I 
111TH CONGRESS 
1ST SESSION H. R. 2034 
To permit refinancing of certain loans under the Rural Housing Service 
program for guaranteed loans for rural housing, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 22, 2009 
Mr. CLAY (for himself, Mr. FRANK of Massachusetts, Ms. WATERS, Mr. 
HINOJOSA, Mr. GUTIERREZ, Mr. MEEKS of New York, and Mr. HODES) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To permit refinancing of certain loans under the Rural Hous-
ing Service program for guaranteed loans for rural hous-
ing, and for other purposes. 
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 ‘‘Rural Homeowners 
Protection Act of 2009’’. 
SEC. 2. SINGLE FAMILY HOUSING LOAN GUARANTEE PRO-
GRAM. 
Subsection (h) of section 502 of the Housing Act of 
1949 (42 U.S.C. 1472(h)) is amended— 
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(1) in paragraph (5)(A), by striking ‘‘paragraph 
(13)’’ and inserting ‘‘paragraph (15)’’; 
(2) in paragraph (8), by striking ‘‘1 percent’’ 
and inserting ‘‘2 percent’’; 
(3) in paragraph (9), by striking ‘‘REFI-
NANCING’’ and inserting ‘‘MODIFICATION OF GUAR-
ANTEED LOANS’’; 
(4) in paragraph (14)— 
(A) by striking ‘‘GUARANTEES FOR REFI-
NANCING LOANS’’ and inserting ‘‘REFINANCING 
OF
LOANS
MADE
OR
GUARANTEED
BY
SEC-
RETARY’’; and 
(B) in subparagraph (E)— 
(i) by striking ‘‘(10)’’ and inserting 
‘‘(12)’’; and 
(ii) by striking ‘‘(13)’’ and inserting 
‘‘(9) or of paragraphs (11) through (14)’’; 
(5) by redesignating paragraphs (10), (11), 
(12), (13), and (14) as paragraphs (12), (13), (14), 
(15), and (10), respectively; 
(6) by transferring and inserting paragraph 
(10), as so redesignated by paragraph (5) of this 
subsection, after paragraph (9); and 
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(7) by inserting after paragraph (10), as so re-
designated and transferred by paragraphs (5) and 
(6) of this subsection, the following new paragraph: 
‘‘(11) REFINANCING OF LOANS MADE BY PRI-
VATE SECTOR LENDERS.— 
‘‘(A) AUTHORITY.—The Secretary may, in 
accordance with this paragraph, guarantee a 
loan made to refinance a loan made by a pri-
vate lender to an individual to acquire or con-
struct a single-family residence. 
‘‘(B) ELIGIBILITY.—Except as provided in 
subparagraph (C), all requirements of this sub-
section shall apply to loans guaranteed and loan 
guarantees made under this paragraph. 
‘‘(C) GUARANTEE FEE.—Notwithstanding 
paragraph (8), the Secretary shall charge a 
guarantee fee with respect to loans guaranteed 
under this paragraph at levels necessary, but no 
higher than needed, to allow such class of loans 
to be guaranteed without resulting in a need for 
an appropriation for a credit subsidy.’’. 
Æ 
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