I 
111TH CONGRESS 
1ST SESSION 
H. R. 703 
To promote bank liquidity and lending through deposit insurance, the HOPE 
for Homeowners Program, and other enhancements. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 27, 2009 
Mr. FRANK of Massachusetts introduced the following bill; which was referred 
to the Committee on Financial Services 
A BILL 
To promote bank liquidity and lending through deposit insur-
ance, the HOPE for Homeowners Program, and other 
enhancements. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. PERMANENT INCREASE IN DEPOSIT INSUR-
ANCE. 
(a) AMENDMENTS TO FEDERAL DEPOSIT INSURANCE 
ACT.—Section 11(a)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1821(a)) is amended— 
(1) 
in 
paragraph 
(1)(E), 
by 
striking 
‘‘$100,000’’ and inserting ‘‘$250,000’’; 
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(2) in paragraph (1)(F)(i), by striking ‘‘2010’’ 
and inserting ‘‘2015’’; 
(3) in subclause (I) of paragraph (1)(F)(i), by 
striking ‘‘$100,000’’ and inserting ‘‘$250,000’’; 
(4) in subclause (II) of paragraph (1)(F)(i), by 
striking ‘‘the calendar year preceding the date this 
subparagraph takes effect under the Federal Deposit 
Insurance Reform Act of 2005’’ and inserting ‘‘cal-
endar year 2008’’; and 
(5) in paragraph (3)(A)(iii), by striking ‘‘, ex-
cept that $250,000 shall be substituted for $100,000 
wherever such term appears in such paragraph’’. 
(b) REPEAL OF EESA PROVISION.—Section 136 of 
the Emergency Economic Stabilization Act (Public Law 
110–343; 122 Stat. 3765) is hereby repealed. 
(c) AMENDMENT
TO
FEDERAL
CREDIT
UNION 
ACT.—Section 207(k) of the Federal Credit Union Act 
(12 U.S.C. 1787(k)) is amended— 
(1) in paragraph (3)— 
(A) by striking the opening quotation mark 
before ‘‘$250,000’’; 
(B) by striking ‘‘, except that $250,000 
shall be substituted for $100,000 wherever such 
term appears in such section’’; and 
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(C) by striking the closing quotation mark 
after the closing parenthesis; and 
(2) in paragraph (5), by striking ‘‘$100,000’’ 
and inserting ‘‘$250,000’’. 
SEC. 2. EXTENSION OF RESTORATION PLAN PERIOD. 
Section 7(b)(3)(E)(ii) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1817(b)(3)(E)(ii)) is amended by 
striking ‘‘5-year period’’ and inserting ‘‘8-year period’’. 
SEC. 3. FDIC BORROWING AUTHORITY. 
Section 14(a) of the Federal Deposit Insurance Act 
(12 U.S.C. 1824(a)) is amended— 
(1) by striking ‘‘$30,000,000,000’’ and insert-
ing ‘‘$100,000,000,000’’; and 
(2) by inserting prior to the last sentence, the 
following new sentence: ‘‘The Corporation may re-
quest in writing to borrow, and the Secretary may 
authorize and approve the borrowing of, additional 
amounts above $100,000,000,000 to the extent that 
the Board of Directors and the Secretary determine 
such borrowing to be necessary.’’. 
SEC. 4. FDIC SYSTEMIC RISK SPECIAL ASSESSMENTS. 
Section 13(c)(4)(G)(ii) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended to read 
as follows: 
‘‘(ii) REPAYMENT OF LOSS.— 
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‘‘(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-
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-
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ting the appropriate assessment rate 
or rates, the Corporation shall con-
sider: the types of entities that benefit 
from any action taken or assistance 
provided under this subparagraph; 
economic conditions; the effects on the 
industry; and such other factors as 
the Corporation deems appropriate.’’. 
SEC. 5. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM. 
Section 257 of the National Housing Act (12 U.S.C. 
1715z–23) is amended— 
(1) in subsection (e)— 
(A) in paragraph (1), by striking subpara-
graph (B); 
(B) in paragraph (2)(B), by striking ‘‘90 
percent’’ and inserting ‘‘93 percent’’; 
(C) by striking paragraph (7); and 
(D) by redesignating paragraphs (8), (9), 
(10), and (11) as paragraphs (7), (8), (9), and 
(10), respectively; 
(2) in subsection (h)(2), by striking ‘‘, or in any 
case in which a mortgagor fails to make the first 
payment on a refinanced eligible mortgage’’; 
(3) by striking subsection (i) and inserting the 
following new subsection: 
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‘‘(i) ANNUAL PREMIUMS.— 
‘‘(1) IN GENERAL.—For each refinanced eligible 
mortgage insured under this section, the Secretary 
shall establish and collect an annual premium in an 
amount equal to not less than 0.55 percent of the 
amount of the remaining insured principal balance 
of the mortgage and not more than 0.75 percent of 
such remaining insured principal balance, as deter-
mined according to a schedule established by the 
Board that assigns such annual premiums based 
upon the credit risk of the mortgage. 
‘‘(2) REDUCTION
OR
TERMINATION
DURING 
MORTGAGE TERM.—Notwithstanding paragraph (1), 
the Secretary may provide that the annual premiums 
charged for refinanced eligible mortgages insured 
under this section are reduced over the term of the 
mortgage or that the collection of such premiums is 
discontinued at some time during the term of the 
mortgage, in a manner that is consistent with poli-
cies for such reduction or discontinuation of annual 
premiums charged for mortgages in accordance with 
section 203(c).’’; 
(4) in subsection (k)— 
(A) by striking the subsection heading and 
inserting ‘‘Exit Fee’’; 
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(B) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘such sale 
or refinancing’’ and inserting ‘‘the mortgage 
being insured under this section’’; and 
(C) by striking paragraph (2); 
(5) in subsection (s)(3)(A)(ii), by striking ‘‘sub-
section (e)(1)(B) and such other’’ and inserting 
‘‘such’’; 
(6) in subsection (v), by inserting after the pe-
riod at the end the following: ‘‘The Board shall con-
form documents, forms, and procedures for mort-
gages insured under this section to those in place for 
mortgages insured under section 203(b) to the max-
imum extent possible consistent with the require-
ments of this section.’’; 
(7) 
in 
subsection 
(w)(1)(C), 
by 
striking 
‘‘(e)(4)(A)’’ and inserting ‘‘(e)(3)(A)’’; and 
(8) by adding at the end the following new sub-
section: 
‘‘(x) PAYMENT TO EXISTING LOAN SERVICER.—The 
Board may establish a payment to the servicer of the exist-
ing senior mortgage for every loan insured under the 
HOPE for Homeowners Program.’’. 
SEC. 6. SERVICER SAFE HARBOR. 
(a) SAFE HARBOR.— 
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(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 or workout plan with re-
spect to any such mortgage that meets all of the cri-
teria 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 to make 
payments determined in reference to any loan 
or any interest 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. 
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