,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #haaf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #bf1 #bjbf,mr4   
,moore ( ,utah 7= himself1 ,mr4         
,panetta1 & ,mr4 ,b>r7 introduc$ !      
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to exclude f gross income c]ta9   
proce$s ( %>$ appreciation mortgage     
contracts4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,%>$ ,home ,appreciation
 = ,resid5tial ,equity ,act or ! ,,%>e  
,act4  #b4 ,exclusion ( c]ta9 proce$s ( 
a %>$ appreciation mortgage contract    
7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b (  
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] section   
#aci;,i ! foll[+ new section3  #aci;,j4 
,c]ta9 proce$s ( a %>$ appreciation     
mortgage contract  7a7 ,9 g5]al ,gross  
income %all n include-- 7#a7 any am\nt  
receiv$ by a l5d] z repaym5t ( a %>$    
appreciation mortgage :i* exce$s !      
orig9al pr9cipal obligation ( su*       

mortgage if--  7,a7 ! income ( ! borr[] 
did n exce$ #adj p]c5t ( ! area m$ian   
income = ! c5sus tract 9 :i* ! real     
prop]ty is locat$ = ! cal5d> ye> 9 :i*  
su* loan 0 issu$1 &  7,b7 ! real prop]ty
 is a resid5tial prop]ty :i* 0 !        
pr9cipal resid5ce 7z su* t]m is us$ 9   
section #aba7 ( ! borr[]1 or  7#b7 any  
ga9 f ! disposition ( s mu* ( a capital 
asset z is compos$ ( or secur$ by       
mortgages describ$ 9 p>agraph 7#a74  7b7
 ,%>$ appreciation mortgage ,= purposes 
( ?is section1 ! t]m %>$ appreciation   
mortgage means a mortgage secur$ by a   
second li5 on a prop]ty ^u :i* !re is   
locat$ a dwell+ design$ pr9cipally =    
occupancy by "o to f\r families :i*--   
7#a7 provides = ! mortgagee to %>e 9 a  
pr$et]m9$ p]c5tage ( ! prop]ty's net    
appreciat$ value :i* does n exce$ !     
p]c5tage :i* is ! quoti5t (-- 7,a7 !    
am\nt ( su* mortgage1 divid$ by  7,b7 ! 
pur*ase price ( su* prop]ty1  7#b7 does 
n require ! mortgagor to make any paym5t
 o!r ?an ! paym5t describ$ 9 p>agraph   

7#a71  7#c7 ! am\nt ( :i* does n exce$  
#di p]c5t ( ! pur*ase price ( su*       
prop]ty1  7#d7 is subord9ate to a fir/  
li5 t is a qualifi$ mortgage z su* t]m  
is def9$ "u section #abi;,c7c77#b7 ( !  
,tru? 9 ,l5d+ ,act1 &  7#e7 does n      
require repaym5t be=e-- 7,a7 ! s*$ul$   
maturity date ( ! mortgage secur$ by !  
fir/ li5 on ! prop]ty2  7,b7 ! sale ( ! 
prop]ty2  7,c7 repaym5t 9 full ( !      
mortgage secur$ by ! fir/ li5 on !      
prop]ty2  7,d7 ! s*$ul$ maturity date ( 
! mortgage secur$ by ! fir/ li5 on !    
prop]ty z alt]$ by any accel]ation ( su*
 mortgage 9 accordance ) ! t]ms ( su*   
mortgage2 or  7,e7 a default "u !       
mortgage4  4  7b7 ,cl]ical am5dm5t ,!   
table ( sections = "p ,,iii ( sub*apt]  
,b ( *apt] #a ( su* ,code is am5d$ by   
ins]t+ aft] ! item relat+ to section    
#aci;,i ! foll[+ new item3  ,sec4       
#aci;,j4 ,c]ta9 proce$s ( a %>$         
appreciation mortgage contract4  4  7c7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts receiv$    

aft] ,decemb] #ca1 #bjbe4