To prevent foreclosure of home mortgages and provide for the affordable refinancing of mortgages held by Fannie Mae and Freddie Mac through mortgages having 50-year terms to maturity.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flexible Refinancing for American 
Families Act of 2012''.

SEC. 2. AFFORDABLE 50-YEAR 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 having a 50-year term, 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) 50-year term with 30-year call option.--The mortgage 
        shall have a term to maturity of 50 years from the date of the 
        beginning of the amortization of the mortgage and shall fully 
        amortize over such term, except that the mortgagee may, at the 
        sole option of the mortgagee, require payment in full of all 
        amounts of principal and interest owed under the mortgage on 
        the date that is 30 years after the date of the beginning of 
        the amortization of the mortgage, but only if the mortgagee 
        provides written notice to the mortgagor of such acceleration 
        of indebtedness not fewer than 90 days in advance of such 
        acceleration.
            (4) 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.
            (5) 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.
            (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.

Summary: Flexible Refinancing for American Families Act of 2012 - Directs the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation each to carry out a one-year program providing for the refinancing of qualified single-family housing mortgages it owns through a refinancing mortgage having a 50-year term in accordance with this Act and the policies and procedures that the Director of the Federal Housing Finance Agency shall establish. Permits the mortgagee, however, upon written 90-day advance notice to the mortgagor, to require payment in full of a 50-year mortgage only 30 years after the beginning of its amortization. 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 50-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.