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nancing borrowers at risk of foreclosure into 
viable loans insured under this section. 
‘‘(3) REPORT.—Not later than the expiration of 
the 60-day period beginning on the date of the enact-
ment of this section, the Board shall submit a report 
regarding the results of the study conducted under 
this subsection to the Committee on Financial Serv-
ices of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate. The report shall include a detailed de-
scription of the analysis required under paragraph 
(2)(A) and of the determinations made pursuant to 
paragraph (2)(B), and shall include any other find-
ings and recommendations of the Board pursuant to 
the study, including identifying various options for 
mechanisms described in paragraph (1). 
‘‘(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-
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tempt to improperly influence, through coercion, ex-
tortion, collusion, compensation, instruction, induce-
ment, intimidation, nonpayment 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) 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) STANDARDS TO PROTECT AGAINST ADVERSE SE-
LECTION.— 
‘‘(1) IN GENERAL.—The Board shall, by rule or 
order, establish standards and policies to require the 
underwriter of the insured loan to provide such rep-
resentations and warranties as the Board considers 
necessary or appropriate to enforce compliance with 
all underwriting and appraisal standards of the 
HOPE for Homeowners Program. 
‘‘(2) EXCLUSION FOR VIOLATIONS.—The Board 
shall prohibit the Secretary from paying insurance 
benefits to a mortgagee who violates the representa-
tions and warranties, as established under paragraph 
(1), or in any case in which a mortgagor fails to
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make the first payment on a refinanced eligible mort-
gage. 
‘‘(3) OTHER AUTHORITY.—The Board may estab-
lish such other standards or policies as necessary to 
protect against adverse selection, including requiring 
loans identified by the Secretary as higher risk loans 
to demonstrate payment performance for a reasonable 
period of time prior to being insured under the pro-
gram. 
‘‘(i) PREMIUMS.—For each refinanced eligible mort-
gage insured under this section, the Secretary shall establish 
and collect— 
‘‘(1) at the time of insurance, a single premium 
payment in an amount equal to 3 percent of the 
amount of the original insured principal obligation of 
the refinanced eligible mortgage, which shall be paid 
from the proceeds of the mortgage being insured under 
this section, through the reduction of the amount of 
indebtedness that existed on the eligible mortgage 
prior to refinancing; and 
‘‘(2) in addition to the premium required under 
paragraph (1), an annual premium in an amount 
equal to 1.5 percent of the amount of the remaining 
insured principal balance of the mortgage.
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‘‘(j) ORIGINATION FEES AND INTEREST RATE.—The 
Board shall establish— 
‘‘(1) a reasonable limitation on origination fees 
for refinanced eligible mortgages insured under this 
section; and 
‘‘(2) procedures to ensure that interest rates on 
such mortgages shall be commensurate with market 
rate interest rates on such types of loans. 
‘‘(k) EQUITY AND APPRECIATION.— 
‘‘(1) FIVE-YEAR PHASE-IN FOR EQUITY AS A RE-
SULT OF SALE OR REFINANCING.—For each eligible 
mortgage insured under this section, the Secretary 
and the mortgagor of such mortgage shall, upon any 
sale or disposition of the property to which such 
mortgage relates, or upon the subsequent refinancing 
of such mortgage, be entitled to the following with re-
spect to any equity created as a direct result of such 
sale or refinancing: 
‘‘(A) If such sale or refinancing occurs dur-
ing the period that begins on the date that such 
mortgage is insured and ends 1 year after such 
date of insurance, the Secretary shall be entitled 
to 100 percent of such equity. 
‘‘(B) If such sale or refinancing occurs dur-
ing the period that begins 1 year after such date