(2) TITLE 31.—Section 301 of title 31, United 
States Code, is amended by adding at the end the 
following new subsection: 
‘‘(h) The Department has one Chairman of the Fam-
ily Foreclosure Rescue Corporation, appointed by the 
President, by and with the advice and consent of the Sen-
ate, who reports to the Secretary .’’. 
(3) TABLE OF CONTENTS AMENDMENT.—The 
table of contents in section (1)(b) of the Emergency 
Economic Stabilization Act of 2008 (Public Law 
110–343; 122 Stat. 3765) is amended— 
(A) by adding after the item relating to 
title I the following: 
‘‘Subtitle A—Program for Purchases of Troubled Assets’’; 
and 
(B) by adding after the item relating to 
section 136 the following: 
‘‘Subtitle B—Family Foreclosure Rescue Corporation Program 
‘‘Sec. 150. Authority under TARP Program. 
‘‘Sec. 151. Purchases of home mortgages. 
‘‘Sec. 152. Insurance of home mortgages. 
‘‘Sec. 153. Considerations. 
‘‘Sec. 154. FFRC Oversight Board. 
‘‘Sec. 155. Reports. 
‘‘Sec. 156. Rights; management; sale of home mortgages; revenues and sale 
proceeds. 
‘‘Sec. 157. Contracting procedures. 
‘‘Sec. 158. Conflicts of interest. 
‘‘Sec. 159. Foreclosure mitigation efforts. 
‘‘Sec. 160. Assistance to homeowners. 
‘‘Sec. 161. Minimization of long-term costs and maximization of benefits for 
taxpayers. 
‘‘Sec. 162. Market transparency. 
‘‘Sec. 163. Oversight and audits. 
‘‘Sec. 164. Judicial review and related matters. 
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‘‘Sec. 167. Preservation of qualified special purpose entity status. 
‘‘Sec. 168. Definitions. 
‘‘Sec. 169. Preservation of authority.’’. 
SEC. 4. TAX PROVISIONS. 
(a) PRESERVATION OF STATUS AS REAL ESTATE 
MORTGAGE INVESTMENT CONDUIT.—If a REMIC (as de-
fined in section 860D(a) of the Internal Revenue Code of 
1986) sells, modifies or otherwise disposes of a home 
mortgage loan under a program established by the Sec-
retary of the Treasury under this Act— 
(1) such sale, modification or disposition shall 
not be treated as a prohibited transaction under sec-
tion 860F(a)(2) of such Code, and 
(2) for purposes of part IV of subchapter M of 
chapter 1 of such Code— 
(A) an interest in the REMIC shall not fail 
to be treated as a regular interest (as defined 
in section 860G(a)(1) of such Code) solely be-
cause of such sale, modification or disposition, 
and 
(B) any proceeds of such sale, modification 
or disposition shall be treated as amounts re-
ceived under qualified mortgages. 
(b) CONTINUED REMIC STATUS.— 
(1) Any REMIC shall cease to be a REMIC if, 
after the period ending three months from the date 
of enactment of this Act, instruments governing the 
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conduct of servicers or trustees with respect to home 
mortgage loans underlying the REMIC have the ef-
fect of prohibiting servicers or trustees from exer-
cising discretion to sell, modify or dispose of a home 
mortgage loan in order to participate in a program 
established by the Secretary of the Treasury under 
section 101 of this Act. 
(2) Any REMIC shall cease to be a REMIC if, 
after the period ending three months from the date 
of enactment of this Act, instruments governing the 
conduct of servicers or trustees with respect to home 
mortgage loans underlying the REMIC either— 
(A) commit to a party, other than the 
servicer or trustee, any discretion regarding 
loan modifications for loans that are in default 
or whose default is reasonably foreseeable; or 
(B) have the effect of restricting servicers’ 
or trustees’ exercise of their discretion to mod-
ify, sell or dispose of any and all home mort-
gage loans as part of a program established by 
the Secretary of the Treasury under section 
101 of this Act, including, without limitation, 
by— 
(i) restricting in any way the type of 
modification, sale or disposition a servicer 
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or trustee may engage in for loans that are 
in default or whose default is reasonably 
foreseeable; 
(ii) restricting in any way the percent-
age, absolute amount, or number of loans 
held by the REMIC that may be modified, 
sold or disposed of; 
(iii) restricting in any way the fre-
quency of modifications, sales or disposi-
tions of loans that are in default or whose 
default is reasonably foreseeable; or 
(iv) requiring servicers or trustees to 
purchase modified loans from the REMIC. 
(c) EFFECTIVE DATE.—Subsection (a) shall apply to 
sales, dispositions or modifications made after the date of 
the enactment of this Act, in taxable years ending on or 
after such date, and subsections (b) and (c) shall be effec-
tive on the date of enactment of this Act. 
Æ 
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