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Subtitle G—Sense of Congress Re-
garding the Importance of Gov-
ernment Sponsored Enterprises 
Reform 
SEC. 9601. SENSE OF CONGRESS REGARDING THE IMPOR-
TANCE OF GOVERNMENT-SPONSORED EN-
TERPRISES REFORM TO ENHANCE THE PRO-
TECTION, LIMITATION, AND REGULATION OF 
THE TERMS OF RESIDENTIAL MORTGAGE 
CREDIT. 
(a) FINDINGS.—The Congress finds as follows: 
(1) The Government-sponsored enterprises, 
Federal National Mortgage Association (Fannie 
Mae) and the Federal Home Loan Mortgage Cor-
poration (Freddie Mac), were chartered by Congress 
to ensure a reliable and affordable supply of mort-
gage funding, but enjoy a dual legal status as pri-
vately owned corporations with Government man-
dated affordable housing goals. 
(2) In 1996, the Department of Housing and 
Urban Development required that 42 percent of 
Fannie Mae’s and Freddie Mac’s mortgage financing 
should go to borrowers with income levels below the 
median for a given area. 
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(3) In 2004, the Department of Housing and 
Urban Development revised those goals, increasing 
them to 56 percent of their overall mortgage pur-
chases by 2008, and additionally mandated that 12 
percent of all mortgage purchases by Fannie Mae 
and Freddie Mac be ‘‘special affordable’’ loans made 
to borrowers with incomes less than 60 percent of an 
area’s median income, a target that ultimately in-
creased to 28 percent for 2008. 
(4) To help fulfill those mandated affordable 
housing goals, in 1995 the Department of Housing 
and Urban Development authorized Fannie Mae and 
Freddie Mac to purchase subprime securities that 
included loans made to low-income borrowers. 
(5) After this authorization to purchase 
subprime securities, subprime and near-prime loans 
increased from 9 percent of securitized mortgages in 
2001 to 40 percent in 2006, while the market share 
of conventional mortgages dropped from 78.8 per-
cent in 2003 to 50.1 percent by 2007 with a cor-
responding increase in subprime and Alt-A loans 
from 10.1 percent to 32.7 percent over the same pe-
riod. 
(6) In 2004 alone, Fannie Mae and Freddie 
Mac purchased $175,000,000,000 in subprime mort-
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gage securities, which accounted for 44 percent of 
the market that year, and from 2005 through 2007, 
Fannie Mae and Freddie Mac purchased approxi-
mately $1,000,000,000,000 in subprime and Alt-A 
loans, while Fannie Mae’s acquisitions of mortgages 
with less than 10 percent down payments almost tri-
pled. 
(7) According to data from the Federal Hous-
ing Finance Agency (FHFA) for the fourth quarter 
of 2008, Fannie Mae and Freddie Mac own or guar-
antee 75 percent of all newly originated mortgages, 
and Fannie Mae and Freddie Mac currently own 
13.3 percent of outstanding mortgage debt in the 
United States and have issued mortgage-backed se-
curities for 31.0 percent of the residential debt mar-
ket, a combined total of 44.3 percent of outstanding 
mortgage debt in the United States. 
(8) On September 7, 2008, the FHFA placed 
Fannie Mae and Freddie Mac into conservatorship, 
with the Treasury Department subsequently agree-
ing to purchase at least $200,000,000,000 of pre-
ferred stock from each enterprise in exchange for 
warrants for the purchase of 79.9 percent of each 
enterprise’s common stock. 
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(9) The conservatorship for Fannie Mae and 
Freddie Mac has potentially exposed taxpayers to 
upwards of $5,300,000,000,000 worth of risk. 
(10) The hybrid public-private status of Fannie 
Mae and Freddie Mac is untenable and must be re-
solved to assure that consumers are offered and re-
ceive residential mortgage loans on terms that rea-
sonably reflect their ability to repay the loans and 
that are understandable and not unfair, deceptive, or 
abusive. 
(b) SENSE OF THE CONGRESS.—It is the sense of 
the Congress that efforts to enhance by the protection, 
limitation, and regulation of the terms of residential mort-
gage credit and the practices related to such credit would 
be incomplete without enactment of meaningful structural 
reforms of Fannie Mae and Freddie Mac. 
Subtitle H—Reports and Data 
Collection 
SEC. 9701. GAO STUDY REPORT ON GOVERNMENT EFFORTS 
TO COMBAT MORTGAGE FORECLOSURE RES-
CUE 
SCAMS 
AND 
LOAN 
MODIFICATION 
FRAUD. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of the current inter-agency 
efforts of the Secretary of the Treasury, the Secretary of 
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Housing and Urban Development, the Attorney General, 
and the Federal Trade Commission to crackdown on mort-
gage foreclosure rescue scams and loan modification fraud 
in order to advise the Congress to the risks and 
vulnerabilities of emerging schemes in the loan modifica-
tion arena. 
(b) REPORT.— 
(1) IN
GENERAL.—The Comptroller General 
shall submit a report to the Congress on the study 
conducted under subsection (a) containing such rec-
ommendations for legislative and administrative ac-
tions as the Comptroller General may determine to 
be appropriate in addition to the recommendations 
required under paragraph (2). 
(2) SPECIFIC TOPICS.—The report made under 
paragraph (1) shall include— 
(A) an evaluation of the effectiveness of 
the inter-agency task force current efforts to 
combat mortgage foreclosure rescue scams and 
loan modification fraud scams; 
(B) specific recommendations on agency or 
legislative action that are essential to properly 
protect homeowners from mortgage foreclosure 
rescue scams and loan modification fraud 
scams; and 
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(C) the adequacy of financial resources 
that the Federal Government is allocating to— 
(i) crackdown on loan modification 
and foreclosure rescue scams; and 
(ii) the education of homeowners 
about fraudulent scams relating to loan 
modification and foreclosure rescues. 
SEC. 9702. REPORTING OF MORTGAGE DATA BY STATE. 
(a) IN GENERAL.—Section 104(a) of the Helping 
Families Save Their Homes Act of 2009 (division A of 
Public Law 111–22) is amended— 
(1) in paragraph (2), by striking ‘‘resulting’’ 
and inserting ‘‘in each State that result’’; 
(2) in paragraph (3), by inserting ‘‘each State 
for’’ after ‘‘modifications in’’; and 
(3) in paragraph (4), by inserting ‘‘in each 
State’’ after ‘‘total number of loans’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
104(b)(1)(A) of such Act is amended by adding at the end 
the following sentence: ‘‘Not later than 60 days after the 
date of the enactment of the Wall Street Reform and Con-
sumer Protection Act of 2009, the Comptroller of the Cur-
rency and the Director of the Office of Thrift Supervision 
shall update such requirements to reflect amendments 
made to this section by such Act.’’. 
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Subtitle I—Multifamily Mortgage 
Resolution 
SEC. 9801. MULTIFAMILY MORTGAGE RESOLUTION PRO-
GRAM. 
(a) ESTABLISHMENT.—The Secretary of Housing 
and Urban Development shall develop a program under 
this subsection to ensure the protection of current and fu-
ture tenants and at-risk multifamily properties, where fea-
sible, based on criteria that may include— 
(1) creating sustainable financing of such prop-
erties, that may take into consideration such factors 
as— 
(A) the rental income generated by such 
properties; and 
(B) the preservation of adequate operating 
reserves; 
(2) maintaining the level of Federal, State, and 
city subsidies in effect as of the date of the enact-
ment of this Act; 
(3) providing funds for rehabilitation; and 
(4) facilitating the transfer of such properties, 
when appropriate and with the agreement of owners, 
to responsible new owners and ensuring affordability 
of such properties. 
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(b) COORDINATION.—The Secretary of Housing and 
Urban Development may, in carrying out the program de-
veloped under this section, coordinate with the Secretary 
of the Treasury, the Federal Deposit Insurance Corpora-
tion, the Board of Governors of the Federal Reserve Sys-
tem, the Federal Housing Finance Agency, and any other 
Federal Government agency that the Secretary considers 
appropriate. 
(c) DEFINITION.—For purposes of this section, the 
term ‘‘multifamily properties’’ means a residential struc-
ture that consists of 5 or more dwelling units. 
Subtitle J—Study of Effect of 
Drywall Presence on Foreclosures 
SEC. 9901. STUDY OF EFFECT OF DRYWALL PRESENCE ON 
FORECLOSURES. 
(a) STUDY.—The Secretary of Housing and Urban 
Development, in consultation with the Secretary of the 
Treasury, shall conduct a study of the effect on residential 
mortgage loan foreclosures of— 
(1) the presence in residential structures sub-
ject to such mortgage loans of drywall that was im-
ported from China during the period beginning with 
2004 and ending at the end of 2007; and 
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(2) the availability of property insurance for 
residential structures in which such drywall is 
present. 
(b) REPORT.—Not later than the expiration of the 
120-day period beginning on the date of the enactment 
of this Act, the Secretary of Housing and Urban Develop-
ment shall submit to the Congress a report on the study 
conducted under subsection (a) containing its findings, 
conclusions, and recommendations. 
Subtitle K—Home Affordable 
Modification Program 
SEC. 9911. HOME AFFORDABLE MODIFICATION PROGRAM 
GUIDELINES. 
(a) NET PRESENT VALUE INPUT DATA.—The Sec-
retary of the Treasury (in this section referred to as the 
‘‘Secretary’’) shall revise the supplemental directives and 
other guidelines for the Home Affordable Modification 
Program of the Making Home Affordable initiative of the 
Secretary of the Treasury, authorized under the Emer-
gency Economic Stabilization Act of 2008 (Public Law 
110–343), to require each mortgage servicer participating 
in such program to provide each borrower under a mort-
gage whose request for a mortgage modification under the 
Program is denied with all borrower-related and mort-
gage-related input data used in any net present value 
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(NPV) analyses performed in connection with the subject 
mortgage. Such input data shall be provided to the bor-
rower at the time of such denial. 
(b) WEB-BASED SITE FOR NPV CALCULATOR AND 
APPLICATION.— 
(1) NPV CALCULATOR.—In carrying out the 
Home Affordable Modification Program, the Sec-
retary shall establish and maintain a site on the 
World Wide Web that provides a calculator for net 
present value analyses of a mortgage, based on the 
Secretary’s methodology for calculating such value, 
that mortgagors can use to enter information re-
garding their own mortgages and that provides a de-
termination after entering such information regard-
ing a mortgage of whether such mortgage would be 
accepted or rejected for modification under the Pro-
gram, using such methodology. 
(2) DISCLOSURE.—Such Web site shall also 
prominently disclose that each mortgage servicer 
participating in such Program may use a method for 
calculating net present value of a mortgage that is 
different than the method used by such calculator. 
(3) APPLICATION.—The Secretary shall make a 
reasonable effort to include on such World Wide 
Web site a method for homeowners to apply for a 
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mortgage modification under the Home Affordable 
Modification Program. 
(c) PUBLIC AVAILABILITY OF NPV METHODOLOGY, 
COMPUTER MODEL, AND VARIABLES.—The Secretary 
shall make publicly available, including by posting on a 
World Wide Web site of the Secretary— 
(1) the Secretary’s methodology and computer 
model, including all formulae used in such computer 
model, used for calculating net present value of a 
mortgage that is used by the calculator established 
pursuant to subsection (b); and 
(2) all variables used in such net present value 
analysis. 
Subtitle L—Making Home 
Affordable Program 
SEC. 9921. PUBLIC AVAILABILITY OF INFORMATION. 
(a) REVISIONS TO PROGRAM GUIDELINES.—The Sec-
retary of the Treasury (in this section referred to as the 
‘‘Secretary’’) shall revise the guidelines for the Home Af-
fordable Modification Program of the Making Home Af-
fordable initiative of the Secretary of the Treasury, au-
thorized under the Emergency Economic Stabilization Act 
of 2008 (Public Law 110–343), to provide that the data 
being collected by the Secretary from each mortgage 
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