Home Buyers Assistance Act

Home Buyers' Assistance Act - Title I: Homeownership Opportunities - Authorizes lending institutions to offer alternative mortgage loans, which are made to finance the purchase of one-to four-family dwellings and which offer any combination of the following features: (1) varied monthly payment amounts; (2) adjustable maturity dates; (3) flexible interest rates; and (4) adjustable loan-to-value ratios. Protects home buyers from abusive lending practices by enacting measures, including: (1) providing advance disclosure of each contract's projected monthly payments to the prospective purchasers; (2) prohibiting prepayment penalties; and (3) requiring that the lender give 60 days' advance disclosure of any change in interest rates where the purchaser has chosen a variable rate mortgage.

Amends the National Housing Act and the Federal Home Loan Mortgage Corporation Act to permit the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to purchase 95 percent mortgages.

Amends the Home Owners' Loan Act to permit the Federal Home Loan Bank Board to authorize Federal savings and loan associations to issue long-term securities as conditions require.

Overrides State usury limits as they apply to residential mortgage lending in order to facilitate varying interest rate mortgages.

Amends the National Housing Act to limit the experimental mortgage insurance program to 15 percent of the outstanding aggregate amount of principal of mortgages which are insured under this program.

Amends the Internal Revenue Code to provide, in the case of individual taxpayers, an exclusion from gross income of interest and dividends earned on savings accounts.

Title II: Uniform Application of the Tax Laws to All Financial Institutions - Uniform Tax Treatment of Financial Institutions Act - Defines the term "bank" for purposes of the general rules applicable to banking institutions under the Internal Revenue Code.

Amends the rules for the determination of the reserve for losses for financial institutions for each taxable year.

Provides for nonrecognition of gain or loss as a result of foreclosure on any property which was security for the payment of any indebtedness. Provides that the foreclosing party's basis in such property shall be the amount of the indebtedness for which the property was secured, plus costs of acquisition.

Provides new rules for the treatment of distributions of stock to shareholders by domestic building and loan associations where such distribution does not qualify as a deduction for dividends paid on deposits.

Authorizes a deduction for the repayment of loans made before September 1, 1951, by the United States on any mutual fund established pursuant to the laws of any State to financial institutions as defined in this Act.

Provides for separate taxation under Subchapter L (relating to the taxation of insurance companies) of the life insurance business of a mutual savings bank where such life insurance business is conducted separately from the other business or a mutual savings bank.

Allows a deduction for dividends paid on deposits in banking organizations qualifying as such for purposes of the term "bank" as defined in this Act.

Redefines the terms "domestic building and loan association" and "cooperative bank" for the purposes of the Internal Revenue Code.

Allows a credit against income tax of 3.83 percent (1.5 percent in the case of an individual) of the amount of interest received or accrued from qualifying residential mortgage loans if at least 80 percent of the total assets of such corporate taxpayer are qualifying residential loans. Defines the term "qualifying residential loan" for the purposes of this Act. Provides that if such credit (together with other specified tax credits allowable) exceeds the income tax for such taxable year, the taxpayer will be allowed to carry such credit back to the three taxable years preceding the unused credit year; and to the seven taxable years following the unused credit year. States that in the case of estates and trusts, and in the case of small business corporations electing taxation directly to shareholders under Subchapter S, the interest from qualifying residential mortgage loans shall be allocated among the parties in the same proportion as the income received by such entities is distributable to the beneficiaries or shareholders.