the ,senate and the         
,committee on ,financial ,services of   
the ,house of ,representatives4  7#b7   
,eligible borrowers ,the program        
required by paragraph 7#a7 shall be for 
any borrower--  7,a7 who qualifies for  
the ,home ,affordable ,refinance        
,program carried out by the enterprises2
  7,b7 whose subject property has a     
loan-to-value ratio of not less than    
#aje percent2 and  7,c7 who refinances  

from a loan with an original term of #cj
 years to a loan with a term of #bj     
years or less4  7b7 ,sunset ,each       
voluntary program under this section    
shall terminate on the date that is #c  
years after the date of establishment of
 such program4  7c7 ,definitions ,as    
used in this section1 the following     
definitions shall apply3  7#a7          
,loan-to-value ratio ,the term          
loan-to-value ratio means the ratio of  
the amount of the primary mortgage on a 
property to the value of that property4 
7#b7 ,closing costs ,the term closing   
costs--  7,a7 means all reasonable and  
actual costs charged to the borrower by 
a third party to the refinancing        
transaction2  7,b7 includes--  7i7      
appraisal and inspection fees2  7ii7    
fees associated with obtaining a        
borrower's credit report2  7iii7 title  
insurance and title examination costs2  
7iv7 attorneys' fees associated with    
closing the transaction1 other than     
attorneys' fees associated with disputes

 arising out of the transaction or      
otherwise ancillary to closing the      
transaction2  7v7 document preparation  
costs1 if completed by a third party not
 controlled by the lender2  7vi7        
transfer stamps1 recording fees1 courier
 fees1 wire transfer fees1 and          
reconveyance fees2 and  7vii7 test and  
certification fees2 and  7,c7 does not  
include any costs charged to the        
borrower by the lender1 including--  7i7
 lender application fees2 and  7ii7     
lender origination fees4