IB 
Union Calendar No. 4 
111TH CONGRESS 
1ST SESSION 
H. R. 787 
[Report No. 111–12] 
To make improvements in the Hope for Homeowners Program, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2009 
Mr. FRANK of Massachusetts introduced the following bill; which was referred 
to the Committee on Financial Services 
FEBRUARY 10, 2009 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
A BILL 
To make improvements in the Hope for Homeowners 
Program, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. CHANGES TO HOPE FOR HOMEOWNERS PRO-
GRAM. 
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: 
‘‘(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-
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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’’; 
(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’’; 
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