A bill to provide for the expansion of affordable refinancing of mortgages held by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

Summary: Responsible Homeowner Refinancing Act of 2012 - Requires the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (government sponsored enterprises or GSEs), in carrying out the Home Affordable Refinance Program, to adopt specified criteria pertaining to: (1) borrower eligibility, (2) representations and warranties, (3) prohibition on up-front fees, (4) alternative streamlined methods to determine the value of a property, (5) the purchase or guarantee of any new mortgage resulting from the refinancing of an eligible mortgage, and (6) guarantee fees.

Requires the GSEs to notify all borrowers with a mortgage owned or guaranteed by a GSE about the Program and its eligibility criteria, and inform borrowers of the website required below.

Directs the Director of the Federal Housing Finance Agency (FHFA) to establish a single website where borrowers may: (1) determine their potential eligibility for participation in the Program, (2) see a complete list of and links to qualified lenders, (3) use a mortgage refinance calculator to calculate potential payment savings based on different interest rates, and (4) obtain tips on refinancing their loan.

Directs the Director of FHFA to issue guidance to require the GSEs to make their refinancing guidelines consistent to ease the compliance requirements of qualified lenders, and in particular with respect to loans with less than 80% loan-to-value ratio and closing cost policies of the GSEs, which regulations or guidance shall be put into effect not later than 90 days after the enactment of this Acts.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Responsible Homeowner Refinancing 
Act of 2012''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``current borrower'' means a mortgagor who is 
        current on the subject mortgage at the time of the refinancing, 
        and has had no late payments in the preceding 6 months and not 
        more than 1 late payment in the preceding 12 months;
            (2) the term ``eligible mortgage'' means any mortgage 
        that--
                    (A) is an existing first mortgage that was made for 
                purchase of, or refinancing of another first mortgage 
                on, a 1- to 4-family dwelling, including a condominium 
                or a share in a cooperative ownership housing 
                association;
                    (B) was originated or refinanced on or before May 
                31, 2009, unless that date is extended by the Director 
                under FHFA's preexisting authority to do so;
                    (C) is owned or guaranteed by an enterprise;
                    (D) with respect to which, the mortgagor is a 
                current borrower; and
                    (E) includes existing first mortgages with a loan-
                to-value ratio of less than 80 percent.
            (3) the term ``enterprise'' means the Federal National 
        Mortgage Association and the Federal Home Loan Mortgage 
        Corporation;
            (4) the terms ``FHFA'' and ``Director'' mean the Federal 
        Housing Finance Agency and the Director thereof, respectively;
            (5) the terms ``Home Affordable Refinance Program'' and 
        ``Program'' mean the Home Affordable Refinance Program, 
        administered by the FHFA and the enterprises as part of the 
        Making Home Affordable initiative announced on March 4, 2009;
            (6) the term--
                    (A) ``LTV'' means loan-to-value, or the ratio of 
                the amount of the primary mortgage on a property to the 
                value of that property; and
                    (B) ``CLTV'' means combined loan-to-value, or the 
                ratio of all mortgage debt on a property to the value 
                of the property;
            (7) the term ``same servicer'' means a lender that is 
        providing refinancing for a borrower whose loan they already 
        service;
            (8) the term ``qualified lender'' means a lender that is 
        participating in the Program;
            (9) the term ``guarantee fee'' has the same meaning as in 
        section 1327(a) of the Housing and Community Development Act of 
        1992 (12 U.S.C. 4547(a)); and
            (10) the term ``average fees'' means the average 
        contractual fee rate of single-family guaranty arrangements 
        charged by an enterprise on April 1, 2012, plus the recognition 
        of any up-front cash payments over an estimated average life, 
        expressed in terms of basis points, such definition to be 
        interpreted in a manner consistent with the annual report on 
        guarantee fees by the FHFA.

SEC. 3. STREAMLINED REFINANCING CRITERIA UNDER THE PROGRAM.

    (a) In General.--In carrying out the Home Affordable Refinance 
Program, each enterprise shall adopt and adhere to the criteria 
established under this section.
    (b) Borrower Eligibility.--The enterprises shall include as 
eligible borrowers in the Home Affordable Refinance Program all current 
borrowers who have an eligible mortgage and meet those underwriting 
requirements for eligibility for same servicer refinancing in the 
Program as of March 1, 2012, except that the enterprises may not 
disqualify or impose varying rules within the Program for borrowers 
based on LTV, CLTV, employment status or income.
    (c) Additional Relief From Representations and Warranties.--The 
enterprises shall not require of any qualified lender executing a loan 
under the Program any representations or warranties--
            (1) for the value, marketability, condition, or property 
        type of the loan, as such loan characteristics are evidenced by 
        an appraisal or alternative valuation method, provided that the 
        lender complies with the enterprises' required methods and 
        standards for ordering an appraisal under the Program; or
            (2) that are not required of same servicers under the 
        Program as of March 1, 2012, whether that loan is manually 
        underwritten or underwritten through an automated system, 
        except that, under no circumstances shall greater 
        representations and warranties be required for a loan that is 
        manually underwritten than for one that is underwritten through 
        an automated system.
    (d) Prohibition on Up-front Fees.--In carrying out the Program, the 
enterprises may not charge the qualified lender any loan level price 
adjustment, post settlement delivery fee, adverse delivery charge, or 
other similar up-front fee.
    (e) Appraisals.--The enterprises shall develop and allow 
alternative streamlined methods to determine the value of the property 
for which refinancing is sought through the Program that eliminate the 
costs to the borrower and qualified lender associated with such 
determination. Until such time as such method is developed, and when 
the existing automated valuation models of the enterprises are unable 
to determine the value of a certain property for which refinancing is 
sought through the Program, the enterprises shall bear the costs 
associated with the use of manual appraisal of that property, without 
passing on such costs to the borrower or qualified lender.
    (f) Limitation.--Notwithstanding any provision of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.) or 
the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et 
seq.), an enterprise may purchase or guarantee any new mortgage 
resulting from the refinancing of an eligible mortgage pursuant to this 
section, if at the time of origination of the eligible mortgage, the 
eligible mortgage complied with the applicable limitation governing the 
maximum original principal obligation on conventional mortgages that 
may be purchased or guaranteed by that enterprise.
    (g) Guarantee Fees.--
            (1) In general.--
                    (A) Average fee.--On each mortgage refinanced under 
                the Program in accordance with this section, the 
                enterprises shall set the average fee required under 
                this Act, as determined by the Director in an amount 
                not less than the average fees charged by the 
                enterprises as of April 1, 2012, for such guarantees. 
                The Director shall prohibit an enterprise from 
                offsetting the cost of the fee to the mortgage 
                originators, borrowers, and investors by decreasing 
                other charges, fees, or premiums, or in any other 
                manner.
                    (B) Authority to limit offer of guarantee.--The 
                Director shall prohibit an enterprise from consummating 
                any offer for a guarantee to a qualified lender for 
                mortgage-backed securities, if the guarantee is 
                inconsistent with the requirements of this section.
            (2) Information collection and analysis.--The Director 
        shall require each enterprise to provide to the Director, as 
        part of its annual report submitted to Congress, for loans 
        refinanced under the Program--
                    (A) a description of changes made to up-front fees 
                and annual fees as part of the guarantee fees 
                negotiated with qualified lenders; and
                    (B) an assessment of how the changes in the 
                guarantee fees described in subparagraph (A) met the 
                requirements of paragraph (1).
    (h) Regulations.--Not later than 30 days after the date of 
enactment of this Act, the Director shall issue any regulations or 
guidance necessary to carry out the changes to the Program established 
under this section, which regulations or guidance shall be put into 
effect not later than 90 days after the date of enactment of this Act.
    (i) Termination.--The requirements of this section shall expire 
concurrent with the expiration of the Program.
    (j) Rule of Construction.--
            (1) In general.--Nothing in this section shall be construed 
        to supersede, preempt, or otherwise nullify the requirement 
        that a loan refinanced under the Program must benefit the 
        borrower.
            (2) Definition.--For purposes of paragraph (1), a loan 
        refinanced under the Program benefits the borrower, if the 
        refinanced loan results in--
                    (A) reduction in payment;
                    (B) reduction in interest rate;
                    (C) movement to a more stable product, such as from 
                an adjustable rate mortgage to a fixed rate mortgage; 
                or
                    (D) reduction in amortization term.

SEC. 4. INFORMATION FOR BORROWERS ON ELIGIBILITY FOR THE PROGRAM.

    (a) Notice to Borrowers.--Not later than 60 days after the date of 
enactment of this Act, the enterprises shall notify all borrowers with 
a mortgage owned or guaranteed by an enterprise about the Program and 
its eligibility criteria, and inform borrowers of the website required 
under subsection (b).
    (b) Public Access to Eligibility Criteria.--The Director shall 
establish, and the enterprises shall display a link on their homepages 
to, a single website where borrowers may--
            (1) determine their potential eligibility for participation 
        in the Program;
            (2) see a complete list of and links to qualified lenders;
            (3) use a mortgage refinance calculator to calculate 
        potential payment savings based on different interest rates; 
        and
            (4) obtain tips on refinancing their loan.

SEC. 5. CONSISTENT REFINANCING GUIDELINES REQUIRED.

    Not later than 60 days after the date of enactment of this Act, the 
Director shall issue guidance to require the enterprises to make their 
refinancing guidelines consistent to ease the compliance requirements 
of qualified lenders, and in particular with respect to loans with less 
than an 80 percent loan-to-value ratio and closing cost policies of the 
enterprises, which regulations or guidance shall be put into effect not 
later than 90 days after the date of enactment of this Act.

SEC. 6. PROGRESS REPORTS.

    The Director shall provide to Congress monthly reports on the 
progress of the Program, and each enterprise shall include and 
disclose, as part of its filings with the Securities and Exchange 
Commission on Form 10-Q, Form 10-K, or any successors thereto, detailed 
information on each enterprise's progress and results in implementing 
and executing the Program.

SEC. 7. SEVERABILITY.

    If any portion of this Act or the application thereof to any person 
or circumstance is held invalid, such invalidity shall not affect the 
portions or applications of this Act which can be given effect without 
the invalid portion or application.