I 

113TH CONGRESS 

1ST SESSION H. R. 3031 

To require a portion of closing costs to be paid by the enterprises with 

respect to certain refinanced mortgage loans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 2, 2013 

Mr. LANGEVIN (for himself, Mr. BLUMENAUER, Ms. BONAMICI, Mr. 

CICILLINE, and Mr. HOLT) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To require a portion of closing costs to be paid by the 

enterprises with respect to certain refinanced mortgage 

loans, and for other purposes. 

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 ‘‘Rebuilding Equity Act 

5 of 2013’’. 

6 SEC. 2. REBUILDING EQUITY PROGRAM. 

7 (a) ESTABLISHMENT OF VOLUNTARY PROGRAM.— 

8 (1) ESTABLISHMENT.— 


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1 (A) PAYMENT OF CLOSING COSTS.—The 

2 Federal National Mortgage Association and the 

3 Federal Home Loan Mortgage Corporation (in 

4 this Act referred to as the ‘‘enterprises’’) shall 

5 each establish a voluntary program for bor6 rowers described in paragraph (2), under which 

7 the enterprises shall pay $1,000 toward the 

8 closing costs associated with applying for and 

9 receiving the refinancing when the borrower 

10 agrees to refinance into a fully amortizing loan 

11 with a term of not longer than 20 years. 

12 (B) FIRST YEAR OF PROGRAM.—During 

13 the 12-month period that begins on the date of 

14 enactment of this Act, the amount of the clos15 ing costs that each enterprise shall pay under 

16 the program shall not vary based on the term 

17 of the mortgage that the borrower agrees to re18 finance into. 

19 (C) SUBSEQUENT YEARS.— 

20 (i) ANNUAL RECALCULATION OF

21 CLOSING COSTS PAYMENT.—Upon the ex22 piration of the 12-month period set forth 

23 under subparagraph (B), and for each of 

24 the next two 12-month periods thereafter, 


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1 the Director of the Federal Housing Fi2 nance Agency— 

3 (I) shall adjust the amount of the 

4 portion of the closing costs that each 

5 enterprise will pay under the pro6 gram— 

7 (aa) by an amount that re8 sults in such program being rev9 enue neutral for such 12-month 

10 period; and 

11 (bb) based on economic con12 ditions generally affecting the 

13 mortgage and housing markets; 

14 and 

15 (II) may adjust the amount of 

16 the closing costs that each enterprise 

17 will pay under the program based on 

18 the term of the mortgage that the 

19 borrower agrees to refinance into. 

20 (ii) REPORT.—The Director of the 

21 Federal Housing Finance Agency shall re22 port any adjustments made pursuant to 

23 the requirements of clause (i) to the Chair 

24 and Ranking Member of the Committee on 

25 Banking, Housing, and Urban Affairs of 


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1 the Senate and the Committee on Finan2 cial Services of the House of Representa3 tives. 

4 (2) ELIGIBLE BORROWERS.—The program re5 quired by paragraph (1) shall be for any borrower— 

6 (A) who qualifies for the Home Affordable 

7 Refinance Program carried out by the enter8 prises; 

9 (B) whose subject property has a loan-to10 value ratio of not less than 105 percent; and 

11 (C) who refinances from a loan with an 

12 original term of 30 years to a loan with a term 

13 of 20 years or less. 

14 (b) SUNSET.—Each voluntary program under this 

15 section shall terminate on the date that is 3 years after 

16 the date of establishment of such program. 

17 (c) DEFINITIONS.—As used in this section, the fol18 lowing definitions shall apply: 

19 (1) LOAN-TO-VALUE RATIO.—The term ‘‘loan20 to-value ratio’’ means the ratio of the amount of the 

21 primary mortgage on a property to the value of that 

22 property. 

23 (2) CLOSING COSTS.—The term ‘‘closing 

24 costs’’— 


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1 (A) means all reasonable and actual costs 

2 charged to the borrower by a third party to the 

3 refinancing transaction; 

4 (B) includes— 

5 (i) appraisal and inspection fees; 

6 (ii) fees associated with obtaining a 

7 borrower’s credit report; 

8 (iii) title insurance and title examina9 tion costs; 

10 (iv) attorneys’ fees associated with 

11 closing the transaction, other than attor12 neys’ fees associated with disputes arising 

13 out of the transaction or otherwise ancil14 lary to closing the transaction; 

15 (v) document preparation costs, if 

16 completed by a third party not controlled 

17 by the lender; 

18 (vi) transfer stamps, recording fees, 

19 courier fees, wire transfer fees, and re20 conveyance fees; and 

21 (vii) test and certification fees; and 

22 (C) does not include any costs charged to 

23 the borrower by the lender, including— 

24 (i) lender application fees; and 


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1 (ii) lender origination fees. 

Æ 


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