To rescind the unobligated funding for the FHA Refinance Program and to terminate the program.

Summary: FHA Refinance Program Termination Act - Rescinds and permanently cancels all unexpended funding remaining available and allocated for the Federal Housing Administration (FHA) Refinancing Program of the Making Home Affordable initiative of the Secretary of the Treasury (under which borrowers owing more on their mortgage than the value of their home are provided opportunities to refinance into a FHA loan). Terminates the program.

Requires all such unobligated balances so rescinded and permanently canceled to be retained in the general fund of the Treasury for reducing the debt of the federal government.

Directs the Secretary of Housing and Urban Development (HUD) to study: (1) the extent to which the FHA Refinancing Program is used by homeowners who are active duty members of the Armed Forces (or their spouses or parents), veterans, Gold Star-eligible widows, parents, or next of kin of Armed Forces members who died in military operations, or members or veterans with service-connected injuries (and their survivors and dependents); and (2) the impact of the program on such homeowners.

Directs the HUD Secretary to publish a statement on the HUD website as to: (1) termination of the FHA Short [sic] Refinance Program; and (2) the availability of a Member of Congress to assist any borrower having trouble paying a mortgage and needing help contacting the borrower's lender or servicer to negotiate or acquire a loan modification.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FHA Refinance Program Termination 
Act''.

SEC. 2. RESCISSION OF FUNDING FOR FHA REFINANCE PROGRAM.

    Effective on the date of the enactment of this Act, there are 
rescinded and permanently canceled all unexpended balances remaining 
available as of such date of enactment of the amounts made available 
under title I of the Emergency Economic Stabilization Act (Public Law 
110-343; 12 U.S.C. 5211 et seq.) that have been allocated for use under 
the FHA Refinance Program (pursuant to Mortgagee Letter 2010-23 of the 
Secretary of Housing and Urban Development) of the Making Home 
Affordable initiative of the Secretary of the Treasury. All such 
unexpended balances so rescinded and permanently canceled shall be 
retained in the general fund of the Treasury for reducing the debt of 
the Federal Government.

SEC. 3. TERMINATION OF FHA REFINANCE PROGRAM.

    (a) Termination of Mortgagee Letter.--The Mortgagee Letter referred 
to in section 2 shall be void and have no effect and the Secretary of 
Housing and Urban Development may not issue any regulation, order, 
notice, or mortgagee letter based on or substantially similar to such 
Mortgagee Letter.
    (b) Treatment of Remaining Funds.--Notwithstanding subsection (a) 
of this section, any amounts made available for use under the Program 
referred to in section 2 of this Act and expended before the date of 
the enactment of this Act shall continue to be governed by the 
Mortgagee Letter specified in subsection (a) of this section, and any 
other provisions of law, regulations, orders, and notices, applicable 
to such amounts, as in effect immediately before such date of 
enactment.
    (c) Termination.--After the enactment of this Act, the Secretary of 
Housing and Urban Development may not newly insure any mortgage under 
the FHA Refinance Program referred to in section 2 of this Act except 
pursuant to a commitment to insure made before such enactment, and upon 
the completion of all activities with respect to such commitments under 
the provisions of law, regulations, orders, notices, and mortgagee 
letters referred to in subsection (b) of this section, the Secretary of 
Housing and Urban Development shall terminate the FHA Refinance Program 
referred to in section 2.
    (d) Study of Use of Program by Members of the Armed Forces, 
Veterans, Gold Star Recipients, and Members and Veterans With Service-
connected Disabilities and Their Families.--
            (1) Study.--The Secretary of Housing and Urban Development 
        shall conduct a study to determine the extent of usage of the 
        FHA Refinance Program referred to in section 2 by, and the 
        impact of such program on, covered homeowners.
            (2) Report.--Not later than the expiration of the 90-day 
        period beginning on the date of the enactment of this Act, the 
        Secretary shall submit to the Congress a report setting forth 
        the results of the study under paragraph (1) and identifying 
        best practices, with respect to covered homeowners, that could 
        be applied to the FHA Refinance Program.
            (3) Covered homeowner.--For purposes of this subsection, 
        the term ``covered homeowner'' means a homeowner who is--
                    (A) a member of the Armed Forces of the United 
                States on active duty or the spouse or parent of such a 
                member;
                    (B) a veteran, as such term is defined in section 
                101 of title 38, United States Code;
                    (C) eligible to receive a Gold Star lapel pin under 
                section 1126 of title 10, United States Code, as a 
                widow, parent, or next of kin of a member of the Armed 
                Forces person who died in a manner described in 
                subsection (a) of such section; and
                    (D) such members and veterans of the Armed Forces 
                who have service-connected injuries, and survivors and 
                dependents of such members and veterans of the Armed 
                Forces with such injuries.

SEC. 4. PUBLICATION OF MEMBER AVAILABILITY FOR ASSISTANCE.

    Not later than 5 days after the date of the enactment of this Act, 
the Secretary of Housing and Urban Development shall publish to its 
Website on the World Wide Web in a prominent location, large point 
font, and boldface type the following statement: ``The FHA Short 
Refinance Program, which was intended to provide borrowers with 
refinance opportunities, has been terminated. If you are having trouble 
paying your mortgage and need help contacting your lender or servicer 
for purposes of negotiating or acquiring a loan modification, please 
contact your Member of Congress to assist you in contacting your lender 



              

or servicer for the purpose of negotiating or acquiring a loan 
modification.''.

            Passed the House of Representatives March 10, 2011.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.