I 
112TH CONGRESS 
1ST SESSION H. R. 3733 
To reduce the interest rates on mortgages owned or guaranteed by Fannie 
Mae and Freddie Mac. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 19, 2011 
Mr. HASTINGS of Florida introduced the following bill; which was referred to 
the Committee on Financial Services 
A BILL 
To reduce the interest rates on mortgages owned or 
guaranteed by Fannie Mae and Freddie Mac. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Affordable Mortgage 
for Homeowners Act of 2011’’. 
SEC. 2. PRINCIPAL REDUCTION OF MORTGAGES OWNED OR 
GUARANTEED BY FANNIE MAE AND FREDDIE 
MAC. 
(a) PROGRAM AUTHORITY.—The Federal National 
Mortgage Association and the Federal Home Loan Mort-
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gage Corporation shall each carry out a program under 
this section to provide for the reduction of the interest 
rates on qualified mortgages on single-family housing 
owned or guaranteed by such enterprises, in accordance 
with this section and policies and procedures that the Di-
rector of the Federal Housing Finance Agency shall estab-
lish. 
(b) TIMING.—Each enterprise shall commence the 
program required under subsection (a) upon the expiration 
of the 90-day period beginning upon the date of the enact-
ment of this Act and shall complete all reductions of the 
interest rates of qualified mortgages required under the 
program not later than the expiration of the 12-month pe-
riod beginning upon the commencement of such program. 
(c) INTEREST RATE REDUCTION.—In reducing the 
interest rate on a qualified mortgage under a program of 
an enterprise required under this section, the enterprise 
shall reduce the annual rate of interest charged with re-
spect to the outstanding principal obligation of the mort-
gage for the remainder of the term of the mortgage, not-
withstanding whether the interest rate under the mortgage 
is otherwise subject to adjustment during such mortgage 
term, to a fixed interest rate that is the lesser of— 
(1) 4 percent annually; or 
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(2) the rate for a 30-year fixed rate mortgage, 
as most recently published in the Weekly Primary 
Mortgage Market Survey of the Federal Home Loan 
Mortgage Corporation, as of the time of such inter-
est rate reduction for such qualified mortgage. 
(d) EXEMPT MORTGAGES.—The Director shall pro-
vide that the following qualified mortgages shall not be 
subject to reduction of the interest rate under a program 
under this section: 
(1) FIXED-RATE MORTGAGES.—In the case of a 
qualified mortgage having a rate of interest that is 
fixed for the entire term of the mortgage, any mort-
gage having such an interest rate that is a lower 
than the interest rate determined for the mortgage 
under subsection (c). 
(2) ADJUSTABLE-RATE
MORTGAGES.—In the 
case of a mortgage having a rate of interest that is 
subject to adjustment during the term of the mort-
gage, any mortgage for which the interest rate can-
not, as a result of the terms of the terms and condi-
tions of the mortgage, exceed the interest rate deter-
mined for the mortgage under subsection (c) at any 
time during the term of the mortgage. 
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(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. 
(3) QUALIFIED MORTGAGE.—The term ‘‘quali-
fied mortgage’’ means a mortgage, without regard to 
whether the mortgagor is current or in default on 
payments due under the mortgage, that— 
(A) is an existing first mortgage that was 
made for purchase of, or refinancing another 
first mortgage on, a one- to four-family dwell-
ing, including a condominium or a share in a 
cooperative ownership housing association, that 
is occupied by the mortgagor as the principal 
residence of the mortgagor; 
(B) is owned or guaranteed by the Federal 
National Mortgage Association or the Federal 
Home Loan Mortgage Corporation; and 
(C) was originated on or before the date of 
the enactment of this Act. 
(h) REGULATIONS.—The Director shall issue any 
regulations or guidance necessary to carry out the pro-
grams required under this section not later than the expi-
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ration of the 90-day period that begins on the date of the 
enactment of this Act. 
Æ 
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