ing, the aggregate amount of mortgagee’s 
fees connection with the mortgage, and the 
aggregate amount of other fees or required 
payments in connection with the mortgage. 
‘‘(d) FLEXIBLE UNDERWRITING CRITERIA.— 
‘‘(1) IN GENERAL.—The Oversight Board shall 
establish, and the Secretary acting on behalf of the 
Oversight Board shall implement, underwriting 
standards for mortgages insured under this section 
that— 
‘‘(A) ensure that each mortgagor under a 
mortgage insured under this section has a rea-
sonable expectation of repaying the mortgage, 
taking into consideration the mortgagor’s in-
come, assets, liabilities, payment history, and 
other applicable criteria, but which shall not re-
sult in a denial of insurance solely on the basis 
of the mortgagor’s current FICO or other credit 
scores, or any delinquency or default by the 
mortgagor under the existing mortgage or mort-
gages, or any case filed under title 11, United 
States Code, by the mortgagor; and 
‘‘(B) subject to the provisions of subpara-
graph (A), permit a total debt-to-income ratio of 
up to 43 percent. 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
‘‘(2) EXCEPTION.— 
‘‘(A) IN GENERAL.—Subject to the under-
writing standards established under paragraph 
(1)(A) and any additional requirements that the 
Oversight Board considers appropriate, the Over-
sight Board shall permit a total debt-to-income 
ratio of more than 43 percent, but not more than 
50 percent, if the mortgagor has made, on a 
timely basis before the endorsement of the mort-
gage insured under this section, not less than six 
months of payments in an amount not less than 
the amount of the monthly payment due under 
the mortgage to be insured under this section. 
The holder of the existing senior mortgage shall 
exercise forbearance with respect to such mort-
gage during the period in which such payments 
are made. 
‘‘(B) COMPUTATION
OF
DEBT-TO-INCOME 
RATIO.—In computing the mortgagor’s total 
debt-to-income ratio for purposes of mortgage 
qualification under the underwriting standards 
established pursuant to this section— 
‘‘(i) if the mortgagor is a debtor in a 
case under chapter 13 of title 11, United 
States Code, payments on recurring debts 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
other than housing expenses shall be based 
on the amounts being paid on such debts 
under the mortgagor’s confirmed plan under 
such chapter; and 
‘‘(ii) if the mortgagor is a debtor in a 
case under chapter 7 of title 11, United 
States Code, recurring debts that are to be 
discharged in that case shall not be consid-
ered. 
‘‘(3) AUTHORITY.—The Oversight Board may 
alter the ratios under this subsection for a particular 
class of borrowers subject to such requirements as the 
Board determines is necessary and appropriate to ful-
fill the purposes of this Act. 
‘‘(4) REPRESENTATIONS AND WARRANTIES.—The 
Oversight Board shall require the underwriter of the 
insured loan to provide such representations and war-
ranties as the Oversight Board considers necessary or 
appropriate for the Secretary to enforce compliance 
with all underwriting and appraisal standards of the 
program. 
‘‘(e) PREMIUMS.—For each mortgage insured under 
this section, the Oversight Board shall establish and the Sec-
retary shall collect— 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
‘‘(1) at the time of insurance, a single premium 
payment in an amount equal to 3.0 percent of the 
amount of the original insured principal obligation of 
the mortgage, which shall be paid from the proceeds 
of the mortgage being insured under this section, 
through the reduction of the amount of indebtedness 
on the existing senior mortgage required under sub-
section (c)(6)(A); 
‘‘(2) in addition to the premium under para-
graph (1), annual premium payments in an amount 
equal to 1.50 percent of the remaining insured prin-
cipal balance of the mortgage; and 
‘‘(3) an exit premium in the amount determined 
under subsection (c)(8), but which shall not be less 
than 3.0 percent of the original insured principal ob-
ligation of the mortgage, subject only to the avail-
ability of sufficient net proceeds from sale, refi-
nancing, or other disposition of the property, as de-
termined in subsection (c)(8). 
‘‘(f) ORIGINATION FEES AND MORTGAGE RATE.—The 
Oversight Board shall establish and the Secretary shall im-
plement a reasonable limitation on origination fees for 
mortgages insured under this section and shall establish 
procedures to ensure that interest rates on such mortgages 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
shall be commensurate with market rate interest rates on 
such types of loans. 
‘‘(g) APPRAISAL INDEPENDENCE.— 
‘‘(1) PROHIBITIONS ON INTERESTED PARTIES IN 
A REAL ESTATE TRANSACTION.—No mortgage lender, 
mortgage broker, mortgage banker, real estate broker, 
appraisal management company, employee of an ap-
praisal management company, nor any other person 
with an interest in a real estate transaction involving 
an appraisal in connection with a mortgage insured 
under this section shall improperly influence, or at-
tempt to improperly influence, through coercion, ex-
tortion, collusion, compensation, instruction, induce-
ment, intimidation, non-payment for services ren-
dered, or bribery, the development, reporting, result, 
or review of a real estate appraisal sought in connec-
tion with the mortgage. 
‘‘(2) EXCEPTIONS.—The requirements of para-
graph (1) shall not be construed as prohibiting a 
mortgage lender, mortgage broker, mortgage banker, 
real estate broker, appraisal management company, 
employee of an appraisal management company, or 
any other person with an interest in a real estate 
transaction from asking an appraiser to provide 1 or 
more of the following services: 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
‘‘(A) 
Consider 
additional, 
appropriate 
property information, including the consider-
ation of additional comparable properties to 
make or support an appraisal. 
‘‘(B) Provide further detail, substantiation, 
or explanation for the appraiser’s value conclu-
sion. 
‘‘(C) Correct errors in the appraisal report. 
‘‘(3) CIVIL
MONETARY
PENALTIES.—The Sec-
retary may impose a civil money penalty for any 
knowing and material violation of paragraph (1) 
under the same terms and conditions as are author-
ized in section 536(a) of this Act. 
‘‘(h) LIMITATION
ON AGGREGATE INSURANCE AU-
THORITY.—The aggregate original principal obligation of 
all mortgages insured under this section may not exceed 
$300,000,000,000. 
‘‘(i) ENHANCEMENT OF FHA CAPACITY.—Under the 
direction of the Oversight Board, the Secretary shall take 
such actions as may be necessary to— 
‘‘(1) contract for the establishment of under-
writing criteria, automated underwriting systems, 
pricing standards, and other factors relating to eligi-
bility for mortgages insured under this section; 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
‘‘(3) REPORT BY INSPECTOR GENERAL.—The In-
spector General of the Department of Housing and 
Urban Development shall conduct an annual audit of 
the program for mortgage insurance under this sec-
tion to determine compliance with this section and 
program rules. 
‘‘(k) GNMA COMMITMENT AUTHORITY.— 
‘‘(1) GUARANTEES.—The Secretary shall take 
such actions as may be necessary to ensure that secu-
rities based on and backed by a trust or pool com-
posed of mortgages insured under this section are 
available to be guaranteed by the Government Na-
tional Mortgage Association as to the timely payment 
of principal and interest. 
‘‘(2) GUARANTEE AUTHORITY.—To carry out the 
purposes of section 306 of the National Housing Act 
(12 U.S.C. 1721), the Government National Mortgage 
Association may enter into new commitments to issue 
guarantees of securities based on or backed by mort-
gages insured under this section, not exceeding 
$300,000,000,000. The amount of authority provided 
under the preceding sentence to enter into new com-
mitments to issue guarantees is in addition to any 
amount of authority to make new commitments to 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
issue guarantees that is provided to the Association 
under any other provision of law. 
‘‘(l) SPECIAL RISK INSURANCE FUND.—The insurance 
of each mortgage under this section shall be the obligation 
of the Special Risk Insurance Fund established by section 
238. 
‘‘(m) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) EXISTING MORTGAGE.—The term ‘existing 
mortgage’ means, with respect to a mortgage insured 
under this section, a mortgage that is to be extin-
guished, and paid or prepaid, from the proceeds of the 
mortgage insured under this section. 
‘‘(2) EXISTING
SENIOR
MORTGAGE.—The term 
‘existing senior mortgage’ means, with respect to a 
mortgage insured under this section, the existing 
mortgage that has superior priority. 
‘‘(3) EXISTING SUBORDINATE MORTGAGE.—The 
term ‘existing subordinate mortgage’ means, with re-
spect to a mortgage insured under this section, an ex-
isting mortgage that has subordinate priority to the 
existing senior mortgage. 
‘‘(n) SUNSET.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the authority of the Secretary to make any 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
new commitment to insure any mortgage under this 
section shall terminate upon the expiration of the 2- 
year period beginning on the date of the enactment of 
the FHA Housing Stabilization and Homeownership 
Retention Act of 2008. 
‘‘(2) EXTENSIONS.—The Oversight Board may, 
not more than four times, extend the authority to 
enter into new commitments to insure mortgages 
under this section beyond the date specified in para-
graph (1), except that each such extension shall— 
‘‘(A) be effective only if, before the program 
terminates pursuant to paragraph (1) or any 
previous extension pursuant to this paragraph, 
the Oversight Board— 
‘‘(i) certifies the need for such exten-
sion in writing to the Congress; and 
‘‘(ii) causes notice of such extension to 
be published in the Federal Register no later 
than the beginning of the 3-month period 
that ends upon the scheduled termination 
date of the program; and 
‘‘(B) be for a period of not more than 6 
months. 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
‘‘(o) AUTHORIZATIONS OF APPROPRIATIONS.—There is 
authorized to be appropriated for each of fiscal years 2008 
and 2009— 
‘‘(1) $210,000,000 for providing counseling re-
garding loss mitigation for mortgagors with 1- to 4- 
family residences, including determining eligibility 
for the program under this section, with grants to be 
administered through the Neighborhood Reinvestment 
Corporation, except that— 
‘‘(A) not less than 15 percent of the funds 
made available pursuant to this paragraph shall 
be provided to counseling organizations that tar-
get counseling services regarding loss mitigation 
to minority and low-income homeowners or pro-
vide such services in neighborhoods with high 
concentrations of minority and low-income 
homeowners; 
‘‘(B) $35,000,000 of the funds made avail-
able pursuant to this paragraph shall be used by 
the Neighborhood Reinvestment Corporation (re-
ferred to in this subparagraph as the ‘NRC’) to 
make grants to State and local legal organiza-
tions or attorneys that have demonstrated legal 
experience in home foreclosure or eviction law to 
provide legal assistance related to home owner-
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
ship preservation, home foreclosure prevention, 
and tenancy associated with home foreclosure or 
to counseling intermediaries that have been ap-
proved by the Department of Housing and 
Urban Development for the purpose of making 
such grants or contracting for such legal assist-
ance; of the amount provided under this sub-
paragraph, at least 60 percent shall be allocated 
for legal assistance to low-income homeowners or 
tenants; such attorneys shall be capable of assist-
ing homeowners in owner-occupied homes or ten-
ants who live in homes with mortgages in de-
fault, in danger of default, or subject to or at 
risk of foreclosure or eviction and who have legal 
issues that cannot be handled by counselors em-
ployed by NRC intermediaries; in using the 
amount made available under this subpara-
graph, the NRC shall give priority consideration 
to State and local legal organizations and attor-
neys that (i) provide legal assistance in the 100 
metropolitan statistical areas (as defined by the 
Director of the Office of Management and Budg-
et) with the highest home foreclosure rates, and 
(ii) have the capacity to begin using the finan-
cial assistance within 90 days after receipt of the 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
assistance; as a condition of the receipt of a 
grant under this subparagraph, the grantee shall 
submit to NRC information relating to the demo-
graphic characteristics of the assisted home-
owners or tenants, the dollar amount and terms 
of the relevant mortgages and the outcome of 
legal proceedings related to the foreclosure or 
eviction proceedings, including the resolutions 
thereof; 
‘‘(C) some such sums shall be used for such 
counseling for veterans recently returning from 
active duty in the Armed Forces; 
‘‘(D) the NRC shall give priority consider-
ation for funding with amounts made available 
pursuant to this paragraph, except for funds 
made available under subparagraphs (A) and 
(B), to entities that have an effective plan in 
place for making contact, including personal 
contact, with defaulted mortgagors, and such a 
plan may include use of third parties (including 
both for-profit and not-for-profit entities) to 
make personal contact with defaulted mortga-
gors, or visits to such mortgagors, or both; 
‘‘(E) except with respect to funds reserved 
under subparagraphs (A) and (B), the NRC shall 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
give priority consideration for funding with 
amounts made available pursuant to this para-
graph to entities that have a written plan that 
has been implemented for providing in-person 
counseling and for making contact, including 
personal contact, with defaulted mortgagors, for 
the purpose of providing counseling or providing 
information about available counseling, both (i) 
prior to commencement of any foreclosure pro-
ceedings, and (ii) in the event effective in person 
or phone contact has not been made with such 
defaulted mortgagors prior thereto, then prior to 
the conclusion of the foreclosure process; and 
‘‘(F) not less than 2 percent of the funds 
made available pursuant to this paragraph shall 
be used only for identifying and notifying bor-
rowers under existing mortgages who are eligible 
under this section for insurance of refinancing 
mortgages, and in making funds reserved under 
this subparagraph available for such purpose, the 
Secretary shall give preference to assistance for 
programs that have a proven history of outreach 
within minority communities; and 
‘‘(2) $150,000,000 for costs of activities under 
subsection (i). 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
‘‘(p) AUDIT AND REPORT BY INSPECTOR GENERAL.— 
‘‘(1) AUDIT.—The Inspector General of the De-
partment of Housing and Urban Development shall 
conduct an audit of the program for loss mitigation 
counseling funded with amounts made available 
under subsection (o)(1) to determine compliance with 
such subsection. 
‘‘(2) REPORTS TO CONGRESS.—Not later than 
March 30, 2009, and every calendar quarter there-
after, the Inspector General shall submit to the appro-
priate committees of the Congress a report summa-
rizing the activities of the Inspector General and the 
Neighborhood Reinvestment Corporation during the 
120-day period ending on the date of such report. 
Each report shall include, for the period covered by 
such report, a detailed statement of all obligations, ex-
penditures, and revenues associated with paragraphs 
(1) and (2) of subsection (o), including— 
‘‘(A) obligations and expenditures of appro-
priated funds; 
‘‘(B) the number of homeowners eligible in 
such program; 
‘‘(C) the number of homeowners partici-
pating in such program; 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
‘‘(D) the status of homeowners within such 
program; 
‘‘(E) the number of homeowners who have 
rejected assistance from the Neighborhood Rein-
vestment Corporation; and 
‘‘(F) information on participating coun-
seling services.’’. 
(b) SPECIAL RISK INSURANCE FUND.—Section 238 of 
the National Housing Act (12 U.S.C. 1715z–3) is amend-
ed— 
(1) in subsection (a)(1), by striking ‘‘or 243’’ 
each place such term appears and inserting ‘‘243, or 
257’’; and 
(2) in subsection (b), by striking ‘‘and 243’’ each 
place such term appears and inserting ‘‘243, and 
257’’. 
SEC. 103. STUDY OF AUCTION OR BULK REFINANCE PRO-
GRAM. 
(a) STUDY.—The Board of Governors of the Federal 
Reserve System (in this section referred to as the ‘‘Board 
of Governors’’), in consultation with other members of the 
Oversight Board established by section 257(a) of the Na-
tional Housing Act (as added by the amendment made by 
section 102(a) of this Act), shall conduct a study of the need 
for and efficacy of an auction or bulk refinancing mecha-
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
nism to facilitate refinancing of existing residential mort-
gages that are at risk for foreclosure into mortgages insured 
under the mortgage insurance program under title II of the 
National Housing Act. The study shall identify and exam-
ine various options for mechanisms under which lenders 
and servicers of such mortgages may make bids for forward 
commitments for such insurance in an expedited manner. 
(b) CONTENT.— 
(1) ANALYSIS.—The study required under sub-
section (a) shall analyze— 
(A) the feasibility of establishing a mecha-
nism that would facilitate the more rapid refi-
nancing of borrowers at risk of foreclosure into 
performing mortgages insured under title II of 
the National Housing Act; 
(B) whether such a mechanism would pro-
vide an effective and efficient mechanism to re-
duce foreclosures on qualified existing mortgages; 
(C) whether the use of an auction or bulk 
refinance program is necessary to stabilize the 
housing market and reduce the impact of turmoil 
in that market on the economy of the United 
States; 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
(D) whether there are other mechanisms or 
authority that would be useful to reduce fore-
closure; and 
(E) and any other factors that the Board of 
Governors considers relevant. 
(2) DETERMINATIONS.—To the extent that the 
Board of Governors finds that a facility of the type 
described in paragraph (1) is feasible and useful, the 
study shall— 
(A) determine and identify any additional 
authority or resources needed to establish and 
operate such a mechanism; 
(B) determine whether there is a need for 
additional authority with respect to the loan un-
derwriting criteria included in the amendment 
made by section 102(a) of this Act or with re-
spect to eligibility of participating borrowers, 
lenders, or holders of liens; and 
(C) determine whether such underwriting 
criteria should be established on the basis of in-
dividual loans, in the aggregate, or otherwise to 
facilitate the goal of refinancing borrowers at 
risk of foreclosure into viable loans insured 
under the National Housing Act. 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
(c) REPORT.—Not later than the expiration of the 60- 
day period beginning on the date of the enactment of this 
Act, the Board of Governors shall submit a report regarding 
the results of the study conducted under this section to the 
Committee on Financial Services of the House of Represent-
atives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate. The report shall include a detailed 
description of the analysis required under subsection (b)(1) 
and of the determinations made pursuant to subsection 
(b)(2), and shall include any other findings and rec-
ommendations of the Board of Governors pursuant to the 
study, including identifying various options for mecha-
nisms described in subsection (a). 
SEC. 104. TEMPORARY INCREASE IN MAXIMUM LOAN GUAR-
ANTY 
AMOUNT 
FOR 
CERTAIN 
HOUSING 
LOANS GUARANTEED BY SECRETARY OF VET-
ERANS AFFAIRS. 
Notwithstanding 
subparagraph 
(C) 
of 
section 
3703(a)(1) of title 38, United States Code, for purposes of 
any loan described in subparagraph (A)(i)(IV) of such sec-
tion that is originated during the period beginning on the 
date of the enactment of this Act and ending on December 
31, 2008, the term ‘‘maximum guaranty amount’’ shall 
mean an amount equal to 25 percent of the higher of— 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
(1) the limitation determined under section 
305(a)(2) of the Federal Home Loan Mortgage Cor-
poration Act (12 U.S.C. 1454(a)(2)) for the calendar 
year in which the loan is originated for a single-fam-
ily residence; or 
(2) 125 percent of the area median price for a 
single-family residence, but in no case to exceed 175 
percent of the limitation determined under such sec-
tion 305(a)(2) for the calendar year in which the loan 
is originated for a single-family residence. 
SEC. 105. STUDY OF POSSIBLE ACCOUNTING REVISIONS RE-
LATING TO PROPERTY AT RISK OF FORE-
CLOSURE AND THE AVAILABILITY OF CREDIT 
FOR REFINANCING HOME MORTGAGES AT 
RISK OF FORECLOSURE. 
(a) STUDY REQUIRED.—The Board of Governors of the 
Federal Reserve System shall conduct a study on mark-to- 
market accounting standards applicable to depository insti-
tutions with respect to their residential mortgages that are 
at risk of foreclosure, the effects of such accounting stand-
ards and capital requirements on a depository institution’s 
capacity to provide refinancing to residential mortgagors 
that are at risk of foreclosure and to residential mortgagors 
during periods of market value declines and increased fore-
closures, and the feasibility of modifications of such stand-
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
ards, requirements, and regulatory actions during periods 
of market fluctuation in order to maintain the ability of 
the institution to continue to carry mortgages on residential 
property at risk of foreclosure and assure the availability 
of credit to refinance at-risk residential mortgages. 
(b) REPORT REQUIRED.—The Board of Governors of 
the Federal Reserve System shall submit a report to the 
Congress before the end of the 90-day period beginning on 
the date of the enactment of this Act containing the findings 
and determinations of the Board with respect to the study 
conducted under subsection (a) and such administrative 
and legislative recommendations as the Board may deter-
mine to be appropriate. 
SEC. 106. GAO STUDY OF THE EFFECT OF TIGHTENING 
CREDIT 
MARKETS 
IN 
COMMUNITIES 
AF-
FECTED BY THE SUBPRIME MORTGAGE FORE-
CLOSURE CRISES AND PREDATORY LENDING 
ON PROSPECTIVE FIRST-TIME HOMEBUYERS 
SEEKING MORTGAGES. 
The Comptroller General of the United States shall 
conduct a study to analyze the effects of tightening credit 
markets on prospective first-time home buyers who reside 
in selected communities that have been most detrimentally 
affected by both the current subprime mortgage foreclosure 
crisis and predatory mortgage lending. Such study shall 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
also analyze the adequacy of financial literacy outreach ef-
forts by agencies of the Federal Government tasked with im-
plementing financial literacy education in such commu-
nities and shall assess whether the current funding levels 
for such efforts are at sufficient levels to reduce the levels 
of subprime mortgage delinquencies and foreclosures and to 
increase the level of financial literacy in the selected com-
munities so as to minimize the incidences of predatory 
mortgage lending. Not later than the expiration of the 6- 
month period beginning on the date of the enactment of this 
Act, the Comptroller General shall submit a report to the 
Congress setting forth the results of the study and including 
recommendations regarding such funding levels. 
TITLE II—OFFICE OF HOUSING 
COUNSELING 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Expand and Preserve 
Home Ownership Through Counseling Act’’. 
SEC. 202. ESTABLISHMENT OF OFFICE OF HOUSING COUN-
SELING. 
Section 4 of the Department of Housing and Urban 
Development Act (42 U.S.C. 3533) is amended by adding 
at the end the following new subsection: 
‘‘(g) OFFICE OF HOUSING COUNSELING.— 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
‘‘(1) ESTABLISHMENT.—There is established, in 
the Office of the Secretary, the Office of Housing 
Counseling. 
‘‘(2) DIRECTOR.—There is established the posi-
tion of Director of Housing Counseling. The Director 
shall be the head of the Office of Housing Counseling 
and shall be appointed by the Secretary. Such posi-
tion shall be a career-reserved position in the Senior 
Executive Service. 
‘‘(3) FUNCTIONS.— 
‘‘(A) IN GENERAL.—The Director shall have 
ultimate responsibility within the Department, 
except for the Secretary, for all activities and 
matters relating to homeownership counseling 
and rental housing counseling, including— 
‘‘(i) research, grant administration, 
public outreach, and policy development re-
lating to such counseling; and 
‘‘(ii) establishment, coordination, and 
administration of all regulations, require-
ments, standards, and performance meas-
ures under programs and laws administered 
by the Department that relate to housing 
counseling, homeownership counseling (in-
cluding maintenance of homes), mortgage- 
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS
related counseling (including home equity 
conversion mortgages and credit protection 
options to avoid foreclosure), and rental 
housing counseling, including the require-
ments, standards, and performance meas-
ures relating to housing counseling. 
‘‘(B) SPECIFIC
FUNCTIONS.—The Director 
shall carry out the functions assigned to the Di-
rector and the Office under this section and any 
other provisions of law. Such functions shall in-
clude establishing rules necessary for— 
‘‘(i) the counseling procedures under 
section 106(g)(1) of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 
1701x(h)(1)); 
‘‘(ii) carrying out all other functions of 
the Secretary under section 106(g) of the 
Housing and Urban Development Act of 
1968, including the establishment, oper-
ation, and publication of the availability of 
the toll-free telephone number under para-
graph (2) of such section; 
‘‘(iii) carrying out section 5 of the 
Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2604) for home buying in-
VerDate Aug 31 2005 
23:48 May 05, 2008
Jkt 069200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6203
E:\BILLS\H5830.RH
H5830
jbell on PROD1PC69 with BILLS