,,ii #aacth ,,congress #ast ,session ,s4 #bdi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #g1 #bjac ,mr4 ,menendez 7for himself1 ,mrs4 ,boxer1 ,mr4 ,leahy1 ,mr4 ,lautenberg1 ,mr4 ,whitehouse1 ,mr4 ,reed1 ,mrs4 ,shaheen1 ,mr4 ,franken1 ,mr4 ,begich1 ,mr4 ,durbin1 ,ms4 ,stabenow1 ,mr4 ,blumenthal1 ,mr4 ,schumer1 ,mr4 ,wyden1 ,mr4 ,levin1 ,ms4 ,landrieu1 ,mr4 ,merkley1 ,mrs4 ,gillibrand1 ,mr4 ,cardin1 ,mrs4 ,hagan1 ,mr4 ,sanders1 and ,mrs4 ,feinstein7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to provide for the expansion of affordable refinancing of mortgages held by the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation4 #a4 ,short title ,this ,act may be cited as the ,responsible ,homeowner ,refinancing ,act of #bjac4 #b4 ,definitions ,in this ,act-- 7#a7 the term current borrower means a mortgagor who is current on the subject mortgage at the time of the refinancing1 and has had no late payments in the preceding #f months and not more than #a late payment in the preceding #ab months2 7#b7 the term eligible mortgage means any mortgage1 regardless of current loan-to-value1 that-- 7,a7 is an existing first mortgage that was made for purchase of1 or refinancing of another first mortgage on1 a #a- to #d-;family dwelling1 including a condominium or a share in a cooperative ownership housing association2 7,b7 was originated or refinanced on or before ,may #ca1 #bjji1 unless that date is extended by the ,director under ,,fhfa's preexisting authority to do so2 7,c7 is owned or guaranteed by an enterprise2 and 7,d7 with respect to which1 the mortgagor is a current borrower2 7#c7 the term enterprise means the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation2 7#d7 the terms ,,fhfa and ,director mean the ,federal ,housing ,finance ,agency and the ,director thereof1 respectively2 7#e7 the terms ,home ,affordable ,refinance ,program and ,program mean the ,home ,affordable ,refinance ,program1 administered by the ,,fhfa and the enterprises as part of the ,making ,home ,affordable initiative announced on ,march #d1 #bjji2 7#f7 the term-- 7,a7 ,,ltv means loan-to-value1 or the ratio of the amount of the primary mortgage on a property to the value of that property2 and 7,b7 ,,cltv means combined loan-to-value1 or the ratio of all mortgage debt on a property to the value of the property2 7#g7 the term same servicer means a lender that is providing refinancing for a borrower whose loan they already service2 7#h7 the term qualified lender means a lender that is participating in the ,program2 7#i7 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;a772 and 7#aj7 the term average fees means the average contractual fee rate of single-family guaranty arrangements charged by an enterprise on ,january #a1 #bjac1 plus the recognition of any up-front cash payments over an estimated average life1 expressed in terms of basis points1 such definition to be interpreted in a manner consistent with the annual report on guarantee fees by the ,,fhfa4 #c4 ,streamlined refinancing criteria under the program 7a7 ,in general ,in carrying out the ,home ,affordable ,refinance ,program1 each enterprise shall adopt and adhere to the criteria established under this section4 7b7 ,borrower eligibility ,the enterprises shall include as eligible borrowers in the ,home ,affordable ,refinance ,program all current borrowers who have an eligible mortgage and meet those underwriting requirements for eligibility for same servicer refinancing in the ,program as of ,january #a1 #bjac1 except that the enterprises may not disqualify or impose varying rules within the ,program for borrowers based on ,,ltv1 ,,cltv1 employment status or income4 7c7 ,additional relief from representations and warranties ,the enterprises shall not require of any qualified lender executing a loan under the ,program any representations or warranties-- 7#a7 for the value1 marketability1 condition1 or property type of the loan1 as such loan characteristics are evidenced by an appraisal or alternative valuation method1 provided that the lender complies with the enterprises' required methods and standards for ordering an appraisal under the ,program2 or 7#b7 that are not required of same servicers under the ,program as of ,january #a1 #bjac1 whether that loan is manually underwritten or underwritten through an automated system1 except that1 under no circumstances shall greater representations and warranties be required for a loan that is manually underwritten than for one that is underwritten through an automated system4 7d7 ,prohibition on up-,front fees ,in carrying out the ,program1 the enterprises may not charge the qualified lender any loan level price adjustment1 post settlement delivery fee1 adverse delivery charge1 or other similar up-front fee4 7e7 ,appraisals ,the enterprises shall develop and allow alternative streamlined methods to determine the value of the property for which refinancing is sought through the ,program that eliminate the costs to the borrower and qualified lender associated with such determination4 ,until such time as such method is developed1 and when the existing automated valuation models of the enterprises are unable to determine the value of a certain property for which refinancing is sought through the ,program1 the enterprises shall bear the costs associated with the use of manual appraisal of that property1 without passing on such costs to the borrower or qualified lender4 7f7 ,limitation ,notwithstanding any provision of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agaf et seq47 or the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adea et seq471 an enterprise may purchase or guarantee any new mortgage resulting from the refinancing of an eligible mortgage pursuant to this section1 if at the time of origination of the eligible mortgage1 the eligible mortgage complied with the applicable limitation governing the maximum original principal obligation on conventional mortgages that may be purchased or guaranteed by that enterprise4 7g7 ,guarantee fees 7#a7 ,in general 7,a7 ,average fee ,on each mortgage refinanced under the ,program in accordance with this section1 the enterprises shall set the average fee required under this ,act1 as determined by the ,director in an amount not less than the average fees charged by the enterprises as of ,january #a1 #bjac1 for such guarantees4 ,the ,director shall prohibit an enterprise from offsetting the cost of the fee to the mortgage originators1 borrowers1 and investors by decreasing other charges1 fees1 or premiums1 or in any other manner4 7,b7 ,authority to limit offer of guarantee ,the ,director shall prohibit an enterprise from consummating any offer for a guarantee to a qualified lender for mortgage-backed securities1 if the guarantee is inconsistent with the requirements of this section4 7#b7 ,information collection and analysis ,the ,director shall require each enterprise to provide to the ,director1 as part of its annual report submitted to ,congress1 for loans refinanced under the ,program-- 7,a7 a description of changes made to up-front fees and annual fees as part of the guarantee fees negotiated with qualified lenders2 and 7,b7 an assessment of how the changes in the guarantee fees described in subparagraph 7,a7 met the requirements of paragraph 7#a74 7h7 ,regulations ,not later than #cj days after the date of enactment of this ,act1 the ,director shall issue any regulations or guidance necessary to carry out the changes to the ,program established under this section1 which regulations or guidance shall be put into effect not later than #ij days after the date of enactment of this ,act4 7i7 ,termination ,the ,program shall expire on ,december #ca1 #bjad and the requirements of this section shall expire concurrent with the expiration of the ,program4 ,notwithstanding the prior sentence1 the ,director1 at his or her discretion1 may extend the ,program and the requirements established under this section shall apply during any such extension4 7j7 ,rule of construction 7#a7 ,in general ,nothing in this section shall be construed to supersede1 preempt1 or otherwise nullify the requirement that a loan refinanced under the ,program must benefit the borrower4 7#b7 ,definition ,for purposes of paragraph 7#a71 a loan refinanced under the ,program benefits the borrower1 if the refinanced loan results in-- 7,a7 reduction in payment2 7,b7 reduction in interest rate2 7,c7 movement to a more stable product1 such as from an adjustable rate mortgage to a fixed rate mortgage2 or 7,d7 reduction in amortization term4 #d4 ,information for borrowers on eligibility for the ,program 7a7 ,notice to borrowers ,not later than #fj days after the date of enactment of this ,act1 the enterprises shall notify all borrowers with a mortgage owned or guaranteed by an enterprise about the ,program and its eligibility criteria1 and inform borrowers of the website required under subsection 7b74 7b7 ,public access to eligibility criteria ,the ,director shall establish1 and the enterprises shall display a link on their homepages to1 a single website where borrowers may-- 7#a7 determine their potential eligibility for participation in the ,program2 7#b7 see a complete list of and links to qualified lenders2 7#c7 use a mortgage refinance calculator to calculate potential payment savings based on different interest rates2 and 7#d7 obtain tips on refinancing their loan4 #e4 ,consistent refinancing guidelines required ,not later than #fj days after the date of enactment of this ,act1 the ,director shall issue guidance to require the enterprises to make their refinancing guidelines consistent to ease the compliance requirements of qualified lenders1 and in particular with respect to loans with less than an #hj percent loan-to-value ratio and closing cost policies of the enterprises1 which regulations or guidance shall be put into effect not later than #ij days after the date of enactment of this ,act4 #f4 ,progress reports ,the ,director shall provide to ,congress monthly reports on the progress of the ,program1 and each enterprise shall include and disclose1 as part of its filings with the ,securities and ,exchange ,commission on ,form #aj-,q1 ,form #aj-,k1 or any successors thereto1 detailed information on each enterprise's progress and results in implementing and executing the ,program4 #g4 ,severability ,if any portion of this ,act or the application thereof to any person or circumstance is held invalid1 such invalidity shall not affect the portions or applications of this ,act which can be given effect without the invalid portion or application4