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(e) EMPLOYEE BENEFIT PROGRAMS.— 
(1) IN GENERAL.—Any employee of the Board 
accepting employment with the Agency as a result of 
a transfer under subsection (a) may retain, for 12 
months after the date on which such transfer occurs, 
membership in any employee benefit program of the 
Agency or the Board, as applicable, including insur-
ance, to which such employee belongs on the effective 
date of the abolishment under section 1311(a) if— 
(A) the employee does not elect to give up 
the benefit or membership in the program; and 
(B) the benefit or program is continued by 
the Director. 
(2) COST DIFFERENTIAL.— 
(A) IN
GENERAL.—The difference in the 
costs between the benefits which would have been 
provided by the Board and those provided by 
this section shall be paid by the Director. 
(B) HEALTH INSURANCE.—If any employee 
elects to give up membership in a health insur-
ance program or the health insurance program is 
not continued by the Director, the employee shall 
be permitted to select an alternate Federal health 
insurance program not later than 30 days after
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the date of such election or notice, without regard 
to any other regularly scheduled open season. 
SEC. 1314. TRANSFER OF PROPERTY AND FACILITIES. 
Upon the effective date of the abolishment under sec-
tion 1311(a), all property of the Board shall transfer to the 
Agency. 
TITLE IV—HOPE FOR 
HOMEOWNERS 
SEC. 1401. SHORT TITLE. 
This title may be cited as the ‘‘HOPE for Homeowners 
Act of 2008’’. 
SEC. 1402. ESTABLISHMENT OF HOPE FOR HOMEOWNERS 
PROGRAM. 
(a) ESTABLISHMENT.—Title II of the National Hous-
ing Act (12 U.S.C. 1707 et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 257. HOPE FOR HOMEOWNERS PROGRAM. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Federal Housing Administration a HOPE for Homeowners 
Program. 
‘‘(b) PURPOSE.—The purpose of the HOPE for Home-
owners Program is— 
‘‘(1) to create an FHA program, participation 
in which is voluntary on the part of homeowners and 
existing loan holders to insure refinanced loans for
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distressed borrowers to support long-term, sustainable 
homeownership; 
‘‘(2) to allow homeowners to avoid foreclosure by 
reducing the principle balance outstanding, and in-
terest rate charged, on their mortgages; 
‘‘(3) to help stabilize and provide confidence in 
mortgage markets by bringing transparency to the 
value of assets based on mortgage assets; 
‘‘(4) to target mortgage assistance under this sec-
tion to homeowners for their principal residence; 
‘‘(5) to enhance the administrative capacity of 
the FHA to carry out its expanded role under the 
HOPE for Homeowners Program; 
‘‘(6) to ensure the HOPE for Homeowners Pro-
gram remains in effect only for as long as is nec-
essary to provide stability to the housing market; and 
‘‘(7) to provide servicers of delinquent mortgages 
with additional methods and approaches to avoid 
foreclosure. 
‘‘(c) ESTABLISHMENT AND IMPLEMENTATION OF PRO-
GRAM REQUIREMENTS.— 
‘‘(1) DUTIES OF THE BOARD.—In order to carry 
out the purposes of the HOPE for Homeowners Pro-
gram, the Board shall—
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‘‘(A) establish requirements and standards 
for the program; and 
‘‘(B) prescribe such regulations and provide 
such guidance as may be necessary or appro-
priate to implement such requirements and 
standards. 
‘‘(2) DUTIES OF THE SECRETARY.—In carrying 
out any of the program requirements or standards es-
tablished under paragraph (1), the Secretary may 
issue such interim guidance and mortgagee letters as 
the Secretary determines necessary or appropriate. 
‘‘(d) INSURANCE OF MORTGAGES.—The Secretary is 
authorized upon application of a mortgagee to make com-
mitments to insure or to insure any eligible mortgage that 
has been refinanced in a manner meeting the requirements 
under subsection (e). 
‘‘(e) REQUIREMENTS OF INSURED MORTGAGES.—To 
be eligible for insurance under this section, a refinanced eli-
gible mortgage shall comply with all of the following re-
quirements: 
‘‘(1) LACK OF CAPACITY TO PAY EXISTING MORT-
GAGE.— 
‘‘(A) BORROWER CERTIFICATION.— 
‘‘(i) IN
GENERAL.—The mortgagor 
shall provide certification to the Secretary
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that the mortgagor has not intentionally de-
faulted on the mortgage or any other debt, 
and has not knowingly, or willfully and 
with actual knowledge, furnished material 
information known to be false for the pur-
pose of obtaining any eligible mortgage. 
‘‘(ii) PENALTIES.— 
‘‘(I) 
FALSE
STATEMENT.—Any 
certification filed pursuant to clause 
(i) shall contain an acknowledgment 
that any willful false statement made 
in such certification is punishable 
under section 1001, of title 18, United 
States Code, by fine or imprisonment 
of not more than 5 years, or both. 
‘‘(II) 
LIABILITY
FOR
REPAY-
MENT.—The mortgagor shall agree in 
writing that the mortgagor shall be lia-
ble to repay to the Federal Housing 
Administration any direct financial 
benefit achieved from the reduction of 
indebtedness on the existing mortgage 
or mortgages on the residence refi-
nanced under this section derived from 
misrepresentations made in the certifi-
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cations and documentation required 
under this subparagraph, subject to the 
discretion of the Secretary. 
‘‘(B) CURRENT BORROWER DEBT-TO-INCOME 
RATIO.—As of March 1, 2008, the mortgagor 
shall have had a ratio of mortgage debt to in-
come, taking into consideration all existing 
mortgages of that mortgagor at such time, great-
er than 31 percent (or such higher amount as the 
Board determines appropriate). 
‘‘(2) DETERMINATION OF PRINCIPAL OBLIGATION 
AMOUNT.—The principal obligation amount of the re-
financed eligible mortgage to be insured shall— 
‘‘(A) be determined by the reasonable ability 
of the mortgagor to make his or her mortgage 
payments, as such ability is determined by the 
Secretary pursuant to section 203(b)(4) or by 
any other underwriting standards established by 
the Board; and 
‘‘(B) not exceed 90 percent of the appraised 
value of the property to which such mortgage re-
lates. 
‘‘(3) REQUIRED WAIVER OF PREPAYMENT PEN-
ALTIES AND FEES.—All penalties for prepayment or 
refinancing of the eligible mortgage, and all fees and
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retary, the Secretary of the Treasury, the Chairperson 
of the Board of Governors of the Federal Reserve Sys-
tem, and the Chairperson of the Board of Directors of 
the Federal Deposit Insurance Corporation, or their 
designees. 
‘‘(3) ELIGIBLE MORTGAGE.—The term ‘eligible 
mortgage’ means a mortgage— 
‘‘(A) the mortgagor of which— 
‘‘(i) occupies such property as his or 
her principal residence; and 
‘‘(ii) cannot, subject to subsection 
(e)(1)(B) and such other standards estab-
lished by the Board, afford his or her mort-
gage payments; and 
‘‘(B) originated on or before January 1, 
2008. 
‘‘(4) EXISTING
SENIOR
MORTGAGE.—The term 
‘existing senior mortgage’ means, with respect to a 
mortgage insured under this section, the existing 
mortgage that has superior priority. 
‘‘(5) EXISTING SUBORDINATE MORTGAGE.—The 
term ‘existing subordinate mortgage’ means, with re-
spect to a mortgage insured under this section, an ex-
isting mortgage that has subordinate priority to the 
existing senior mortgage.
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‘‘(6) HOPE FOR HOMEOWNERS PROGRAM.—The 
term ‘HOPE for Homeowners Program’ means the 
program established under this section. 
‘‘(7) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Housing and Urban Development, ex-
cept where specifically provided otherwise. 
‘‘(t) REQUIREMENTS RELATED TO THE BOARD.— 
‘‘(1) COMPENSATION, ACTUAL, NECESSARY, AND 
TRANSPORTATION EXPENSES.— 
‘‘(A) FEDERAL EMPLOYEES.—A member of 
the Board who is an officer or employee of the 
Federal Government shall serve without addi-
tional pay (or benefits in the nature of com-
pensation) for service as a member of the Board. 
‘‘(B) TRAVEL EXPENSES.—Members of the 
Board shall be entitled to receive travel expenses, 
including per diem in lieu of subsistence, equiva-
lent to those set forth in subchapter I of chapter 
57 of title 5, United States Code. 
‘‘(2) 
BYLAWS.—The 
Board 
may 
prescribe, 
amend, and repeal such bylaws as may be necessary 
for carrying out the functions of the Board. 
‘‘(3) QUORUM.—A majority of the Board shall 
constitute a quorum. 
‘‘(4) STAFF; EXPERTS AND CONSULTANTS.—
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‘‘(A) DETAIL
OF
GOVERNMENT
EMPLOY-
EES.—Upon request of the Board, any Federal 
Government employee may be detailed to the 
Board without reimbursement, and such detail 
shall be without interruption or loss of civil serv-
ice status or privilege. 
‘‘(B) EXPERTS
AND
CONSULTANTS.—The 
Board shall procure the services of experts and 
consultants as the Board considers appropriate. 
‘‘(u) RULE
OF CONSTRUCTION RELATED
TO VOL-
UNTARY NATURE OF THE PROGRAM.—This section shall not 
be construed to require that any approved financial institu-
tion or mortgagee participate in any activity authorized 
under this section, including any activity related to the refi-
nancing of an eligible mortgage. 
‘‘(v) RULE OF CONSTRUCTION RELATED TO INSUR-
ANCE OF MORTGAGES.—Except as otherwise provided for 
in this section or by action of the Board, the provisions 
and requirements of section 203(b) shall apply with respect 
to the insurance of any eligible mortgage under this section. 
‘‘(w) HOPE BONDS.— 
‘‘(1) ISSUANCE AND REPAYMENT OF BONDS.— 
Notwithstanding section 504(b) of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661d(b)), the Secretary 
of the Treasury shall—
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‘‘(A) subject to such terms and conditions as 
the Secretary of the Treasury deems necessary, 
issue Federal credit instruments, to be known as 
‘HOPE Bonds’, that are callable at the discre-
tion of the Secretary of the Treasury and do not, 
in the aggregate, exceed the amount specified in 
subsection (m); 
‘‘(B) provide the subsidy amounts necessary 
for loan guarantees under the HOPE for Home-
owners Program, not to exceed the amount speci-
fied in subsection (m), in accordance with the 
provisions of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661 et seq.), except as provided 
in this paragraph; and 
‘‘(C) use the proceeds from HOPE Bonds 
only to pay for the net costs to the Federal Gov-
ernment of the HOPE for Homeowners Program, 
including administrative costs. 
‘‘(2) REIMBURSEMENTS TO TREASURY.—Funds 
received pursuant to section 1338(b) of the Federal 
Housing Enterprises Regulatory Reform Act of 1992 
shall be used to reimburse the Secretary of the Treas-
ury for amounts borrowed under paragraph (1). 
‘‘(3) USE OF RESERVE FUND.—If the net cost to 
the Federal Government for the HOPE for Home-
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owners Program exceeds the amount of funds received 
under paragraph (2), remaining debts of the HOPE 
for Homeowners Program shall be paid from amounts 
deposited into the fund established by the Secretary 
under section 1337(e) of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992, 
remaining amounts in such fund to be used to reduce 
the National debt. 
‘‘(4) REDUCTION OF NATIONAL DEBT.—Amounts 
collected under the HOPE for Homeowners Program 
in accordance with subsections (i) and (k) in excess 
of the net cost to the Federal Government for such 
Program shall be used to reduce the National debt.’’. 
SEC. 1403. FIDUCIARY DUTY OF SERVICERS OF POOLED 
RESIDENTIAL MORTGAGE LOANS. 
The Truth in Lending Act (15 U.S.C. 1601 et seq.) 
is amended by inserting after section 129 the following new 
section: 
‘‘SEC. 129A. FIDUCIARY DUTY OF SERVICERS OF POOLED 
RESIDENTIAL MORTGAGES. 
‘‘(a) IN GENERAL.—Except as may be established in 
any investment contract between a servicer of pooled resi-
dential mortgages and an investor, a servicer of pooled resi-
dential mortgages—
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‘‘(1) owes any duty to maximize the net present 
value of the pooled mortgages in an investment to all 
investors and parties having a direct or indirect in-
terest in such investment, not to any individual party 
or group of parties; and 
‘‘(2) shall be deemed to act in the best interests 
of all such investors and parties if the servicer agrees 
to or implements a modification or workout plan, in-
cluding any modification or refinancing undertaken 
pursuant to the HOPE for Homeowners Act of 2008, 
for a residential mortgage or a class of residential 
mortgages that constitute a part or all of the pooled 
mortgages in such investment, provided that any 
mortgage so modified meets the following criteria: 
‘‘(A) Default on the payment of such mort-
gage has occurred or is reasonably foreseeable. 
‘‘(B) The property securing such mortgage 
is occupied by the mortgagor of such mortgage. 
‘‘(C) The anticipated recovery on the prin-
cipal outstanding obligation of the mortgage 
under the modification or workout plan exceeds, 
on a net present value basis, the anticipated re-
covery on the principal outstanding obligation of 
the mortgage through foreclosure.
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courses shall be reviewed, and approved by the Na-
tionwide Mortgage Licensing System and Registry. 
(3) CALCULATION
OF
CONTINUING
EDUCATION 
CREDITS.—A State-licensed loan originator— 
(A) may only receive credit for a continuing 
education course in the year in which the course 
is taken; and 
(B) may not take the same approved course 
in the same or successive years to meet the an-
nual requirements for continuing education. 
(4) INSTRUCTOR CREDIT.—A State-licensed loan 
originator who is approved as an instructor of an ap-
proved continuing education course may receive credit 
for the originator’s own annual continuing education 
requirement at the rate of 2 hours credit for every 1 
hour taught. 
(5) LIMITATION AND STANDARDS.— 
(A) LIMITATION.—To maintain the inde-
pendence of the approval process, the Nationwide 
Mortgage Licensing System and Registry shall 
not directly or indirectly offer any continuing 
education courses for loan originators. 
(B) STANDARDS.—In approving courses 
under this section, the Nationwide Mortgage Li-
censing System and Registry shall apply reason-
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able standards in the review and approval of 
courses. 
SEC. 1507. SYSTEM OF REGISTRATION ADMINISTRATION BY 
FEDERAL AGENCIES. 
(a) DEVELOPMENT.— 
(1) IN GENERAL.—The Federal banking agencies 
shall jointly, through the Federal Financial Institu-
tions Examination Council, and together with the 
Farm Credit Administration, develop and maintain a 
system for registering employees of a depository insti-
tution, employees of a subsidiary that is owned and 
controlled by a depository institution and regulated 
by a Federal banking agency, or employees of an in-
stitution regulated by the Farm Credit Administra-
tion, as registered loan originators with the Nation-
wide Mortgage Licensing System and Registry. The 
system shall be implemented before the end of the 1- 
year period beginning on the date of enactment of this 
title. 
(2) REGISTRATION REQUIREMENTS.—In connec-
tion with the registration of any loan originator 
under this subsection, the appropriate Federal bank-
ing agency and the Farm Credit Administration 
shall, at a minimum, furnish or cause to be furnished 
to the Nationwide Mortgage Licensing System and
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Registry information concerning the employees’s iden-
tity, including— 
(A) fingerprints for submission to the Fed-
eral Bureau of Investigation, and any govern-
mental agency or entity authorized to receive 
such information for a State and national crimi-
nal history background check; and 
(B) personal history and experience, includ-
ing authorization for the Nationwide Mortgage 
Licensing System and Registry to obtain infor-
mation related to any administrative, civil or 
criminal findings by any governmental jurisdic-
tion. 
(b) COORDINATION.— 
(1) UNIQUE IDENTIFIER.—The Federal banking 
agencies, through the Financial Institutions Exam-
ination Council, and the Farm Credit Administration 
shall coordinate with the Nationwide Mortgage Li-
censing System and Registry to establish protocols for 
assigning a unique identifier to each registered loan 
originator that will facilitate electronic tracking and 
uniform identification of, and public access to, the 
employment history of and publicly adjudicated dis-
ciplinary and enforcement actions against loan origi-
nators.
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(2) NATIONWIDE MORTGAGE LICENSING SYSTEM 
AND
REGISTRY
DEVELOPMENT.—To facilitate the 
transfer of information required by subsection (a)(2), 
the Nationwide Mortgage Licensing System and Reg-
istry shall coordinate with the Federal banking agen-
cies, through the Financial Institutions Examination 
Council, and the Farm Credit Administration con-
cerning the development and operation, by such Sys-
tem and Registry, of the registration functionality 
and data requirements for loan originators. 
(c) CONSIDERATION OF FACTORS AND PROCEDURES.— 
In establishing the registration procedures under subsection 
(a) and the protocols for assigning a unique identifier to 
a registered loan originator, the Federal banking agencies 
shall make such de minimis exceptions as may be appro-
priate to paragraphs (1)(A) and (2) of section 1504(a), 
shall make reasonable efforts to utilize existing information 
to minimize the burden of registering loan originators, and 
shall consider methods for automating the process to the 
greatest extent practicable consistent with the purposes of 
this title.
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SEC. 1508. SECRETARY OF HOUSING AND URBAN DEVELOP-
MENT BACKUP AUTHORITY TO ESTABLISH A 
LOAN ORIGINATOR LICENSING SYSTEM. 
(a) BACKUP LICENSING SYSTEM.—If, by the end of the 
1-year period, or the 2-year period in the case of a State 
whose legislature meets only biennially, beginning on the 
date of the enactment of this title or at any time thereafter, 
the Secretary determines that a State does not have in place 
by law or regulation a system for licensing and registering 
loan originators that meets the requirements of sections 
1505 and 1506 and subsection (d) of this section, or does 
not participate in the Nationwide Mortgage Licensing Sys-
tem and Registry, the Secretary shall provide for the estab-
lishment and maintenance of a system for the licensing and 
registration by the Secretary of loan originators operating 
in such State as State-licensed loan originators. 
(b) LICENSING AND REGISTRATION REQUIREMENTS.— 
The system established by the Secretary under subsection 
(a) for any State shall meet the requirements of sections 
1505 and 1506 for State-licensed loan originators. 
(c) UNIQUE IDENTIFIER.—The Secretary shall coordi-
nate with the Nationwide Mortgage Licensing System and 
Registry to establish protocols for assigning a unique iden-
tifier to each loan originator licensed by the Secretary as 
a State-licensed loan originator that will facilitate elec-
tronic tracking and uniform identification of, and public
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access to, the employment history of and the publicly adju-
dicated disciplinary and enforcement actions against loan 
originators. 
(d) STATE LICENSING LAW REQUIREMENTS.—For 
purposes of this section, the law in effect in a State meets 
the requirements of this subsection if the Secretary deter-
mines the law satisfies the following minimum require-
ments: 
(1) A State loan originator supervisory author-
ity is maintained to provide effective supervision and 
enforcement of such law, including the suspension, 
termination, or nonrenewal of a license for a viola-
tion of State or Federal law. 
(2) The State loan originator supervisory au-
thority ensures that all State-licensed loan originators 
operating in the State are registered with Nationwide 
Mortgage Licensing System and Registry. 
(3) The State loan originator supervisory au-
thority is required to regularly report violations of 
such law, as well as enforcement actions and other 
relevant information, to the Nationwide Mortgage Li-
censing System and Registry. 
(4) The State loan originator supervisory au-
thority has a process in place for challenging infor-
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(ii) 10 days after the Secretary renders 
a decision on an application and hearing 
under paragraph (1), with respect to any 
temporary cease and desist order entered 
without a prior hearing before the Sec-
retary, 
the respondent may apply to the United States 
district court for the district in which the re-
spondent resides or has its principal place of 
business, or for the District of Columbia, for an 
order setting aside, limiting, or suspending the 
effectiveness or enforcement of the order, and the 
court shall have jurisdiction to enter such an 
order. A respondent served with a temporary 
cease and desist order entered without a prior 
hearing before the Secretary may not apply to 
the court except after hearing and decision by the 
Secretary on the respondent’s application under 
subparagraph (A). 
(C) NO
AUTOMATIC
STAY
OF
TEMPORARY 
ORDER.—The 
commencement 
of 
proceedings 
under subparagraph (B) shall not, unless specifi-
cally ordered by the court, operate as a stay of 
the Secretary’s order.
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(5) AUTHORITY
OF
THE
SECRETARY
TO
PRO-
HIBIT
PERSONS
FROM
SERVING
AS
LOAN
ORIGINA-
TORS.—In any cease and desist proceeding under 
paragraph (1), the Secretary may issue an order to 
prohibit, conditionally or unconditionally, and per-
manently or for such period of time as the Secretary 
shall determine, any person who has violated this title 
or regulations thereunder, from acting as a loan 
originator if the conduct of that person demonstrates 
unfitness to serve as a loan originator. 
(d) AUTHORITY
OF
THE SECRETARY TO ASSESS 
MONEY PENALTIES.— 
(1) IN GENERAL.—The Secretary may impose a 
civil penalty on a loan originator operating in any 
State which is subject to a licensing system estab-
lished by the Secretary under section 1508, if the Sec-
retary finds, on the record after notice and oppor-
tunity for hearing, that such loan originator has vio-
lated or failed to comply with any requirement of this 
title or any regulation prescribed by the Secretary 
under this title or order issued under subsection (c). 
(2) MAXIMUM AMOUNT OF PENALTY.—The max-
imum amount of penalty for each act or omission de-
scribed in paragraph (1) shall be $25,000.
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•HR 3221 EAH2 
SEC. 1515. STATE EXAMINATION AUTHORITY. 
In addition to any authority allowed under State law 
a State licensing agency shall have the authority to conduct 
investigations and examinations as follows: 
(1) For the purposes of investigating violations 
or complaints arising under this title, or for the pur-
poses of examination, the State licensing agency may 
review, investigate, or examine any loan originator 
licensed or required to be licensed under this title, as 
often as necessary in order to carry out the purposes 
of this title. 
(2) Each such loan originator shall make avail-
able upon request to the State licensing agency the 
books and records relating to the operations of such 
originator. The State licensing agency may have ac-
cess to such books and records and interview the offi-
cers, principals, loan originators, employees, inde-
pendent contractors, agents, and customers of the li-
censee concerning their business. 
(3) The authority of this section shall remain in 
effect, whether such a loan originator acts or claims 
to act under any licensing or registration law of such 
State, or claims to act without such authority. 
(4) No person subject to investigation or exam-
ination under this section may knowingly withhold,
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•HR 3221 EAH2 
abstract, remove, mutilate, destroy, or secrete any 
books, records, computer records, or other information. 
SEC. 1516. REPORTS AND RECOMMENDATIONS TO CON-
GRESS. 
(a) ANNUAL REPORTS.—Not later than 1 year after 
the date of enactment of this title, and annually thereafter, 
the Secretary shall submit a report to Congress on the effec-
tiveness of the provisions of this title, including legislative 
recommendations, if any, for strengthening consumer pro-
tections, enhancing examination standards, streamlining 
communication between all stakeholders involved in resi-
dential mortgage loan origination and processing, and es-
tablishing performance based bonding requirements for 
mortgage originators or institutions that employ such bro-
kers. 
(b) LEGISLATIVE RECOMMENDATIONS.—Not later than 
6 months after the date of enactment of this title, the Sec-
retary shall make recommendations to Congress on legisla-
tive reforms to the Real Estate Settlement Procedures Act 
of 1974, that the Secretary deems appropriate to promote 
more transparent disclosures, allowing consumers to better 
shop and compare mortgage loan terms and settlement 
costs.
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SEC. 1517. STUDY AND REPORTS ON DEFAULTS AND FORE-
CLOSURES. 
(a) STUDY REQUIRED.—The Secretary shall conduct 
an extensive study of the root causes of default and fore-
closure of home loans, using as much empirical data as is 
available. 
(b) PRELIMINARY REPORT TO CONGRESS.—Not later 
than 6 months after the date of enactment of this title, the 
Secretary shall submit to Congress a preliminary report re-
garding the study required by this section. 
(c) FINAL REPORT TO CONGRESS.—Not later than 12 
months after the date of enactment of this title, the Sec-
retary shall submit to Congress a final report regarding the 
results of the study required by this section, which shall in-
clude any recommended legislation relating to the study, 
and recommendations for best practices and for a process 
to provide targeted assistance to populations with the high-
est risk of potential default or foreclosure. 
TITLE VI—MISCELLANEOUS 
SEC. 1601. STUDY AND REPORTS ON GUARANTEE FEES. 
(a) ONGOING STUDY OF FEES.—The Director shall 
conduct an ongoing study of fees charged by enterprises for 
guaranteeing a mortgage. 
(b) COLLECTION OF DATA.—The Director shall, by reg-
ulation or order, establish procedures for the collection of
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data from enterprises for purposes of this subsection, includ-
ing the format and the process for collection of such data. 
(c) REPORTS TO CONGRESS.—The Director shall an-
nually submit a report to Congress on the results of the 
study conducted under subsection (a), based on the aggre-
gated data collected under subsection (a) for the subject 
year, regarding the amount of such fees and the criteria 
used by the enterprises to determine such fees. 
(d) CONTENTS OF REPORTS.—The reports required 
under subsection (c) shall identify and analyze— 
(1) the factors considered in determining the 
amount of the guarantee fees charged; 
(2) the total revenue earned by the enterprises 
from guarantee fees; 
(3) the total costs incurred by the enterprises for 
providing guarantees; 
(4) the average guarantee fee charged by the en-
terprises; 
(5) an analysis of any increase or decrease in 
guarantee fees from the preceding year; 
(6) a breakdown of the revenue and costs associ-
ated with providing guarantees, based on product 
type and risk classifications; and
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(1) FEDERAL
DEPOSIT
INSURANCE
ACT.—The 
Federal Deposit Insurance Act (12 U.S.C. 1811 et 
seq.) is amended— 
(A) in section 3 (12 U.S.C. 1813), by strik-
ing subsection (i) and inserting the following: 
‘‘(i) NEW DEPOSITORY INSTITUTION AND BRIDGE DE-
POSITORY INSTITUTION DEFINED.— 
‘‘(1) NEW DEPOSITORY INSTITUTION.—The term 
‘new depository institution’ means a new national 
bank or Federal savings association, other than a 
bridge depository institution, organized by the Cor-
poration in accordance with section 11(m). 
‘‘(2) BRIDGE
DEPOSITORY
INSTITUTION.—The 
term ‘bridge depository institution’ means a new na-
tional bank or Federal savings association organized 
by the Corporation in accordance with section 
11(n).’’; 
(B) in section 10(d)(5)(B) (12 U.S.C. 
1820(d)(5)(B)), by striking ‘‘bridge bank’’ and 
inserting ‘‘bridge depository institution’’; 
(C) in section 12 (12 U.S.C. 1822), by 
striking ‘‘new bank’’ each place such term ap-
pears and inserting ‘‘new depository institu-
tion’’;and
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(D) 
in 
section 
38(j)(2) 
(12 
U.S.C. 
1831o(j)(2)), by striking ‘‘bridge bank’’ and in-
serting ‘‘bridge depository institution’’. 
(2) FEDERAL
CREDIT
UNION
ACT.—Section 
207(c)(10)(C)(i) of the Federal Credit Union Act (12 
U.S.C. 1787(c)(10)(C)(i)) is amended by striking 
‘‘bridge bank’’ and inserting ‘‘bridge depository insti-
tution’’. 
(3) TITLE 11, UNITED STATES CODE.—Section 
783 of title 11, United States Code, is amended by 
striking ‘‘bridge bank’’ and inserting ‘‘bridge deposi-
tory institution’’. 
(4) TITLE 26, UNITED STATES CODE.—Section 
414(l)(2)(G) of the Internal Revenue Code of 1986, is 
amended by striking ‘‘bridge bank’’ and inserting 
‘‘bridge depository institution’’. 
(c) REPEAL
OF
DEPOSIT
LIMITATION.—Section 
11(n)(1)(B)(i) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(n)(1)(B)(i)) is amended by striking ‘‘, except 
that’’ and all that follows through ‘‘another insured deposi-
tory institution’’. 
(d) FEDERAL RESERVE BANK LENDING TO BRIDGE 
DEPOSITORY INSTITUTIONS.—Section 11(n)(5) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(n)(5)) is
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amended by adding at the end the following new subpara-
graph: 
‘‘(D) CAPITAL
LEVELS.—A bridge deposi-
tory institution shall not be considered an 
undercapitalized depository institution or a 
critically undercapitalized depository institution 
for purposes of section 10B(b) of the Federal Re-
serve Act.’’. 
SEC. 1605. SENSE OF THE SENATE. 
It is the sense of the Senate that in implementing or 
carrying out any provision of this Act, or any amendment 
made by this Act, the Senate supports a policy of noninter-
ference regarding local government requirements that the 
holder of a foreclosed property maintain that property. 
DIVISION B—FORECLOSURE 
PREVENTION 
SEC. 2001. SHORT TITLE. 
This division may be cited as the ‘‘Foreclosure Preven-
tion Act of 2008’’. 
SEC. 2002. EMERGENCY DESIGNATION. 
For purposes of Senate enforcement, all provisions of 
this division are designated as emergency requirements and 
necessary to meet emergency needs pursuant to section 204 
of S. Con. Res. 21 (110th Congress), the concurrent resolu-
tion on the budget for fiscal year 2008.
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TITLE I—FHA MODERNIZATION 
ACT OF 2008 
SEC. 2101. SHORT TITLE. 
This title may be cited as the ‘‘FHA Modernization 
Act of 2008’’. 
Subtitle A—Building American 
Homeownership 
SEC. 2111. SHORT TITLE. 
This subtitle may be cited as the ‘‘Building American 
Homeownership Act of 2008’’. 
SEC. 2112. MAXIMUM PRINCIPAL LOAN OBLIGATION. 
(a) IN GENERAL.—Paragraph (2) of section 203(b) of 
the National Housing Act (12 U.S.C. 1709(b)(2)) is amend-
ed— 
(1) by striking subparagraphs (A) and (B) and 
inserting the following: 
‘‘(A) not to exceed the lesser of— 
‘‘(i) in the case of a 1-family residence, 
115 percent of the median 1-family house 
price in the area, as determined by the Sec-
retary; and in the case of a 2-, 3-, or 4-fam-
ily residence, the percentage of such median 
price that bears the same ratio to such me-
dian price as the dollar amount limitation 
determined under the sixth sentence of sec-
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tion 305(a)(2) of the Federal Home Loan 
Mortgage 
Corporation 
Act 
(12 
U.S.C. 
1454(a)(2)) for a 2-, 3-, or 4-family resi-
dence, respectively, bears to the dollar 
amount limitation determined under such 
section for a 1-family residence; or 
‘‘(ii) 150 percent of the dollar amount 
limitation determined under the sixth sen-
tence of such section 305(a)(2) for a resi-
dence of applicable size; 
except that the dollar amount limitation in effect 
under this subparagraph for any size residence 
for any area may not be less than the greater of: 
(I) the dollar amount limitation in effect under 
this section for the area on October 21, 1998; or 
(II) 65 percent of the dollar amount limitation 
determined under the sixth sentence of such sec-
tion 305(a)(2) for a residence of the applicable 
size; and 
‘‘(B) not to exceed 100 percent of the ap-
praised value of the property.’’; and 
(2) in the matter following subparagraph (B), by 
striking the second sentence (relating to a definition 
of ‘‘average closing cost’’) and all that follows through 
‘‘section 3103A(d) of title 38, United States Code.’’.