I 

112TH CONGRESS 

1ST SESSION H. R. 3733 

To reduce the interest rates on mortgages owned or guaranteed by Fannie 

Mae and Freddie Mac. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 19, 2011 

Mr. HASTINGS of Florida introduced the following bill; which was referred to 

the Committee on Financial Services 

A BILL 

To reduce the interest rates on mortgages owned or 

guaranteed by Fannie Mae and Freddie Mac. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Affordable Mortgage 

5 for Homeowners Act of 2011’’. 

6 SEC. 2. PRINCIPAL REDUCTION OF MORTGAGES OWNED OR 

7 GUARANTEED BY FANNIE MAE AND FREDDIE 

8 MAC. 

9 (a) PROGRAM AUTHORITY.—The Federal National 

10 Mortgage Association and the Federal Home Loan MortVerDate Mar 15 2010 20:30 Dec 23, 2011 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3733.IH H3733

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1 gage Corporation shall each carry out a program under 

2 this section to provide for the reduction of the interest 

3 rates on qualified mortgages on single-family housing 

4 owned or guaranteed by such enterprises, in accordance 

5 with this section and policies and procedures that the Di6 rector of the Federal Housing Finance Agency shall estab7 lish. 

8 (b) TIMING.—Each enterprise shall commence the 

9 program required under subsection (a) upon the expiration 

10 of the 90-day period beginning upon the date of the enact11 ment of this Act and shall complete all reductions of the 

12 interest rates of qualified mortgages required under the 

13 program not later than the expiration of the 12-month pe14 riod beginning upon the commencement of such program. 

15 (c) INTEREST RATE REDUCTION.—In reducing the 

16 interest rate on a qualified mortgage under a program of 

17 an enterprise required under this section, the enterprise 

18 shall reduce the annual rate of interest charged with re19 spect to the outstanding principal obligation of the mort20 gage for the remainder of the term of the mortgage, not21 withstanding whether the interest rate under the mortgage 

22 is otherwise subject to adjustment during such mortgage 

23 term, to a fixed interest rate that is the lesser of— 

24 (1) 4 percent annually; or 


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1 (2) the rate for a 30-year fixed rate mortgage, 

2 as most recently published in the Weekly Primary 

3 Mortgage Market Survey of the Federal Home Loan 

4 Mortgage Corporation, as of the time of such inter5 est rate reduction for such qualified mortgage. 

6 (d) EXEMPT MORTGAGES.—The Director shall pro7 vide that the following qualified mortgages shall not be 

8 subject to reduction of the interest rate under a program 

9 under this section: 

10 (1) FIXED-RATE MORTGAGES.—In the case of a 

11 qualified mortgage having a rate of interest that is 

12 fixed for the entire term of the mortgage, any mort13 gage having such an interest rate that is a lower 

14 than the interest rate determined for the mortgage 

15 under subsection (c). 

16 (2) ADJUSTABLE-RATE MORTGAGES.—In the 

17 case of a mortgage having a rate of interest that is 

18 subject to adjustment during the term of the mort19 gage, any mortgage for which the interest rate can20 not, as a result of the terms of the terms and condi21 tions of the mortgage, exceed the interest rate deter22 mined for the mortgage under subsection (c) at any 

23 time during the term of the mortgage. 


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1 (e) OPTION TO OPT-OUT.—Each program of an en2 terprise required under this section shall provide for the 

3 enterprise to— 

4 (1) notify the mortgagor under a qualified 

5 mortgage in writing, before the proposed reduction 

6 of the interest rate on qualified mortgage of the 

7 mortgagor, of— 

8 (A) such proposed reduction and the inter9 est rate applicable to the mortgage upon such 

10 reduction; and 

11 (B) the opportunity, in accordance with 

12 paragraph (2), for the mortgagor to request 

13 that no such interest rate reduction be applied 

14 with respect to such mortgage; and 

15 (2) forego such interest rate reduction with re16 spect to the qualified mortgage of a mortgagor upon 

17 receipt by the enterprise of a request by the mort18 gagor that no such interest rate reduction be applied 

19 with respect to such mortgage. 

20 (f) MAINTENANCE OF LOAN STATUS.—Any reduction 

21 of the interest rate on a qualified mortgage under a pro22 gram under this section shall not result in the treatment 

23 of the modified mortgage as a new mortgage. 

24 (g) DEFINITIONS.—For purposes of this section, the 

25 following definitions shall apply: 


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1 (1) DIRECTOR.—The term ‘‘Director’’ means 

2 the Director of the Federal Housing Finance Agen3 cy. 

4 (2) ENTERPRISE.—The term ‘‘enterprise’’ 

5 means the Federal National Mortgage Association 

6 and the Federal Home Loan Mortgage Corporation. 

7 (3) QUALIFIED MORTGAGE.—The term ‘‘quali8 fied mortgage’’ means a mortgage, without regard to 

9 whether the mortgagor is current or in default on 

10 payments due under the mortgage, that— 

11 (A) is an existing first mortgage that was 

12 made for purchase of, or refinancing another 

13 first mortgage on, a one- to four-family dwell14 ing, including a condominium or a share in a 

15 cooperative ownership housing association, that 

16 is occupied by the mortgagor as the principal 

17 residence of the mortgagor; 

18 (B) is owned or guaranteed by the Federal 

19 National Mortgage Association or the Federal 

20 Home Loan Mortgage Corporation; and 

21 (C) was originated on or before the date of 

22 the enactment of this Act. 

23 (h) REGULATIONS.—The Director shall issue any 

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1 ration of the 90-day period that begins on the date of the 

2 enactment of this Act. 

Æ 


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