Home Mortgage Capital Stability Act

Home Mortgage Capital Stability Act - Amends the Federal Deposit Insurance Act to authorize the Federal Deposit Insurance Corporation to purchase capital participation notes from, and make earnings stabilization payments to, any insured bank determined eligible under this Act.

Limits eligibility for such assistance to any insured bank: (1) whose net worth is less than two percent of its assets; (2) which has sustained earnings losses for any two consecutive quarters during a specified time period, althoug its prospects for long term viability remain reasonably good; and (3) at least 20 percent of whose loan portfolio consists of mortgages secured by property occupied by a one-to-four-family residence or by individual condominium or cooperative units. Prescribes the requirements of any assistance agreement between the Corporation and such a bank, including a requirement that at least 50 percent of annual net new deposits be used to issue mortgages to first-time home buyers for condominium or cooperative units or for property occupied by a one-to-four-family residence.

Requires the capital participation notes purchased by the Corporation from an insured bank to be in an amount equal to the difference between such bank's net worth and two percent of its assets.

Requires that all amounts received from the sale of capital participation notes be used to increase such bank's net worth.

Permits the Corporation, during the two-year period following its purchase of such notes, to make quarterly earnings stabilization payments to such a bank in an amount equal to the earnings losses incurred by the bank during the previous quarter. Allows continued earnings stabilization payments after such two-year period only if the Corporation certifies that the continued earnings losses involved are caused by general market conditions and not by the banks's own actions.

Requires an insured bank to begin repaying the Corporation the amounts received plus interest after its net worth reaches three percent of its assets or five years have passed since it first received assistance. Sets the total annual repayment amount at not less than half the bank's net income after taxes. Prohibits such a bank with a stock form of ownership from paying dividends to its shareholders while it owes any amount to the Corporation.

Amends the National Housing Act and the Federal Credit Union Act to authorize the Federal Savings and Loan Insurance Corporation and the National Credit Union Administration Board to provide similar assistance to insured savings and loan associations and Federal credit unions in similar circumstances.

Establishes in the Treasury a Home Mortgage Capital Stability Fund for use as a revolving fund by the Federal Deposit Insurance Corporation, the Federal Home Loan Bank Board, and the National Credit Union Administration for the purposes of this Act. Requires quarterly reports to each House of Congress by each of such users.

Authorizes appropriations.