I 
111TH CONGRESS 
1ST SESSION H. R. 1295 
To mitigate mortgage foreclosures, facilitate and include fairness in housing 
recovery, and combat mortgage fraud, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 4, 2009 
Mrs. BIGGERT (for herself, Mr. BACHUS, Mr. NEUGEBAUER, Mrs. CAPITO, 
Ms. GINNY BROWN-WAITE of Florida, Mr. ROGERS of Michigan, Mr. 
JONES, Mr. SHIMKUS, Mr. ROONEY, Mr. SESSIONS, Mr. TURNER, Mr. 
SMITH of Texas, Mr. PAULSEN, Mrs. BONO MACK, Mr. LANCE, Mr. 
BILBRAY, Mr. REICHERT, Mr. CASTLE, Mr. MCCAUL, Mr. JOHNSON of 
Illinois, Mrs. MILLER of Michigan, and Mrs. SCHMIDT) introduced the 
following bill; which was referred to the Committee on Financial Services, 
and in addition to the Committees on Ways and Means and the Judici-
ary, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
A BILL 
To mitigate mortgage foreclosures, facilitate and include fair-
ness in housing recovery, and combat mortgage fraud, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Fairness in Housing Recovery Act of 2009’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Servicer safe harbor for mortgage loan modifications. 
Sec. 3. Replacement of HOPE for Homeowners Program with program for in-
surance of homeownership retention mortgages. 
Sec. 4. Expanding and preserving homeownership through counseling. 
Sec. 5. Requirements for FHA-approved mortgagees. 
Sec. 6. Commission on the Foreclosure and Mortgage Lending Crisis. 
Sec. 7. Authorization of appropriations for combating mortgage fraud. 
Sec. 8. Enhancement of liquidity and stability of insured depository institutions 
to ensure availability of credit and reduction of foreclosures. 
Sec. 9. Prohibition on the receipt of common stock and the exercise of stock 
voting power. 
Sec. 10. Treatment of gain on disposition of subsidized residences. 
Sec. 11. Refundable tax credit for residences purchased during 2009 or 2010. 
Sec. 12. Conditions on mortgage relief. 
SEC. 2. SERVICER SAFE HARBOR FOR MORTGAGE LOAN 
MODIFICATIONS. 
(a) SAFE HARBOR.— 
(1) LOAN
MODIFICATIONS
AND
WORKOUT 
PLANS.—Notwithstanding any other provision of 
law, and notwithstanding any investment contract 
between a servicer and a securitization vehicle or in-
vestor, a servicer that acts consistent with the duty 
set forth in section 129A(a) of Truth in Lending Act 
(15 U.S.C. 1639a) shall not be liable for entering 
into a loan modification, workout, or other loss miti-
gation plan, including, but not limited to, disposi-
tion, including any modification or refinancing un-
dertaken pursuant to standard loan modification, 
sale, or disposition guidelines issued by the Sec-
retary of the Treasury or his designee under the 
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Emergency Economic Stabilization Act of 2008, with 
respect to any such mortgage that meets all of the 
criteria set forth in paragraph (2)(B) to— 
(A) any person, based on that person’s 
ownership of a residential mortgage loan or any 
interest in a pool of residential mortgage loans 
or in securities that distribute payments out of 
the principal, interest and other payments in 
loans on the pool; 
(B) any person who is obligated pursuant 
to a derivatives instrument to make payments 
determined in reference to any loan or any in-
terest referred to in subparagraph (A); or 
(C) any person that insures any loan or 
any interest referred to in subparagraph (A) 
under any law or regulation of the United 
States or any law or regulation of any State or 
political subdivision of any State. 
(2) ABILITY TO MODIFY MORTGAGES.— 
(A) ABILITY.—Notwithstanding any other 
provision of law, and notwithstanding any in-
vestment contract between a servicer and a 
securitization vehicle or investor, a servicer— 
(i) shall not be limited in the ability 
to modify mortgages, the number of mort-
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gages that can be modified, the frequency 
of loan modifications, or the range of per-
missible modifications; and 
(ii) shall not be obligated to repur-
chase loans from or otherwise make pay-
ments to the securitization vehicle on ac-
count of a modification, workout, or other 
loss mitigation plan for a residential mort-
gage or a class of residential mortgages 
that constitute a part or all of the mort-
gages in the securitization vehicle, 
if any mortgage so modified meets all of the cri-
teria set forth in subparagraph (B). 
(B) CRITERIA.—The criteria under this 
subparagraph with respect to a mortgage are as 
follows: 
(i) Default on the payment of such 
mortgage has occurred or is reasonably 
foreseeable. 
(ii) The property securing such mort-
gage is occupied by the mortgagor of such 
mortgage. 
(iii) The servicer reasonably and in 
good faith believes that the anticipated re-
covery on the principal outstanding obliga-
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tion of the mortgage under the particular 
modification or workout plan or other loss 
mitigation action will exceed, on a net 
present value basis, the anticipated recov-
ery on the principal outstanding obligation 
of the mortgage to be realized through 
foreclosure. 
(3) 
APPLICABILITY.—This 
subsection 
shall 
apply only with respect to modifications, workouts, 
and other loss mitigation plans initiated before Jan-
uary 1, 2012. 
(b) REPORTING.—Each servicer that engages in loan 
modifications or workout plans subject to the safe harbor 
in subsection (a) shall report to the Secretary on a regular 
basis regarding the extent, scope and results of the 
servicer’s modification activities. The Secretary shall pre-
scribe regulations specifying the form, content, and timing 
of such reports. 
(c) LEGAL COSTS.—If an unsuccessful action is 
brought against a servicer by any person described in sub-
paragraph (A), (B), or (C) of subsection (a)(1), such per-
son shall bear any actual legal costs of the servicer, includ-
ing reasonable attorney fees and expert witness fees, in-
curred in good faith in such action, as determined by the 
court. 
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(d) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(2) 
SECURITIZATION
VEHICLE.—The 
term 
‘‘securitization vehicle’’ means a trust, corporation, 
partnership, limited liability entity, special purpose 
entity, or other structure that— 
(A) is the issuer, or is created by the 
issuer, of mortgage pass-through certificates, 
participation certificates, mortgage-backed secu-
rities, or other similar securities backed by a 
pool of assets that includes residential mortgage 
loans; and 
(B) holds such mortgages. 
SEC. 3. REPLACEMENT OF HOPE FOR HOMEOWNERS PRO-
GRAM WITH PROGRAM FOR INSURANCE OF 
HOMEOWNERSHIP RETENTION MORTGAGES. 
(a) REPLACEMENT OF PROGRAM.—Title II of the 
National Housing Act (12 U.S.C. 1707 et seq.) is amend-
ed— 
(1) in section 257 (12 U.S.C. 1715z–23), as 
added by section 1402(a) of Public Law 110–289— 
(A) by striking subsections (a) through 
(k); and 
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(B) by striking subsections (n) through 
(v); 
(2) by redesignating section 257 (12 U.S.C. 
1715z–24), as added by section 2124 of Public Law 
110–289, as section 259; and 
(3) by inserting before such section 259 (as so 
redesignated) the following new section: 
‘‘SEC. 258. INSURANCE OF HOMEOWNERSHIP RETENTION 
MORTGAGES. 
‘‘(a) AUTHORITY.—The Secretary shall, subject only 
to the absence of qualified requests for insurance under 
this section and to the limitations under sections 257(m) 
and 531(a), make commitments to insure and insure any 
mortgage covering a 1- to 4-family residence that is made 
for the purpose of paying or prepaying outstanding obliga-
tions under an existing mortgage or mortgages on the resi-
dence if the mortgage being insured under this section 
meets the requirements of this section, as established by 
the Secretary. The Secretary shall establish such mortgage 
insurance products, and requirements and standards, in 
accordance with this section as the Secretary considers ap-
propriate to carry out this section and shall prescribe such 
regulations and provide such guidance as may be nec-
essary or appropriate to implement such products, require-
ments, and standards. 
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‘‘(b) REQUIREMENTS OF INSURED MORTGAGE.—To 
be eligible for insurance under this section, a mortgage 
to be insured under this section shall comply with all of 
the following requirements: 
‘‘(1) PRIMARY
RESIDENCE.—The mortgagor 
under the mortgage to be insured shall provide docu-
mentation satisfactory in the determination of the 
Secretary to prove that the residence covered by the 
mortgage to be insured under this section is occu-
pied by the mortgagor as the primary residence of 
the mortgagor, and that such residence is the only 
residence in which the mortgagor has any present 
ownership interest. 
‘‘(2) TROUBLED HOMEOWNER.—The mortgagor 
under the mortgage to be insured shall be the mort-
gagor under the existing mortgage to be refinanced 
by the insured mortgage and shall— 
‘‘(A) be in default on the mortgagor’s obli-
gations under the existing mortgage; 
‘‘(B) be in danger of defaulting, as deter-
mined in accordance with standards established 
by the Secretary, on the mortgagor’s obligations 
under the existing mortgage; or 
‘‘(C) have a remaining principal obligation 
amount under such existing mortgage that ex-
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dollar amount limitation in effect under section 
305(a)(2) of the Federal Home Loan Mortgage Cor-
poration (12 U.S.C. 1452(a)(2)) for a property of 
the applicable size for the area in which the property 
is located . 
‘‘(11) TERM; INTEREST RATE.—The refinanced 
eligible mortgage to be insured shall— 
‘‘(A) bear interest at a single rate that is 
fixed for the entire term of the mortgage; and 
‘‘(B) have a maturity of not less than 30 
years from the date of the beginning of amorti-
zation of such refinanced eligible mortgage. 
‘‘(c) EXIT FEE.—The Secretary may establish a fee, 
charge, or other mechanism for recovering, upon sale or 
other disposition of the property that is subject to the 
mortgage insured under this section or upon the subse-
quent refinancing of the mortgage, a portion of the equity 
or appreciation in the property. 
‘‘(d) GNMA PRICING.—In order to facilitate favor-
able pricing for loans insured under this section, the 
Board of Governors of the Federal Reserve System, the 
Secretary of the Treasury, the Federal National Mortgage 
Association, and the Federal Home Loan Mortgage Cor-
poration are authorized to purchase mortgage-backed se-
curities guaranteed by the Government National Mortgage 
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Association that are backed by loans originated under this 
section or whole loans originated and purchased under this 
section. The Government National Mortgage Association 
is authorized to hold, sell, and securitize whole loans origi-
nated under this section. 
‘‘(e) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) EXISTING MORTGAGE.—The term ‘existing 
mortgage’ means, with respect to a mortgage in-
sured under this section, a mortgage that is to be 
extinguished, and paid or prepaid, from the proceeds 
of the mortgage insured under this section. 
‘‘(2) SENIOR EXISTING MORTGAGE.—The term 
‘senior existing mortgage’ means, with respect to a 
mortgage insured under this section, the existing 
mortgage that has superior priority. 
‘‘(f) SUNSET.—The Secretary may not enter into any 
new commitment to insure any refinanced eligible mort-
gage, or newly insure any refinanced eligible mortgage 
pursuant to this section after the expiration of the 3-year 
period beginning upon the date of the enactment of this 
section.’’. 
(b) USE
OF AGGREGATE INSURANCE AUTHORITY 
AND FUNDS UNDER HOPE FOR HOMEOWNERS PRO-
GRAM.—Section 257 of the National Housing Act (12 
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U.S.C. 1715z–24), as added by section 1402(a) of Public 
Law 110–289), is amended— 
(1) in subsection (l)(1), by striking ‘‘this sec-
tion’’ and inserting ‘‘section 258’’; 
(2) in subsection (m), by striking ‘‘this section’’ 
and inserting ‘‘section 258’’; 
(3) in subsection (w)— 
(A) in paragraphs (1) and (3), by striking 
‘‘HOPE for Homeowners Program’’ each place 
such term appears and inserting ‘‘mortgage in-
surance program under section 258’’; and 
(B) in paragraph (4) by striking ‘‘HOPE 
for Homeowners Program in accordance with 
subsections (i) and (k)’’ and inserting ‘‘mort-
gage insurance program under section 258’’; 
(4) by redesignating subsections (l), (m), and 
(w) as subsections (a), (b), and (c), respectively; and 
(5) by striking the section heading and insert-
ing the following: ‘‘HOPE
FUND
AND
HOPE 
BONDS.’’ 
(c) REDUCING TARP FUNDS TO OFFSET COSTS OF 
PROGRAM.—Paragraph (3) of section 115(a) of the Emer-
gency Economic Stabilization Act of 2008 (12 U.S.C. 
5225) is amended by inserting ‘‘, as such amount is re-
duced by $1,000,000,000,’’ after ‘‘$700,000,000,000’’. 
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SEC. 4. EXPANDING AND PRESERVING HOMEOWNERSHIP 
THROUGH COUNSELING. 
(a) ESTABLISHMENT OF OFFICE OF HOUSING COUN-
SELING.—Section 4 of the Department of Housing and 
Urban Development Act (42 U.S.C. 3533) is amended by 
adding at the end the following new subsection: 
‘‘(g) OFFICE OF HOUSING COUNSELING.— 
‘‘(1) ESTABLISHMENT.—There is established, 
in the Office of the Secretary, the Office of Housing 
Counseling. 
‘‘(2) DIRECTOR.—There is established the posi-
tion of Director of Housing Counseling. The Direc-
tor shall be the head of the Office of Housing Coun-
seling and shall be appointed by the Secretary. Such 
position shall be a career-reserved position in the 
Senior Executive Service. 
‘‘(3) FUNCTIONS.— 
‘‘(A) IN
GENERAL.—The Director shall 
have ultimate responsibility within the Depart-
ment, except for the Secretary, for all activities 
and matters relating to homeownership coun-
seling and rental housing counseling, includ-
ing— 
‘‘(i) research, grant administration, 
public outreach, and policy development re-
lating to such counseling; and 
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‘‘(ii) establishment, coordination, and 
administration of all regulations, require-
ments, standards, and performance meas-
ures under programs and laws adminis-
tered by the Department that relate to 
housing counseling, homeownership coun-
seling (including maintenance of homes), 
mortgage-related 
counseling 
(including 
home equity conversion mortgages and 
credit protection options to avoid fore-
closure), and rental housing counseling, in-
cluding the requirements, standards, and 
performance measures relating to housing 
counseling. 
‘‘(B) SPECIFIC FUNCTIONS.—The Director 
shall carry out the functions assigned to the Di-
rector and the Office under this section and any 
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 
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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 
information 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 con-
siders appropriate, which shall include con-
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ducting the study under section 4(e) of the 
Fairness in Housing Recovery Act of 2009; 
‘‘(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 
appoint 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 
equally 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 
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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 advi-
sory 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 
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home, the selection and purchase of a home, issues 
arising during or affecting the period of ownership 
of a home (including refinancing, default and fore-
closure, and other financial decisions), and the sale 
or other disposition of a home.’’. 
(b) COUNSELING PROCEDURES.— 
(1) 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 fol-
lowing new subsection: 
‘‘(g) PROCEDURES AND ACTIVITIES.— 
‘‘(1) COUNSELING PROCEDURES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish, coordinate, and monitor the adminis-
tration by the Department of Housing and 
Urban Development of the counseling proce-
dures for homeownership counseling and rental 
housing counseling provided in connection with 
any program of the Department, including all 
requirements, 
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, 
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the term ‘homeownership counseling’ means 
counseling related to homeownership and resi-
dential mortgage loans. Such term includes 
counseling related to homeownership and resi-
dential mortgage loans that is provided pursu-
ant 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)); 
‘‘(IV) section 23(c)(4) (42 U.S.C. 
1437u(c)(4)); 
‘‘(V) section 32(e)(4) (42 U.S.C. 
1437z–4(e)(4)); 
‘‘(VI) section 33(d)(2)(B) (42 
U.S.C. 1437z–5(d)(2)(B)); 
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‘‘(VII) sections 302(b)(6) and 
303(b)(7) 
(42 
U.S.C. 
1437aaa– 
1(b)(6), 1437aaa–2(b)(7)); and 
‘‘(VIII) section 304(c)(4) (42 
U.S.C. 1437aaa–3(c)(4)); 
‘‘(iii) section 302(a)(4) of the Amer-
ican Homeownership and Economic Oppor-
tunity Act of 2000 (42 U.S.C. 1437f note); 
‘‘(iv) sections 233(b)(2) and 258(b) of 
the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12773(b)(2), 
12808(b)); 
‘‘(v) this section and section 101(e) of 
the Housing and Urban Development Act 
of 1968 (12 U.S.C. 1701x, 1701w(e)); 
‘‘(vi) section 220(d)(2)(G) of the Low- 
Income Housing Preservation and Resident 
Homeownership Act of 1990 (12 U.S.C. 
4110(d)(2)(G)); 
‘‘(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)); 
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‘‘(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 
Housing 
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). 
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‘‘(C) RENTAL
HOUSING
COUNSELING.— 
For purposes of this subsection, the term ‘rent-
al housing counseling’ means counseling related 
to rental of residential property, which may in-
clude counseling regarding future homeowner-
ship opportunities and providing referrals for 
renters and prospective renters to entities pro-
viding 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 
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‘‘(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 Cran-
ston-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 
established under section 4(g)(4) of the Department 
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of Housing and Urban Development Act (42 U.S.C. 
3533(g)(4), shall establish standards for materials 
and forms to be used, as appropriate, by organiza-
tions providing homeownership counseling services, 
including any recipients of assistance 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 eval-
uating different residential mortgage loan pro-
posals. The Secretary shall require, for such 
certification, that the mortgage software sys-
tems take into account— 
‘‘(i) the consumer’s financial situation 
and the cost of maintaining a home, in-
cluding 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; and 
‘‘(iii) such other factors as the Sec-
retary considers appropriate to assist the 
consumer in evaluating whether to pay 
points, to lock in an interest rate, to select 
an adjustable or fixed rate loan, to select 
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a conventional or government-insured or 
guaranteed loan and to make other choices 
during the loan application process. 
If the Secretary determines that available exist-
ing software is inadequate to assist consumers 
during the residential mortgage loan application 
process, the Secretary shall arrange for the de-
velopment by private sector software companies 
of new mortgage software systems that meet 
the Secretary’s specifications. 
‘‘(B) USE
AND
INITIAL
AVAILABILITY.— 
Such certified computer software programs 
shall be used to supplement, not replace, hous-
ing counseling. The Secretary shall provide that 
such programs are initially used only in connec-
tion with the assistance of housing counselors 
certified pursuant to subsection (e). 
‘‘(C) AVAILABILITY.—After a period of ini-
tial availability under subparagraph (B) as the 
Secretary considers appropriate, the Secretary 
shall take reasonable steps to make mortgage 
software systems certified pursuant to this 
paragraph widely available through the Internet 
and at public locations, including public librar-
ies, senior-citizen centers, public housing sites, 
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offices of public housing agencies that admin-
ister rental housing assistance vouchers, and 
housing counseling centers. 
‘‘(4) NATIONAL PUBLIC SERVICE MULTIMEDIA 
CAMPAIGNS TO PROMOTE HOUSING COUNSELING.— 
‘‘(A) IN GENERAL.—The Director of Hous-
ing Counseling shall develop, implement, and 
conduct national public service multimedia cam-
paigns designed to make persons facing mort-
gage 
foreclosure, 
persons 
considering 
a 
subprime mortgage loan to purchase a home, el-
derly persons, persons who face language bar-
riers, low-income persons, and other potentially 
vulnerable consumers aware that it is advisable, 
before seeking or maintaining a residential 
mortgage loan, to obtain homeownership coun-
seling from an unbiased and reliable sources 
and that such homeownership counseling is 
available, including through programs spon-
sored by the Secretary of Housing and Urban 
Development. 
‘‘(B) CONTACT INFORMATION.—Each seg-
ment of the multimedia campaign under sub-
paragraph (A) shall publicize the toll-free tele-
phone number and web site of the Department 
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of Housing and Urban Development through 
which persons seeking housing counseling can 
locate a housing counseling agency in their 
State that is certified by the Secretary of Hous-
ing and Urban Development and can provide 
advice on buying a home, renting, defaults, 
foreclosures, credit issues, and reverse mort-
gages. 
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated to the Secretary, not to exceed 
$3,000,000 for fiscal years 2009, 2010, and 
2011, for the development, implementation, and 
conducting of national public service multimedia 
campaigns under this paragraph. 
‘‘(5) EDUCATION
PROGRAMS.—The Secretary 
shall provide advice and technical assistance to 
States, units of general local government, and non-
profit organizations regarding the establishment and 
operation of, including assistance with the develop-
ment of content and materials for, educational pro-
grams to inform and educate consumers, particularly 
those most vulnerable with respect to residential 
mortgage loans (such as elderly persons, persons 
facing language barriers, low-income persons, and 
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other potentially vulnerable consumers), regarding 
home mortgages, mortgage refinancing, home equity 
loans, and home repair loans.’’. 
(2) CONFORMING AMENDMENTS TO GRANT PRO-
GRAM FOR HOMEOWNERSHIP COUNSELING ORGANI-
ZATIONS.—Section 106(c)(5)(A)(ii) of the Housing 
and Urban Development Act of 1968 (12 U.S.C. 
1701x(c)(5)(A)(ii)) is amended— 
(A) in subclause (III), by striking ‘‘and’’ at 
the end; 
(B) in subclause (IV) by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by inserting after subclause (IV) the 
following new subclause: 
‘‘(V) notify the housing or mort-
gage applicant of the availability of 
mortgage software systems provided 
pursuant to subsection (g)(3).’’. 
(c) GRANTS
FOR HOUSING COUNSELING ASSIST-
ANCE.—Section 106(a) of the Housing and Urban Devel-
opment Act of 1968 (12 U.S.C. 1701x(a)(3)) is amended 
by adding at the end the following new paragraph: 
‘‘(4) HOMEOWNERSHIP AND RENTAL COUNSELING 
ASSISTANCE.— 
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‘‘(A) IN GENERAL.—The Secretary shall make 
financial assistance available under this paragraph 
to States, units of general local governments, and 
nonprofit organizations providing homeownership or 
rental counseling (as such terms are defined in sub-
section (g)(1)). 
‘‘(B) QUALIFIED
ENTITIES.—The Secretary 
shall establish standards and guidelines for eligibility 
of organizations (including governmental and non-
profit organizations) to receive assistance under this 
paragraph. 
‘‘(C) DISTRIBUTION.—Assistance made avail-
able under this paragraph shall be distributed in a 
manner that encourages efficient and successful 
counseling programs. 
‘‘(D) AUTHORIZATION OF APPROPRIATIONS.— 
There 
are 
authorized 
to 
be 
appropriated 
$45,000,000 for each of fiscal years 2009 through 
2012 for— 
‘‘(i) the operations of the Office of Hous-
ing Counseling of the Department of Housing 
and Urban Development; 
‘‘(ii) the responsibilities of the Secretary 
under paragraphs (2) through (5) of subsection 
(g); and 
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‘‘(iii) assistance pursuant to this para-
graph for entities providing homeownership and 
rental counseling.’’. 
(d) REQUIREMENTS
TO
USE
HUD-CERTIFIED 
COUNSELORS UNDER HUD PROGRAMS.—Section 106(e) 
of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x(e)) is amended— 
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) REQUIREMENT FOR ASSISTANCE.—An or-
ganization may not receive assistance for counseling 
activities under subsection (a)(1)(iii), (a)(2), (a)(4), 
(c), or (d) of this section, or under section 101(e), 
unless the organization, or the individuals through 
which the organization provides such counseling, has 
been certified by the Secretary under this subsection 
as competent to provide such counseling.’’; 
(2) in paragraph (2)— 
(A) by inserting ‘‘and for certifying organi-
zations’’ before the period at the end of the 
first sentence; and 
(B) in the second sentence by striking ‘‘for 
certification’’ and inserting ‘‘, for certification 
of an organization, that each individual through 
which the organization provides counseling shall 
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demonstrate, and, for certification of an indi-
vidual,’’; 
(3) in paragraph (3), by inserting ‘‘organiza-
tions and’’ before ‘‘individuals’’; 
(4) by redesignating paragraph (3) as para-
graph (5); and 
(5) by inserting after paragraph (2) the fol-
lowing new paragraphs: 
‘‘(3) REQUIREMENT UNDER HUD PROGRAMS.— 
Any homeownership counseling or rental housing 
counseling (as such terms are defined in subsection 
(g)(1)) required under, or provided in connection 
with, any program administered by the Department 
of Housing and Urban Development shall be pro-
vided only by organizations or counselors certified by 
the Secretary under this subsection as competent to 
provide such counseling. 
‘‘(4) OUTREACH.—The Secretary shall take 
such actions as the Secretary considers appropriate 
to ensure that individuals and organizations pro-
viding homeownership or rental housing counseling 
are aware of the certification requirements and 
standards of this subsection and of the training and 
certification programs under subsection (f).’’. 
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(e) STUDY OF DEFAULTS AND FORECLOSURES.— 
The Secretary of Housing and Urban Development shall 
conduct an extensive study of the root causes of default 
and foreclosure of home loans, using as much empirical 
data as are available. The study shall also examine the 
role of escrow accounts in helping prime and nonprime 
borrowers to avoid defaults and foreclosures. Not later 
than 12 months after the date of the enactment of this 
Act, the Secretary shall submit to the Congress a prelimi-
nary report regarding the study. Not later than 24 months 
after such date of enactment, the Secretary shall submit 
a final report regarding the results of the study, which 
shall include any recommended legislation relating to the 
study, and recommendations for best practices and for a 
process to identify populations that need counseling the 
most. 
(f) DEFINITIONS FOR COUNSELING-RELATED PRO-
GRAMS.—Section 106 of the Housing and Urban Develop-
ment Act of 1968 (12 U.S.C. 1701x), as amended by the 
preceding provisions of this section, is further amended 
by adding at the end the following new subsection: 
‘‘(h) DEFINITIONS.—For purposes of this section: 
‘‘(1) NONPROFIT
ORGANIZATION.—The term 
‘nonprofit organization’ has the meaning given such 
term in section 104(5) of the Cranston-Gonzalez Na-
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tional 
Affordable 
Housing 
Act 
(42 
U.S.C. 
12704(5)), except that subparagraph (D) of such 
section shall not apply for purposes of this section. 
‘‘(2) STATE.—The term ‘State’ means each of 
the several States, the Commonwealth of Puerto 
Rico, the District of Columbia, the Commonwealth 
of the Northern Mariana Islands, Guam, the Virgin 
Islands, American Samoa, the Trust Territories of 
the Pacific, or any other possession of the United 
States. 
‘‘(3) UNIT
OF
GENERAL
LOCAL
GOVERN-
MENT.—The term ‘unit of general local government’ 
means any city, county, parish, town, township, bor-
ough, village, or other general purpose political sub-
division of a State.’’. 
(g) UPDATING AND SIMPLIFICATION OF MORTGAGE 
INFORMATION BOOKLET.—Section 5 of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2604) is 
amended— 
(1) in the section heading, by striking ‘‘SPE-
CIAL’’ and inserting ‘‘HOME BUYING’’; 
(2) by striking subsections (a) and (b) and in-
serting the following new subsections: 
‘‘(a) PREPARATION AND DISTRIBUTION.—The Sec-
retary shall prepare, at least once every 5 years, a booklet 
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to help consumers applying for federally related mortgage 
loans to understand the nature and costs of real estate 
settlement services. The Secretary shall prepare the book-
let in various languages and cultural styles, as the Sec-
retary determines to be appropriate, so that the booklet 
is understandable and accessible to homebuyers of dif-
ferent ethnic and cultural backgrounds. The Secretary 
shall distribute such booklets to all lenders that make fed-
erally related mortgage loans. The Secretary shall also dis-
tribute to such lenders lists, organized by location, of 
homeownership counselors certified under section 106(e) 
of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x(e)) for use in complying with the require-
ment under subsection (c) of this section. 
‘‘(b) CONTENTS.—Each booklet shall be in such form 
and detail as the Secretary shall prescribe and, in addition 
to such other information as the Secretary may provide, 
shall include in plain and understandable language the fol-
lowing information: 
‘‘(1) A description and explanation of the na-
ture and purpose of the costs incident to a real es-
tate settlement or a federally related mortgage loan. 
The description and explanation shall provide gen-
eral information about the mortgage process as well 
as specific information concerning, at a minimum— 
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‘‘(A) balloon payments; 
‘‘(B) prepayment penalties; and 
‘‘(C) the trade-off between closing costs 
and the interest rate over the life of the loan. 
‘‘(2) An explanation and sample of the uniform 
settlement statement required by section 4. 
‘‘(3) A list and explanation of lending practices, 
including those prohibited by the Truth in Lending 
Act or other applicable Federal law, and of other un-
fair practices and unreasonable or unnecessary 
charges to be avoided by the prospective buyer with 
respect to a real estate settlement. 
‘‘(4) A list and explanation of questions a con-
sumer obtaining a federally related mortgage loan 
should ask regarding the loan, including whether the 
consumer will have the ability to repay the loan, 
whether the consumer sufficiently shopped for the 
loan, whether the loan terms include prepayment 
penalties or balloon payments, and whether the loan 
will benefit the borrower. 
‘‘(5) An explanation of the right of rescission as 
to certain transactions provided by sections 125 and 
129 of the Truth in Lending Act. 
‘‘(6) A brief explanation of the nature of a vari-
able rate mortgage and a reference to the booklet 
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entitled ‘Consumer Handbook on Adjustable Rate 
Mortgages’, published by the Board of Governors of 
the Federal Reserve System pursuant to section 
226.19(b)(1) of title 12, Code of Federal Regula-
tions, or to any suitable substitute of such booklet 
that such Board of Governors may subsequently 
adopt pursuant to such section. 
‘‘(7) A brief explanation of the nature of a 
home equity line of credit and a reference to the 
pamphlet required to be provided under section 
127A of the Truth in Lending Act. 
‘‘(8) Information about homeownership coun-
seling services made available pursuant to section 
106(a)(4) of the Housing and Urban Development 
Act of 1968 (12 U.S.C. 1701x(a)(4)), a rec-
ommendation that the consumer use such services, 
and notification that a list of certified providers of 
homeownership counseling in the area, and their 
contact information, is available. 
‘‘(9) An explanation of the nature and purpose 
of escrow accounts when used in connection with 
loans secured by residential real estate and the re-
quirements under section 10 of this Act regarding 
such accounts. 
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‘‘(10) An explanation of the choices available to 
buyers of residential real estate in selecting persons 
to provide necessary services incidental to a real es-
tate settlement. 
‘‘(11) An explanation of a consumer’s respon-
sibilities, liabilities, and obligations in a mortgage 
transaction. 
‘‘(12) An explanation of the nature and purpose 
of real estate appraisals, including the difference be-
tween an appraisal and a home inspection. 
‘‘(13) Notice that the Office of Housing of the 
Department of Housing and Urban Development has 
made publicly available a brochure regarding loan 
fraud and a World Wide Web address and toll-free 
telephone number for obtaining the brochure. 
The booklet prepared pursuant to this section shall take 
into consideration differences in real estate settlement pro-
cedures that may exist among the several States and terri-
tories of the United States and among separate political 
subdivisions within the same State and territory.’’; 
(3) in subsection (c), by inserting at the end 
the following new sentence: ‘‘Each lender shall also 
include with the booklet a reasonably complete or 
updated list of homeownership counselors who are 
certified pursuant to section 106(e) of the Housing 
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and Urban Development Act of 1968 (12 U.S.C. 
1701x(e)) and located in the area of the lender.’’; 
and 
(4) in subsection (d), by inserting after the pe-
riod at the end of the first sentence the following: 
‘‘The lender shall provide the HUD-issued booklet in 
the version that is most appropriate for the person 
receiving it.’’. 
SEC. 5. 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; 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
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‘‘(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 
fitness to meet the responsibilities of an ap-
proved mortgagee; 
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‘‘(C) subject to unresolved findings con-
tained in a Department of Housing and Urban 
Development or other governmental audit, in-
vestigation, or review; 
‘‘(D) engaged in business practices that do 
not conform to generally accepted practices of 
prudent mortgagees or that demonstrate irre-
sponsibility; 
‘‘(E) convicted of, or who has pled guilty 
or nolo contendre to, a felony related to partici-
pation in the real estate or mortgage loan in-
dustry— 
‘‘(i) during the 7-year period pre-
ceding the date of the application for li-
censing and registration; or 
‘‘(ii) at any time preceding such date 
of application, if such felony involved an 
act of fraud, dishonesty, or a breach of 
trust, or money laundering; 
‘‘(F) in violation of provisions of the 
S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5101 et seq.) or any applicable provision 
of State law; or 
‘‘(G) in violation of any other requirement 
as established by the Secretary. 
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‘‘(3) RULEMAKING
AND
IMPLEMENTATION.— 
The Secretary shall conduct a rulemaking to carry 
out this subsection. The Secretary shall implement 
this subsection not later than the expiration of the 
60-day period beginning upon the date of the enact-
ment of this subsection by notice, mortgagee letter, 
or interim final regulations, which shall take effect 
upon issuance.’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(h) USE OF NAME.—The Secretary shall, by regula-
tion, require each mortgagee approved by the Secretary 
for participation in the FHA mortgage insurance pro-
grams of the Secretary— 
‘‘(1) to use the business name of the mortgagee 
that is registered with the Secretary in connection 
with such approval in all advertisements and pro-
motional materials, as such terms are defined by the 
Secretary, relating to the business of such mort-
gagee in such mortgage insurance programs; and 
‘‘(2) to maintain copies of all such advertise-
ments and promotional materials, in such form and 
for such period as the Secretary requires.’’. 
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(c) CHANGE OF STATUS.—The National Housing Act 
is amended by striking section 532 (12 U.S.C. 1735f–10) 
and inserting the following new section: 
‘‘SEC. 532. CHANGE OF MORTGAGEE STATUS. 
‘‘(a) NOTIFICATION.—Upon the occurrence of any ac-
tion described in subsection (b), an approved mortgagee 
shall immediately submit to the Secretary, in writing, noti-
fication of such occurrence. 
‘‘(b) ACTIONS.—The actions described in this sub-
section are as follows: 
‘‘(1) The debarment, suspension of a Limited 
Denial of Participation (LDP), or application of 
other sanctions, fines, or penalties applied to the 
mortgagee or to any officer, partner, director, prin-
cipal, manager, supervisor, loan processor, loan un-
derwriter, or loan originator of the mortgagee pursu-
ant to applicable provisions of State or Federal law. 
‘‘(2) The revocation of a State-issued mortgage 
loan originator license issued pursuant to the 
S.A.F.E. Mortgage Licensing Act of 2008 (12 
U.S.C. 5101 et seq.) or any other similar declaration 
of ineligibility pursuant to State law.’’. 
(d) CIVIL MONEY PENALTIES.—Section 536 of the 
National Housing Act (12 U.S.C. 1735f–14) is amend-
ed— 
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(1) in subsection (b)— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by inserting ‘‘or any of its own-
ers, officers, or directors’’ after ‘‘mort-
gagee or lender’’; 
(ii) in subparagraph (H), by striking 
‘‘title I’’ and all that follows through ‘‘Act 
of 1989)’’ and inserting ‘‘title I or II’’; and 
(iii) by inserting after subparagraph 
(J) the following: 
‘‘(K) Violation of section 202(d) of this 
Act (12 U.S.C. 1708(d)).’’; and 
(B) in paragraph (2)— 
(i) in subparagraph (B), by striking 
‘‘or’’ at the end; 
(ii) in subparagraph (C), by striking 
the period at the end and inserting ‘‘; or’’; 
and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(D) causing or participating in any of the 
violations set forth in paragraph (1) of this sub-
section.’’; and 
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(2) in subsection (g), by striking ‘‘The term’’ 
and all that follows through the end of the sentence 
and inserting ‘‘For purposes of this section, a person 
acts knowingly when a person has actual knowledge 
of acts or should have known of the acts.’’. 
(e) EXPANDED REVIEW OF FHA MORTGAGEE AP-
PLICANTS AND NEWLY APPROVED MORTGAGEES.—Not 
later than the expiration of the 3-month period beginning 
upon the date of the enactment of this Act, the Secretary 
of Housing and Urban Development shall— 
(1) expand the existing process for reviewing 
new applicants for approval for participation in the 
mortgage insurance programs of the Secretary for 
mortgages on 1- to 4-family residences for the pur-
pose of identifying applicants who represent a high 
risk to the Mutual Mortgage Insurance Fund; and 
(2) implement procedures that, for mortgagees 
approved during the 12-month period ending upon 
such date of enactment— 
(A) expand the number of mortgages origi-
nated by such mortgagees that are reviewed for 
compliance with applicable laws, regulations, 
and policies; and 
(B) include a process for random reviews 
of such mortgagees and a process for reviews 
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that is based on volume of mortgages originated 
by such mortgagees. 
SEC. 6. COMMISSION ON THE FORECLOSURE AND MORT-
GAGE LENDING CRISIS. 
(a) ESTABLISHMENT OF COMMISSION.—There is es-
tablished in the legislative branch a commission to be 
known as the ‘‘Commission on the Foreclosure and Mort-
gage Lending Crisis’’ (in this section referred to as the 
‘‘Commission’’). 
(b) FINDINGS AND PURPOSE.— 
(1) FINDINGS.—Congress finds the following: 
(A) The United States is experiencing a 
steady increase in foreclosures and mortgage 
lending problems that have impacted home-
owners, families, communities, the United 
States economy and the global credit markets. 
(B) In 2006, there were an estimated 
1,300,000 foreclosures in the United States. 
(C) This number increased by 79 percent 
in 2007, bringing the estimated number of fore-
closures nationwide to 2,200,000. 
(D) In 2008, an estimated 3,200,000 fore-
closures were reported. 
(E) Estimates suggest that this trend is 
likely to continue with millions more Americans 
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potentially losing their homes to foreclosure in 
the next 4 years. 
(2) PURPOSE.—The purpose of this section is 
to establish a commission to undertake a comprehen-
sive analysis and review of the origins and causes of 
the current foreclosure and mortgage lending crisis 
and to issue a report of its findings to the Congress. 
The Commission shall also recommend legislative 
and regulatory changes that will prohibit the kinds 
of lending practices that contributed to the increased 
foreclosure rate and the current mortgage lending 
crisis. 
(c) COMPOSITION.— 
(1) MEMBERS.—The Commission shall be com-
posed of 10 members as follows: 
(A) 2 members shall be appointed by the 
Speaker of the House of Representatives. 
(B) 2 members shall be appointed by the 
minority leader of the House of Representa-
tives. 
(C) 2 members shall be appointed by the 
majority leader of the Senate. 
(D) 2 members shall be appointed by the 
minority leader of the Senate. 
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(E) The Secretary of the Treasury or his 
designee. 
(F) The chairman of the Board of Gov-
ernors of the Federal Reserve System or his 
designee. 
(2) DEADLINE FOR APPOINTMENT.—All mem-
bers of the Commission shall be appointed not later 
than 30 days after the date of the enactment of this 
Act. 
(3) CO-CHAIRMEN.—Of the members appointed 
to the Commission under subparagraphs (A) 
through (D) of paragraph (1), 2 shall be designated 
as the co-chairmen of the Commission. One co-chair-
man shall be designated by the Speaker of the 
House of Representatives in consultation with the 
majority leader of the Senate and the other co-chair-
man shall be designated by the minority leader of 
the House of Representatives in consultation with 
the minority leader of the Senate. 
(4) VACANCIES.—Any vacancy in the Commis-
sion shall not affect its powers, but shall be filled in 
the same manner in which the original appointment 
was made. 
(5) COMPENSATION.— 
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(A) IN GENERAL.—Members of the Com-
mission shall serve without pay. 
(B) TRAVEL EXPENSES.—While away from 
their homes or regular places of business in the 
performance of services for the Commission, 
members of the Commission shall be allowed 
travel expenses, including per diem in lieu of 
subsistence, in the same manner as persons em-
ployed intermittently in the Government service 
are allowed expenses under section 5703(b) of 
title 5, United States Code. 
(6) INITIAL MEETING; RULES OF PROCEDURE; 
QUORUM.— 
(A) INITIAL
MEETING.—The Commission 
shall meet and begin the operations of the Com-
mission not later than 60 days after the date of 
the enactment of this Act. 
(B) MEETINGS.—After its initial meeting, 
the Commission shall meet upon the call of the 
co-chairmen or a majority of its members. 
(C) QUORUM.—A majority of the members 
of the Commission shall constitute a quorum. 
(D) RULES
OF
PROCEDURE.—The Com-
mission may establish rules for the conduct of 
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the Commission’s business, if such rules are 
consistent with this Act or other applicable law. 
(d) DUTIES.— 
(1) IN GENERAL.—The Commission shall— 
(A) study and assess the current legal and 
regulatory framework governing the housing 
mortgage lending markets and investigate how 
the such framework contributed to the in-
creased foreclosure rate, including— 
(i) refinancing practices; 
(ii) loan to value ratios; and 
(iii) the prevalence of fraudulent in-
dustry practices; 
(B) recommend changes to the current 
legal and regulatory framework to prohibit 
lending practices that have contributed to the 
mortgage lending crisis; 
(C) review the impact of subprime abuses 
and predatory lending practices; 
(D) assess the role of States in enacting 
policies to reduce predatory lending practices 
and abuses in the subprime markets; 
(E) assess the impact of mortgage backed 
securities and Fannie Mae and Freddie Mac on 
the mortgage lending crisis; and 
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(F) assess the impact of the Community 
Reinvestment Act on the mortgage lending cri-
sis. 
(2) FINAL REPORT.—Not later than 12 months 
after the date of enactment of this Act, the Commis-
sion shall submit to the Congress a final report con-
taining such findings, conclusions, and recommenda-
tions as have been agreed to by a majority of Com-
mission members. If, at the conclusion of such 12 
month period, a majority of the Commission deter-
mines it necessary, the Commission may be granted 
a 6 month extension for submission of its final re-
port upon written notification to the Congress. 
(e) POWERS OF THE COMMISSION.— 
(1) HEARINGS AND EVIDENCE.—The Commis-
sion, or on the authority of the Commission or any 
subcommittee or member thereof, may, for the pur-
pose of carrying out this title— 
(A) hold such hearings and sit and act at 
such times and places, take such testimony, re-
ceive such evidence, administer such oaths; and 
(B) subject to paragraph (2)(A), subpoena 
or otherwise require, the attendance and testi-
mony of such witnesses and the production of 
such books, records, correspondence, memo-
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randa, papers, and documents as the Commis-
sion or such designated subcommittee or des-
ignated member may determine advisable. 
(2) SUBPOENAS.— 
(A) ISSUANCE.— 
(i) IN GENERAL.—A subpoena may be 
issued under this subsection only— 
(I) by a co-chairman; or 
(II) by the affirmative vote of a 
majority of the members of the Com-
mission. 
(ii) SIGNATURE.—Subject to clause 
(i), subpoenas issued under this subpara-
graph may be issued under the signature 
of a co-chairman or any member des-
ignated by a majority of the Commission, 
may be served by any person designated by 
the co-chairmen or by a member des-
ignated by a majority of the Commission. 
(B) ENFORCEMENT.— 
(i) IN GENERAL.—In the case of con-
tumacy or failure to obey a subpoena 
issued under subparagraph (A), the United 
States district court for the judicial district 
in which the subpoenaed person resides, is 
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served, or may be found, or where the sub-
poena is returnable, may issue an order re-
quiring such person to appear at any des-
ignated place to testify or to produce docu-
mentary or other evidence. Any failure to 
obey the order of the court may be pun-
ished by the court as a contempt of that 
court. 
(ii) ADDITIONAL ENFORCEMENT.—In 
the case of any failure of any witness to 
comply with any subpoena or to testify 
when summoned under authority of this 
section, the Commission may, by majority 
vote, certify a statement of fact consti-
tuting such failure to the appropriate 
United States attorney, who may bring the 
matter before the grand jury for its action, 
under the same statutory authority and 
procedures as if the United States attorney 
had received as certification under section 
102 through 104 of the Revised Statutes 
of the United States (2 U.S.C. 192 
through 194). 
(3) CONTRACT AUTHORITY.—The Commission 
may, to such extent and in such amounts as are pro-
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vided in appropriation Acts, enter into contracts to 
enable the Commission to discharge its duties under 
this section. 
(4) INFORMATION FROM FEDERAL AGENCIES.— 
(A) IN GENERAL.—The Commission is au-
thorized to secure directly from any executive 
department, bureau, agency, board, commission, 
office, independent establishment, or instrumen-
tality of the Government, information, sugges-
tions, estimates, and statistics for the purposes 
of this section. Each department, bureau, agen-
cy, board, commission, office, independent es-
tablishment, or instrumentality shall, to the ex-
tent authorized by law, furnish such informa-
tion, suggestions, estimates, and statistics di-
rectly to the Commission, upon request made by 
the co-chairmen of any subcommittee created by 
a majority of the Commission, or any member 
designated by a majority of the Commission. 
(B) RECEIPT, HANDLING, STORAGE, AND 
DISSEMINATION.—Information shall only be re-
ceived, handled, stored, and disseminated by 
members of the Commission and its staff con-
sistent with all applicable statutes, regulations, 
and Executive orders. 
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(5) ASSISTANCE FROM FEDERAL AGENCIES.— 
(A) 
GENERAL
SERVICES
ADMINISTRA-
TION.—The Administrator of General Services 
shall provide to the Commission on a reimburs-
able basis administrative support and other 
services for the performance of the Commis-
sion’s functions. 
(B) OTHER
DEPARTMENTS
AND
AGEN-
CIES.—In addition to the assistance described 
in subparagraph (A), departments and agencies 
of the United States may provide to the Com-
mission such services, funds, facilities, staff, 
and other support services as they may deter-
mine advisable and as may be authorized by 
law. 
(6) POSTAL SERVICES.—The Commission may 
use the United States mails in the same manner and 
under the same conditions as departments and agen-
cies of the United States. 
(f) STAFF.— 
(1) IN GENERAL.— 
(A) APPOINTMENT AND COMPENSATION.— 
The co-chairman, in accordance with rules 
agreed upon by the Commission, may appoint 
and fix the compensation of a staff director and 
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such other personnel as may be necessary to en-
able the Commission to carry out its duties, 
without regard to the provisions of title 5, 
United States Code, governing appointments in 
the competitive service, and without regard to 
the provisions of chapter 51 and subchapter III 
of chapter 53 of such title relating to classifica-
tion and General Schedule pay rates, except 
that no rate of pay fixed under this subsection 
may exceed the equivalent of that payable for a 
position at level IV of the Executive Schedule 
under section 5316 of title 5, United States 
Code. 
(B) PERSONNEL
AS
FEDERAL
EMPLOY-
EES.— 
(i) IN
GENERAL.—The executive di-
rector and any personnel of the Commis-
sion who are employees shall be employees 
under section 2105 of title 5, United 
States Code, for purposes of chapters 63, 
81, 83, 84, 85, 87, 89, and 90 of that title. 
(ii) MEMBERS OF THE COMMISSION.— 
Clause (i) shall not apply to members of 
the Commission. 
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(2) DETAILEES.—Any Federal Government em-
ployee may be detailed to the Commission without 
reimbursement from the Commission, and such 
detailee shall retain the rights, status, and privileges 
of his or her regular employment without interrup-
tion. 
(3) EXPERT AND CONSULTANT SERVICES.—The 
Commission is authorized to procure the services of 
experts and consultants in accordance with section 
3109 of title 5, United States Code, but at rates not 
to exceed the daily rate paid to a person occupying 
a position at level IV of the Executive Schedule 
under section 5315 of title 5, United States Code. 
(4) VOLUNTEER
SERVICES.—Notwithstanding 
section 1342 of title 31, United States Code, the 
Commission may accept and use voluntary and un-
compensated services as the Commission determines 
necessary. 
(g) NONAPPLICABILITY
OF
FEDERAL
ADVISORY 
COMMITTEE ACT.— 
(1) IN GENERAL.—The Federal Advisory Com-
mittee Act (5 U.S.C. App.) shall not apply to the 
Commission. 
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(2) PUBLIC MEETINGS AND RELEASE OF PUB-
LIC
VERSIONS
OF
REPORTS.—The Commission 
shall— 
(A) hold public hearings and meetings to 
the extent appropriate; and 
(B) release public versions of the report re-
quired under subsection (d)(2). 
(3) PUBLIC HEARINGS.—Any public hearings of 
the Commission shall be conducted in a manner con-
sistent with the protection of information provided 
to or developed for or by the Commission as re-
quired by any applicable statute, regulations, or Ex-
ecutive order. 
(h) TERMINATION.— 
(1) IN GENERAL.—The Commission and all the 
authorities of this section, shall terminate not later 
than 60 days after the date on which the final report 
is submitted under subsection (d)(2). 
(2) ADMINISTRATIVE ACTIVITIES BEFORE TER-
MINATION.—The Commission may use the 60-day 
period referred to in paragraph (1) for the purpose 
of concluding its activities, including providing testi-
mony to committees of Congress concerning its re-
port and disseminating the final report. 
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(i) AUTHORIZATION OF APPROPRIATION.—There are 
authorized to be appropriated such sums as necessary to 
carry out this section. 
SEC. 7. AUTHORIZATION OF APPROPRIATIONS FOR COM-
BATING MORTGAGE FRAUD. 
For fiscal years 2009, 2010, 2011, 2012, and 2013, 
there are authorized to be appropriated to the Attorney 
General a total of— 
(1) $31,250,000 to support the employment of 
30 additional agents of the Federal Bureau of Inves-
tigation and 2 additional dedicated prosecutors at 
the Department of Justice to coordinate prosecution 
of mortgage fraud efforts with the offices of the 
United States Attorneys; and 
(2) $750,000 to support the operations of inter-
agency task forces of the Federal Bureau of Inves-
tigation in the areas with the 15 highest concentra-
tions of mortgage fraud. 
SEC. 8. ENHANCEMENT OF LIQUIDITY AND STABILITY OF 
INSURED DEPOSITORY INSTITUTIONS TO EN-
SURE AVAILABILITY OF CREDIT AND REDUC-
TION OF FORECLOSURES. 
(a) PERMANENT INCREASE
IN DEPOSIT INSUR-
ANCE.— 
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(1) AMENDMENTS
TO
FEDERAL
DEPOSIT
IN-
SURANCE ACT.—Effective upon the date of the en-
actment of this Act, section 11(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1821(a)) is amend-
ed— 
(A) in paragraph (1)(E), by striking 
‘‘$100,000’’ and inserting ‘‘$250,000’’; 
(B) in paragraph (1)(F)(i), by striking 
‘‘2010’’ and inserting ‘‘2015’’; 
(C) 
in 
subclause 
(I) 
of 
paragraph 
(1)(F)(i), by striking ‘‘$100,000’’ and inserting 
‘‘$250,000’’; 
(D) 
in 
subclause 
(II) 
of 
paragraph 
(1)(F)(i), by striking ‘‘the calendar year pre-
ceding the date this subparagraph takes effect 
under the Federal Deposit Insurance Reform 
Act of 2005’’ and inserting ‘‘calendar year 
2008’’; and 
(E) in paragraph (3)(A), by striking ‘‘, ex-
cept that $250,000 shall be substituted for 
$100,000 wherever such term appears in such 
paragraph’’. 
(2) AMENDMENT TO FEDERAL CREDIT UNION 
ACT.—Section 207(k) of the Federal Credit Union 
Act (12 U.S.C. 1787(k)) is amended— 
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(A) in paragraph (3)— 
(i) by striking the opening quotation 
mark before ‘‘$250,000’’; 
(ii) 
by 
striking 
‘‘, 
except 
that 
$250,000 shall be substituted for $100,000 
wherever such term appears in such sec-
tion’’; and 
(iii) by striking the closing quotation 
mark after the closing parenthesis; and 
(B) 
in 
paragraph 
(5), 
by 
striking 
‘‘$100,000’’ and inserting ‘‘$250,000’’. 
(3) REPEAL OF EESA PROVISION.—Section 136 
of the Emergency Economic Stabilization Act (12 
U.S.C. 5241) is hereby repealed. 
(b) EXTENSION OF RESTORATION PLAN PERIOD.— 
Section 7(b)(3)(E)(ii) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(b)(3)(E)(ii)) is amended by striking 
‘‘5-year period’’ and inserting ‘‘8-year period’’. 
(c) FDIC AND NCUA BORROWING AUTHORITY.— 
(1) FDIC.—Section 14(a) of the Federal De-
posit Insurance Act (12 U.S.C. 1824(a)) is amended 
by 
striking 
‘‘$30,000,000,000’’ 
and 
inserting 
‘‘$100,000,000,000’’. 
(2) NCUA.—Section 203(d)(1) of the Federal 
Credit Union Act (12 U.S.C. 1783(d)(1)) is amend-
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ed by striking ‘‘$100,000,000’’ and inserting 
‘‘$6,000,000,000’’. 
(d) EXPANDING SYSTEMIC RISK SPECIAL ASSESS-
MENTS.—Section 13(c)(4)(G)(ii) of the Federal Deposit 
Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended 
to read as follows: 
‘‘(ii) REPAYMENT OF LOSS.— 
‘‘(I) IN GENERAL.—The Corpora-
tion shall recover the loss to the De-
posit Insurance Fund arising from 
any action taken or assistance pro-
vided with respect to an insured de-
pository institution under clause (i) 
from 1 or more special assessments on 
insured depository institutions, deposi-
tory institution holding companies 
(with the concurrence of the Secretary 
of the Treasury with respect to hold-
ing companies), or both, as the Cor-
poration determines to be appropriate. 
‘‘(II) TREATMENT
OF
DEPOSI-
TORY INSTITUTION HOLDING COMPA-
NIES.—For purposes of this clause, 
sections 7(c)(2) and 18(h) shall apply 
to depository institution holding com-
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panies as if they were insured deposi-
tory institutions. 
‘‘(III) REGULATIONS.—The Cor-
poration shall prescribe such regula-
tions as it deems necessary to imple-
ment this clause. In prescribing such 
regulations, defining terms, and set-
ting the appropriate assessment rate 
or rates, the Corporation shall estab-
lish rates sufficient to cover the losses 
incurred as a result of the actions of 
the Corporation under clause (i) and 
shall consider: the types of entities 
that benefit from any action taken or 
assistance provided under this sub-
paragraph; economic conditions, the 
effects on the industry, and such 
other factors as the Corporation 
deems appropriate and relevant to the 
action taken or the assistance pro-
vided. Any funds so collected that ex-
ceed actual losses shall be placed in 
the Deposit Insurance Fund.’’. 
(e) ESTABLISHMENT OF A NATIONAL CREDIT UNION 
SHARE
INSURANCE
FUND
RESTORATION
PLAN
PE-
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RIOD.—Section 202(c)(2) of the Federal Credit Union Act 
(12 U.S.C. 1782(c)(2)) is amended by adding at the end 
the following new subparagraph: 
‘‘(D) FUND RESTORATION PLANS.— 
‘‘(i) IN GENERAL.—Whenever— 
‘‘(I) the Board projects that the 
equity ratio of the Fund will, within 6 
months of such determination, fall 
below the minimum amount specified 
in subparagraph (C) for the des-
ignated equity ratio; or 
‘‘(II) the equity ratio of the Fund 
actually falls below the minimum 
amount specified in subparagraph (C) 
for the equity ratio without any deter-
mination under sub-clause (I) having 
been made, 
the Board shall establish and implement a 
Share Insurance Fund restoration plan 
within 90 days that meets the require-
ments of clause (ii) and such other condi-
tions as the Board determines to be appro-
priate. 
‘‘(ii) REQUIREMENTS
OF
RESTORA-
TION PLAN.—A Share Insurance Fund res-
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