,,ii  #aad? ,,congress  #b;d ,session   
,s4 #cdbf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bh1 #bjaf   
,mr4 ,book] 7= himself & ,mr4 ,m55dez7  
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to provide nonpr(it            
organizations & local gov]nm5ts ) !     
opportunity to mat* a bid ) respect to !
 sale ( c]ta9 non-p]=m+ loans by !      
,gov]nm5t-sponsor$ ent]prises & ! ,f$]al
 ,h\s+ ,adm9i/ration1 & = o!r purposes4 
#a4 ,%ort title  ,?is ,act may be cit$ z
 ! ,home[n] ,=eclosure ,r$uction ,act ( 
#bjaf4  #b4 ,loans own$ by ,fannie ,mae 
,section #cjb ( ! ,f$]al ,national      
,mortgage ,association ,*>t] ,act 7#ab  
,u4,s4,c4 #agag7 is am5d$ by add+ at !  
end ! foll[+3  7d7 ,sale ( non-,p]=m+   
loans  7#a7 ,9 ?is subsection-- 7,a7 !  
t]m cov]$ pool means a pool ( non-p]=m+ 
loans own$ "u ?is title--  7i7 t conta9s
 n m ?an #cjj loans2  7ii7 t is1 to !   
ext5t practicable1 geographically       

conc5trat$2 &  7iii7 = :i* !            
corporation1 ) respect to ! sale ( loans
 9 ! pool1 enc\rages pur*ase ( ! loans  
by qualify+ nonpr(its & qualify+ local  
gov]nm5ts2  7,b7 ! t]m non-cov]$ pool   
means a pool ( non-p]=m+ loans own$ "u  
?is title t is n a cov]$ pool2  7,c7 !  
t]m qualify+ local gov]nm5t means a     
local gov]nm5t t ! corporation has      
p]mitt$ to bid1 aft] an initial auction1
 on a cov]$ pool or a non-cov]$ pool2 & 
7,d7 ! t]m qualify+ nonpr(it means a    
nonpr(it organization t ! corporation   
has p]mitt$ to bid1 aft] an initial     
auction1 on a cov]$ pool or a non-cov]$ 
pool4  7#b7 7,a7 ,! corporation1 )      
respect to an auction = ! sale (        
non-p]=m+ loans1 %all ensure t n few]   
?an #be p]c5t ( ! loans t are (f]$ =    
sale 9 ! auction are loans 9 cov]$      
pools4  7,b7 ,! corporation %all ensure 
t1 aft] an entity t is n a qualify+     
nonpr(it or a qualify+ local gov]nm5t   
submits ! highe/ bid on a non-cov]$     
pool1 qualify+ nonpr(its & qualify+     

local gov]nm5ts h ! opportunity to      
submit a bid to pur*ase n m ?an #e p]c5t
 ( ! loans 9 ! non-cov]$ pool 9         
accordance ) ! proc$ures set =? 9       
p>agraph 7#c77;,b74  7#c7 7,a7 ,)       
respect to ! sale ( a cov]$ pool :5 a   
qualify+ nonpr(it or a qualify+ local   
gov]nm5t is a p>ty bidd+ on ! cov]$     
pool1 ! corporation %all--  7i7 notify  
ea* bidd] t a qualify+ nonpr(it or a    
qualify+ local gov]nm5t is a bidd] on ! 
cov]$ pool2  7ii7 if1 aft] receiv+ bids 
f ea* ( ! bidd]s on ! cov]$ pool1 !     
corporation det]m9es t an entity t is n 
a qualify+ nonpr(it or a qualify+ local 
gov]nm5t submitt$ ! highe/ ov]all bid-- 
7,i7 disclose to ! qualify+ nonpr(it or 
qualify+ local gov]nm5t t submitt$ !    
highe/ bid 7among bids submitt$ by      
qualify+ nonpr(its & qualify+ local     
gov]nm5ts7 ! am\nt ( ! highe/ ov]all bid
 t 0 submitt$2  7,,ii7 provide !        
qualify+ nonpr(it or qualify+ local     
gov]nm5t t submitt$ ! highe/ bid ) an   
opportunity to1 n lat] ?an #b days aft] 

receiv+ notice f ! corporation1 submit a
 bid 9 an am\nt great] ?an ! highe/     
ov]all bid2 &  7,,iii7 if a qualify+    
nonpr(it or qualify+ local gov]nm5t1 z  
applicable1 describ$ 9 subclause 7,,ii7 
*ooses n to submit a bid z describ$ 9 t 
subclause1 provide ea* successive       
qualify+ nonpr(it or qualify+ local     
gov]nm5t t submitt$ ! next highe/ bid ) 
an opportunity to1 n lat] ?an #b days   
aft] receiv+ notice f ! corporation & a 
disclosure describ$ 9 subclause 7,i71   
submit a bid 9 an am\nt great] ?an !    
highe/ ov]all bid2 &  7iii7 sell ! cov]$
 pool to a qualify+ nonpr(it or a       
qualify+ local gov]nm5t if a qualify+   
nonpr(it or qualify+ local gov]nm5t1 z  
applicable1 "u subclause 7,,ii7 or      
7,,iii7 ( clause 7ii71 submits a bid 9  
an am\nt great] ?an ! highe/ ov]all bid4
  7,b7 ,) respect to ! sale ( a         
non-cov]$ pool-- 7i7 n lat] ?an #b days 
aft] ! date on :i* an entity t is n a   
qualify+ nonpr(it or a qualify+ local   
gov]nm5t submits ! highe/ ov]all bid on 

! non-cov]$ pool--  7,i7 ! corporation  
%all disclose to qualify+ nonpr(its &   
qualify+ local gov]nm5ts ! am\nt ( !    
highe/ ov]all bid submitt$ on !         
non-cov]$ pool1 includ+ ! am\nt ( ! bid 
= ea* individual loan 9 ! non-cov]$     
pool2 &  7,,ii7 a qualify+ nonpr(it or a
 qualify+ local gov]nm5t may submit to !
 corporation a bid to pur*ase n m ?an #e
 p]c5t ( ! loans 9 ! non-cov]$ pool2    
7ii7 except z provid$ 9 subp>agraph     
7,c71 ! corporation %all sell a loan    
describ$ 9 clause 7i77,,ii7 to a        
qualify+ nonpr(it or qualify+ local     
gov]nm5t1 z applicable1 if1 ) respect to
 t loan1 ! bid ( ! qualify+ nonpr(it or 
qualify+ local gov]nm5t is equal to or m
 ?an ! bid ( ! entity t submitt$ !      
highe/ ov]all bid = ! non-cov]$ pool2 & 
7iii7 ! total numb] ( loans sold "u     
clause 7ii7 may n exce$ #aj p]c5t ( !   
numb] ( loans 9 ! non-cov]$ pool4  7,c7 
7i7 ,! corporation %all det]m9e :i*     
loans 9 a non-cov]$ pool %all be sold to
 a qualify+ nonpr(it or a qualify+ local

 gov]nm5t if ! aggregate numb] ( loans  
sold "u subp>agraph 7,b77ii7 to qualify+
 nonpr(its & qualify+ local gov]nm5ts   
w\ld violate subp>agraph 7,b77iii74     
7ii7 ,if1 "u subp>agraph 7,b77i77,,ii71 
m ?an #a qualify+ nonpr(it or qualify+  
local gov]nm5t submits a bid = a loan t 
is equal to or high] ?an ! bid submitt$ 
by ! entity t _h submitt$ ! highe/      
ov]all bid1 ! corporation %all sell !   
loan to ! qualify+ nonpr(it or qualify+ 
local gov]nm5t t submitt$ ! highe/ bid4 
7#d7 ,be=e submitt+ a bid ) respect to a
 cov]$ pool or a non-cov]$ pool1 a      
nonpr(it organization or local gov]nm5t1
 9 ord] to be consid]$ a qualify+       
nonpr(it or qualify+ local gov]nm5t1 z  
applicable1 %all submit to ! corporation
 an application conta9+ su* in=mation z 
! corporation det]m9es appropriate4     
7#e7 ,any entity t pur*ases a cov]$ pool
 "u ?is subsection-- 7,a7 may n =eclose 
on any ( ! occupi$ prop]ties t secure   
loans 9 ! pool dur+ ! #ab-mon? p]iod    
foll[+ ! pur*ase2 &  7,b7 %all ensure t1

 n lat] ?an #d ye>s aft] ! settlem5t    
date1 n less ?an #ej p]c5t ( ! loans 9 !
 pool result 9--  7i7 a modifi$ loan t--
 7,i7 has a loan-to-value ratio aft] !  
modification ( ! loan t is n great] ?an 
#aae p]c5t2  7,,ii7 p]=ms ov] a p]iod ( 
n less ?an #f mon?s2  7,,iii7 does n    
include an up-front fee or require      
prepaym5t ( any am\nt ( ! mortgage debt2
 &  7,,iv7 7aa7 is fix$ rate = ! entire 
p]iod 9 :i* ! loan be+ modifi$ is 9     
effect2 or  7bb7 (f]s an initial p]iod 9
 :i* ! int]e/ rate is r$uc$ & an        
increase 9 ! int]e/ rate is limit$ to n 
m ?an #a p]c5t p] ye> aft] an initial   
#e-ye> p]iod 9 :i* ! int]e/ rate is     
fix$1 ) a maximum int]e/ rate n exce$+ !
 prevail+ m>ket rate = loans2  7ii7 a   
%ort sale ( ! prop]ty t secures ! loan  
to an own]-occupant2  7iii7 ) respect to
 a qualify+ nonpr(it or a qualify+ local
 gov]nm5t t pur*ases a cov]$ pool "u    
p>agraph 7#c77;,a77iii71 hold+ ! prop]ty
 t secures ! loan = r5tal = a p]iod ( n 
less ?an #c ye>s1 :]e su* r5tal is      

af=dable to a h\sehold ) an annual      
income at or bel[ ! area m$ian income2  
7iv7 ) ! approval ( ! corporation1 gift+
 ! prop]ty t secures ! loan to a l&     
bank1 a nonpr(it organization1 or a     
,/ate or local gov]nm5t1 ) additional   
funds provid$ = demolition & ma9t5ance2 
or  7v7 ) ! approval ( ! corporation1   
sale ( ! loan or ! prop]ty t secures !  
loan to a nonpr(it organization4  7#f7  
,a qualify+ nonpr(it or a qualify+ local
 gov]nm5t t pur*ases a cov]$ pool "u    
p>agraph 7#c77;,a77iii7 %all ensure t n 
less ?an #fj p]c5t ( ! loans 9 ! pool   
result 9 n less ?an "o ( ! outcomes     
describ$ 9 clauses 7i7 ?r\gh 7v7 (      
p>agraph 7#e77;,b74  7#g7 7,a7 ,any     
entity t pur*ases a cov]$ pool "u ?is   
subsection t conta9s a loan = :i* !     
prop]ty secur+ ! loan is vacant %all    
ensure t ! s]vic] ( ! loan--  7i7 does n
 release ! li5 on ! prop]ty2 &  7ii7    
ma9ta9s ! prop]ty 9 accordance ) g5]ally
 acceptable ma9t5ance /&>ds4  7,b7 ,if !
 s]vic] ( a loan describ$ 9 subp>agraph 

7,a7 does n comply ) ! requirem5ts ( t  
subp>agraph1 ! entity t pur*as$ ! cov]$ 
pool %all sell or donate ! loan to ano!r
 entity1 includ+ a gov]nm5t or nonpr(it 
entity4  7#h7 ,no?+ 9 ?is subsection    
%all be con/ru$ to prev5t ! corporation 
f ensur+ t a qualify+ nonpr(it or a     
qualify+ local gov]nm5t has !           
opportunity to be ! la/ bidd] on a cov]$
 pool or a non-cov]$ pool "u proc$ures  
o!r ?an ^? describ$ 9 ?is section4  7#i7
 ,9 addition to ! requirem5ts "u ?is    
subsection-- 7,a7 any entity t pur*ases 
a non-cov]$ pool %all meet all ( !      
requirem5ts ( ! corporation 9 effect on 
! day be=e ! date ( enactm5t ( ?is      
subsection2 &  7,b7 ! corporation may   
impose any o!r requirem5ts ) respect to 
! pur*ase ( a cov]$ pool or a non-cov]$ 
pool t ! corporation det]m9es are       
appropriate4  4  #c4 ,loans own$ by     
,fr$die ,mac ,section #cje ( ! ,f$]al   
,home ,loan ,mortgage ,corporation ,act 
7#ab ,u4,s4,c4 #aded7 is am5d$ by add+  
at ! end ! foll[+3  7d7 ,sale (         

non-,p]=m+ loans  7#a7 ,9 ?is           
subsection-- 7,a7 ! t]m cov]$ pool means
 a pool ( non-p]=m+ loans own$ "u ?is   
title--  7i7 t conta9s n m ?an #cjj     
loans2  7ii7 t is1 to ! ext5t           
practicable1 geographically conc5trat$2 
&  7iii7 = :i* ! corporation1 ) respect 
to ! sale ( loans 9 ! pool1 enc\rages   
pur*ase ( ! loans by qualify+ nonpr(its 
& qualify+ local gov]nm5ts2  7,b7 ! t]m 
non-cov]$ pool means a pool ( non-p]=m+ 
loans own$ "u ?is title t is n a cov]$  
pool2  7,c7 ! t]m qualify+ local        
gov]nm5t means a local gov]nm5t t !     
corporation has p]mitt$ to bid1 aft] an 
initial auction1 on a cov]$ pool or a   
non-cov]$ pool2 &  7,d7 ! t]m qualify+  
nonpr(it means a nonpr(it organization t
 ! corporation has p]mitt$ to bid1 aft] 
an initial auction1 on a cov]$ pool or a
 non-cov]$ pool4  7#b7 7,a7 ,!          
corporation1 ) respect to an auction = !
 sale ( non-p]=m+ loans1 %all ensure t n
 few] ?an #be p]c5t ( ! loans t are (f]$
 = sale 9 ! auction are loans 9 cov]$   

pools4  7,b7 ,! corporation %all ensure 
t1 aft] an entity t is n a qualify+     
nonpr(it or a qualify+ local gov]nm5t   
submits ! highe/ bid on a non-cov]$     
pool1 qualify+ nonpr(its & qualify+     
local gov]nm5ts h ! opportunity to      
submit a bid to pur*ase n m ?an #e p]c5t
 ( ! loans 9 ! non-cov]$ pool 9         
accordance ) ! proc$ures set =? 9       
p>agraph 7#c77;,b74  7#c7 7,a7 ,)       
respect to ! sale ( a cov]$ pool :5 a   
qualify+ nonpr(it or a qualify+ local   
gov]nm5t is a p>ty bidd+ on ! cov]$     
pool1 ! corporation %all--  7i7 notify  
ea* bidd] t a qualify+ nonpr(it or a    
qualify+ local gov]nm5t is a bidd] on ! 
cov]$ pool2  7ii7 if1 aft] receiv+ bids 
f ea* ( ! bidd]s on ! cov]$ pool1 !     
corporation det]m9es t an entity t is n 
a qualify+ nonpr(it or a qualify+ local 
gov]nm5t submitt$ ! highe/ ov]all bid-- 
7,i7 disclose to ! qualify+ nonpr(it or 
qualify+ local gov]nm5t t submitt$ !    
highe/ bid 7among bids submitt$ by      
qualify+ nonpr(its & qualify+ local     

gov]nm5ts7 ! am\nt ( ! highe/ ov]all bid
 t 0 submitt$2  7,,ii7 provide !        
qualify+ nonpr(it or qualify+ local     
gov]nm5t t submitt$ ! highe/ bid ) an   
opportunity to1 n lat] ?an #b days aft] 
receiv+ notice f ! corporation1 submit a
 bid 9 an am\nt great] ?an ! highe/     
ov]all bid2 &  7,,iii7 if a qualify+    
nonpr(it or qualify+ local gov]nm5t1 z  
applicable1 describ$ 9 subclause 7,,ii7 
*ooses n to submit a bid z describ$ 9 t 
subclause1 provide ea* successive       
qualify+ nonpr(it or qualify+ local     
gov]nm5t t submitt$ ! next highe/ bid ) 
an opportunity to1 n lat] ?an #b days   
aft] receiv+ notice f ! corporation & a 
disclosure describ$ 9 subclause 7,i71   
submit a bid 9 an am\nt great] ?an !    
highe/ ov]all bid2 &  7iii7 sell ! cov]$
 pool to a qualify+ nonpr(it or a       
qualify+ local gov]nm5t if a qualify+   
nonpr(it or qualify+ local gov]nm5t1 z  
applicable1 "u subclause 7,,ii7 or      
7,,iii7 ( clause 7ii71 submits a bid 9  
an am\nt great] ?an ! highe/ ov]all bid4

  7,b7 ,) respect to ! sale ( a         
non-cov]$ pool-- 7i7 n lat] ?an #b days 
aft] ! date on :i* an entity t is n a   
qualify+ nonpr(it or a qualify+ local   
gov]nm5t submits ! highe/ ov]all bid on 
! non-cov]$ pool--  7,i7 ! corporation  
%all disclose to qualify+ nonpr(its &   
qualify+ local gov]nm5ts ! am\nt ( !    
highe/ ov]all bid submitt$ on !         
non-cov]$ pool1 includ+ ! am\nt ( ! bid 
= ea* individual loan 9 ! non-cov]$     
pool2 &  7,,ii7 a qualify+ nonpr(it or a
 qualify+ local gov]nm5t may submit to !
 corporation a bid to pur*ase n m ?an #e
 p]c5t ( ! loans 9 ! non-cov]$ pool2    
7ii7 except z provid$ 9 subp>agraph     
7,c71 ! corporation %all sell a loan    
describ$ 9 clause 7i77,,ii7 to a        
qualify+ nonpr(it or qualify+ local     
gov]nm5t1 z applicable1 if1 ) respect to
 t loan1 ! bid ( ! qualify+ nonpr(it or 
qualify+ local gov]nm5t is equal to or m
 ?an ! bid ( ! entity t submitt$ !      
highe/ ov]all bid = ! non-cov]$ pool2 & 
7iii7 ! total numb] ( loans sold "u     

clause 7ii7 may n exce$ #aj p]c5t ( !   
numb] ( loans 9 ! non-cov]$ pool4  7,c7 
7i7 ,! corporation %all det]m9e :i*     
loans 9 a non-cov]$ pool %all be sold to
 a qualify+ nonpr(it or a qualify+ local
 gov]nm5t if ! aggregate numb] ( loans  
sold "u subp>agraph 7,b77ii7 to qualify+
 nonpr(its & qualify+ local gov]nm5ts   
w\ld violate subp>agraph 7,b77iii74     
7ii7 ,if1 "u subp>agraph 7,b77i77,,ii71 
m ?an #a qualify+ nonpr(it or qualify+  
local gov]nm5t submits a bid = a loan t 
is equal to or high] ?an ! bid submitt$ 
by ! entity t _h submitt$ ! highe/      
ov]all bid1 ! corporation %all sell !   
loan to ! qualify+ nonpr(it or qualify+ 
local gov]nm5t t submitt$ ! highe/ bid4 
7#d7 ,be=e submitt+ a bid ) respect to a
 cov]$ pool or a non-cov]$ pool1 a      
nonpr(it organization or local gov]nm5t1
 9 ord] to be consid]$ a qualify+       
nonpr(it or qualify+ local gov]nm5t1 z  
applicable1 %all submit to ! corporation
 an application conta9+ su* in=mation z 
! corporation det]m9es appropriate4     

7#e7 ,any entity t pur*ases a cov]$ pool
 "u ?is subsection-- 7,a7 may n =eclose 
on any ( ! occupi$ prop]ties t secure   
loans 9 ! pool dur+ ! #ab-mon? p]iod    
foll[+ ! pur*ase2 &  7,b7 %all ensure t1
 n lat] ?an #d ye>s aft] ! settlem5t    
date1 n less ?an #ej p]c5t ( ! loans 9 !
 pool result 9--  7i7 a modifi$ loan t--
 7,i7 has a loan-to-value ratio aft] !  
modification ( ! loan t is n great] ?an 
#aae p]c5t2  7,,ii7 p]=ms ov] a p]iod ( 
n less ?an #f mon?s2  7,,iii7 does n    
include an up-front fee or require      
prepaym5t ( any am\nt ( ! mortgage debt2
 &  7,,iv7 7aa7 is fix$ rate = ! entire 
p]iod 9 :i* ! loan be+ modifi$ is 9     
effect2 or  7bb7 (f]s an initial p]iod 9
 :i* ! int]e/ rate is r$uc$ & an        
increase 9 ! int]e/ rate is limit$ to n 
m ?an #a p]c5t p] ye> aft] an initial   
#e-ye> p]iod 9 :i* ! int]e/ rate is     
fix$1 ) a maximum int]e/ rate n exce$+ !
 prevail+ m>ket rate = loans2  7ii7 a   
%ort sale ( ! prop]ty t secures ! loan  
to an own]-occupant2  7iii7 ) respect to

 a qualify+ nonpr(it or a qualify+ local
 gov]nm5t t pur*ases a cov]$ pool "u    
p>agraph 7#c77;,a77iii71 hold+ ! prop]ty
 t secures ! loan = r5tal = a p]iod ( n 
less ?an #c ye>s1 :]e su* r5tal is      
af=dable to a h\sehold ) an annual      
income at or bel[ ! area m$ian income2  
7iv7 ) ! approval ( ! corporation1 gift+
 ! prop]ty t secures ! loan to a l&     
bank1 a nonpr(it organization1 or a     
,/ate or local gov]nm5t1 ) additional   
funds provid$ = demolition & ma9t5ance2 
or  7v7 ) ! approval ( ! corporation1   
sale ( ! loan or ! prop]ty t secures !  
loan to a nonpr(it organization4  7#f7  
,a qualify+ nonpr(it or a qualify+ local
 gov]nm5t t pur*ases a cov]$ pool "u    
p>agraph 7#c77;,a77iii7 %all ensure t n 
less ?an #fj p]c5t ( ! loans 9 ! pool   
result 9 n less ?an "o ( ! outcomes     
describ$ 9 clauses 7i7 ?r\gh 7v7 (      
p>agraph 7#e77;,b74  7#g7 7,a7 ,any     
entity t pur*ases a cov]$ pool "u ?is   
subsection t conta9s a loan = :i* !     
prop]ty secur+ ! loan is vacant %all    

ensure t ! s]vic] ( ! loan--  7i7 does n
 release ! li5 on ! prop]ty2 &  7ii7    
ma9ta9s ! prop]ty 9 accordance ) g5]ally
 acceptable ma9t5ance /&>ds4  7,b7 ,if !
 s]vic] ( a loan describ$ 9 subp>agraph 
7,a7 does n comply ) ! requirem5ts ( t  
subp>agraph1 ! entity t pur*as$ ! cov]$ 
pool %all sell or donate ! loan to ano!r
 entity1 includ+ a gov]nm5t or nonpr(it 
entity4  7#h7 ,no?+ 9 ?is subsection    
%all be con/ru$ to prev5t ! corporation 
f ensur+ t a qualify+ nonpr(it or a     
qualify+ local gov]nm5t has !           
opportunity to be ! la/ bidd] on a cov]$
 pool or a non-cov]$ pool "u proc$ures  
o!r ?an ^? describ$ 9 ?is section4  7#i7
 ,9 addition to ! requirem5ts "u ?is    
subsection-- 7,a7 any entity t pur*ases 
a non-cov]$ pool %all meet all ( !      
requirem5ts ( ! corporation 9 effect on 
! day be=e ! date ( enactm5t ( ?is      
subsection2 &  7,b7 ! corporation may   
impose any o!r requirem5ts ) respect to 
! pur*ase ( a cov]$ pool or a non-cov]$ 
pool t ! corporation det]m9es are       

appropriate4  4  #d4 ,loans insur$ by ! 
,,fha ,title ,,ii ( ! ,national ,h\s+   
,act 7#ab ,u4,s4,c4 #agjg et seq47 is   
am5d$ by add+ at ! end ! foll[+3  #bei4 
,sale ( non-p]=m+ mortgages  7a7        
,def9itions ,9 ?is section-- 7#a7 ! t]m 
cov]$ pool means a pool ( non-p]=m+     
mortgages insur$ "u ?is title--  7,a7 t 
conta9s n m ?an #cjj mortgages2  7,b7 t 
is1 to ! ext5t practicable1             
geographically conc5trat$2 &  7,c7 = :i*
 ! ,secret>y1 ) respect to ! sale (     
mortgages 9 ! pool1 enc\rages pur*ase ( 
! mortgages by qualify+ nonpr(its &     
qualify+ local gov]nm5ts2  7#b7 ! t]m   
non-cov]$ pool means a pool ( non-p]=m+ 
mortgages insur$ "u ?is title t is n a  
cov]$ pool2  7#c7 ! t]m qualify+ local  
gov]nm5t means a local gov]nm5t t !     
,secret>y has p]mitt$ to bid1 aft] an   
initial auction1 on a cov]$ pool or a   
non-cov]$ pool2 &  7#d7 ! t]m qualify+  
nonpr(it means a nonpr(it organization t
 ! ,secret>y has p]mitt$ to bid1 aft] an
 initial auction1 on a cov]$ pool or a  

non-cov]$ pool4  7b7 ,requirem5ts  7#a7 
,cov]$ pools ,! ,secret>y1 ) respect to 
an auction = ! sale ( non-p]=m+         
mortgages1 %all ensure t n few] ?an #ej 
p]c5t ( ! mortgages t are (f]$ = sale 9 
! auction are mortgages 9 cov]$ pools4  
7#b7 ,non-cov]$ pools ,! ,secret>y %all 
ensure t1 aft] an entity t is n a       
qualify+ nonpr(it or a qualify+ local   
gov]nm5t submits ! highe/ bid on a      
non-cov]$ pool1 qualify+ nonpr(its &    
qualify+ local gov]nm5ts h ! opportunity
 to submit a bid to pur*ase n m ?an #e  
p]c5t ( ! mortgages 9 ! non-cov]$ pool 9
 accordance ) ! proc$ures set =? 9      
subsection 7c77#b74  7c7 ,proc$ures =   
sale ( cov]$ & non-,cov]$ pools  7#a7   
,cov]$ pools ,) respect to ! sale ( a   
cov]$ pool :5 a qualify+ nonpr(it or a  
qualify+ local gov]nm5t is a p>ty bidd+ 
on ! cov]$ pool1 ! ,secret>y %all--     
7,a7 notify ea* bidd] t a qualifi$      
nonpr(it or a qualify+ local gov]nm5t is
 a bidd] on ! cov]$ pool2  7,b7 if1 aft]
 receiv+ bids f ea* ( ! bidd]s on !     

cov]$ pool1 ! ,secret>y det]m9es t an   
entity t is n a qualify+ nonpr(it or a  
qualify+ local gov]nm5t submitt$ !      
highe/ ov]all bid--  7i7 disclose to !  
qualify+ nonpr(it or qualify+ local     
gov]nm5t t submitt$ ! highe/ bid 7among 
bids submitt$ by qualify+ nonpr(its &   
qualify+ local gov]nm5ts7 ! am\nt ( !   
highe/ ov]all bid t 0 submitt$2  7ii7   
provide ! qualify+ nonpr(it or qualify+ 
local gov]nm5t t submitt$ ! highe/ bid )
 an opportunity to1 n lat] ?an #b days  
aft] receiv+ notice f ! ,secret>y1      
submit a bid 9 an am\nt great] ?an !    
highe/ ov]all bid2 &  7iii7 if a        
qualify+ nonpr(it or qualify+ local     
gov]nm5t1 z applicable1 describ$ 9      
clause 7ii7 *ooses n to submit a bid z  
describ$ 9 t clause1 provide ea*        
successive qualify+ nonpr(it or qualify+
 local gov]nm5t t submitt$ ! next highe/
 bid ) an opportunity to1 n lat] ?an #b 
days aft] receiv+ notice f ! ,secret>y &
 a disclosure describ$ 9 clause 7i71    
submit a bid 9 an am\nt great] ?an !    

highe/ ov]all bid2 &  7,c7 sell ! cov]$ 
pool to a qualify+ nonpr(it or a        
qualify+ local gov]nm5t if a qualify+   
nonpr(it or qualify+ local gov]nm5t1 z  
applicable1 "u clause 7ii7 or 7iii7 (   
subp>agraph 7,b71 submits a bid 9 an    
am\nt great] ?an ! highe/ ov]all bid4   
7#b7 ,non-cov]$ pools  7,a7 ,9 g5]al ,) 
respect to ! sale ( a non-cov]$ pool--  
7i7 n lat] ?an #b days aft] ! date on   
:i* an entity t is n a qualify+ nonpr(it
 or a qualify+ local gov]nm5t submits ! 
highe/ ov]all bid on ! non-cov]$ pool-- 
7,i7 ! ,secret>y %all disclose to       
qualify+ nonpr(its & qualify+ local     
gov]nm5ts ! am\nt ( ! highe/ ov]all bid 
submitt$ on ! non-cov]$ pool1 includ+ ! 
am\nt ( ! bid = ea* individual mortgage 
9 ! non-cov]$ pool2 &  7,,ii7 a qualify+
 nonpr(it or a qualify+ local gov]nm5t  
may submit to ! ,secret>y a bid to      
pur*ase n m ?an #e p]c5t ( ! mortgages 9
 ! non-cov]$ pool2  7ii7 except z       
provid$ 9 subp>agraphs 7,b7 & 7,c71 !   
,secret>y %all sell a mortgage describ$ 

9 clause 7i77,,ii7 to a qualify+        
nonpr(it or qualify+ local gov]nm5t1 z  
applicable1 if1 ) respect to t mortgage1
 ! bid ( ! qualify+ nonpr(it or qualify+
 local gov]nm5t is equal to or m ?an !  
bid ( ! entity t submitt$ ! highe/      
ov]all bid = ! non-cov]$ pool2 &  7iii7 
! total numb] ( mortgages sold "u clause
 7ii7 may n exce$ #aj p]c5t ( ! numb] ( 
mortgages 9 ! non-cov]$ pool4  7,b7     
,selection by ! ,secret>y ,! ,secret>y  
%all det]m9e :i* mortgages 9 a non-cov]$
 pool %all be sold to a qualify+        
nonpr(it or a qualify+ local gov]nm5t if
 ! aggregate numb] ( mortgages sold "u  
subp>agraph 7,a77ii7 to qualify+        
nonpr(its & qualify+ local gov]nm5ts    
w\ld violate subp>agraph 7,a77iii74     
7,c7 ,multiple high bids ,if1 "u        
subp>agraph 7,a77i77,,ii71 m ?an #a     
qualify+ nonpr(it or qualify+ local     
gov]nm5t submits a bid = a mortgage t is
 equal to or high] ?an ! bid submitt$ by
 ! entity t _h submitt$ ! highe/ ov]all 
bid1 ! ,secret>y %all sell ! mortgage to

 ! qualify+ nonpr(it or qualify+ local  
gov]nm5t t submitt$ ! highe/ bid4  7d7  
,application ,be=e submitt+ a bid )     
respect to a cov]$ pool or a non-cov]$  
pool1 a nonpr(it organization or local  
gov]nm5t1 9 ord] to be consid]$ a       
qualify+ nonpr(it or qualify+ local     
gov]nm5t1 z applicable1 %all submit to !
 ,secret>y an application conta9+ su*   
in=mation z ! ,secret>y det]m9es        
appropriate4  7e7 ,additional           
requirem5ts = cov]$ pools  7#a7 ,9 g5]al
 ,any entity t pur*ases a cov]$ pool "u 
?is section-- 7,a7 may n =eclose on any 
( ! occupi$ prop]ties t secure mortgages
 9 ! pool dur+ ! #ab-mon? p]iod foll[+ !
 pur*ase2 &  7,b7 %all ensure t1 n lat] 
?an #d ye>s aft] ! settlem5t date1 n    
less ?an #ej p]c5t ( ! mortgages 9 !    
pool result 9--  7i7 a modifi$ mortgage 
t-- 7,i7 has a loan-to-value ratio aft] 
! modification ( ! mortgage t is n      
great] ?an #aae p]c5t2  7,,ii7 p]=ms ov]
 a p]iod ( n less ?an #f mon?s2  7,,iii7
 does n include an up-front fee or      

require prepaym5t ( any am\nt ( !       
mortgage debt2 &  7,,iv7 7aa7 is fix$   
rate = ! entire p]iod 9 :i* ! mortgage  
be+ modifi$ is 9 effect2 or  7bb7 (f]s  
an initial p]iod 9 :i* ! int]e/ rate is 
r$uc$ & an increase 9 ! int]e/ rate is  
limit$ to n m ?an #a p]c5t p] ye> aft]  
an initial #e-ye> p]iod 9 :i* ! int]e/  
rate is fix$1 ) a maximum int]e/ rate n 
exce$+ ! prevail+ m>ket rate =          
mortgages2  7ii7 a %ort sale ( ! prop]ty
 t secures ! mortgage to an             
own]-occupant2  7iii7 ) respect to a    
qualify+ nonpr(it or a qualify+ local   
gov]nm5t t pur*ases a cov]$ pool "u     
subsection 7c77#a77;,c71 hold+ ! prop]ty
 t secures ! mortgage = r5tal = a p]iod 
( n less ?an #c ye>s1 :]e su* r5tal is  
af=dable to a h\sehold ) an annual      
income at or bel[ ! area m$ian income2  
7iv7 ) ! approval ( ! ,secret>y1 gift+ !
 prop]ty t secures ! mortgage to a l&   
bank1 a nonpr(it organization1 or a     
,/ate or local gov]nm5t1 ) additional   
funds provid$ = demolition & ma9t5ance2 

&  7v7 ) ! approval ( ! ,secret>y1 sale 
( ! mortgage or ! prop]ty t secures !   
mortgage to a nonpr(it organization4    
7#b7 ,qualify+ nonpr(its & local        
gov]nm5ts ,a qualify+ nonpr(it or a     
qualify+ local gov]nm5t t pur*ases a    
cov]$ pool "u subsection 7c77#a77;,c7   
%all ensure t n less ?an #fj p]c5t ( !  
mortgages 9 ! pool result 9 n less ?an  
"o ( ! outcomes describ$ 9 clauses 7i7  
?r\gh 7v7 ( p>agraph 7#a77;,b74  7#c7   
,vacant prop]ties  7,a7 ,9 g5]al ,any   
entity t pur*ases a cov]$ pool "u ?is   
section t conta9s a mortgage = :i* !    
prop]ty secur+ ! mortgage is vacant %all
 ensure t ! s]vic] ( ! mortgage--  7i7  
does n release ! li5 on ! prop]ty2 &    
7ii7 ma9ta9s ! prop]ty 9 accordance )   
g5]ally acceptable ma9t5ance /&>ds4     
7,b7 ,sale ( mortgage ,if ! s]vic] ( a  
mortgage describ$ 9 subp>agraph 7,a7    
does n comply ) ! requirem5ts ( t       
subp>agraph1 ! entity t pur*as$ ! cov]$ 
pool %all sell or donate ! mortgage to  
ano!r entity1 includ+ a gov]nm5t or     

nonpr(it entity4  7f7 ,rule (           
con/ruction ,no?+ 9 ?is section %all be 
con/ru$ to prev5t ! ,secret>y f ensur+ t
 a qualify+ nonpr(it or a qualify+ local
 gov]nm5t has ! opportunity to be ! la/ 
bidd] on a cov]$ pool or a non-cov]$    
pool "u proc$ures o!r ?an ^? describ$ 9 
?is section4  7g7 ,additional           
requirem5ts ,9 addition to ! requirem5ts
 "u ?is section-- 7#a7 any entity t     
pur*ases a non-cov]$ pool %all meet all 
( ! requirem5ts ( ! ,secret>y 9 effect  
on ! day be=e ! date ( enactm5t ( ?is   
section2 &  7#b7 ! ,secret>y may impose 
any o!r requirem5ts ) respect to !      
pur*ase ( a cov]$ pool or a non-cov]$   
pool t ! ,secret>y det]m9es are         
appropriate4  4