Housing Opportunity and Mortgage Equity Act of 2011 - Directs the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (government-sponsored enterprises or GSEs) each to carry out a one-year program providing for the refinancing of qualified single-family housing mortgages it owns through a refinancing mortgage (and for the purchase of and securitization of such refinancing mortgages) in accordance with this Act and the policies and procedures of the Federal Housing Finance Agency.
Defines a qualified mortgage as one, regardless of whether the mortgagor is current on payments due or in default, that: (1) is an existing first mortgage for purchase of, or refinancing another first mortgage on, a one- to four-family dwelling, including a condominium or a share in a cooperative ownership housing association, that is occupied by the mortgagor as principal residence; (2) is owned or guaranteed by the particular GSE; and (3) was originated on or before enactment of this Act.
Specifies the terms and conditions of a refinancing mortgage, including a 40-year term to maturity and a prohibition on borrower fees. Requires waiver or forgiveness of all fees and penalties related to any default or delinquency on the original mortgage.
Requires a GSE to pay a fee of up to $1,000 to the servicer of a qualified mortgage refinance.
Prohibits any requirement of a property appraisal.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 363 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 363
To prevent foreclosure of home mortgages and provide for the affordable
refinancing of mortgages held by Fannie Mae and Freddie Mac.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 20, 2011
Mr. Cardoza (for himself, Mr. Larson of Connecticut, Ms. Castor of
Florida, Mr. Thompson of California, Ms. DeLauro, Mrs. Napolitano, Mr.
Sires, Mr. Costa, Ms. Berkley, Mr. Baca, Mr. McNerney, Ms. Sutton, Ms.
Woolsey, Mr. McDermott, Mr. Garamendi, Mr. Hinchey, Mr. Stark, Ms.
Wasserman Schultz, Mr. Welch, Mr. Filner, Ms. Richardson, Mr. Kucinich,
and Mr. Quigley) introduced the following bill; which was referred to
the Committee on Financial Services
_______________________________________________________________________
A BILL
To prevent foreclosure of home mortgages and provide for the affordable
refinancing of mortgages held by Fannie Mae and Freddie Mac.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Housing Opportunity and Mortgage
Equity Act of 2011''.
SEC. 2. AFFORDABLE REFINANCING OF MORTGAGES OWNED OR GUARANTEED BY
FANNIE MAE AND FREDDIE MAC.
(a) Authority.--The Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation shall each carry out a program
under this section to provide for the refinancing of qualified
mortgages on single-family housing owned by such enterprise through a
refinancing mortgage, and for the purchase of and securitization of
such refinancing mortgages, in accordance with this section and
policies and procedures that the Director of the Federal Housing
Finance Agency shall establish. Such program shall require such
refinancing of a qualified mortgage upon the request of the mortgagor
made to the applicable enterprise and a determination by the enterprise
that the mortgage is a qualified mortgage.
(b) Qualified Mortgage.--For purposes of this section, the term
``qualified mortgage'' means a mortgage, without regard to whether the
mortgagor is current on or in default on payments due under the
mortgage, that--
(1) is an existing first mortgage that was made for
purchase of, or refinancing another first mortgage on, a one-
to four-family dwelling, including a condominium or a share in
a cooperative ownership housing association, that is occupied
by the mortgagor as the principal residence of the mortgagor;
(2) is owned or guaranteed by the Federal National Mortgage
Association or the Federal Home Loan Mortgage Corporation; and
(3) was originated on or before the date of the enactment
of this Act.
(c) Refinancing Mortgage.--For purposes of this section, the term
``refinancing mortgage'' means a mortgage that meets the following
requirements:
(1) Refinancing of qualified mortgage.--The principal loan
amount repayment of which is secured by the mortgage shall be
used to satisfy all indebtedness under an existing qualified
mortgage.
(2) Single-family housing.--The property that is subject to
the mortgage shall be the same property that is subject to the
qualified mortgage being refinanced.
(3) Interest rate.--The mortgage shall bear interest at a
single rate that is fixed for the entire term of the mortgage,
which shall be equivalent to the premium received by the
enterprise on the qualified mortgage being refinanced plus the
cost of selling a newly issued mortgage having comparable risk
and term to maturity in a mortgage-backed security, as such
rate may be increased to the extent necessary to cover, over
the term to maturity of the mortgage, any fee paid to the
servicer pursuant to subsection (d), the cost of any title
insurance coverage issued in connection with the mortgage, and,
as determined by the Director, a portion of any administrative
costs of the program under this section as may attributable to
the mortgage.
(4) Waiver of prepayment penalties.--All penalties for
prepayment or refinancing of the qualified mortgage that is
refinanced by the mortgage, and all fees and penalties related
to the default or delinquency on such mortgage, shall have been
waived or forgiven.
(5) Term to maturity.--The mortgage shall have a term to
maturity of not more than 40 years from the date of the
beginning of the amortization of the mortgage.
(6) Prohibition on borrower fees.--The servicer conducting
the refinancing shall not charge the mortgagor any fee for the
refinancing of the qualified mortgage through the refinancing
mortgage.
(7) Title insurance.--The fee for title insurance coverage
issued in connection with the mortgage shall be reasonable in
comparison with fees for such coverage available in the market
for mortgages having similar terms.
(d) Fee to Servicer.--For each qualified mortgage of an enterprise
that the servicer of the qualified mortgage refinances through a
refinancing mortgage pursuant to this section, the enterprise shall pay
the servicer a fee not exceeding $1,000.
(e) No Appraisal.--The enterprises may not require an appraisal of
the property subject to a refinancing mortgage to be conducted in
connection with such refinancing.
(f) Termination.--The requirement under subsection (a) for the
enterprises to refinance qualified mortgages shall not apply to any
request for refinancing made after the expiration of the one-year
period beginning on the date of the enactment of this Act.
(g) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Director.--The term ``Director'' means the Director of
the Federal Housing Finance Agency.
(2) Enterprise.--The term ``enterprise'' means the Federal
National Mortgage Association and the Federal Home Loan
Mortgage Corporation.
(h) Regulations.--The Director shall issue any regulations or
guidance necessary to carry out the program under this section.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.
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