IB 

Union Calendar No. 4 

111TH CONGRESS 

1ST SESSION H. R. 787 

[Report No. 111–12] 

To make improvements in the Hope for Homeowners Program, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 2, 2009 

Mr. FRANK of Massachusetts introduced the following bill; which was referred 

to the Committee on Financial Services 

FEBRUARY 10, 2009 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To make improvements in the Hope for Homeowners 

Program, 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, 


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1 SECTION 1. CHANGES TO HOPE FOR HOMEOWNERS PRO2 GRAM. 

3 Section 257 of the National Housing Act (12 U.S.C. 

4 1715z–23) is amended— 

5 (1) in subsection (e)— 

6 (A) in paragraph (1), by striking subpara7 graph (B); 

8 (B) in paragraph (2)(B), by striking ‘‘90 

9 percent’’ and inserting ‘‘93 percent’’; 

10 (C) by striking paragraph (7); and 

11 (D) by redesignating paragraphs (8), (9), 

12 (10), and (11) as paragraphs (7), (8), (9), and 

13 (10), respectively; 

14 (2) in subsection (h)(2), by striking ‘‘, or in any 

15 case in which a mortgagor fails to make the first 

16 payment on a refinanced eligible mortgage’’; 

17 (3) by striking subsection (i) and inserting the 

18 following new subsection: 

19 ‘‘(i) ANNUAL PREMIUMS.— 

20 ‘‘(1) IN GENERAL.—For each refinanced eligible 

21 mortgage insured under this section, the Secretary 

22 shall establish and collect an annual premium in an 

23 amount equal to not less than 0.55 percent of the 

24 amount of the remaining insured principal balance 

25 of the mortgage and not more than 0.75 percent of 

26 such remaining insured principal balance, as deterVerDate Nov 24 2008 00:06 Feb 11, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\H787.RH H787

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1 mined according to a schedule established by the 

2 Board that assigns such annual premiums based 

3 upon the credit risk of the mortgage. 

4 ‘‘(2) REDUCTION OR TERMINATION DURING

5 MORTGAGE TERM.—Notwithstanding paragraph (1), 

6 the Secretary may provide that the annual premiums 

7 charged for refinanced eligible mortgages insured 

8 under this section are reduced over the term of the 

9 mortgage or that the collection of such premiums is 

10 discontinued at some time during the term of the 

11 mortgage, in a manner that is consistent with poli12 cies for such reduction or discontinuation of annual 

13 premiums charged for mortgages in accordance with 

14 section 203(c).’’; 

15 (4) in subsection (k)— 

16 (A) by striking the subsection heading and 

17 inserting ‘‘Exit Fee’’; 

18 (B) in paragraph (1), in the matter pre19 ceding subparagraph (A), by striking ‘‘such sale 

20 or refinancing’’ and inserting ‘‘the mortgage 

21 being insured under this section’’; and 

22 (C) by striking paragraph (2); 

23 (5) in subsection (s)(3)(A)(ii), by striking ‘‘sub24 section (e)(1)(B) and such other’’ and inserting 

25 ‘‘such’’; 


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1 (6) in subsection (v), by inserting after the pe2 riod at the end the following: ‘‘The Board shall con3 form documents, forms, and procedures for mort4 gages insured under this section to those in place for 

5 mortgages insured under section 203(b) to the max6 imum extent possible consistent with the require7 ments of this section.’’; 

8 (7) in subsection (w)(1)(C), by striking 

9 ‘‘(e)(4)(A)’’ and inserting ‘‘(e)(3)(A)’’; and 

10 (8) by adding at the end the following new sub11 section: 

12 ‘‘(x) PAYMENT TO EXISTING LOAN SERVICER.—The 

13 Board may establish a payment to the servicer of the exist14 ing senior mortgage for every loan insured under the 

15 HOPE for Homeowners Program.’’. 

16 SECTION 1. CHANGES TO HOPE FOR HOMEOWNERS PRO17 GRAM. 

18 Section 257 of the National Housing Act, as added by 

19 section 1402(a) of Public Law 110–289, (12 U.S.C. 1715z– 

20 23) is amended— 

21 (1) in subsection (e)— 

22 (A) by striking paragraph (1) and inserting 

23 the following: 

24 ‘‘(1) BORROWER CERTIFICATION.— 


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1 ‘‘(A) NO INTENTIONAL DEFAULT OR FALSE

2 INFORMATION.—The mortgagor shall provide a 

3 certification to the Secretary that the mortgagor 

4 has not intentionally defaulted on the existing 

5 mortgage or mortgages and has not knowingly, 

6 or willfully and with actual knowledge, furnished 

7 material information known to be false for the 

8 purpose of obtaining any eligible mortgage. 

9 ‘‘(B) LIABILITY FOR REPAYMENT.—The 

10 mortgagor shall agree in writing that the mort11 gagor shall be liable to repay to the Secretary 

12 any direct financial benefit achieved from the re13 duction of indebtedness on the existing mortgage 

14 or mortgages on the residence refinanced under 

15 this section derived from misrepresentations 

16 made by the mortgagor in the certifications and 

17 documentation required under this paragraph, 

18 subject to the discretion of the Oversight Board.’’. 

19 (B) in paragraph (2)(B), by striking ‘‘90 

20 percent’’ and inserting ‘‘93 percent’’; 

21 (C) by striking paragraph (7); 

22 (D) in paragraph (9)— 

23 (i) by striking ‘‘by procuring (A) an 

24 income tax return transcript of the income 

25 tax returns of the mortgagor, or(B)’’ and 


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1 inserting ‘‘in accordance with procedures 

2 and standards that the Board shall estab3 lish, which may include requiring the mort4 gagee to procure’’; and 

5 (ii) by striking ‘‘and by any other 

6 method, in accordance with procedures and 

7 standards that the Board shall establish’’; 

8 (E) by redesignating paragraphs (8), (9), 

9 (10), and (11) as paragraphs (7), (8), (9), and 

10 (10), respectively; and 

11 (F) by adding after paragraph (10) (as so 

12 redesignated by subparagraph (E) of this para13 graph) the following new paragraph: 

14 ‘‘(11) BAN ON MILLIONAIRES.—The mortgagor 

15 shall not have a net worth, as of the date the mort16 gagor first applies for a mortgage to be insured under 

17 the Program under this section, that exceeds 

18 $1,000,000.’’; 

19 (2) in subsection (h)(2), by striking ‘‘, or in any 

20 case in which a mortgagor fails to make the first pay21 ment on a refinanced eligible mortgage’’; 

22 (3) by striking subsection (i) and inserting the 

23 following new subsection: 

24 ‘‘(i) ANNUAL PREMIUMS.— 


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1 ‘‘(1) IN GENERAL.—For each refinanced eligible 

2 mortgage insured under this section, the Secretary 

3 shall establish and collect an annual premium in an 

4 amount equal to not less than 0.55 percent of the 

5 amount of the remaining insured principal balance of 

6 the mortgage and not more than 0.75 percent of such 

7 remaining insured principal balance, as determined 

8 according to a schedule established by the Board that 

9 assigns such annual premiums based upon the credit 

10 risk of the mortgage. 

11 ‘‘(2) REDUCTION OR TERMINATION DURING

12 MORTGAGE TERM.—Notwithstanding paragraph (1), 

13 the Secretary may provide that the annual premiums 

14 charged for refinanced eligible mortgages insured 

15 under this section are reduced over the term of the 

16 mortgage or that the collection of such premiums is 

17 discontinued at some time during the term of the 

18 mortgage, in a manner that is consistent with policies 

19 for such reduction or discontinuation of annual pre20 miums charged for mortgages in accordance with sec21 tion 203(c).’’; 

22 (4) in subsection (k)— 

23 (A) by striking the subsection heading and 

24 inserting ‘‘EXIT FEE’’ ; 


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1 (B) in paragraph (1), in the matter pre2 ceding subparagraph (A), by striking ‘‘such sale 

3 or refinancing’’ and inserting ‘‘the mortgage 

4 being insured under this section’’; and 

5 (C) by striking paragraph (2); 

6 (5) in subsection (s)(3)(A)(ii), by striking ‘‘sub7 section (e)(1)(B) and such other’’ and inserting 

8 ‘‘such’’; 

9 (6) in subsection (v), by inserting after the pe10 riod at the end the following: ‘‘The Board shall con11 form documents, forms, and procedures for mortgages 

12 insured under this section to those in place for mort13 gages insured under section 203(b) to the maximum 

14 extent possible consistent with the requirements of this 

15 section.’’; 

16 (7) in subsection (w)(1)(C), by striking 

17 ‘‘(e)(4)(A)’’ and inserting ‘‘(e)(3)(A)’’; and 

18 (8) by adding at the end the following new sub19 section: 

20 ‘‘(x) PAYMENT TO EXISTING LOAN SERVICER.—The 

21 Board may establish a payment to the servicer of the exist22 ing senior mortgage for every loan insured under the HOPE 

23 for Homeowners Program in an amount, for each such loan, 

24 that does not exceed $1,000.’’. 


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Union Calendar No. 4 

111TH CONGRESS 

1ST SESSION H. R. 787 

[Report No. 111–12] 

A BILL 

To make improvements in the Hope for 

Homeowners Program, and for other purposes. 

FEBRUARY 10, 2009 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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