than three days before closing for the mortgage, 
a form described in subparagraph (B) appro-
priately and accurately completed by the mort-
gagee. 
‘‘(B) FORM.—The form described in this 
subparagraph shall be a single page, written dis-
closure regarding the mortgage loan to be in-
sured under this section that, when completed by 
the mortgagee, sets forth, in accordance with 
such requirements as the Secretary shall by regu-
lation establish a best possible estimate of— 
‘‘(i) the total loan amount under the 
mortgage; 
‘‘(ii) the loan-to-value ratio for the 
mortgage; 
‘‘(iii) the final maturity date for the 
mortgage; 
‘‘(iv) the amount of any prepayment 
fee to be charged if the mortgage is paid in 
full before the final maturity date for the 
mortgage, including the percentages of any 
net proceeds to be received by the Secretary 
pursuant to paragraph (8)(D)(ii);
‘‘(v) the amount of the exit premium 
under the mortgage pursuant to subsection 
(e)(3); 
‘‘(vi) the interest rate under the mort-
gage expressed as an annual percentage 
rate, and the amount of the monthly pay-
ment due under such rate; 
‘‘(vii) the fully indexed rate of interest 
under the mortgage expressed as an annual 
percentage rate and the amount of the 
monthly payment due under such rate; 
‘‘(viii) the monthly household income 
of the borrower upon which the mortgage is 
based; 
‘‘(ix) the amount of the monthly pay-
ment due under the mortgage, and the 
amount of such initial monthly payment 
plus monthly amounts due for taxes and in-
surance on the property for which the mort-
gage is made, both expressed as a percentage 
of the monthly household income of the bor-
rower; and 
‘‘(x) the aggregate amount of settlement 
charges for all settlement services provided 
in connection with the mortgage, the
amount of such charges that are included in 
the principal amount and the amount of 
such charges the borrower must pay at clos-
ing, the aggregate amount of mortgagee’s 
fees connection with the mortgage, and the 
aggregate amount of other fees or required 
payments in connection with the mortgage. 
‘‘(d) FLEXIBLE UNDERWRITING CRITERIA.— 
‘‘(1) IN GENERAL.—The Oversight Board shall 
establish, and the Secretary acting on behalf of the 
Oversight Board shall implement, underwriting 
standards for mortgages insured under this section 
that— 
‘‘(A) ensure that each mortgagor under a 
mortgage insured under this section has a rea-
sonable expectation of repaying the mortgage, 
taking into consideration the mortgagor’s in-
come, assets, liabilities, payment history, and 
other applicable criteria, but which shall not re-
sult in a denial of insurance solely on the basis 
of the mortgagor’s current FICO or other credit 
scores, or any delinquency or default by the 
mortgagor under the existing mortgage or mort-
gages, or any case filed under title 11, United 
States Code, by the mortgagor; and
‘‘(B) subject to the provisions of subpara-
graph (A), permit a total debt-to-income ratio of 
up to 43 percent. 
‘‘(2) EXCEPTION.— 
‘‘(A) IN GENERAL.—Subject to the under-
writing standards established under paragraph 
(1)(A) and any additional requirements that the 
Oversight Board considers appropriate, the Over-
sight Board shall permit a total debt-to-income 
ratio of more than 43 percent, but not more than 
50 percent, if the mortgagor has made, on a 
timely basis before the endorsement of the mort-
gage insured under this section, not less than six 
months of payments in an amount not less than 
the amount of the monthly payment due under 
the mortgage to be insured under this section. 
The holder of the existing senior mortgage shall 
exercise forbearance with respect to such mort-
gage during the period in which such payments 
are made. 
‘‘(B) COMPUTATION
OF
DEBT-TO-INCOME 
RATIO.— In computing the mortgagor’s total 
debt-to-income ratio for purposes of mortgage 
qualification under the underwriting standards 
established pursuant to this section—
‘‘(i) if the mortgagor is a debtor in a 
case under chapter 13 of title 11, United 
States Code, payments on recurring debts 
other than housing expenses shall be based 
on the amounts being paid on such debts 
under the mortgagor’s confirmed plan under 
such chapter; and 
‘‘(ii) if the mortgagor is a debtor in a 
case under chapter 7 of title 11, United 
States Code, recurring debts that are to be 
discharged in that case shall not be consid-
ered. 
‘‘(3) AUTHORITY.—The Oversight Board may 
alter the ratios under this subsection for a particular 
class of borrowers subject to such requirements as the 
Board determines is necessary and appropriate to ful-
fill the purposes of this Act. 
‘‘(4) REPRESENTATIONS AND WARRANTIES.—The 
Oversight Board shall require the underwriter of the 
insured loan to provide such representations and war-
ranties as the Oversight Board considers necessary or 
appropriate for the Secretary to enforce compliance 
with all underwriting and appraisal standards of the 
program.
‘‘(e) PREMIUMS.—For each mortgage insured under 
this section, the Oversight Board shall establish and the Sec-
retary shall collect— 
‘‘(1) at the time of insurance, a single premium 
payment in an amount equal to 3.0 percent of the 
amount of the original insured principal obligation of 
the mortgage, which shall be paid from the proceeds 
of the mortgage being insured under this section, 
through the reduction of the amount of indebtedness 
on the existing senior mortgage required under sub-
section (c)(6)(A); 
‘‘(2) in addition to the premium under para-
graph (1), annual premium payments in an amount 
equal to 1.50 percent of the remaining insured prin-
cipal balance of the mortgage; and 
‘‘(3) an exit premium in the amount determined 
under subsection (c)(8), but which shall not be less 
than 3.0 percent of the original insured principal ob-
ligation of the mortgage, subject only to the avail-
ability of sufficient net proceeds from sale, refi-
nancing, or other disposition of the property, as de-
termined in subsection (c)(8). 
‘‘(f) ORIGINATION FEES AND MORTGAGE RATE.—The 
Oversight Board shall establish and the Secretary shall im-
plement a reasonable limitation on origination fees for
‘‘(A) obligations and expenditures of appro-
priated funds; 
‘‘(B) the number of homeowners eligible in 
such program; 
‘‘(C) the number of homeowners partici-
pating in such program; 
‘‘(D) the status of homeowners within such 
program; 
‘‘(E) the number of homeowners who have 
rejected assistance from the Neighborhood Rein-
vestment Corporation; and 
‘‘(F) information on participating coun-
seling services.’’. 
(b) SPECIAL RISK INSURANCE FUND.—Section 238 of 
the National Housing Act (12 U.S.C. 1715z–3) is amend-
ed— 
(1) in subsection (a)(1), by striking ‘‘or 243’’ 
each place such term appears and inserting ‘‘243, or 
257’’; and 
(2) in subsection (b), by striking ‘‘and 243’’ each 
place such term appears and inserting ‘‘243, and 
257’’. 
(c) FHA REVERSE MORTGAGE PROGRAM.—Section 
255(g) of the National Housing Act (12 U.S.C. 1715z– 
20(g)) is amended by striking the first sentence.
SEC. 113. STUDY OF AUCTION OR BULK REFINANCE PRO-
GRAM. 
(a) STUDY.—The Board of Governors of the Federal 
Reserve System (in this section referred to as the ‘‘Board 
of Governors’’), in consultation with other members of the 
Oversight Board established by section 257(a) of the Na-
tional Housing Act (as added by the amendment made by 
section 112(a) of this title), shall conduct a study of the 
need for and efficacy of an auction or bulk refinancing 
mechanism to facilitate refinancing of existing residential 
mortgages that are at risk for foreclosure into mortgages 
insured under the mortgage insurance program under title 
II of the National Housing Act. The study shall identify 
and examine various options for mechanisms under which 
lenders and servicers of such mortgages may make bids for 
forward commitments for such insurance in an expedited 
manner. 
(b) CONTENT.— 
(1) ANALYSIS.—The study required under sub-
section (a) shall analyze— 
(A) the feasibility of establishing a mecha-
nism that would facilitate the more rapid refi-
nancing of borrowers at risk of foreclosure into 
performing mortgages insured under title II of 
the National Housing Act;
(B) whether such a mechanism would pro-
vide an effective and efficient mechanism to re-
duce foreclosures on qualified existing mortgages; 
(C) whether the use of an auction or bulk 
refinance program is necessary to stabilize the 
housing market and reduce the impact of turmoil 
in that market on the economy of the United 
States; 
(D) whether there are other mechanisms or 
authority that would be useful to reduce fore-
closure; and 
(E) and any other factors that the Board of 
Governors considers relevant. 
(2) DETERMINATIONS.—To the extent that the 
Board of Governors finds that a facility of the type 
described in paragraph (1) is feasible and useful, the 
study shall— 
(A) determine and identify any additional 
authority or resources needed to establish and 
operate such a mechanism; 
(B) determine whether there is a need for 
additional authority with respect to the loan un-
derwriting criteria included in the amendment 
made by section 112(a) of this title or with re-
spect to eligibility of participating borrowers, 
lenders, or holders of liens; 
(C) determine whether such underwriting 
criteria should be established on the basis of in-
dividual loans, in the aggregate, or otherwise to 
facilitate the goal of refinancing borrowers at 
risk of foreclosure into viable loans insured 
under the National Housing Act. 
(c) REPORT.—Not later than the expiration of the 60- 
day period beginning on the date of the enactment of this 
Act, the Board of Governors shall submit a report regarding 
the results of the study conducted under this section to the 
Committee on Financial Services of the House of Represent-
atives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate. The report shall include a detailed 
description of the analysis required under subsection (b)(1) 
and of the determinations made pursuant to subsection 
(b)(2), and shall include any other findings and rec-
ommendations of the Board of Governors pursuant to the 
study, including identifying various options for mecha-
nisms described in subsection (a).
SEC. 114. TEMPORARY INCREASE IN MAXIMUM LOAN GUAR-
ANTY 
AMOUNT 
FOR 
CERTAIN 
HOUSING 
LOANS GUARANTEED BY SECRETARY OF VET-
ERANS AFFAIRS. 
Notwithstanding 
subparagraph 
(C) 
of 
section 
3703(a)(1) of title 38, United States Code, for purposes of 
any loan described in subparagraph (A)(i)(IV) of such sec-
tion that is originated during the period beginning on the 
date of the enactment of this Act and ending on December 
31, 2008, the term ‘‘maximum guaranty amount’’ shall 
mean an amount equal to 25 percent of the higher of— 
(1) the limitation determined under section 
305(a)(2) of the Federal Home Loan Mortgage Cor-
poration Act (12 U.S.C. 1454(a)(2)) for the calendar 
year in which the loan is originated for a single-fam-
ily residence; or 
(2) 125 percent of the area median price for a 
single-family residence, but in no case to exceed 175 
percent of the limitation determined under such sec-
tion 305(a)(2) for the calendar year in which the loan 
is originated for a single-family residence.
SEC. 115. STUDY OF POSSIBLE ACCOUNTING REVISIONS RE-
LATING TO PROPERTY AT RISK OF FORE-
CLOSURE AND THE AVAILABILITY OF CREDIT 
FOR REFINANCING HOME MORTGAGES AT 
RISK OF FORECLOSURE. 
(a) STUDY REQUIRED.—The Securities and Exchange 
Commission, in consultation with the Board of Governors 
of the Federal Reserve System, shall conduct a study on 
fair value accounting standards applicable to financial in-
stitutions, including depository institutions, with respect to 
their residential mortgages that are at risk of foreclosure 
and mortgage-backed securities involving such mortgages, 
the effects of such accounting standards on a financial insti-
tution’s balance sheet and capacity to provide refinancing 
to residential mortgagors that are at risk of foreclosure and 
to residential mortgagors during periods of market value 
declines and increased foreclosures, and the advisability 
and feasibility of modifications of such standards during 
periods of market fluctuation in order to maintain the abil-
ity of the institution to continue to carry mortgages on resi-
dential property at risk of foreclosure and assure the avail-
ability of credit to refinance at-risk residential mortgages. 
(b) REPORT REQUIRED.—The Securities and Ex-
change Commission shall submit a report to the Congress 
before the end of the 90-day period beginning on the date 
of the enactment of this Act containing the findings and
other provisions of law. Such functions shall in-
clude establishing rules necessary for— 
‘‘(i) the counseling procedures under 
section 106(g)(1) of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 
1701x(h)(1)); 
‘‘(ii) carrying out all other functions of 
the Secretary under section 106(g) of the 
Housing and Urban Development Act of 
1968, including the establishment, oper-
ation, and publication of the availability of 
the toll-free telephone number under para-
graph (2) of such section; 
‘‘(iii) carrying out section 5 of the 
Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2604) for home buying in-
formation booklets prepared pursuant to 
such section; 
‘‘(iv) carrying out the certification 
program under section 106(e) of the Hous-
ing and Urban Development Act of 1968 
(12 U.S.C. 1701x(e)); 
‘‘(v) carrying out the assistance pro-
gram under section 106(a)(4) of the Hous-
ing and Urban Development Act of 1968,
including criteria for selection of applica-
tions to receive assistance; 
‘‘(vi) carrying out any functions re-
garding abusive, deceptive, or unscrupulous 
lending practices relating to residential 
mortgage loans that the Secretary considers 
appropriate, which shall include conducting 
the study under section 136 of the Expand 
and Preserve Home Ownership Through 
Counseling Act; 
‘‘(vii) providing for operation of the 
advisory committee established under para-
graph (4) of this subsection; 
‘‘(viii) collaborating with community- 
based organizations with expertise in the 
field of housing counseling; and 
‘‘(ix) providing for the building of ca-
pacity to provide housing counseling serv-
ices in areas that lack sufficient services. 
‘‘(4) ADVISORY COMMITTEE.— 
‘‘(A) IN GENERAL.—The Secretary shall ap-
point an advisory committee to provide advice 
regarding the carrying out of the functions of the 
Director.
‘‘(B) MEMBERS.—Such advisory committee 
shall consist of not more than 12 individuals, 
and the membership of the committee shall equal-
ly represent all aspects of the mortgage and real 
estate industry, including consumers. 
‘‘(C) TERMS.—Except as provided in sub-
paragraph (D), each member of the advisory 
committee shall be appointed for a term of 3 
years. Members may be reappointed at the dis-
cretion of the Secretary. 
‘‘(D) TERMS OF INITIAL APPOINTEES.—As 
designated by the Secretary at the time of ap-
pointment, of the members first appointed to the 
advisory committee, 4 shall be appointed for a 
term of 1 year and 4 shall be appointed for a 
term of 2 years. 
‘‘(E) PROHIBITION
OF
PAY; TRAVEL
EX-
PENSES.—Members of the advisory committee 
shall serve without pay, but shall receive travel 
expenses, including per diem in lieu of subsist-
ence, in accordance with applicable provisions 
under subchapter I of chapter 57 of title 5, 
United States Code.
‘‘(F) ADVISORY ROLE ONLY.—The advisory 
committee shall have no role in reviewing or 
awarding housing counseling grants. 
‘‘(5) 
SCOPE
OF
HOMEOWNERSHIP
COUN-
SELING.—In carrying out the responsibilities of the 
Director, the Director shall ensure that homeowner-
ship counseling provided by, in connection with, or 
pursuant to any function, activity, or program of the 
Department addresses the entire process of home-
ownership, including the decision to purchase a home, 
the selection and purchase of a home, issues arising 
during or affecting the period of ownership of a home 
(including refinancing, default and foreclosure, and 
other financial decisions), and the sale or other dis-
position of a home.’’. 
SEC. 133. COUNSELING PROCEDURES. 
(a) IN GENERAL.—Section 106 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701x) is 
amended by adding at the end the following new subsection: 
‘‘(g) PROCEDURES AND ACTIVITIES.— 
‘‘(1) COUNSELING PROCEDURES.— 
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish, coordinate, and monitor the administra-
tion by the Department of Housing and Urban 
Development of the counseling procedures for
homeownership counseling and rental housing 
counseling provided in connection with any pro-
gram of the Department, including all require-
ments, standards, and performance measures 
that relate to homeownership and rental housing 
counseling. 
‘‘(B) HOMEOWNERSHIP COUNSELING.—For 
purposes of this subsection and as used in the 
provisions referred to in this subparagraph, the 
term ‘homeownership counseling’ means coun-
seling related to homeownership and residential 
mortgage loans. Such term includes counseling 
related to homeownership and residential mort-
gage loans that is provided pursuant to— 
‘‘(i) section 105(a)(20) of the Housing 
and Community Development Act of 1974 
(42 U.S.C. 5305(a)(20)); 
‘‘(ii) in the United States Housing Act 
of 1937— 
‘‘(I) 
section 
9(e) 
(42 
U.S.C. 
1437g(e)); 
‘‘(II) 
section 
8(y)(1)(D) 
(42 
U.S.C. 1437f(y)(1)(D)); 
‘‘(III) section 18(a)(4)(D) (42 
U.S.C. 1437p(a)(4)(D));
‘‘(vii) sections 422(b)(6), 423(b)(7), 
424(c)(4), 442(b)(6), and 443(b)(6) of the 
Cranston-Gonzalez 
National 
Affordable 
Housing 
Act 
(42 
U.S.C. 
12872(b)(6), 
12873(b)(7), 12874(c)(4), 12892(b)(6), and 
12893(b)(6)); 
‘‘(viii) section 491(b)(1)(F)(iii) of the 
McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11408(b)(1)(F)(iii)); 
‘‘(ix) sections 202(3) and 810(b)(2)(A) 
of the Native American Housing and Self- 
Determination Act of 1996 (25 U.S.C. 
4132(3), 4229(b)(2)(A)); 
‘‘(x) in the National Housing Act— 
‘‘(I) in section 203 (12 U.S.C. 
1709), the penultimate undesignated 
paragraph of paragraph (2) of sub-
section (b), subsection (c)(2)(A), and 
subsection (r)(4); 
‘‘(II) subsections (a) and (c)(3) of 
section 237 (12 U.S.C. 1715z–2); and 
‘‘(III) subsections (d)(2)(B) and 
(m)(1) of section 255 (12 U.S.C. 
1715z–20);
‘‘(xi) section 502(h)(4)(B) of the Hous-
ing Act of 1949 (42 U.S.C. 1472(h)(4)(B)); 
and 
‘‘(xii) section 508 of the Housing and 
Urban Development Act of 1970 (12 U.S.C. 
1701z–7). 
‘‘(C) RENTAL HOUSING COUNSELING.—For 
purposes of this subsection, the term ‘rental hous-
ing counseling’ means counseling related to rent-
al of residential property, which may include 
counseling regarding future homeownership op-
portunities and providing referrals for renters 
and prospective renters to entities providing 
counseling and shall include counseling related 
to such topics that is provided pursuant to— 
‘‘(i) section 105(a)(20) of the Housing 
and Community Development Act of 1974 
(42 U.S.C. 5305(a)(20)); 
‘‘(ii) in the United States Housing Act 
of 1937— 
‘‘(I) 
section 
9(e) 
(42 
U.S.C. 
1437g(e)); 
‘‘(II) 
section 
18(a)(4)(D) 
(42 
U.S.C. 1437p(a)(4)(D));
‘‘(III) section 23(c)(4) (42 U.S.C. 
1437u(c)(4)); 
‘‘(IV) section 32(e)(4) (42 U.S.C. 
1437z–4(e)(4)); 
‘‘(V) 
section 
33(d)(2)(B) 
(42 
U.S.C. 1437z–5(d)(2)(B)); and 
‘‘(VI) section 302(b)(6) (42 U.S.C. 
1437aaa–1(b)(6)); 
‘‘(iii) section 233(b)(2) of the Cran-
ston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12773(b)(2)); 
‘‘(iv) section 106 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 
1701x); 
‘‘(v) section 422(b)(6) of the Cranston- 
Gonzalez National Affordable Housing Act 
(42 U.S.C. 12872(b)(6)); 
‘‘(vi) section 491(b)(1)(F)(iii) of the 
McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11408(b)(1)(F)(iii)); 
‘‘(vii) sections 202(3) and 810(b)(2)(A) 
of the Native American Housing and Self- 
Determination Act of 1996 (25 U.S.C. 
4132(3), 4229(b)(2)(A)); and
‘‘(viii) the rental assistance program 
under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f). 
‘‘(2) STANDARDS
FOR
MATERIALS.—The Sec-
retary, in conjunction with the advisory committee es-
tablished under subsection (g)(4) of the Department of 
Housing and Urban Development Act, shall establish 
standards for materials and forms to be used, as ap-
propriate, by organizations providing homeownership 
counseling services, including any recipients of assist-
ance pursuant to subsection (a)(4). 
‘‘(3) MORTGAGE SOFTWARE SYSTEMS.— 
‘‘(A) CERTIFICATION.—The Secretary shall 
provide for the certification of various computer 
software programs for consumers to use in evalu-
ating different residential mortgage loan pro-
posals. The Secretary shall require, for such cer-
tification, that the mortgage software systems 
take into account— 
‘‘(i) the consumer’s financial situation 
and the cost of maintaining a home, includ-
ing insurance, taxes, and utilities; 
‘‘(ii) the amount of time the consumer 
expects to remain in the home or expected 
time to maturity of the loan;