II 

112TH CONGRESS 

2D SESSION S. 3520 

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 SENATE OF THE UNITED STATES 

AUGUST 2, 2012 

Mr. MERKLEY (for himself, Mr. AKAKA, Mr. BEGICH, Mr. BLUMENTHAL, Mr. 

FRANKEN, Ms. LANDRIEU, Mr. LAUTENBERG, and Mr. LEVIN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

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 2012’’. 

6 SEC. 2. REBUILDING EQUITY PROGRAM. 

7 (a) IN GENERAL.— 

8 (1) VOLUNTARY PROGRAM.—The Federal Na9 tional Mortgage Association and the Federal Home 

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•S 3520 IS

1 Loan Mortgage Corporation (in this Act referred to 

2 as the ‘‘enterprises’’) shall each establish a voluntary 

3 program for borrowers described in paragraph (2), 

4 under which the enterprises shall pay not more than 

5 $1,000 of the closing costs associated with applying 

6 for and receiving the refinancing when the borrower 

7 agrees to refinance into a fully amortizing loan with 

8 a term of not longer than 20 years. 

9 (2) ELIGIBLE BORROWERS.—The program re10 quired by paragraph (1) shall be for any borrower— 

11 (A) who qualifies for the Home Affordable 

12 Refinance Program carried out by the enter13 prises; 

14 (B) whose subject property has a loan-to15 value ratio of not less than 105 percent; and 

16 (C) who refinances from a loan with an 

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

18 of 20 years or less. 

19 (b) DEFINITIONS.—As used in this section, the fol20 lowing definitions shall apply: 

21 (1) LOAN-TO-VALUE RATIO.—The term ‘‘loan22 to-value ratio’’ means the ratio of the amount of the 

23 primary mortgage on a property to the value of that 

24 property. 

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•S 3520 IS

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

2 costs’’— 

3 (A) means all reasonable and actual costs 

4 charged to the borrower by a third party to the 

5 refinancing transaction; 

6 (B) includes— 

7 (i) appraisal and inspection fees; 

8 (ii) fees associated with obtaining a 

9 borrower’s credit report; 

10 (iii) title insurance and title examina11 tion costs; 

12 (iv) attorneys’ fees associated with 

13 closing the transaction, other than attor14 neys’ fees associated with disputes arising 

15 out of the transaction or otherwise ancil16 lary to closing the transaction; 

17 (v) document preparation costs, if 

18 completed by a third party not controlled 

19 by the lender; 

20 (vi) transfer stamps, recording fees, 

21 courier fees, wire transfer fees, and re22 conveyance fees; and 

23 (vii) test and certification fees; and 

24 (C) does not include any costs charged to 

25 the borrower by the lender, including— 

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•S 3520 IS

1 (i) lender application fees; and 

2 (ii) lender origination fees. 

Æ 

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