# Housing and Economic Recovery Act of 2008/Division A/Title VI

TITLE VI—MISCELLANEOUS

### SEC. 1601. STUDY AND REPORTS ON GUARANTEE FEES.

    (a) Ongoing Study of Fees.—The Director shall conduct an ongoing study of fees charged by enterprises for guaranteeing a mortgage.
    (b) Collection of Data.—The Director shall, by regulation or order, establish procedures for the collection of data from enterprises for purposes of this subsection, including the format and the process for collection of such data.
    (c) Reports to Congress.—The Director shall annually submit a report to Congress on the results of the study conducted under subsection (a), based on the aggregated data collected under subsection (a) for the subject year, regarding the amount of such fees and the criteria used by the enterprises to determine such fees.
    (d) Contents of Reports.—The reports required under subsection (c) shall identify and analyze—
       (1) the factors considered in determining the amount of the guarantee fees charged;
       (2) the total revenue earned by the enterprises from guarantee fees;
       (3) the total costs incurred by the enterprises for providing guarantees;
       (4) the average guarantee fee charged by the enterprises;
       (5) an analysis of any increase or decrease in guarantee fees from the preceding year;
       (6) a breakdown of the revenue and costs associated with providing guarantees, based on product type and risk classifications; and
       (7) a breakdown of guarantee fees charged based on asset size of the originator and the number of loans sold or transferred to an enterprise.
    (e) Protection of Information.—Nothing in this section may be construed to require or authorize the Director to publicly disclose information that is confidential or proprietary.

### SEC. 1602. STUDY AND REPORT ON DEFAULT RISK EVALUATION.

    (a) Study.—The Director shall conduct a study of ways to improve the overall default risk evaluation used with respect to residential mortgage loans. Particular attention shall be paid to the development and utilization of processes and technologies that provide a means to standardize the measurement of risk.
    (b) Report.—The Director shall submit a report on the study conducted under this section to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, not later than 1 year after the date of enactment of this Act.

### SEC. 1603. CONVERSION OF HUD CONTRACTS.

    (a) In General.—Notwithstanding any other provision of law, the Secretary may, at the request of an owner of a multifamily housing project that exceeds 5,000 units to which a contract for project-based rental assistance under section 8 of the United States Housing Act of 1937 ("Act") (42 U.S.C. 1437f) and a Rental Assistance Payment contract is subject, convert such contracts to a contract for project-
based rental assistance under section 8 of the Act.
    (b) Initial Renewal.—
       (1) At the request of an owner under subsection (a) made no later than 90 days prior to a conversion, the Secretary may, to the extent sufficient amounts are made available in appropriation Acts and notwithstanding any other law, treat the contemplated resulting contract as if such contract were eligible for initial renewal under section 524(a) of the MultiFamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) ("MAHRA") (42 U.S.C. 1437f note).
       (2) A request by an owner pursuant to paragraph (1) shall be upon such terms and conditions as the Secretary may require.
    (c) Resulting Contract.—The resulting contract shall—
       (1) be subject to section 524(a) of MAHRA (42 U.S.C. 1437f note);
       (2) be considered for all purposes a contract that has been renewed under section 524(a) of MAHRA (42 U.S.C. 1437f note) for a term not to exceed 20 years;
       (3) be subsequently renewable at the request of an owner, under any renewal option for which the project is eligible under MAHRA (42 U.S.C. 1437f note);
       (4) contain provisions limiting distributions, as the Secretary determines appropriate, not to exceed 10 percent of the initial investment of the owner;
       (5) be subject to the availability of sufficient amounts in appropriation Acts; and
       (6) be subject to such other terms and conditions as the Secretary considers appropriate.
    (d) Income Targeting.—To the extent that assisted dwelling units, subject to the resulting contract under subsection (a), serve low-income families, as defined in section 3(b)(2) of the Act (42 U.S.C. 1437a(b)(2)) the units shall be considered to be in compliance with all income targeting requirements under the Act (42 U.S.C. 1437 et seq).
    (e) Tenant Eligibility.—Notwithstanding any other provision of law, each family residing in an assisted dwelling unit on the date of conversion of a contract under this section, subject to the resulting contract under subsection (a), shall be considered to meet the applicable requirements for income eligibility and occupancy.
    (f) Definitions.—As used in this section—
       (1) the term "Secretary" means the Secretary of Housing and Urban Development;
       (2) the term "conversion" means the action under which a contract for project-based rental assistance under section 8 of the Act and a Rental Assistance Payment contract become a contract for project-based rental assistance under section 8 of the Act (42 U.S.C. 1437f) pursuant to subsection (a);
       (3) the term "resulting contract" means the new contract after a conversion pursuant to subsection (a); and
       (4) the term "assisted dwelling unit" means a dwelling unit in a multifamily housing project that exceeds 5,000 units that, on the date of conversion of a contract under this section, is subject to a contract for project-based rental assistance under section 8 of the Act (42 U.S.C. 1437f) or a Rental Assistance Payment contract.

### SEC. 1604. BRIDGE DEPOSITORY INSTITUTIONS.

    (a) In General.—Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821) is amended—
       (1) in subsection (d)(2)—
          (A) in subparagraph (F), by striking "as receiver" and all that follows through clause (ii) and inserting the following: "as receiver, with respect to any insured depository institution, organize a new depository institution under subsection (m) or a bridge depository institution under subsection (n).";
          (B) in subparagraph (G), by striking "new bank or a bridge bank" and inserting "new depository institution or a bridge depository institution";
       (2) in the heading for subsection (e)(10)(C), by striking "Bridge Banks" and inserting "Bridge Depository Institutions";
       (3) in subsection (e)(10)(C)(i), by striking "bridge bank" and inserting "bridge depository institution";
       (4) in subsection (m)—
          (A) in the subsection heading, by striking "Banks" and inserting "Depository Institutions";
          (B) by striking "insured bank" each place such term appears and inserting "insured depository institution";
          (C) by striking "new bank" each place such term appears and inserting "new depository institution";
          (D) by striking "such bank" each place such term appears and inserting "such depository institution";
          (E) by striking "the bank" each place such term appears and inserting "the insured depository institution";
          (F) in paragraph (1), by inserting "or Federal savings association" after "national bank";
          (G) in paragraph (6), by striking "only bank" and inserting "only depository institution";
          (H) in paragraph (9), by inserting "or the Director of the Office of Thrift Supervision, as appropriate" after "Comptroller of the Currency";
          (I) in paragraph (15), by striking ", but in no event" and all that follows through "located";
          (J) in paragraph (16)—
             (i) by inserting "or the Director of the Office of Thrift Supervision, as appropriate," after "Comptroller of the Currency" each place such term appears;
             (ii) by striking "the bank" each place such term appears and inserting "the depository institution";
             (iii) by inserting "or Federal savings association" after "national bank" each place such term appears;
             (iv) by inserting "or Federal savings associations" after "national banks"; and
             (v) by striking "Such bank" and inserting "Such depository institution"; and
          (K) in paragraph (18), by inserting "or the Director of the Office of Thrift Supervision, as appropriate," after "Comptroller of the Currency" each place such term appears;
       (5) in subsection (n)—
          (A) in the subsection heading, by striking "Banks" and inserting "Depository Institutions";
          (B) by striking "bridge bank" each place such term appears and inserting "bridge depository institution";
          (C) by striking "bridge banks" each place such term appears (other than in paragraph (1)(A))and inserting "bridge depository institutions";
          (D) by striking "bridge bank's" each place such term appears and inserting "bridge depository institution's";
          (E) by striking "insured bank" each place such term appears and inserting "insured depository institution";
          (F) by striking "insured banks" each place such term appears and inserting "insured depository institutions";
          (G) by striking "such bank" each place such term appears (other than in paragraph (4)(J)) and inserting "such depository institution";
          (H) by striking "the bank" each place such term appears and inserting "the depository institution";
          (I) by striking "bank or banks" each place such term appears and inserting "depository institution or institutions";
          (J) in paragraph (1)(A)—
             (i) by inserting ", with respect to 1 or more insured banks, or the Director of the Office of Thrift Supervision, with respect to 1 or more insured savings associations," after "Comptroller of the Currency";
             (ii) by inserting "or Federal savings associations, as appropriate," after "national banks";
             (iii) by inserting "or Federal savings associations, as applicable," after "banking associations"; and
             (iv) by striking "as bridge banks" and inserting "as 'bridge depository institutions' ";
          (K) in paragraph (1)(B)—
             (i) by striking "of a bank"; and
             (ii) by striking "of that bank";
          (L) in the heading for paragraph (1)(E), by inserting "or federal savings association" before the period;
          (M) in paragraph (1)(E), by inserting before the period ", in the case of 1 or more insured banks, and as a Federal savings association, in the case of 1 or more insured savings associations";
          (N) in paragraph (2)—
             (i) by inserting "or Federal savings association" after "national bank" each place such term appears;
             (ii) in subparagraph (A), by inserting "or the Director of the Office of Thrift Supervision" after "Comptroller of the Currency"; and
             (iii) in the heading for subparagraph (B), by inserting "or federal savings association" before the period;
          (O) in paragraph (4)—
             (i) in the matter preceding subparagraph (A), by inserting "or Federal savings association, as appropriate" after "national bank";
             (ii) in subparagraph (C), by striking "under section 5138 of the Revised Statutes or any other" and inserting "under any";
             (iii) by inserting "and the Director of the Office of Thrift Supervision, as appropriate," after "Comptroller of the Currency" each place such term appears;
             (iv) in subparagraph (D), by striking "bank's" and inserting "depository institution's"; and
             (v) in subparagraph (H), by striking "a bank in default" and inserting "a depository institution in default";
          (P) in paragraph (8)—
             (i) in subparagraph (A), by striking "the banks" and inserting "the depository institutions";
             (ii) in subparagraph (B), by striking "bank's" and inserting "depository institution's";
          (Q) by striking "bridge bank" or "bridge banks" as the case may be in the headings for paragraphs (9), (10), (12), and (13) and inserting "bridge depository institution" or "bridge depository institutions" as appropriate;
          (R) in paragraph (11), by inserting "or a Federal savings association, as the case may be," after "national bank" each place such term appears;
          (S) in paragraph (12)—
             (i) by inserting "or the Director of the Office of Thrift Supervision, as appropriate," after "Comptroller of the Currency" each place such term appears; and
             (ii) by inserting "or Federal savings associations, as appropriate" after "national banks"; and
          (T) in paragraph (13), by striking "single bank" and inserting "single depository institution".
    (b) Other Conforming Amendments.—
       (1) Federal deposit insurance act.—The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—
          (A) in section 3 (12 U.S.C. 1813), by striking subsection (i) and inserting the following:
    "(i) New Depository Institution and Bridge Depository Institution Defined.—
       "(1) New depository institution.—The term 'new depository institution' means a new national bank or Federal savings association, other than a bridge depository institution, organized by the Corporation in accordance with section 11(m).
       "(2) Bridge depository institution.—The term 'bridge depository institution' means a new national bank or Federal savings association organized by the Corporation in accordance with section 11(n).";
          (B) in section 10(d)(5)(B) (12 U.S.C. 1820(d)(5)(B)), by striking "bridge bank" and inserting "bridge depository institution";
          (C) in section 12 (12 U.S.C. 1822), by striking "new bank" each place such term appears and inserting "new depository institution";and
          (D) in section 38(j)(2) (12 U.S.C. 1831o(j)(2)), by striking "bridge bank" and inserting "bridge depository institution".
       (2) Federal credit union act.—Section 207(c)(10)(C)(i) of the Federal Credit Union Act (12 U.S.C. 1787(c)(10)(C)(i)) is amended by striking "bridge bank" and inserting "bridge depository institution".
       (3) Title 11, united states code.—Section 783 of title 11, United States Code, is amended by striking "bridge bank" and inserting "bridge depository institution".
       (4) Title 26, united states code.—Section 414(l)(2)(G) of the Internal Revenue Code of 1986, is amended by striking "bridge bank" and inserting "bridge depository institution".
    (c) Repeal of Deposit Limitation.—Section 11(n)(1)(B)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1821(n)(1)(B)(i)) is amended by striking ", except that" and all that follows through "another insured depository institution".
    (d) Federal Reserve Bank Lending to Bridge Depository Institutions.—Section 11(n)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1821(n)(5)) is amended by adding at the end the following new subparagraph:
          "(D) Capital levels.—A bridge depository institution shall not be considered an undercapitalized depository institution or a critically undercapitalized depository institution for purposes of section 10B(b) of the Federal Reserve Act.".

### SEC. 1605. SENSE OF THE SENATE.

    It is the sense of the Senate that in implementing or carrying out any provision of this Act, or any amendment made by this Act, the Senate supports a policy of noninterference regarding local government requirements that the holder of a foreclosed property maintain that property.