II 

112TH CONGRESS 

2D SESSION S. 2072 

To discourage disincentives to the housing missions of government sponsored 

enterprises and require consistent putback risks at the enterprises to 

assist homeowners. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 6, 2012 

Mr. FRANKEN (for himself and Mr. BLUMENTHAL) introduced the following 

bill; which was read twice and referred to the Committee on Banking, 

Housing, and Urban Affairs 

A BILL 

To discourage disincentives to the housing missions of government sponsored enterprises and require consistent 

putback risks at the enterprises to assist homeowners. 

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 ‘‘Helping Homeowners 

5 Refinance Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 

8 (1) the term ‘‘Director’’ means the Director of 

9 the Federal Housing Finance Agency; 


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1 (2) the term ‘‘enterprise’’ has the same mean2 ing as in section 1303 of the Federal Housing En3 terprises Financial Safety and Soundness Act of 

4 1992 (12 U.S.C. 4502); and 

5 (3) the term ‘‘putback risk’’ means the prob6 ability that an enterprise would require a loan origi7 nator to repurchase a loan purchased by the enter8 prise. 

9 SEC. 3. FINANCIAL DISINCENTIVES. 

10 Not later than 30 days after the date of enactment 

11 of this Act, the Director shall promulgate rules prohibiting 

12 the enterprises from holding any possessory interest in or 

13 otherwise owning, in whole or in part, any financial mar14 ket instrument that would, in the discretion of the Direc15 tor, substantially reduce the financial incentive to carry 

16 out the statutory mission of the enterprises to provide li17 quidity, stability, and affordability to the United States 

18 housing market under the Federal Home Loan Mortgage 

19 Corporation Act (12 U.S.C. 1415 et seq.) and the Federal 

20 National Mortgage Association Charter Act (12 U.S.C. 

21 1716 et seq.). 

22 SEC. 4. GOVERNMENT SPONSORED ENTERPRISES PUTBACK 

23 RISK POLICIES. 

24 (a) IN GENERAL.—Not later than 30 days after the 

25 date of enactment of this Act, the Federal Home Loan 


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1 Mortgage Corporation shall implement policies to reduce 

2 the putback risk, including any putback risk associated 

3 with loan refinancing, regardless of the loan-to-value ratio 

4 on that mortgage, to be consistent with those of the Fed5 eral National Mortgage Association in effect as of Feb6 ruary 1, 2012. 

7 (b) APPLICABILITY TO FINANCIAL INSTITUTIONS.— 

8 The enterprises shall apply the same putback risks, includ9 ing any putback risk identified in subsection (a), to all 

10 financial institutions that refinance mortgage loans owned 

11 or guaranteed by an enterprise, regardless of whether the 

12 loans being refinanced were originated by the same insti13 tution that is originating the new loan. 

14 (c) APPLICATION OF SECTION.—The policies imple15 mented under subsection (a) and the provisions of sub16 section (b) shall only apply to loans with a resettlement 

17 date on or before May 31, 2009. 

18 SEC. 5. WAIVER AUTHORITY. 

19 The Director may waive any rule under section 3 or 

20 the application of the putback risk described in section 

21 4, if the Director certifies in writing to Congress that the 

22 safety and soundness of the enterprise is put at risk by 

23 the applicability of the putback risk. 


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1 SEC. 6. RULE OF CONSTRUCTION. 

2 Nothing in this Act shall be construed to affect, be 

3 applicable to, or include purchase money originations. 

4 SEC. 7. REPORT TO CONGRESS. 

5 Not later than 24 months after the date of enactment 

6 of this Act, the Director shall submit a report to Congress 

7 on the implementation of the provisions of this Act. 

Æ 


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