I 

111TH CONGRESS 

1ST SESSION H. R. 787 

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 

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, 

3 SECTION 1. CHANGES TO HOPE FOR HOMEOWNERS PRO4 GRAM. 

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

6 1715z–23) is amended— 

7 (1) in subsection (e)— 

8 (A) in paragraph (1), by striking subpara9 graph (B); 


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

2 percent’’ and inserting ‘‘93 percent’’; 

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

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

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

6 (10), respectively; 

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

8 case in which a mortgagor fails to make the first 

9 payment on a refinanced eligible mortgage’’; 

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

11 following new subsection: 

12 ‘‘(i) ANNUAL PREMIUMS.— 

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

14 mortgage insured under this section, the Secretary 

15 shall establish and collect an annual premium in an 

16 amount equal to not less than 0.55 percent of the 

17 amount of the remaining insured principal balance 

18 of the mortgage and not more than 0.75 percent of 

19 such remaining insured principal balance, as deter20 mined according to a schedule established by the 

21 Board that assigns such annual premiums based 

22 upon the credit risk of the mortgage. 

23 ‘‘(2) REDUCTION OR TERMINATION DURING

24 MORTGAGE TERM.—Notwithstanding paragraph (1), 

25 the Secretary may provide that the annual premiums 


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1 charged for refinanced eligible mortgages insured 

2 under this section are reduced over the term of the 

3 mortgage or that the collection of such premiums is 

4 discontinued at some time during the term of the 

5 mortgage, in a manner that is consistent with poli6 cies for such reduction or discontinuation of annual 

7 premiums charged for mortgages in accordance with 

8 section 203(c).’’; 

9 (4) in subsection (k)— 

10 (A) by striking the subsection heading and 

11 inserting ‘‘Exit Fee’’; 

12 (B) in paragraph (1), in the matter pre13 ceding subparagraph (A), by striking ‘‘such sale 

14 or refinancing’’ and inserting ‘‘the mortgage 

15 being insured under this section’’; and 

16 (C) by striking paragraph (2); 

17 (5) in subsection (s)(3)(A)(ii), by striking ‘‘sub18 section (e)(1)(B) and such other’’ and inserting 

19 ‘‘such’’; 

20 (6) in subsection (v), by inserting after the pe21 riod at the end the following: ‘‘The Board shall con22 form documents, forms, and procedures for mort23 gages insured under this section to those in place for 

24 mortgages insured under section 203(b) to the maxVerDate Nov 24 2008 22:40 Feb 02, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H787.IH H787

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1 imum extent possible consistent with the require2 ments of this section.’’; 

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

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

5 (8) by adding at the end the following new sub6 section: 

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

8 Board may establish a payment to the servicer of the exist9 ing senior mortgage for every loan insured under the 

10 HOPE for Homeowners Program.’’. 

Æ 


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