•HR 1106 EH1S 
(7) in the heading for subsection (n), by strik-
ing ‘‘THE BOARD’’ and inserting ‘‘SECRETARY’’; 
(8) in subsection (p), by striking ‘‘Under the di-
rection of the Board, the’’ and inserting ‘‘The’’; 
(9) in subsection (s)— 
(A) in the first sentence of paragraph (2), 
by striking ‘‘Board of Directors of’’ and insert-
ing ‘‘Advisory Board for’’; and 
(B) in paragraph (3)(A)(ii), by striking 
‘‘subsection (e)(1)(B) and such other’’ and in-
serting ‘‘such’’; 
(10) in subsection (v), by inserting after the pe-
riod at the end the following: ‘‘The Secretary shall 
conform documents, forms, and procedures for mort-
gages insured under this section to those in place for 
mortgages insured under section 203(b) to the max-
imum extent possible consistent with the require-
ments of this section.’’; and 
(11) by adding at the end the following new 
subsections: 
‘‘(x) PAYMENT TO EXISTING LOAN SERVICER.—The 
Secretary may establish a payment to the servicer of the 
existing senior mortgage for every loan insured under the 
HOPE for Homeowners Program in an amount, for each 
such loan, that does not exceed $1,000.
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‘‘(y) AUCTIONS.—The Secretary, with the concur-
rence of the Board, shall, if feasible, establish a structure 
and organize procedures for an auction to refinance eligi-
ble mortgages on a wholesale or bulk basis.’’. 
(b) REDUCING TARP FUNDS TO OFFSET COSTS OF 
PROGRAM CHANGES.—Paragraph (3) of section 115(a) of 
the Emergency Economic Stabilization Act of 2008 (12 
U.S.C. 5225) is amended by inserting ‘‘, as such amount 
is 
reduced 
by 
$2,316,000,000,’’ 
after 
‘‘$700,000,000,000’’. 
SEC. 203. REQUIREMENTS FOR FHA-APPROVED MORTGA-
GEES. 
(a) MORTGAGEE REVIEW BOARD.—Paragraph (2) of 
section 202(c) of the National Housing Act (12 U.S.C. 
1708(c)) is amended— 
(1) in subparagraph (E), by inserting ‘‘and’’ 
after the semicolon; 
(2) in subparagraph (F), by striking ‘‘; and’’ 
and inserting a period; and 
(3) by striking subparagraph (G). 
(b) LIMITATIONS
ON PARTICIPATION
AND MORT-
GAGEE APPROVAL AND USE OF NAME.—Section 202 of 
the National Housing Act (12 U.S.C. 1708) is amended— 
(1) by redesignating subsections (d), (e), and 
(f) as subsections (e), (f), and (g), respectively;
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(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) LIMITATIONS ON PARTICIPATION IN ORIGINA-
TION AND MORTGAGEE APPROVAL.— 
‘‘(1) REQUIREMENT.—Any person or entity 
that is not approved by the Secretary to serve as a 
mortgagee, as such term is defined in subsection 
(c)(7), shall not participate in the origination of an 
FHA-insured loan except as authorized by the Sec-
retary. 
‘‘(2) ELIGIBILITY FOR APPROVAL.—In order to 
be eligible for approval by the Secretary, an appli-
cant mortgagee shall not be, and shall not have any 
officer, partner, director, principal, manager, super-
visor, loan processor, loan underwriter, or loan origi-
nator of the applicant mortgagee who is— 
‘‘(A) currently suspended, debarred, under 
a limited denial of participation (LDP), or oth-
erwise restricted under part 24 or 25 of title 24 
of the Code of Federal Regulations, or any suc-
cessor regulations to such parts, or under simi-
lar provisions of any other Federal agency; 
‘‘(B) under indictment for, or has been 
convicted of, an offense that reflects adversely 
upon the applicant’s integrity, competence or