In the Senate of the United States,
November 13, 1997.
Resolved, That the bill from the House of Representa-
tives (H.R. 607) entitled ‘‘An Act to amend the Real Estate
Settlement Procedures Act of 1974 to require notice of can-
cellation rights with respect to private mortgage insurance
which is required as a condition of entering into certain fed-
erally related mortgage loans and to provide for cancellation
of such insurance, and for other purposes.’’, do pass with the
following
AMENDMENTS:
Strike out all after the enacting clause and insert:
SECTION 1. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Table of contents.
TITLE I—SENIOR CITIZEN HOME EQUITY PROTECTION
Sec. 101. Short title.
Subtitle A—Senior Citizen Home Equity Protection
Sec. 111. Disclosure requirements; prohibition of funding of unnecessary or exces-
sive costs.
Sec. 112. Implementation.
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Subtitle B—Temporary Extension of Public Housing and Section 8 Rental
Assistance Provisions
Sec. 121. Public housing ceiling rents and income adjustments and preferences for
assisted housing.
Sec. 122. Public housing demolition and disposition.
Sec. 123. Public housing funding flexibility and mixed-finance developments.
Sec. 124. Minimum rents.
Sec. 125. Provisions relating to section 8 rental assistance program.
Subtitle C—Reauthorization of Federally Assisted Multifamily Rental Housing
Provisions
Sec. 131. Multifamily housing finance pilot programs.
Sec. 132. Hud disposition of multifamily housing.
Sec. 133. Multifamily mortgage auctions.
Sec. 134. Clarification of owner’s right to prepay.
Subtitle D—Reauthorization of Rural Housing Programs
Sec. 141. Housing in underserved areas program.
Sec. 142. Housing and related facilities for elderly persons and families and other
low-income persons and families.
Sec. 143. Loan guarantees for multifamily rental housing in rural areas.
Subtitle E—Reauthorization of National Flood Insurance Program
Sec. 151. Program expiration.
Sec. 152. Borrowing authority.
Sec. 153. Emergency implementation of program.
Sec. 154. Authorization of appropriations for studies.
Subtitle F—Native American Housing Assistance
Sec. 161. Subsidy layering certification.
Sec. 162. Inclusion of homebuyer selection policies and criteria.
Sec. 163. Repayment of grant amounts for violation of affordable housing require-
ment.
Sec. 164. United States Housing Act of 1937.
Sec. 165. Miscellaneous.
TITLE II—HOMEOWNERS PROTECTION ACT
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Termination of private mortgage insurance.
Sec. 204. Disclosure requirements.
Sec. 205. Notification upon cancellation or termination.
Sec. 206. Disclosure requirements for lender paid mortgage insurance.
Sec. 207. Fees for disclosures.
Sec. 208. Civil liability.
Sec. 209. Effect on other laws and agreements.
Sec. 210. Enforcement.
Sec. 211. Construction.
Sec. 212. Effective date.
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TITLE III—ABOLISHMENT OF THE THRIFT DEPOSITOR
PROTECTION OVERSIGHT BOARD
Sec. 301. Abolishment.
TITLE I—SENIOR CITIZEN HOME
EQUITY PROTECTION
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Senior Citizen Home
Equity Protection Act’’.
Subtitle A—Senior Citizen Home
Equity Protection
SEC. 111. DISCLOSURE REQUIREMENTS; PROHIBITION OF
FUNDING OF UNNECESSARY OR EXCESSIVE
COSTS.
Section 255(d) of the National Housing Act (12 U.S.C.
1715z–20(d)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (B), by striking ‘‘and’’
at the end;
(B) by redesignating subparagraph (C) as
subparagraph (D); and
(C) by inserting after subparagraph (B) the
following:
‘‘(C) has received full disclosure of all costs
to the mortgagor for obtaining the mortgage, in-
cluding any costs of estate planning, financial
advice, or other related services; and’’;
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(2) in paragraph (9)(F), by striking ‘‘and’’;
(3) in paragraph (10), by striking the period at
the end and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(11) have been made with such restrictions as
the Secretary determines to be appropriate to ensure
that the mortgagor does not fund any unnecessary or
excessive costs for obtaining the mortgage, including
any costs of estate planning, financial advice, or
other related services.’’.
SEC. 112. IMPLEMENTATION.
(a) NOTICE.—The Secretary of Housing and Urban
Development shall, by interim notice, implement the
amendments made by section 111 in an expeditious man-
ner, as determined by the Secretary. Such notice shall not
be effective after the date of the effectiveness of the final reg-
ulations issued under subsection (b).
(b) REGULATIONS.—The Secretary shall, not later
than the expiration of the 90-day period beginning on the
date of enactment of this Act, issue final regulations to im-
plement the amendments made by section 111. Such regula-
tions shall be issued only after notice and opportunity for
public comment pursuant to the provisions of section 553
of title 5, United States Code (notwithstanding subsections
(a)(2) and (b)(3)(B) of that section).
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Subtitle B—Temporary Extension of
Public Housing and Section 8
Rental Assistance Provisions
SEC. 121. PUBLIC HOUSING CEILING RENTS AND INCOME
ADJUSTMENTS AND PREFERENCES FOR AS-
SISTED HOUSING.
Section 402(f) of The Balanced Budget Downpayment
Act, I (42 U.S.C. 1437aa note) is amended by striking ‘‘and
1997’’ and inserting ‘‘, 1997, and 1998’’.
SEC. 122. PUBLIC HOUSING DEMOLITION AND DISPOSI-
TION.
Section 1002(d) of the Emergency Supplemental Ap-
propriations for Additional Disaster Assistance, for Anti-
terrorism Initiatives, for Assistance in the Recovery from
the Tragedy that Occurred at Oklahoma City, and Rescis-
sions Act, 1995 (42 U.S.C. 1437c note) is amended by strik-
ing ‘‘September 30, 1997’’ and inserting ‘‘September 30,
1998’’.
SEC. 123. PUBLIC HOUSING FUNDING FLEXIBILITY AND
MIXED-FINANCE DEVELOPMENTS.
(a) EXTENSION OF AUTHORITY.—Section 201(a)(2) of
the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropria-
tions Act, 1996 (42 U.S.C. 1437l note) is amended to read
as follows:
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‘‘(2) APPLICABILITY.—Section 14(q) of the Unit-
ed States Housing Act of 1937 shall be effective only
with respect to assistance provided from funds made
available for fiscal year 1998 or any preceding fiscal
year, except that the authority in the first sentence of
section 14(q)(1) of that Act to use up to 10 percent
of the allocation of certain funds for any operating
subsidy purpose shall not apply to amounts made
available for fiscal year 1998.’’.
(b) MIXED FINANCE.—Section 14(q)(1) of the United
States Housing Act of 1937 (42 U.S.C. 1437l(q)(1)) is
amended by inserting after the first sentence the following:
‘‘Such assistance may involve the drawdown of funds on
a schedule commensurate with construction draws for de-
posit into an interest earning escrow account to serve as
collateral or credit enhancement for bonds issued by a pub-
lic agency for the construction or rehabilitation of the devel-
opment.’’.
SEC. 124. MINIMUM RENTS.
Section 402(a) of The Balanced Budget Downpayment
Act, I (Public Law 104–99; 110 Stat. 40) is amended in
the matter preceding paragraph (1) by striking ‘‘fiscal year
1997’’ and inserting ‘‘fiscal years 1997 and 1998’’.
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SEC. 125. PROVISIONS RELATING TO SECTION 8 RENTAL AS-
SISTANCE PROGRAM.
Section 203(d) of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (as contained in section
101(e) of the Omnibus Consolidated Rescissions and Appro-
priations Act of 1996 (Public Law 104–134)) (42 U.S.C.
1437f note) is amended by striking ‘‘and 1997’’ and insert-
ing ‘‘, 1997, and 1998’’.
Subtitle C—Reauthorization of Fed-
erally Assisted Multifamily Rent-
al Housing Provisions
SEC. 131. MULTIFAMILY HOUSING FINANCE PILOT PRO-
GRAMS.
Section 542 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1707 note) is amended—
(1) in subsection (b)(5), by inserting before the
period at the end of the first sentence the following:
‘‘, and not more than an additional 15,000 units dur-
ing fiscal year 1998’’; and
(2) in the first sentence of subsection (c)(4)—
(A) by striking ‘‘and’’ and inserting a
comma; and
(B) by inserting before the period at the end
the following: ‘‘, and not more than an addi-
tional 15,000 units during fiscal year 1998’’.
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SEC. 132. HUD DISPOSITION OF MULTIFAMILY HOUSING.
Section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agen-
cies Appropriations Act, 1997 (12 U.S.C. 1715z–11a) is
amended by inserting after ‘‘owned by the Secretary’’ the
following: ‘‘, including the provision of grants and loans
from the General Insurance Fund for the necessary costs
of rehabilitation or demolition,’’.
SEC. 133. MULTIFAMILY MORTGAGE AUCTIONS.
Section 221(g)(4)(C) of the National Housing Act (12
U.S.C. 1715l(g)(4)(C)) is amended—
(1) in the first sentence of clause (viii), by strik-
ing ‘‘September 30, 1996’’ and inserting ‘‘December
31, 2000’’; and
(2) by adding at the end the following:
‘‘(ix) The authority of the Secretary to conduct
multifamily auctions under this subparagraph shall
be effective for any fiscal year only to the extent and
in such amounts as are approved in appropriations
Acts for the costs of loan guarantees (as defined in
section 502 of the Congressional Budget Act of 1974),
including the cost of modifying loans.’’.
SEC. 134. CLARIFICATION OF OWNER’S RIGHT TO PREPAY.
(a) PREPAYMENT RIGHT.—Notwithstanding section
211 of the Housing and Community Development Act of
1987 or section 221 of the Housing and Community Devel-
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opment Act of 1987 (as in effect pursuant to section 604(c)
of the Cranston-Gonzalez National Affordable Housing Act),
subject to subsection (b), with respect to any project that
is eligible low-income housing (as that term is defined in
section 229 of the Housing and Community Development
Act of 1987)—
(1) the owner of the project may prepay, and the
mortgagee may accept prepayment of, the mortgage
on the project, and
(2) the owner may request voluntary termination
of a mortgage insurance contract with respect to such
project and the contract may be terminated notwith-
standing any requirements under sections 229 and
250 of the National Housing Act.
(b) CONDITIONS.—Any prepayment of a mortgage or
termination of an insurance contract authorized under sub-
section (a) may be made—
(1) only to the extent that such prepayment or
termination is consistent with the terms and condi-
tions of the mortgage on or mortgage insurance con-
tract for the project; and
(2) only if owner of the project involved agrees
not to increase the rent charges for any dwelling unit
in the project during the 60-day period beginning
upon such prepayment or termination.
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(c) APPLICABILITY.—This section shall apply only
during the period beginning on October 1, 1997, and ending
at the end of September 30, 1998.
Subtitle D—Reauthorization of
Rural Housing Programs
SEC. 141. HOUSING IN UNDERSERVED AREAS PROGRAM.
The first sentence of section 509(f)(4)(A) of the Hous-
ing Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended by
striking ‘‘fiscal year 1997’’ and inserting ‘‘fiscal years
1997, 1998, and 1999’’.
SEC. 142. HOUSING AND RELATED FACILITIES FOR ELDER-
LY PERSONS AND FAMILIES AND OTHER LOW-
INCOME PERSONS AND FAMILIES.
(a) AUTHORITY TO MAKE LOANS.—Section 515(b)(4)
of the Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is
amended by striking ‘‘September 30, 1997’’ and inserting
‘‘September 30, 1999’’.
(b) SET-ASIDE FOR NONPROFIT ENTITIES.—The first
sentence of section 515(w)(1) of the Housing Act of 1949
(42 U.S.C. 1485(w)(1)) is amended by striking ‘‘fiscal year
1997’’ and inserting ‘‘fiscal years 1997, 1998, and 1999’’.
SEC. 143. LOAN GUARANTEES FOR MULTIFAMILY RENTAL
HOUSING IN RURAL AREAS.
Section 538 of the Housing Act of 1949 (42 U.S.C.
1490p–2) is amended—
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(1) in subsection (q), by striking paragraph (2)
and inserting the following:
‘‘(2) ANNUAL LIMITATION ON AMOUNT OF LOAN
GUARANTEE.—In each fiscal year, the Secretary may
enter into commitments to guarantee loans under this
section only to the extent that the costs of the guaran-
tees entered into in such fiscal year do not exceed such
amount as may be provided in appropriation Acts for
such fiscal year.’’;
(2) by striking subsection (t) and inserting the
following:
‘‘(t) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated for each of fiscal years 1998
and 1999 for costs (as such term is defined in section 502
of the Congressional Budget Act of 1974) of loan guarantees
made under this section such sums as may be necessary for
such fiscal year.’’; and
(3) in subsection (u), by striking ‘‘1996’’ and in-
serting ‘‘1999’’.
Subtitle E—Reauthorization of
National Flood Insurance Program
SEC. 151. PROGRAM EXPIRATION.
Section 1319 of the National Flood Insurance Act of
1968 (42 U.S.C. 4026) is amended by striking ‘‘September
30, 1997’’ and inserting ‘‘September 30, 1999’’.
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SEC. 152. BORROWING AUTHORITY.
Section 1309(a)(2) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4016(a)(2)) is amended by striking
‘‘September 30, 1997’’ and inserting ‘‘September 30, 1999’’.
SEC. 153. EMERGENCY IMPLEMENTATION OF PROGRAM.
Section 1336(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4056(a)) is amended by striking ‘‘Sep-
tember 30, 1996’’ and inserting ‘‘September 30, 1999’’.
SEC. 154. AUTHORIZATION OF APPROPRIATIONS FOR STUD-
IES.
Subsection (c) of section 1376 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4127(c)) is amended to
read as follows:
‘‘(c) For studies under this title, there are authorized
to be appropriated such sums as may be necessary for each
of fiscal years 1998 and 1999, which shall remain available
until expended.’’.
Subtitle F—Native American
Housing Assistance
SEC. 161. SUBSIDY LAYERING CERTIFICATION.
Section 206 of the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C. 4136)
is amended—
(1) by striking ‘‘certification by the Secretary’’
and inserting ‘‘certification by a recipient to the Sec-
retary’’; and
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(2) by striking ‘‘any housing project’’ and insert-
ing ‘‘the housing project involved’’.
SEC. 162. INCLUSION OF HOMEBUYER SELECTION POLICIES
AND CRITERIA.
Section 207(b) of the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C.
4137(b)) is amended—
(1) by striking ‘‘TENANT SELECTION.—’’ and in-
serting 
‘‘TENANT
AND
HOMEBUYER
SELECTION.—’’;
(2) in the matter preceding paragraph (1), by
inserting ‘‘and homebuyer’’ after ‘‘tenant’’; and
(3) in paragraph (3)(A), by inserting ‘‘and
homebuyers’’ after ‘‘tenants’’.
SEC. 163. REPAYMENT OF GRANT AMOUNTS FOR VIOLATION
OF AFFORDABLE HOUSING REQUIREMENT.
Section 209 of the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C. 4139)
is amended by striking ‘‘section 205(2)’’ and inserting ‘‘sec-
tion 205(a)(2)’’.
SEC. 164. UNITED STATES HOUSING ACT OF 1937.
(a) IN GENERAL.—Section 501(b) of the Native Amer-
ican Housing Assistance and Self-Determination Act of
1996 (110 Stat. 4042) is amended—
(1) by striking paragraph (4); and
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(2) by redesignating paragraphs (5) through (11)
as paragraphs (4) through (10), respectively.
(b) UNITED STATES HOUSING ACT OF 1937.—Section
7 of the United States Housing Act of 1937 (42 U.S.C.
1437e) is amended by striking subsection (h).
SEC. 165. MISCELLANEOUS.
(a) DEFINITION OF INDIAN AREAS.—Section 4(10) of
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4103(10)) is amended to
read as follows:
‘‘(10) INDIAN
AREA.—The term ‘Indian area’
means the area within which an Indian tribe or a
tribally designated housing entity, as authorized by 1
or more Indian tribes, provides assistance under this
Act for affordable housing.’’.
(b) CROSS-REFERENCE.—Section 4(12)(C)(i)(II) of
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4103(12)(C)(i)(II)) is
amended by striking ‘‘section 107’’ and inserting ‘‘section
705’’.
(c) CLARIFICATION OF CERTAIN EXEMPTIONS.—Sec-
tion 101(c) of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4111(c)) is
amended by adding at the end the following: ‘‘This sub-
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section applies only to rental dwelling units (other than
lease-purchase dwelling units) developed under—
‘‘(1) the United States Housing Act of 1937 (42
U.S.C. 1437 et seq.); or
‘‘(2) this Act.’’.
(d) APPLICABILITY.—Section 101(d)(1) of the Native
American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4111(d)(1)) is amended by inserting be-
fore the semicolon at the end the following: ‘‘, except that
this paragraph only applies to rental dwelling units (other
than lease-purchase dwelling units) developed under the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.)
or under this Act’’.
(e) SUBMISSION OF INDIAN HOUSING PLAN.—Section
102(a) of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4112(a)) is
amended—
(1) in paragraph (1), by inserting ‘‘(A)’’ after
‘‘(1)’’;
(2) in paragraph (1)(A), as so designated by
paragraph (1) of this subsection, by adding ‘‘or’’ at
the end;
(3) by striking ‘‘(2)’’ and inserting ‘‘(B)’’; and
(4) by striking ‘‘(3)’’ and inserting ‘‘(2)’’.
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(f) CLARIFICATION.—Section 103(c)(3) of the Native
American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4113(c)(3)) is amended by inserting
‘‘not’’ before ‘‘prohibited’’.
(g) 
APPLICABILITY
OF
PROVISIONS
OF
CIVIL
RIGHTS.—Section 201(b)(5) of the Native American Hous-
ing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4131(b)(5)) is amended—
(1) by striking ‘‘Indian tribes’’ and inserting
‘‘federally recognized tribes and the tribally des-
ignated housing entities of those tribes’’; and
(2) by striking ‘‘under this subsection’’ and in-
serting ‘‘under this Act’’.
(h) ELIGIBILITY.—Section 205(a)(1) of the Native
American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4135(a)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘and’’ at
the end; and
(2) by striking subparagraph (B) and inserting
the following:
‘‘(B) in the case of a contract to purchase
existing housing, is made available for purchase
only by a family that is a low-income family at
the time of purchase;
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‘‘(C) in the case of a lease-purchase agree-
ment for existing housing or for housing to be
constructed, is made available for lease-purchase
only by a family that is a low-income family at
the time the agreement is entered into; and
‘‘(D) in the case of a contract to purchase
housing to be constructed, is made available for
purchase only by a family that is a low-income
family at the time the contract is entered into;
and’’.
(i) TENANT SELECTION.—Section 207(b)(3)(B) of the
Native American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4137(b)(3)(B)) is amended by
striking ‘‘of any rejected applicant of the grounds for any
rejection’’ and inserting ‘‘to any rejected applicant of that
rejection and the grounds for that rejection’’.
(j) AVAILABILITY OF RECORDS.—Section 208 of the
Native American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4138) is amended—
(1) in subsection (a), by striking ‘‘paragraph
(2)’’ and inserting ‘‘subsection (b)’’; and
(2) in subsection (b), by striking ‘‘paragraph
(1)’’ and inserting ‘‘subsection (a)’’.
(k) IHP REQUIREMENT.—Section 184(b)(2) of the
Housing and Community Development Act of 1992 (12
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U.S.C. 1715z–13a(b)(2)) is amended by striking ‘‘that is
under the jurisdiction of an Indian tribe’’ and all that fol-
lows before the period at the end.
(l) AUTHORIZATION
OF APPROPRIATIONS.—Section
184(i)(5)(C) of the Housing and Community Development
Act of 1992 (12 U.S.C. 1715z–13a(i)(5)(C)) is amended by
striking ‘‘note’’ and inserting ‘‘not’’.
(m) ENVIRONMENTAL REVIEW UNDER THE INDIAN
HOUSING LOAN GUARANTEE PROGRAM.—Section 184 of the
Housing and Community Development Act of 1992 (12
U.S.C. 1715z–13a) is amended—
(1) by redesignating subsection (k) as subsection
(l); and
(2) by inserting after subsection (j) the following:
‘‘(k) ENVIRONMENTAL REVIEW.—For purposes of envi-
ronmental, review, decisionmaking, and action under the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) and any other law that furthers the purposes
of that Act, a loan guarantee under this section shall—
‘‘(1) be treated as a grant under the Native
American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4101 et seq.); and
‘‘(2) be subject to the regulations promulgated by
the Secretary to carry out section 105 of the Native
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American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4115).’’.
(n) PUBLIC AVAILABILITY OF INFORMATION.—
(1) IN GENERAL.—Title IV of the Native Amer-
ican Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4161 et seq.) is amended by add-
ing at the end the following:
‘‘SEC. 408. PUBLIC AVAILABILITY OF INFORMATION.
‘‘Each recipient shall make any housing plan, policy,
or annual report prepared by the recipient available to the
general public.’’.
(2) TABLE OF CONTENTS.—Section 1(b) of the
Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4101 note) is
amended in the table of contents by inserting after the
item relating to section 407 the following:
‘‘Sec. 408. Public availability of information.’’.
(o) NON-FEDERAL FUNDS.—Section 520(l)(5)(B) of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 11903a(l)(5)(B)) is amended by striking ‘‘and In-
dian housing authorities’’ and inserting ‘‘and units of gen-
eral local government’’.
(p) INELIGIBILITY OF INDIAN TRIBES.—Section 460 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12899h–1) is amended by striking ‘‘fiscal year
1997’’ and inserting ‘‘fiscal year 1998’’.
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(q) INDIAN HOUSING EARLY CHILDHOOD DEVELOP-
MENT PROGRAM.—
(1) REPEAL.—Section 518 of the Cranston-Gon-
zalez National Affordable Housing Act (12 U.S.C.
1701z–11 note) is repealed.
(2) TECHNICAL CORRECTION.—
(A) IN GENERAL.—Section 501(d)(1) of the
Native American Housing Assistance and Self-
Determination Act of 1996 (110 Stat. 4042), and
the amendment made by that section, is repealed.
(B) APPLICABILITY.—Section 519 of Cran-
ston-Gonzalez National Affordable Housing Act
(42 U.S.C. 1437a–1) shall be applied and ad-
ministered as if section 501(d)(1) of the Native
American Housing Assistance and Self-Deter-
mination Act of 1996 (104 Stat. 4042) had not
been enacted.
(3) EFFECTIVE DATE.—This subsection and the
amendments made by this subsection shall be con-
strued to have taken effect on October 26, 1996.
(r) TRIBAL ELIGIBILITY UNDER THE DRUG ELIMI-
NATION PROGRAM.—The Public and Assisted Housing
Elimination Act of 1990 (42 U.S.C. 11901 et seq.) is
amended—
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(1) in section 5123, by inserting ‘‘Indian tribes,’’
after ‘‘tribally designated housing entities,’’;
(2) in section 5124(a)(7), by inserting ‘‘, Indian
tribe,’’ after ‘‘agency’’;
(3) in section 5125(a), by inserting ‘‘Indian
tribe,’’ after ‘‘entity,’’; and
(4) in section 5126, by adding at the end the fol-
lowing:
‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ has
the meaning given that term in section 4 of the Na-
tive American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4103).’’.
(s) REFERENCE IN THE PUBLIC AND ASSISTED HOUS-
ING
DRUG
ELIMINATION
ACT
OF
1990.—Section
5126(4)(D) of the Public and Assisted Housing Drug Elimi-
nation Act of 1990 (42 U.S.C. 11905(4)(D)) is amended
by inserting ‘‘of 1996’’ before the period.
TITLE II—HOMEOWNERS
PROTECTION ACT
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Homeowners Protection
Act of 1997’’.
SEC. 202. DEFINITIONS.
In this title, the following definitions shall apply:
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(1) ADJUSTABLE
RATE
MORTGAGE.—The term
‘‘adjustable rate mortgage’’ means a residential mort-
gage that has an interest rate that is subject to
change.
(2) CANCELLATION DATE.—The term ‘‘cancella-
tion date’’ means—
(A) with respect to a fixed rate mortgage, at
the option of the mortgagor, the date on which
the principal balance of the mortgage—
(i) based solely on the initial amortiza-
tion schedule for that mortgage, and irre-
spective of the outstanding balance for that
mortgage on that date, is first scheduled to
reach 80 percent of the original value of the
property securing the loan; or
(ii) based solely on actual payments,
reaches 80 percent of the original value of
the property securing the loan; and
(B) with respect to an adjustable rate mort-
gage, at the option of the mortgagor, the date on
which the principal balance of the mortgage—
(i) based solely on amortization sched-
ules for that mortgage, and irrespective of
the outstanding balance for that mortgage
on that date, is first scheduled to reach 80
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percent of the original value of the property
securing the loan; or
(ii) based solely on actual payments,
first reaches 80 percent of the original value
of the property securing the loan.
(3) FIXED RATE MORTGAGE.—The term ‘‘fixed
rate mortgage’’ means a residential mortgage that has
an interest rate that is not subject to change.
(4) GOOD PAYMENT HISTORY.—The term ‘‘good
payment history’’ means, with respect to a mortgagor,
that the mortgagor has not—
(A) made a mortgage payment that was 60
days or longer past due during the 12-month pe-
riod beginning 24 months before the date on
which the mortgage reaches the cancellation date;
or
(B) made a mortgage payment that was 30
days or longer past due during the 12-month pe-
riod preceding the date on which the mortgage
reaches the cancellation date.
(5) INITIAL
AMORTIZATION
SCHEDULE.—The
term ‘‘initial amortization schedule’’ means a sched-
ule established at the time at which a residential
mortgage transaction is consummated with respect to
a fixed rate mortgage, showing—
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(A) the amount of principal and interest
that is due at regular intervals to retire the
principal balance and accrued interest over the
amortization period of the loan; and
(B) the unpaid principal balance of the
loan after each scheduled payment is made.
(6) MORTGAGE
INSURANCE.—The term ‘‘mort-
gage insurance’’ means insurance, including any
mortgage guaranty insurance, against the nonpay-
ment of, or default on, an individual mortgage or
loan involved in a residential mortgage transaction.
(7) MORTGAGE INSURER.—The term ‘‘mortgage
insurer’’ means a provider of private mortgage insur-
ance, as described in this title, that is authorized to
transact such business in the State in which the pro-
vider is transacting such business.
(8) MORTGAGEE.—The term ‘‘mortgagee’’ means
the holder of a residential mortgage at the time at
which that mortgage transaction is consummated.
(9) MORTGAGOR.—The term ‘‘mortgagor’’ means
the original borrower under a residential mortgage or
his or her successors or assignees.
(10) ORIGINAL
VALUE.—The term ‘‘original
value’’, with respect to a residential mortgage, means
the lesser of the sales price of the property securing
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(14) SERVICER.—The term ‘‘servicer’’ has the
same meaning as in section 6(i)(2) of the Real Estate
Settlement Procedures Act of 1974, with respect to a
residential mortgage.
(15) SINGLE-FAMILY DWELLING.—The term ‘‘sin-
gle-family dwelling’’ means a residence consisting of
1 family dwelling unit.
(16) TERMINATION
DATE.—The term ‘‘termi-
nation date’’ means—
(A) with respect to a fixed rate mortgage,
the date on which the principal balance of the
mortgage, based solely on the initial amortiza-
tion schedule for that mortgage, and irrespective
of the outstanding balance for that mortgage on
that date, is first scheduled to reach 78 percent
of the original value of the property securing the
loan; and
(B) with respect to an adjustable rate mort-
gage, the date on which the principal balance of
the mortgage, based solely on amortization sched-
ules for that mortgage, and irrespective of the
outstanding balance for that mortgage on that
date, is first scheduled to reach 78 percent of the
original value of the property securing the loan.
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SEC. 203. TERMINATION OF PRIVATE MORTGAGE INSUR-
ANCE.
(a) BORROWER CANCELLATION.—A requirement for
private mortgage insurance in connection with a residential
mortgage transaction shall be canceled on the cancellation
date, if the mortgagor—
(1) submits a request in writing to the servicer
that cancellation be initiated;
(2) has a good payment history with respect to
the residential mortgage; and
(3) has satisfied any requirement of the holder of
the mortgage (as of the date of a request under para-
graph (1)) for—
(A) evidence (of a type established in ad-
vance and made known to the mortgagor by the
servicer promptly upon receipt of a request
under paragraph (1)) that the value of the prop-
erty securing the mortgage has not declined
below the original value of the property; and
(B) certification that the equity of the mort-
gagor in the residence securing the mortgage is
unencumbered by a subordinate lien.
(b) AUTOMATIC TERMINATION.—A requirement for
private mortgage insurance in connection with a residential
mortgage transaction shall terminate with respect to pay-
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ments for that mortgage insurance made by the mortga-
gor—
(1) on the termination date if, on that date, the
mortgagor is current on the payments required by the
terms of the residential mortgage transaction; or
(2) on the date after the termination date on
which the mortgagor becomes current on the payments
required by the terms of the residential mortgage
transaction.
(c) FINAL TERMINATION.—If a requirement for private
mortgage insurance is not otherwise canceled or terminated
in accordance with subsection (a) or (b), in no case may
such a requirement be imposed beyond the first day of the
month immediately following the date that is the midpoint
of the amortization period of the loan if the mortgagor is
current on the payments required by the terms of the mort-
gage.
(d) NO FURTHER PAYMENTS.—No payments or pre-
miums may be required from the mortgagor in connection
with a private mortgage insurance requirement terminated
or canceled under this section—
(1) in the case of cancellation under subsection
(a), more than 30 days after the later of—
(A) the date on which a request under sub-
section (a)(1) is received; or
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(B) the date on which the mortgagor satis-
fies any evidence and certification requirements
under subsection (a)(3);
(2) in the case of termination under subsection
(b), more than 30 days after the termination date or
the date referred to in subsection (b)(2), as applicable;
and
(3) in the case of termination under subsection
(c), more than 30 days after the final termination
date established under that subsection.
(e) RETURN OF UNEARNED PREMIUMS.—
(1) IN GENERAL.—Not later than 45 days after
the termination or cancellation of a private mortgage
insurance requirement under this section, all un-
earned premiums for private mortgage insurance
shall be returned to the mortgagor by the servicer.
(2) TRANSFER
OF
FUNDS
TO
SERVICER.—Not
later than 30 days after notification by the servicer
of termination or cancellation of private mortgage in-
surance under this title with respect to a mortgagor,
a mortgage insurer that is in possession of any un-
earned premiums of that mortgagor shall transfer to
the servicer of the subject mortgage an amount equal
to the amount of the unearned premiums for repay-
ment in accordance with paragraph (1).
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(f) EXCEPTIONS FOR HIGH RISK LOANS.—
(1) IN
GENERAL.—The termination and can-
cellation provisions in subsections (a) and (b) do not
apply to any residential mortgage or mortgage trans-
action that, at the time at which the residential mort-
gage transaction is consummated, has high risks asso-
ciated with the extension of the loan—
(A) as determined in accordance with
guidelines established by the Federal National
Mortgage Association or the Federal Home Loan
Mortgage Corporation, in the case of a mortgage
loan with an original principal balance that
does not exceed the applicable annual conforming
loan limit for the secondary market established
pursuant to section 305(a)(2) of the Federal
Home Loan Mortgage Corporation Act, so as to
require the imposition or continuation of a pri-
vate mortgage insurance requirement beyond the
terms specified in subsection (a) or (b) of this
section; or
(B) as determined by the mortgagee in the
case of any other mortgage, except that termi-
nation shall occur—
(i) with respect to a fixed rate mort-
gage, on the date on which the principal
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balance of the mortgage, based solely on the
initial amortization schedule for that mort-
gage, and irrespective of the outstanding
balance for that mortgage on that date, is
first scheduled to reach 77 percent of the
original value of the property securing the
loan; and
(ii) with respect to an adjustable rate
mortgage, on the date on which the prin-
cipal balance of the mortgage, based solely
on amortization schedules for that mort-
gage, and irrespective of the outstanding
balance for that mortgage on that date, is
first scheduled to reach 77 percent of the
original value of the property securing the
loan.
(2) TERMINATION
AT
MIDPOINT.—A private
mortgage insurance requirement in connection with a
residential mortgage or mortgage transaction de-
scribed in paragraph (1) shall terminate in accord-
ance with subsection (c).
(3) RULE OF CONSTRUCTION.—Nothing in this
subsection may be construed to require a mortgage or
mortgage transaction described in paragraph (1)(A)
to be purchased by the Federal National Mortgage As-
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sociation or the Federal Home Loan Mortgage Cor-
poration.
SEC. 204. DISCLOSURE REQUIREMENTS.
(a) DISCLOSURES FOR NEW MORTGAGES AT TIME OF
TRANSACTION.—
(1) DISCLOSURES
FOR
NON-EXEMPTED
TRANS-
ACTIONS.—In any case in which private mortgage in-
surance is required in connection with a residential
mortgage or mortgage transaction (other than a mort-
gage or mortgage transaction described in section
203(f)(1)), at the time at which the transaction is
consummated, the mortgagee shall provide to the
mortgagor—
(A) if the transaction relates to a fixed rate
mortgage—
(i) a written initial amortization
schedule; and
(ii) written notice—
(I) that the mortgagor may cancel
the requirement in accordance with
section 203(a) of this Act indicating
the date on which the mortgagor may
request cancellation, based solely on the
initial amortization schedule;
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(II) that the mortgagor may re-
quest cancellation in accordance with
section 203(a) of this Act earlier than
provided for in the initial amortiza-
tion schedule, based on actual pay-
ments;
(III) that the requirement for pri-
vate mortgage insurance will auto-
matically terminate on the termination
date in accordance with section 203(b)
of this Act, and what that termination
date is with respect to that mortgage;
and
(IV) that there are exemptions to
the right to cancellation and automatic
termination of a requirement for pri-
vate mortgage insurance in accordance
with section 203(f) of this Act, and
whether such an exemption applies at
that time to that transaction; and
(B) if the transaction relates to an adjust-
able rate mortgage, a written notice that—
(i) the mortgagor may cancel the re-
quirement 
in 
accordance 
with 
section
203(a) of this Act on the cancellation date,
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and that the servicer will notify the mortga-
gor when the cancellation date is reached;
(ii) the requirement for private mort-
gage insurance will automatically terminate
on the termination date, and that on the
termination date, the mortgagor will be no-
tified of the termination or that the require-
ment will be terminated as soon as the
mortgagor is current on loan payments; and
(iii) there are exemptions to the right
of cancellation and automatic termination
of a requirement for private mortgage in-
surance in accordance with section 203(f) of
this Act, and whether such an exemption
applies at that time to that transaction.
(2) 
DISCLOSURES
FOR
EXCEPTED
TRANS-
ACTIONS.—In the case of a mortgage or mortgage
transaction described in section 203(f)(1), at the time
at which the transaction is consummated, the mortga-
gee shall provide written notice to the mortgagor that
in no case may private mortgage insurance be re-
quired beyond the date that is the midpoint of the
amortization period of the loan, if the mortgagor is
current on payments required by the terms of the resi-
dential mortgage.
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(3) ANNUAL DISCLOSURES.—If private mortgage
insurance is required in connection with a residential
mortgage transaction, the servicer shall disclose to the
mortgagor in each such transaction in an annual
written statement—
(A) the rights of the mortgagor under this
title to cancellation or termination of the private
mortgage insurance requirement; and
(B) an address and telephone number that
the mortgagor may use to contact the servicer to
determine whether the mortgagor may cancel the
private mortgage insurance.
(4) APPLICABILITY.—Paragraphs (1) through (3)
shall apply with respect to each residential mortgage
transaction consummated on or after the date that is
1 year after the date of enactment of this Act.
(b) DISCLOSURES
FOR EXISTING MORTGAGES.—If
private mortgage insurance was required in connection
with a residential mortgage entered into at any time before
the effective date of this title, the servicer shall disclose to
the mortgagor in each such transaction in an annual writ-
ten statement—
(1) that the private mortgage insurance may,
under certain circumstances, be canceled by the mort-
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gagor (with the consent of the mortgagee or in accord-
ance with applicable State law); and
(2) an address and telephone number that the
mortgagor may use to contact the servicer to deter-
mine whether the mortgagor may cancel the private
mortgage insurance.
(c) INCLUSION IN OTHER ANNUAL NOTICES.—The in-
formation and disclosures required under subsection (b) and
paragraphs (1)(B) and (3) of subsection (a) may be pro-
vided on the annual disclosure relating to the escrow ac-
count made as required under the Real Estate Settlement
Procedures Act of 1974, or as part of the annual disclosure
of interest payments made pursuant to Internal Revenue
Service regulations, and on a form promulgated by the In-
ternal Revenue Service for that purpose.
(d) 
STANDARDIZED
FORMS.—The 
mortgagee 
or
servicer may use standardized forms for the provision of
disclosures required under this section.
SEC. 205. NOTIFICATION UPON CANCELLATION OR TERMI-
NATION.
(a) IN GENERAL.—Not later than 30 days after the
date of cancellation or termination of a private mortgage
insurance requirement in accordance with this title, the
servicer shall notify the mortgagor in writing—
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(1) that the private mortgage insurance has ter-
minated and that the mortgagor no longer has private
mortgage insurance; and
(2) that no further premiums, payments, or other
fees shall be due or payable by the mortgagor in con-
nection with the private mortgage insurance.
(b) NOTICE OF GROUNDS.—
(1) IN GENERAL.—If a servicer determines that
a mortgage did not meet the requirements for termi-
nation or cancellation of private mortgage insurance
under subsection (a) or (b) of section 203, the servicer
shall provide written notice to the mortgagor of the
grounds relied on to make the determination (includ-
ing the results of any appraisal used to make the de-
termination).
(2) TIMING.—Notice required by paragraph (1)
shall be provided—
(A) with respect to cancellation of private
mortgage insurance under section 203(a), not
later than 30 days after the later of—
(i) the date on which a request is re-
ceived under section 203(a)(1); or
(ii) the date on which the mortgagor
satisfies any evidence and certification re-
quirements under section 203(a)(3); and
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(B) with respect to termination of private
mortgage insurance under section 203(b), not
later than 30 days after the scheduled termi-
nation date.
SEC. 206. DISCLOSURE REQUIREMENTS FOR LENDER PAID
MORTGAGE INSURANCE.
(a) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘borrower paid mortgage insur-
ance’’ means private mortgage insurance that is re-
quired in connection with a residential mortgage
transaction, payments for which are made by the bor-
rower;
(2) the term ‘‘lender paid mortgage insurance’’
means private mortgage insurance that is required in
connection with a residential mortgage transaction,
payments for which are made by a person other than
the borrower; and
(3) the term ‘‘loan commitment’’ means a pro-
spective mortgagee’s written confirmation of its ap-
proval, including any applicable closing conditions,
of the application of a prospective mortgagor for a
residential mortgage loan.
(b) EXCLUSION.—Sections 203 through 205 do not
apply in the case of lender paid mortgage insurance.
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(c) NOTICES TO MORTGAGOR.—In the case of lender
paid mortgage insurance that is required in connection
with a residential mortgage or a residential mortgage trans-
action—
(1) not later than the date on which a loan com-
mitment is made for the residential mortgage trans-
action, the prospective mortgagee shall provide to the
prospective mortgagor a written notice—
(A) that lender paid mortgage insurance
differs from borrower paid mortgage insurance,
in that lender paid mortgage insurance may not
be canceled by the mortgagor, while borrower
paid mortgage insurance could be cancelable by
the mortgagor in accordance with section 203(a)
of this Act, and could automatically terminate
on the termination date in accordance with sec-
tion 203(b) of this Act;
(B) that lender paid mortgage insurance—
(i) usually results in a residential
mortgage having a higher interest rate than
it would in the case of borrower paid mort-
gage insurance; and
(ii) terminates only when the residen-
tial mortgage is refinanced, paid off, or oth-
erwise terminated;
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(C) that lender paid mortgage insurance
and borrower paid mortgage insurance both have
benefits and disadvantages, including a generic
analysis of the differing costs and benefits of a
residential mortgage in the case lender paid
mortgage insurance versus borrower paid mort-
gage insurance over a 10-year period, assuming
prevailing interest and property appreciation
rates; and
(D) that lender paid mortgage insurance
may be tax-deductible for purposes of Federal in-
come taxes, if the mortgagor itemizes expenses for
that purpose; and
(2) not later than 30 days after the termination
date that would apply in the case of borrower paid
mortgage insurance, the servicer shall provide to the
mortgagor a written notice indicating that the mort-
gagor may wish to review financing options that
could eliminate the requirement for private mortgage
insurance in connection with the residential mort-
gage.
(d) STANDARD FORMS.—The servicer of a residential
mortgage may develop and use a standardized form or
forms for the provision of notices to the mortgagor, as re-
quired under subsection (c).
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SEC. 207. FEES FOR DISCLOSURES.
No fee or other cost may be imposed on any mortgagor
with respect to the provision of any notice or information
to the mortgagor pursuant to this title.
SEC. 208. CIVIL LIABILITY.
(a) IN GENERAL.—Any servicer, mortgagee, or mort-
gage insurer that violates a provision of this title shall be
liable to each mortgagor to whom the violation relates for—
(1) in the case of an action by an individual, or
a class action in which the liable party is not subject
to section 210, any actual damages sustained by the
mortgagor as a result of the violation, including in-
terest (at a rate determined by the court) on the
amount of actual damages, accruing from the date on
which the violation commences;
(2) in the case of—
(A) an action by an individual, such statu-
tory damages as the court may allow, not to ex-
ceed $2,000; and
(B) in the case of a class action—
(i) in which the liable party is subject
to section 210, such amount as the court
may allow, except that the total recovery
under this subparagraph in any class ac-
tion or series of class actions arising out of
the same violation by the same liable party
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shall not exceed the lesser of $500,000 or 1
percent of the net worth of the liable party,
as determined by the court; and
(ii) in which the liable party is not
subject to section 210, such amount as the
court may allow, not to exceed $1000 as to
each member of the class, except that the
total recovery under this subparagraph in
any class action or series of class actions
arising out of the same violation by the
same liable party shall not exceed the lesser
of $500,000 or 1 percent of the gross reve-
nues of the liable party, as determined by
the court;
(3) costs of the action; and
(4) reasonable attorney fees, as determined by the
court.
(b) TIMING OF ACTIONS.—No action may be brought
by a mortgagor under subsection (a) later than 2 years after
the date of the discovery of the violation that is the subject
of the action.
(c) LIMITATIONS ON LIABILITY.—
(1) IN GENERAL.—With respect to a residential
mortgage transaction, the failure of a servicer to com-
ply with the requirements of this title due to the fail-
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ure of a mortgage insurer or a mortgagee to comply
with the requirements of this title, shall not be con-
strued to be a violation of this title by the servicer.
(2) RULE OF CONSTRUCTION.—Nothing in para-
graph (1) shall be construed to impose any additional
requirement or liability on a mortgage insurer, a
mortgagee, or a holder of a residential mortgage.
SEC. 209. EFFECT ON OTHER LAWS AND AGREEMENTS.
(a) EFFECT ON STATE LAW.—
(1) IN GENERAL.—With respect to any residen-
tial mortgage or residential mortgage transaction con-
summated after the effective date of this title, and ex-
cept as provided in paragraph (2), the provisions of
this title shall supersede any provisions of the law of
any State relating to requirements for obtaining or
maintaining private mortgage insurance in connec-
tion with residential mortgage transactions, cancella-
tion or automatic termination of such private mort-
gage insurance, any disclosure of information ad-
dressed by this title, and any other matter specifically
addressed by this title.
(2) CONTINUED APPLICATION OF CERTAIN PROVI-
SIONS.—This title does not supersede any provision of
the law of a State in effect on or before September 1,
1989, pertaining to the termination of private mort-
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gage insurance or other mortgage guaranty insurance,
to the extent that such law requires termination of
such insurance at an earlier date or when a lower
mortgage loan principal balance is achieved than as
provided in this title.
(b) EFFECT ON OTHER AGREEMENTS.—The provisions
of this title shall supersede any conflicting provision con-
tained in any agreement relating to the servicing of a resi-
dential mortgage loan entered into by the Federal National
Mortgage Association, the Federal Home Loan Mortgage
Corporation, or any private investor or note holder (or any
successors thereto).
SEC. 210. ENFORCEMENT.
(a) IN GENERAL.—Compliance with the requirements
imposed under this title shall be enforced under—
(1) section 8 of the Federal Deposit Insurance
Act—
(A) by the appropriate Federal banking
agency (as defined in section 3(q) of the Federal
Deposit Insurance Act) in the case of insured de-
pository institutions (as defined in section
3(c)(2) of that Act);
(B) by the Federal Deposit Insurance Cor-
poration in the case of depository institutions
described in clause (i), (ii), or (iii) of section
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19(b)(1)(A) of the Federal Reserve Act that are
not insured depository institutions (as defined in
section 3(c)(2) of the Federal Deposit Insurance
Act); and
(C) by the Director of the Office of Thrift
Supervision in the case of depository institutions
described in clause (v) and or (vi) of section
19(b)(1)(A) of the Federal Reserve Act that are
not insured depository institutions (as defined in
section 3(c)(2) of the Federal Deposit Insurance
Act);
(2) the Federal Credit Union Act, by the Na-
tional Credit Union Administration Board in the
case of depository institutions described in clause (iv)
of section 19(b)(1)(A) of the Federal Reserve Act; and
(3) part C of title V of the Farm Credit Act of
1971 (12 U.S.C. 2261 et seq.), by the Farm Credit
Administration in the case of an institution that is
a member of the Farm Credit System.
(b) ADDITIONAL ENFORCEMENT POWERS.—
(1) VIOLATION OF THIS TITLE TREATED AS VIO-
LATION OF OTHER ACTS.—For purposes of the exercise
by any agency referred to in subsection (a) of such
agency’s powers under any Act referred to in such
subsection, a violation of a requirement imposed
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under this title shall be deemed to be a violation of
a requirement imposed under that Act.
(2) ENFORCEMENT
AUTHORITY
UNDER
OTHER
ACTS.—In addition to the powers of any agency re-
ferred to in subsection (a) under any provision of law
specifically referred to in such subsection, each such
agency may exercise, for purposes of enforcing compli-
ance with any requirement imposed under this title,
any other authority conferred on such agency by law.
(c) ENFORCEMENT AND REIMBURSEMENT.—In carry-
ing out its enforcement activities under this section, each
agency referred to in subsection (a) shall—
(1) notify the mortgagee or servicer of any fail-
ure of the mortgagee or servicer to comply with 1 or
more provisions of this title;
(2) with respect to each such failure to comply,
require the mortgagee or servicer, as applicable, to
correct the account of the mortgagor to reflect the date
on which the mortgage insurance should have been
canceled or terminated under this title; and
(3) require the mortgagee or servicer, as applica-
ble, to reimburse the mortgagor in an amount equal
to the total unearned premiums paid by the mortga-
gor after the date on which the obligation to pay those
premiums ceased under this title.
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SEC. 211. CONSTRUCTION.
Nothing in this title shall be construed to impose any
requirement for private mortgage insurance in connection
with a residential mortgage transaction.
SEC. 212. EFFECTIVE DATE.
This title shall become effective 1 year after the date
of enactment of this Act.
TITLE 
III—ABOLISHMENT 
OF
THE THRIFT DEPOSITOR PRO-
TECTION OVERSIGHT BOARD
SEC. 301. ABOLISHMENT.
(a) IN GENERAL.—Effective at the end of the 3-month
period beginning on the date of enactment of this Act, the
Thrift Depositor Protection Oversight Board established
under section 21A of the Federal Home Loan Bank Act
(hereafter in this section referred to as the ‘‘Oversight
Board’’) is hereby abolished.
(b) DISPOSITION OF AFFAIRS.—
(1) POWER OF CHAIRPERSON.—Effective on the
date of enactment of this Act, the Chairperson of the
Oversight Board (or the designee of the Chairperson)
may exercise on behalf of the Oversight Board any
power of the Oversight Board necessary to settle and
conclude the affairs of the Oversight Board.
(2) AVAILABILITY OF FUNDS.—Funds available
to the Oversight Board shall be available to the Chair-
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person of the Oversight Board to pay expenses in-
curred in carrying out paragraph (1).
(c) SAVINGS PROVISION.—
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—No provision of this section
shall be construed as affecting the validity of any
right, duty, or obligation of the United States, the
Oversight Board, the Resolution Trust Corporation,
or any other person that—
(A) arises under or pursuant to the Federal
Home Loan Bank Act, or any other provision of
law applicable with respect to the Oversight
Board; and
(B) existed on the day before the abolish-
ment of the Oversight Board in accordance with
subsection (a).
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the Over-
sight Board with respect to any function of the Over-
sight Board shall abate by reason of the enactment of
this section.
(3) LIABILITIES.—
(A) IN GENERAL.—All liabilities arising out
of the operation of the Oversight Board during
the period beginning on August 9, 1989, and the
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date that is 3 months after the date of enactment
of this Act shall remain the direct liabilities of
the United States.
(B) NO SUBSTITUTION.—The Secretary of
the Treasury shall not be substituted for the
Oversight Board as a party to any action or
proceeding referred to in subparagraph (A).
(4) CONTINUATIONS OF ORDERS, RESOLUTIONS,
DETERMINATIONS, AND REGULATIONS PERTAINING TO
THE RESOLUTION FUNDING CORPORATION.—
(A) IN GENERAL.—All orders, resolutions,
determinations, and regulations regarding the
Resolution Funding Corporation shall continue
in effect according to the terms of such orders,
resolutions, 
determinations, 
and 
regulations
until modified, terminated, set aside, or super-
seded in accordance with applicable law if such
orders, resolutions, determinations, or regula-
tions—
(i) have been issued, made, and pre-
scribed, or allowed to become effective by the
Oversight Board, or by a court of competent
jurisdiction, in the performance of functions
transferred by this section; and
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(ii) are in effect at the end of the 3-
month period beginning on the date of en-
actment of this section.
(B) ENFORCEABILITY OF ORDERS, RESOLU-
TIONS, DETERMINATIONS, AND REGULATIONS BE-
FORE TRANSFER.—Before the effective date of the
transfer of the authority and duties of the Reso-
lution Funding Corporation to the Secretary of
the Treasury under subsection (d), all orders,
resolutions, determinations, and regulations per-
taining to the Resolution Funding Corporation
shall be enforceable by and against the United
States.
(C) ENFORCEABILITY OF ORDERS, RESOLU-
TIONS, 
DETERMINATIONS, 
AND
REGULATIONS
AFTER
TRANSFER.—On and after the effective
date of the transfer of the authority and duties
of the Resolution Funding Corporation to the
Secretary of the Treasury under subsection (d),
all orders, resolutions, determinations, and regu-
lations pertaining to the Resolution Funding
Corporation shall be enforceable by and against
the Secretary of the Treasury.
(d) TRANSFER OF THRIFT DEPOSITOR PROTECTION
OVERSIGHT BOARD AUTHORITY AND DUTIES OF RESOLU-
HR 607 EAS
TION FUNDING CORPORATION
TO SECRETARY
OF
THE
TREASURY.—Effective at the end of the 3-month period be-
ginning on the date of enactment of this Act, the authority
and duties of the Oversight Board under sections
21A(a)(6)(I) and 21B of the Federal Home Loan Bank Act
are transferred to the Secretary of the Treasury (or the des-
ignee of the Secretary).
(e) MEMBERSHIP OF THE AFFORDABLE HOUSING AD-
VISORY BOARD.—Effective on the date of enactment of this
Act, section 14(b)(2) of the Resolution Trust Corporation
Completion Act (12 U.S.C. 1831q note) is amended—
(1) by striking subparagraph (C); and
(2) by redesignating subparagraphs (D) and (E)
as subparagraphs (C) and (D), respectively.
(f) TIME OF MEETINGS OF THE AFFORDABLE HOUS-
ING ADVISORY BOARD.—
(1) IN
GENERAL.—Section 14(b)(6)(A) of the
Resolution Trust Corporation Completion Act (12
U.S.C. 1831q note) is amended—
(A) by striking ‘‘4 times a year, or more
frequently if requested by the Thrift Depositor
Protection Oversight Board or’’ and inserting ‘‘2
times a year or at the request of’’; and
(B) by striking the second sentence.