,,ii  #aac? ,,congress  #a/ ,session    
,s4 #bdi  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #g1 #bjac ,mr4
 ,m55dez 7= himself1 ,mrs4 ,box]1 ,mr4  
,leahy1 ,mr4 ,laut5b]g1 ,mr4 ,:iteh\se1 
,mr4 ,re$1 ,mrs4 ,%ahe51 ,mr4 ,frank51  
,mr4 ,begi*1 ,mr4 ,durb91 ,ms4 ,/ab5[1  
,mr4 ,blum5?al1 ,mr4 ,s*um]1 ,mr4 ,wyd51
 ,mr4 ,lev91 ,ms4 ,l&rieu1 ,mr4 ,m]kley1
 ,mrs4 ,gillibr&1 ,mr4 ,c>d91 ,mrs4     
,hagan1 ,mr4 ,s&]s1 & ,mrs4 ,fe9/e97    
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to provide = ! expansion (     
af=dable ref9anc+ ( mortgages held by ! 
,f$]al ,national ,mortgage ,association 
& ! ,f$]al ,home ,loan ,mortgage        
,corporation4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,responsible ,home[n]  
,ref9anc+ ,act ( #bjac4  #b4 ,def9itions
 ,9 ?is ,act--  7#a7 ! t]m curr5t borr[]
 means a mortgagor :o is curr5t on !    
subject mortgage at ! "t ( ! ref9anc+1 &
 has _h no late paym5ts 9 ! prec$+ #f   

mon?s & n m ?an #a late paym5t 9 !      
prec$+ #ab mon?s2  7#b7 ! t]m eligible  
mortgage means any mortgage1 reg>dless (
 curr5t loan-to-value1 t--  7,a7 is an  
exi/+ fir/ mortgage t 0 made = pur*ase  
(1 or ref9anc+ ( ano!r fir/ mortgage on1
 a #a- to #d-;family dwell+1 includ+ a  
condom9ium or a %>e 9 a coop]ative      
own]%ip h\s+ association2  7,b7 0       
orig9at$ or ref9anc$ on or be=e ,may    
#ca1 #bjji1 unless t date is ext5d$ by !
 ,director "u ,,fhfa's preexi/+ au?ority
 to d s2  7,c7 is own$ or gu>ante$ by an
 ent]prise2 &  7,d7 ) respect to :i*1 ! 
mortgagor is a curr5t borr[]2  7#c7 !   
t]m ent]prise means ! ,f$]al ,national  
,mortgage ,association & ! ,f$]al ,home 
,loan ,mortgage ,corporation2  7#d7 !   
t]ms ,,fhfa & ,director mean ! ,f$]al   
,h\s+ ,f9ance ,ag5cy & ! ,director !re(1
 respectively2  7#e7 ! t]ms ,home       
,af=dable ,ref9ance ,program & ,program 
mean ! ,home ,af=dable ,ref9ance        
,program1 adm9i/]$ by ! ,,fhfa & !      
ent]prises z "p ( ! ,mak+ ,home         

,af=dable initiative ann\nc$ on ,m>* #d1
 #bjji2  7#f7 ! t]m--  7,a7 ,,ltv means 
loan-to-value1 or ! ratio ( ! am\nt ( ! 
prim>y mortgage on a prop]ty to ! value 
( t prop]ty2 &  7,b7 ,,cltv means comb9$
 loan-to-value1 or ! ratio ( all        
mortgage debt on a prop]ty to ! value ( 
! prop]ty2  7#g7 ! t]m same s]vic] means
 a l5d] t is provid+ ref9anc+ = a borr[]
 ^: loan !y already s]vice2  7#h7 ! t]m 
qualifi$ l5d] means a l5d] t is         
p>ticipat+ 9 ! ,program2  7#i7 ! t]m    
gu>antee fee has ! same mean+ z 9       
section #acbg7;a7 ( ! ,h\s+ & ,community
 ,developm5t ,act ( #aiib 7#ab ,u4,s4,c4
 #dedg7;a772 &  7#aj7 ! t]m av]age fees 
means ! av]age contractual fee rate (   
s+le-family gu>anty arrangem5ts *>g$ by 
an ent]prise on ,janu>y #a1 #bjac1 plus 
! recognition ( any up-front ca% paym5ts
 ov] an e/imat$ av]age life1 express$ 9 
t]ms ( basis po9ts1 su* def9ition to be 
int]pret$ 9 a mann] consi/5t ) ! annual 
report on gu>antee fees by ! ,,fhfa4    
#c4 ,/reaml9$ ref9anc+ crit]ia "u !     

program  7a7 ,9 g5]al ,9 c>ry+ out !    
,home ,af=dable ,ref9ance ,program1 ea* 
ent]prise %all adopt & adh]e to !       
crit]ia e/abli%$ "u ?is section4  7b7   
,borr[] eligibility ,! ent]prises %all  
include z eligible borr[]s 9 ! ,home    
,af=dable ,ref9ance ,program all curr5t 
borr[]s :o h an eligible mortgage & meet
 ^? und]writ+ requirem5ts = eligibility 
= same s]vic] ref9anc+ 9 ! ,program z ( 
,janu>y #a1 #bjac1 except t ! ent]prises
 may n disqualify or impose v>y+ rules  
)9 ! ,program = borr[]s bas$ on ,,ltv1  
,,cltv1 employm5t /atus or income4  7c7 
,additional relief f repres5tations &   
w>ranties ,! ent]prises %all n require (
 any qualifi$ l5d] execut+ a loan "u !  
,program any repres5tations or          
w>ranties--  7#a7 = ! value1            
m>ketability1 condition1 or prop]ty type
 ( ! loan1 z su* loan *>act]i/ics are   
evid5c$ by an appraisal or alt]native   
valuation me?od1 provid$ t ! l5d]       
complies ) ! ent]prises' requir$ me?ods 
& /&>ds = ord]+ an appraisal "u !       

,program2 or  7#b7 t are n requir$ (    
same s]vic]s "u ! ,program z ( ,janu>y  
#a1 #bjac1 :e!r t loan is manually      
und]writt5 or und]writt5 ?r\gh an       
automat$ sy/em1 except t1 "u no         
circum/ances %all great] repres5tations 
& w>ranties be requir$ = a loan t is    
manually und]writt5 ?an = "o t is       
und]writt5 ?r\gh an automat$ sy/em4  7d7
 ,prohibition on up-,front fees ,9 c>ry+
 out ! ,program1 ! ent]prises may n *>ge
 ! qualifi$ l5d] any loan level price   
adju/m5t1 po/ settlem5t deliv]y fee1    
adv]se deliv]y *>ge1 or o!r simil>      
up-front fee4  7e7 ,appraisals ,!       
ent]prises %all develop & all[          
alt]native /reaml9$ me?ods to det]m9e ! 
value ( ! prop]ty = :i* ref9anc+ is     
s\ght ?r\gh ! ,program t elim9ate ! co/s
 to ! borr[] & qualifi$ l5d] associat$ )
 su* det]m9ation4 ,until su* "t z su*   
me?od is develop$1 & :5 ! exi/+ automat$
 valuation models ( ! ent]prises are    
unable to det]m9e ! value ( a c]ta9     
prop]ty = :i* ref9anc+ is s\ght ?r\gh ! 

,program1 ! ent]prises %all be> ! co/s  
associat$ ) ! use ( manual appraisal ( t
 prop]ty1 )\t pass+ on su* co/s to !    
borr[] or qualifi$ l5d]4  7f7           
,limitation ,not)/&+ any provision ( !  
,f$]al ,national ,mortgage ,association 
,*>t] ,act 7#ab ,u4,s4,c4 #agaf et seq47
 or ! ,f$]al ,home ,loan ,mortgage      
,corporation ,act 7#ab ,u4,s4,c4 #adea  
et seq471 an ent]prise may pur*ase or   
gu>antee any new mortgage result+ f !   
ref9anc+ ( an eligible mortgage pursuant
 to ?is section1 if at ! "t ( orig9ation
 ( ! eligible mortgage1 ! eligible      
mortgage compli$ ) ! applicable         
limitation gov]n+ ! maximum orig9al     
pr9cipal obligation on conv5tional      
mortgages t may be pur*as$ or gu>ante$  
by t ent]prise4  7g7 ,gu>antee fees     
7#a7 ,9 g5]al  7,a7 ,av]age fee ,on ea* 
mortgage ref9anc$ "u ! ,program 9       
accordance ) ?is section1 ! ent]prises  
%all set ! av]age fee requir$ "u ?is    
,act1 z det]m9$ by ! ,director 9 an     
am\nt n less ?an ! av]age fees *>g$ by !

 ent]prises z ( ,janu>y #a1 #bjac1 = su*
 gu>antees4 ,! ,director %all prohibit  
an ent]prise f (fsett+ ! co/ ( ! fee to 
! mortgage orig9ators1 borr[]s1 &       
inve/ors by decreas+ o!r *>ges1 fees1 or
 premiums1 or 9 any o!r mann]4  7,b7    
,au?ority to limit (f] ( gu>antee ,!    
,director %all prohibit an ent]prise f  
consummat+ any (f] = a gu>antee to a    
qualifi$ l5d] = mortgage-back$          
securities1 if ! gu>antee is inconsi/5t 
) ! requirem5ts ( ?is section4  7#b7    
,in=mation collection & analysis ,!     
,director %all require ea* ent]prise to 
provide to ! ,director1 z "p ( its      
annual report submitt$ to ,congress1 =  
loans ref9anc$ "u ! ,program--  7,a7 a  
description ( *anges made to up-front   
fees & annual fees z "p ( ! gu>antee    
fees negotiat$ ) qualifi$ l5d]s2 &  7,b7
 an assessm5t ( h[ ! *anges 9 ! gu>antee
 fees describ$ 9 subp>agraph 7,a7 met ! 
requirem5ts ( p>agraph 7#a74  7h7       
,regulations ,n lat] ?an #cj days aft] !
 date ( enactm5t ( ?is ,act1 ! ,director

 %all issue any regulations or guidance 
necess>y to c>ry out ! *anges to !      
,program e/abli%$ "u ?is section1 :i*   
regulations or guidance %all be put into
 effect n lat] ?an #ij days aft] ! date 
( enactm5t ( ?is ,act4  7i7 ,t]m9ation  
,! ,program %all expire on ,decemb] #ca1
 #bjad & ! requirem5ts ( ?is section    
%all expire concurr5t ) ! expiration ( !
 ,program4 ,not)/&+ ! prior s5t5ce1 !   
,director1 at 8 or h] discretion1 may   
ext5d ! ,program & ! requirem5ts        
e/abli%$ "u ?is section %all apply dur+ 
any su* ext5sion4  7j7 ,rule (          
con/ruction  7#a7 ,9 g5]al ,no?+ 9 ?is  
section %all be con/ru$ to sup]s$e1     
preempt1 or o!rwise nullify ! requirem5t
 t a loan ref9anc$ "u ! ,program mu/    
b5efit ! borr[]4  7#b7 ,def9ition ,=    
purposes ( p>agraph 7#a71 a loan        
ref9anc$ "u ! ,program b5efits ! borr[]1
 if ! ref9anc$ loan results 9--  7,a7   
r$uction 9 paym5t2  7,b7 r$uction 9     
int]e/ rate2  7,c7 movem5t to a m /able 
product1 su* z f an adju/able rate      

mortgage to a fix$ rate mortgage2 or    
7,d7 r$uction 9 amortization t]m4  #d4  
,in=mation = borr[]s on eligibility = ! 
,program  7a7 ,notice to borr[]s ,n lat]
 ?an #fj days aft] ! date ( enactm5t (  
?is ,act1 ! ent]prises %all notify all  
borr[]s ) a mortgage own$ or gu>ante$ by
 an ent]prise ab\t ! ,program & its     
eligibility crit]ia1 & in=m borr[]s ( ! 
website requir$ "u subsection 7b74  7b7 
,public access to eligibility crit]ia ,!
 ,director %all e/abli%1 & ! ent]prises 
%all display a l9k on _! homepages to1 a
 s+le website :]e borr[]s may--  7#a7   
det]m9e _! pot5tial eligibility =       
p>ticipation 9 ! ,program2  7#b7 see a  
complete li/ ( & l9ks to qualifi$ l5d]s2
  7#c7 use a mortgage ref9ance          
calculator to calculate pot5tial paym5t 
sav+s bas$ on diff]5t int]e/ rates2 &   
7#d7 obta9 tips on ref9anc+ _! loan4    
#e4 ,consi/5t ref9anc+ guidel9es requir$
 ,n lat] ?an #fj days aft] ! date (     
enactm5t ( ?is ,act1 ! ,director %all   
issue guidance to require ! ent]prises  

to make _! ref9anc+ guidel9es consi/5t  
to ease ! compliance requirem5ts (      
qualifi$ l5d]s1 & 9 p>ticul> ) respect  
to loans ) less ?an an #hj p]c5t        
loan-to-value ratio & clos+ co/ policies
 ( ! ent]prises1 :i* regulations or     
guidance %all be put into effect n lat] 
?an #ij days aft] ! date ( enactm5t (   
?is ,act4  #f4 ,progress reports ,!     
,director %all provide to ,congress     
mon?ly reports on ! progress ( !        
,program1 & ea* ent]prise %all include &
 disclose1 z "p ( its fil+s ) !         
,securities & ,ex*ange ,commission on   
,=m #aj-,q1 ,=m #aj-,k1 or any          
successors !reto1 detail$ in=mation on  
ea* ent]prise's progress & results 9    
implem5t+ & execut+ ! ,program4  #g4    
,sev]ability ,if any portion ( ?is ,act 
or ! application !re( to any p]son or   
circum/ance is held invalid1 su*        
invalidity %all n affect ! portions or  
applications ( ?is ,act :i* c be giv5   
effect )\t ! invalid portion or         
application4