SEC. 2. AFFORDABLE 50-YEAR REFINANCING OF MORT-
GAGES OWNED OR GUARANTEED BY FANNIE 
MAE AND FREDDIE MAC. 
(a) AUTHORITY.—The Federal National Mortgage 
Association and the Federal Home Loan Mortgage Cor-
poration shall each carry out a program under this section 
to provide for the refinancing of qualified mortgages on 
single-family housing owned by such enterprise through a 
refinancing mortgage having a 50-year term, and for the 
purchase of and securitization of such refinancing mort-
gages, in accordance with this section and policies and 
procedures that the Director of the Federal Housing Fi-
nance Agency shall establish. Such program shall require 
such refinancing of a qualified mortgage upon the request 
of the mortgagor made to the applicable enterprise and 
a determination by the enterprise that the mortgage is a 
qualified mortgage. 
(b) QUALIFIED MORTGAGE.—For purposes of this 
section, the term ‘‘qualified mortgage’’ means a mortgage, 
without regard to whether the mortgagor is current on or 
in default on payments due under the mortgage, that— 
(1) is an existing first mortgage that was made 
for purchase of, or refinancing another first mort-
gage on, a one- to four-family dwelling, including a 
condominium or a share in a cooperative ownership 
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housing association, that is occupied by the mort-
gagor as the principal residence of the mortgagor; 
(2) is owned or guaranteed by the Federal Na-
tional Mortgage Association or the Federal Home 
Loan Mortgage Corporation; and 
(3) was originated on or before the date of the 
enactment of this Act. 
(c) REFINANCING MORTGAGE.—For purposes of this 
section, the term ‘‘refinancing mortgage’’ means a mort-
gage that meets the following requirements: 
(1) REFINANCING OF QUALIFIED MORTGAGE.— 
The principal loan amount repayment of which is se-
cured by the mortgage shall be used to satisfy all in-
debtedness under an existing qualified mortgage. 
(2) SINGLE-FAMILY
HOUSING.—The property 
that is subject to the mortgage shall be the same 
property that is subject to the qualified mortgage 
being refinanced. 
(3) 50-YEAR
TERM
WITH
30-YEAR
CALL
OP-
TION.—The mortgage shall have a term to maturity 
of 50 years from the date of the beginning of the 
amortization of the mortgage and shall fully amor-
tize over such term, except that the mortgagee may, 
at the sole option of the mortgagee, require payment 
in full of all amounts of principal and interest owed 
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under the mortgage on the date that is 30 years 
after the date of the beginning of the amortization 
of the mortgage, but only if the mortgagee provides 
written notice to the mortgagor of such acceleration 
of indebtedness not fewer than 90 days in advance 
of such acceleration. 
(4) INTEREST RATE.—The mortgage shall bear 
interest at a single rate that is fixed for the entire 
term of the mortgage, which shall be equivalent to 
the premium received by the enterprise on the quali-
fied mortgage being refinanced plus the cost of sell-
ing a newly issued mortgage having comparable risk 
and term to maturity in a mortgage-backed security, 
as such rate may be increased to the extent nec-
essary to cover, over the term to maturity of the 
mortgage, any fee paid to the servicer pursuant to 
subsection (d), the cost of any title insurance cov-
erage issued in connection with the mortgage, and, 
as determined by the Director, a portion of any ad-
ministrative costs of the program under this section 
as may attributable to the mortgage. 
(5) WAIVER OF PREPAYMENT PENALTIES.—All 
penalties for prepayment or refinancing of the quali-
fied mortgage that is refinanced by the mortgage, 
and all fees and penalties related to the default or 
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delinquency on such mortgage, shall have been 
waived or forgiven. 
(6) PROHIBITION ON BORROWER FEES.—The 
servicer conducting the refinancing shall not charge 
the mortgagor any fee for the refinancing of the 
qualified mortgage through the refinancing mort-
gage. 
(7) TITLE INSURANCE.—The fee for title insur-
ance coverage issued in connection with the mort-
gage shall be reasonable in comparison with fees for 
such coverage available in the market for mortgages 
having similar terms. 
(d) FEE TO SERVICER.—For each qualified mortgage 
of an enterprise that the servicer of the qualified mortgage 
refinances through a refinancing mortgage pursuant to 
this section, the enterprise shall pay the servicer a fee not 
exceeding $1,000. 
(e) NO APPRAISAL.—The enterprises may not require 
an appraisal of the property subject to a refinancing mort-
gage to be conducted in connection with such refinancing. 
(f) TERMINATION.—The requirement under sub-
section (a) for the enterprises to refinance qualified mort-
gages shall not apply to any request for refinancing made 
after the expiration of the one-year period beginning on 
the date of the enactment of this Act. 
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(g) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agen-
cy. 
(2) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation. 
(h) REGULATIONS.—The Director shall issue any 
regulations or guidance necessary to carry out the pro-
gram under this section. 
Æ 
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