I 
112TH CONGRESS 
1ST SESSION 
H. R. 363 
To prevent foreclosure of home mortgages and provide for the affordable 
refinancing of mortgages held by Fannie Mae and Freddie Mac. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 20, 2011 
Mr. CARDOZA (for himself, Mr. LARSON of Connecticut, Ms. CASTOR of Flor-
ida, Mr. THOMPSON of California, Ms. DELAURO, Mrs. NAPOLITANO, Mr. 
SIRES, Mr. COSTA, Ms. BERKLEY, Mr. BACA, Mr. MCNERNEY, Ms. SUT-
TON, Ms. WOOLSEY, Mr. MCDERMOTT, Mr. GARAMENDI, Mr. HINCHEY, 
Mr. STARK, Ms. WASSERMAN SCHULTZ, Mr. WELCH, Mr. FILNER, Ms. 
RICHARDSON, Mr. KUCINICH, and Mr. QUIGLEY) introduced the following 
bill; which was referred to the Committee on Financial Services 
A BILL 
To prevent foreclosure of home mortgages and provide for 
the affordable refinancing of mortgages held by Fannie 
Mae and Freddie Mac. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Housing Opportunity 
and Mortgage Equity Act of 2011’’. 
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SEC. 
2. 
AFFORDABLE 
REFINANCING 
OF 
MORTGAGES 
OWNED OR GUARANTEED BY FANNIE MAE 
AND FREDDIE MAC. 
(a) AUTHORITY.—The Federal National Mortgage 
Association and the Federal Home Loan Mortgage Cor-
poration shall each carry out a program under this section 
to provide for the refinancing of qualified mortgages on 
single-family housing owned by such enterprise through a 
refinancing mortgage, and for the purchase of and 
securitization of such refinancing mortgages, in accord-
ance with this section and policies and procedures that the 
Director of the Federal Housing Finance Agency shall es-
tablish. Such program shall require such refinancing of 
a qualified mortgage upon the request of the mortgagor 
made to the applicable enterprise and a determination by 
the enterprise that the mortgage is a qualified mortgage. 
(b) QUALIFIED MORTGAGE.—For purposes of this 
section, the term ‘‘qualified mortgage’’ means a mortgage, 
without regard to whether the mortgagor is current on or 
in default on payments due under the mortgage, that— 
(1) is an existing first mortgage that was made 
for purchase of, or refinancing another first mort-
gage on, a one- to four-family dwelling, including a 
condominium or a share in a cooperative ownership 
housing association, that is occupied by the mort-
gagor as the principal residence of the mortgagor; 
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(2) is owned or guaranteed by the Federal Na-
tional Mortgage Association or the Federal Home 
Loan Mortgage Corporation; and 
(3) was originated on or before the date of the 
enactment of this Act. 
(c) REFINANCING MORTGAGE.—For purposes of this 
section, the term ‘‘refinancing mortgage’’ means a mort-
gage that meets the following requirements: 
(1) REFINANCING OF QUALIFIED MORTGAGE.— 
The principal loan amount repayment of which is se-
cured by the mortgage shall be used to satisfy all in-
debtedness under an existing qualified mortgage. 
(2) SINGLE-FAMILY
HOUSING.—The property 
that is subject to the mortgage shall be the same 
property that is subject to the qualified mortgage 
being refinanced. 
(3) INTEREST RATE.—The mortgage shall bear 
interest at a single rate that is fixed for the entire 
term of the mortgage, which shall be equivalent to 
the premium received by the enterprise on the quali-
fied mortgage being refinanced plus the cost of sell-
ing a newly issued mortgage having comparable risk 
and term to maturity in a mortgage-backed security, 
as such rate may be increased to the extent nec-
essary to cover, over the term to maturity of the 
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mortgage, any fee paid to the servicer pursuant to 
subsection (d), the cost of any title insurance cov-
erage issued in connection with the mortgage, and, 
as determined by the Director, a portion of any ad-
ministrative costs of the program under this section 
as may attributable to the mortgage. 
(4) WAIVER OF PREPAYMENT PENALTIES.—All 
penalties for prepayment or refinancing of the quali-
fied mortgage that is refinanced by the mortgage, 
and all fees and penalties related to the default or 
delinquency on such mortgage, shall have been 
waived or forgiven. 
(5) TERM TO MATURITY.—The mortgage shall 
have a term to maturity of not more than 40 years 
from the date of the beginning of the amortization 
of the mortgage. 
(6) PROHIBITION ON BORROWER FEES.—The 
servicer conducting the refinancing shall not charge 
the mortgagor any fee for the refinancing of the 
qualified mortgage through the refinancing mort-
gage. 
(7) TITLE INSURANCE.—The fee for title insur-
ance coverage issued in connection with the mort-
gage shall be reasonable in comparison with fees for 
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such coverage available in the market for mortgages 
having similar terms. 
(d) FEE TO SERVICER.—For each qualified mortgage 
of an enterprise that the servicer of the qualified mortgage 
refinances through a refinancing mortgage pursuant to 
this section, the enterprise shall pay the servicer a fee not 
exceeding $1,000. 
(e) NO APPRAISAL.—The enterprises may not require 
an appraisal of the property subject to a refinancing mort-
gage to be conducted in connection with such refinancing. 
(f) TERMINATION.—The requirement under sub-
section (a) for the enterprises to refinance qualified mort-
gages shall not apply to any request for refinancing made 
after the expiration of the one-year period beginning on 
the date of the enactment of this Act. 
(g) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agen-
cy. 
(2) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation. 
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(h) REGULATIONS.—The Director shall issue any 
regulations or guidance necessary to carry out the pro-
gram under this section. 
Æ 
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