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manufacturer that has a value in excess of 
$100,000,000; and 
‘‘(B) any other material change in the fi-
nancial condition of such eligible automobile 
manufacturer. 
‘‘(2) AUTHORITY
OF
THE
PRESIDENT’S
DES-
IGNEE.—During the period in which any loan ex-
tended under this title remains outstanding, the 
President’s designee may— 
‘‘(A) review any asset sale, investment, 
contract, commitment, or other transaction de-
scribed in paragraph (1); and 
‘‘(B) prohibit the eligible automobile man-
ufacturer which received the loan from consum-
mating any such proposed sale, investment, 
contract, commitment, or other transaction, if 
the President’s designee determines that con-
summation of such transaction would be incon-
sistent with or detrimental to the long-term via-
bility of the eligible automobile manufacturer. 
‘‘(3) PROCEDURES.—The President’s designee 
may establish procedures for conducting any review 
under this subsection. 
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‘‘(e) CONSEQUENCES FOR FAILURE TO COMPLY.— 
The terms of any financial assistance made under this title 
shall provide that if— 
‘‘(1) an evaluation by the President’s designee 
under section 404(b) demonstrates that the eligible 
automobile manufacturer which received the finan-
cial assistance has failed to make adequate progress 
towards meeting the restructuring progress assess-
ment measures established by the President’s des-
ignee under section 404(a) with respect to such re-
cipient; 
‘‘(2) after March 31, 2009, the eligible auto-
mobile manufacturer which received the financial as-
sistance fails to submit an acceptable restructuring 
plan under section 405(b), or fails to comply with 
any conditions or requirement applicable under this 
title or applicable fuel efficiency and emissions re-
quirements; or 
‘‘(3) after a restructuring plan of an eligible 
automobile manufacturer has been approved by the 
President’s designee, the auto manufacturer fails to 
make adequate progress in the implementation of 
the plan, as determined by the President’s designee, 
the repayment of any loan may be accelerated to such ear-
lier date or dates as the President’s designee may deter-
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mine and any other financial assistance may be cancelled 
by the President’s designee. 
‘‘SEC. 409. TAXPAYER PROTECTION. 
‘‘(a) WARRANTS.— 
‘‘(1) IN
GENERAL.—The President’s designee 
may not provide any loan under this title, unless the 
President’s designee, or such department or agency 
as is designated for such purpose by the President, 
receives from the eligible automobile manufacturer— 
‘‘(A) in the case of an eligible automobile 
manufacturer, the securities of which are traded 
on a national securities exchange, a warrant 
giving the right to the President’s designee to 
receive nonvoting common stock or preferred 
stock in such eligible automobile manufacturer, 
or voting stock, with respect to which the Presi-
dent’s designee agrees not to exercise voting 
power, whichever the President’s designee de-
termines appropriate; or 
‘‘(B) in the case of an eligible automobile 
manufacturer other than one described in sub-
paragraph (A), a warrant for common or pre-
ferred stock, or an instrument that is the eco-
nomic equivalent (as determined by the Presi-
dent’s designee) of such a warrant in the hold-
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ing company of the eligible automobile manu-
facturer, or any company that controls a major-
ity stake in the eligible automobile manufac-
turer, whichever the President’s designee deter-
mines appropriate. 
‘‘(2) AMOUNT.— 
‘‘(A) IN GENERAL.—The warrants or in-
struments described in paragraph (1) shall have 
a value equal to 20 percent of the aggregate 
amount of all loans provided to the eligible 
automobile manufacturer under this title. Such 
warrants or instruments shall entitle the Gov-
ernment to purchase— 
‘‘(i) nonvoting common stock, up to a 
maximum amount of 20 percent of the 
issued and outstanding common stock of— 
‘‘(I) the eligible automobile man-
ufacturer; or 
‘‘(II) in the case of an eligible 
automobile manufacturer, the securi-
ties of which are not traded on a na-
tional securities exchange, a holding 
company or company that controls a 
majority of the stock thereof (in this 
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section referred to as the ‘warrant 
common’); and 
‘‘(ii) preferred stock having an aggre-
gate liquidation preference equal to 20 per-
cent of such aggregate loan amount, less 
the value of common stock available for 
purchase under the warrant common (in 
this section referred to as the ‘warrant 
preferred’). 
‘‘(B) COMMON STOCK WARRANT PRICE.— 
The exercise price on a warrant or instrument 
described in paragraph (1) shall be— 
‘‘(i) the 15-day trailing average, as of 
the day before the date on which any com-
mitment to provide a loan was entered 
into, of the market price of the common 
stock of the eligible automobile manufac-
turer which received any loan under this 
title; or 
‘‘(ii) in the case of an eligible auto-
mobile manufacturer, the securities of 
which are not traded on a national securi-
ties exchange, the economic equivalent of 
the market price described in clause (i), as 
determined by the President’s designee. 
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‘‘(C) TERMS OF PREFERRED STOCK WAR-
RANT.— 
‘‘(i) IN GENERAL.—The initial exer-
cise price for the preferred stock warrant 
shall be $0.01 per share or such greater 
amount as the corporate charter may re-
quire as the par value per share of the 
warrant preferred. The Government shall 
have the right to immediately exercise the 
warrants. 
‘‘(ii) 
REDEMPTION.—The 
warrant 
preferred may be redeemed at any time 
after exercise of the preferred stock war-
rant at 100 percent of its issue price, plus 
any accrued and unpaid dividends. 
‘‘(iii) OTHER
TERMS
AND
CONDI-
TIONS.—Other terms and conditions of the 
warrant preferred shall be determined by 
the President’s designee to protect the in-
terests of taxpayers. 
‘‘(3) APPLICATION OF OTHER PROVISIONS OF 
LAW.—Except as otherwise provided in this section, 
the requirements for the purchase of warrants under 
section 113(d)(2) of the Emergency Economic Sta-
bilization Act of 2008 (division A of Public Law 
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110–343) shall apply to any warrant or instrument 
described 
in 
paragraph 
(1), 
including 
the 
antidilution protection provisions therein. 
‘‘(b) EXECUTIVE COMPENSATION AND CORPORATE 
GOVERNANCE.— 
‘‘(1) IN GENERAL.—During the period in which 
any financial assistance under this title remains out-
standing, the eligible automobile manufacturer which 
received such assistance shall be subject to— 
‘‘(A) the standards established by the 
President’s designee under paragraph (2); and 
‘‘(B) the provisions of section 162(m)(5) of 
the Internal Revenue Code of 1986, as applica-
ble. 
‘‘(2) STANDARDS REQUIRED.—The President’s 
designee shall require any eligible automobile manu-
facturer which received any financial assistance 
under this title to meet appropriate standards for 
executive compensation and corporate governance. 
‘‘(3) SPECIFIC REQUIREMENTS.—The standards 
established under paragraph (2) shall include— 
‘‘(A) limits on compensation that exclude 
incentives for senior executive officers of an eli-
gible automobile manufacturer which received 
assistance under this title to take unnecessary 
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and excessive risks that threaten the value of 
such manufacturer during the period that the 
loan is outstanding; 
‘‘(B) a provision for the recovery by such 
automobile manufacturer of any bonus or incen-
tive compensation paid to a senior executive of-
ficer based on statements of earnings, gains, or 
other criteria that are later found to be materi-
ally inaccurate; 
‘‘(C) a prohibition on such automobile 
manufacturer making any golden parachute 
payment to a senior executive officer during the 
period that the loan is outstanding; 
‘‘(D) a prohibition on such automobile 
manufacturer paying or accruing any bonus or 
incentive compensation during the period that 
the loan is outstanding to the 25 most highly- 
compensated employees; and 
‘‘(E) a prohibition on any compensation 
plan that would encourage manipulation of such 
automobile manufacturer’s reported earnings to 
enhance the compensation of any of its employ-
ees. 
‘‘(4) DIVESTITURE.—During the period in 
which any financial assistance provided under this 
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title to any eligible automobile manufacturer is out-
standing, the eligible automobile manufacturer may 
not own or lease any private passenger aircraft, or 
have any interest in such aircraft, except that such 
eligible automobile manufacturer shall not be treated 
as being in violation of this provision with respect to 
any aircraft or interest in any aircraft that was 
owned or held by the manufacturer immediately be-
fore receiving such assistance, as long as the recipi-
ent demonstrates to the satisfaction of the Presi-
dent’s designee that all reasonable steps are being 
taken to sell or divest such aircraft or interest. 
‘‘(5) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
‘‘(A) SENIOR EXECUTIVE OFFICER.—The 
term ‘senior executive officer’ means an indi-
vidual who is one of the top five most highly 
paid executives of a public company, whose 
compensation is required to be disclosed pursu-
ant to the Securities Exchange Act of 1934, 
and any regulations issued thereunder, and 
non-public company counterparts. 
‘‘(B) GOLDEN
PARACHUTE
PAYMENT.— 
The term ‘golden parachute payment’ means 
any payment to a senior executive officer for 
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departure from a company for any reason, ex-
cept for payments for services performed or 
benefits accrued. 
‘‘(c) PROHIBITION ON PAYMENT OF DIVIDENDS.— 
Except with respect to obligations owed pursuant to law 
to any nonaffiliated party or any existing contract with 
any nonaffiliated party in effect as of December 2, 2008, 
no dividends or distributions of any kind, or the economic 
equivalent thereof (as determined by the President’s des-
ignee), may be paid by any eligible automobile manufac-
turer which receives financial assistance under this title, 
or any holding company or company that controls a major-
ity stake in the eligible automobile manufacturer, while 
such financial assistance is outstanding. 
‘‘(d) OTHER INTERESTS SUBORDINATED.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
automobile manufacturer which received a loan 
under this title, to the extent permitted by the terms 
of any existing vested legal rights and the Constitu-
tion, any other obligation of such eligible automobile 
manufacturer shall be subordinate to such loan, and 
such loan shall be senior and prior to all obligations, 
liabilities, and debts of the eligible automobile manu-
facturer, and such eligible automobile manufacturer 
shall provide to the Government, all available secu-
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rity and collateral against which the loans under this 
title shall be secured. 
‘‘(2) APPLICABILITY
IN
CERTAIN
CASES.—In 
the case of an eligible automobile manufacturer re-
ferred to in paragraph (1), the securities of which 
are not traded on a national securities exchange, a 
loan under this title to the eligible automobile manu-
facturer shall— 
‘‘(A) be treated as a loan to any holding 
company of, or company that controls a major-
ity stake in, the eligible automobile manufac-
turer; and 
‘‘(B) be senior and prior to all obligations, 
liabilities, and debts of any such holding com-
pany or company that controls a majority stake 
in the eligible automobile manufacturer. 
‘‘(e) ADDITIONAL TAXPAYER PROTECTIONS.— 
‘‘(1) DISCHARGE.—A discharge under title 11, 
United States Code, shall not discharge an eligible 
automobile manufacturer, or any successor in inter-
est thereto, from any debt for financial assistance 
received pursuant to this title. 
‘‘(2) EXEMPTION.—Any financial assistance 
provided to an eligible automobile manufacturer 
under this title shall be exempt from the automatic 
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stay established by section 362 of title 11, United 
States Code. 
‘‘(3) INTERESTED
PARTIES.—Notwithstanding 
any provision of title 11, United States Code, any 
interest in property or equity rights of the United 
States arising from financial assistance provided to 
an eligible automobile manufacturer under this title 
shall remain unaffected by any plan of reorganiza-
tion, except as the United States may agree to in 
writing. 
‘‘SEC. 410. OVERSIGHT AND AUDITS. 
‘‘(a) COMPTROLLER GENERAL OVERSIGHT.— 
‘‘(1) SCOPE OF OVERSIGHT.—The Comptroller 
General of the United States shall conduct ongoing 
oversight of the activities and performance of the 
President’s designee. 
‘‘(2) CONDUCT AND ADMINISTRATION OF OVER-
SIGHT.— 
‘‘(A) GAO PRESENCE.—The President’s 
designee shall provide to the Comptroller Gen-
eral appropriate space and facilities for pur-
poses of this subsection. 
‘‘(B) ACCESS TO RECORDS.—To the extent 
otherwise consistent with law, the Comptroller 
General shall have access, upon request, to any 
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information, data, schedules, books, accounts, 
financial records, reports, files, electronic com-
munications, or other papers, things, or prop-
erty belonging to or in use by the President’s 
designee, at such reasonable time as the Comp-
troller General may request. The Comptroller 
General shall be afforded full facilities for 
verifying transactions with the balances or secu-
rities held by depositaries, fiscal agents, and 
custodians. The Comptroller General may make 
and retain copies of such books, accounts, and 
other records as the Comptroller General deems 
appropriate. 
‘‘(3) REPORTING.—The Comptroller General 
shall submit reports of findings under this section to 
Congress, regularly and not less frequently than 
once every 60 days. The Comptroller General may 
also submit special reports under this subsection, as 
warranted by the findings of its oversight activities. 
‘‘(b) SPECIAL INSPECTOR GENERAL.—It shall be the 
duty of the Special Inspector General established under 
section 121 of Public Law 110–343 to conduct, supervise, 
and coordinate audits and investigations of the President’s 
designee in addition to the duties of the Special Inspector 
General under such section and for such purposes. The 
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Special Inspector General shall also have the duties, re-
sponsibilities, and authorities of inspectors general under 
the Inspector General Act of 1978, including section 6 of 
such Act. In the event that the Office of the Special In-
spector General is terminated, the Inspector General of 
the Department of the Treasury shall assume the respon-
sibilities of the Special Inspector General under this sub-
section. 
‘‘(c) ACCESS
TO
RECORDS
OF
BORROWERS
BY 
GAO.—Notwithstanding any other provision of law, dur-
ing the period in which any financial assistance provided 
under this title is outstanding, the Comptroller General 
of the United States shall have access, upon request, to 
any information, data, schedules, books, accounts, finan-
cial records, reports, files, electronic communications, or 
other papers, things, or property belonging to or in use 
by the eligible automobile manufacturer, and any sub-
sidiary, affiliate, or entity holding an ownership interest 
of 50 percent or more of such eligible automobile manufac-
turer (collectively referred to in this section as ‘related en-
tities’), and to any officer, director, or other agent or rep-
resentative of the eligible automobile manufacturer and its 
related entities, at such reasonable times as the Comp-
troller General may request. The Comptroller General may 
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make and retain copies of such books, accounts, and other 
records as the Comptroller General deems appropriate. 
‘‘SEC. 411. REPORTING AND MONITORING. 
‘‘(a) REPORTING ON CONSUMMATION OF LOANS.— 
The President’s designee shall submit a report to the Con-
gress on each bridge loan made under this title not later 
than 5 days after the date of the consummation of such 
loan. 
‘‘(b) REPORTING ON RESTRUCTURING PROGRESS AS-
SESSMENT MEASURES.—The President’s designee shall 
submit a report to the Congress on the restructuring 
progress assessment measures established for each manu-
facturer under section 404(a) not later than 10 days after 
establishing the restructuring progress assessment meas-
ures. 
‘‘(c) REPORTING
ON
EVALUATIONS.—The Presi-
dent’s designee shall submit a report to the Congress con-
taining the detailed findings and conclusions of the Presi-
dent’s designee in connection with the evaluation of an eli-
gible automobile manufacturer under section 404(b). 
‘‘(d) REPORTING ON CONSEQUENCES FOR FAILURE 
TO COMPLY.—The President’s designee shall submit a re-
port to the Congress on the exercise of a right under sec-
tion 408(e) to accelerate indebtedness of an eligible auto-
mobile manufacturer under this title or to cancel any other 
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financial assistance provided to such eligible automobile 
manufacturer, and the facts and circumstances on which 
such exercise was based, before the end of the 10-day pe-
riod beginning on the date of the exercise of the right. 
‘‘(e) MONITORING.—The President’s designee shall 
monitor the use of loan funds received by eligible auto-
mobile manufacturers under this title, and shall report to 
Congress once every 90 days (beginning 30 days after the 
date of enactment of this title) on the progress of the abil-
ity of the recipient of the loan to continue operations and 
proceed with restructuring processes that restore the fi-
nancial viability of the recipient and promote environ-
mental sustainability. 
‘‘SEC. 412. REPORT TO CONGRESS ON LACK OF PROGRESS 
TOWARD ACHIEVING AN ACCEPTABLE NEGO-
TIATED PLAN. 
‘‘(a) AUTHORITY TO FACILITATE
A NEGOTIATED 
PLAN.—At any such time as the President’s designee de-
termines that action is necessary to avoid disruption to 
the economy or to achieve a negotiated plan, the Presi-
dent’s designee shall submit to Congress a report outlining 
any additional powers and authorities necessary to facili-
tate the completion of a negotiated plan required under 
section 405. 
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‘‘(b) IMPEDIMENTS
TO
ACHIEVING
NEGOTIATED 
PLANS.—If the President’s designee determines, on the 
basis of an evaluation by the President’s designee of the 
progress being made by an eligible automobile manufac-
turer toward meeting the restructuring progress assess-
ment measures established under section 404, that ade-
quate progress is not being made toward achieving a nego-
tiated plan by March 31, 2009, the President’s designee 
shall submit to Congress a report detailing the impedi-
ments to achievement of a negotiated plan by the eligible 
automobile manufacturer. 
‘‘SEC. 413. SUBMISSION OF PLAN TO CONGRESS BY THE 
PRESIDENT’S DESIGNEE. 
‘‘Upon submission of a report pursuant to section 
412(b), the President’s designee shall provide to Congress 
a plan that represents the judgement of the President’s 
designee as to the steps necessary to achieve the long-term 
viability, international competitiveness, and energy effi-
ciency of the eligible automobile manufacturer, consistent 
with the factors set forth in section 405(b), including 
through a negotiated plan, a plan to be implemented by 
legislation, or a reorganization pursuant to chapter 11 of 
title 11, United States Code. 
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‘‘SEC. 414. COORDINATION WITH OTHER LAWS. 
‘‘(a) IN GENERAL.—No provision of this title may be 
construed as altering, affecting, or superseding— 
‘‘(1) the provisions of section 129 of division A 
of the Consolidated Security, Disaster Assistance, 
and Continuing Appropriations Act, 2009, relating 
to funding for the manufacture of advanced tech-
nology vehicles; 
‘‘(2) any existing authority to provide financial 
assistance or liquidity for purposes of the day-to-day 
operations in the ordinary course of business or re-
search and development. 
‘‘(b) ANTITRUST PROVISIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2) 
and (4), the antitrust laws shall not apply to meet-
ings, discussions, or consultations among an eligible 
automobile manufacturer and its interested parties 
for the purpose of achieving a negotiated plan pur-
suant to section 405(a)(2). 
‘‘(2) EXCLUSIONS.—Paragraph (1) shall not 
apply with respect to price-fixing, allocating a mar-
ket between competitors, monopolizing (or attempt-
ing to monopolize) a market, or boycotting. 
‘‘(3) ANTITRUST AGENCY PARTICIPATION.—The 
Attorney General of the United States and the Fed-
eral Trade Commission shall, to the extent prac-
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ticable, receive reasonable advance notice of, and be 
permitted to participate in, each meeting, discussion, 
or consultation described in paragraph (1). 
‘‘(4) PRESERVATION
OF
ENFORCEMENT
AU-
THORITY.—Paragraph (1) shall not be construed to 
preclude the Attorney General of the United States 
or the Federal Trade Commission from bringing an 
enforcement action under the antitrust laws for in-
junctive relief. 
‘‘(5) SUNSET.—Paragraph (1) shall apply only 
with respect to meetings, discussions, or consulta-
tions that occur within the 3-year period beginning 
on the date of the enactment of this title. 
‘‘(6) DEFINITION.—For purposes of this sub-
section, the term ‘antitrust laws’— 
‘‘(A) has the same meaning as in sub-
section (a) of the first section of the Clayton 
Act (15 U.S.C. 12(a)), except that such term 
includes section 5 of the Federal Trade Com-
mission Act (15 U.S.C. 45), to the extent that 
such section 5 applies to unfair methods of 
competition; and 
‘‘(B) includes any provision of State law 
that is similar to the laws referred to in sub-
paragraph (A). 
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‘‘SEC. 415. TREATMENT OF RESTRUCTURING FOR PUR-
POSES OF APPLYING LIMITATIONS ON NET 
OPERATING 
LOSS 
CARRYFORWARDS 
AND 
CERTAIN BUILT-IN LOSSES. 
‘‘Section 382 of the Internal Revenue Code of 1986 
shall not apply in the case of an ownership change result-
ing from this title or pursuant to a restructuring plan ap-
proved under this title. 
‘‘SEC. 416. CLARIFICATION OF AVAILABILITY OF FINANCIAL 
SUPPORT FOR FINANCING ARMS. 
‘‘The authority of the President’s designee to provide 
assistance to any eligible automobile manufacturer in-
cludes the authority to provide support to finance com-
pany affiliates of the manufacturer to ensure that such 
affiliates have the necessary resources to continue to pro-
vide needed credit, including through dealer and other fi-
nancing of consumer and business auto and other vehicle 
loans and dealer floor plan loans.’’. 
TITLE IV—CLARIFICATION OF 
AUTHORITY 
SEC. 401. CONSUMER LOANS. 
Title I of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5211 et seq.) is amended by adding 
at the end the following new section: 
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‘‘SEC. 137. CLARIFICATION OF AUTHORITY REGARDING 
CONSUMER LOANS. 
‘‘The authority of the Secretary to take any action 
under this title includes the authority to establish or sup-
port facilities to support the availability of consumer 
loans, including loans for autos and other vehicles and stu-
dent loans, including through purchase of asset-backed se-
curities, directly or through the Board or any Federal re-
serve bank. In determining which classes of consumer 
loans to support, the Secretary may consider the applica-
ble regulatory structure and level of consumer protection 
afforded to such loans.’’. 
SEC. 402. MUNICIPAL SECURITIES. 
Section 101 of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5211) is amended by inserting 
after subsection (g) (as added by section 110 of this Act) 
the following new subsection: 
‘‘(h) CLARIFICATION
OF AUTHORITY REGARDING 
MUNICIPAL SECURITIES.— 
‘‘(1) CLARIFICATION.—The authority of the 
Secretary to take any action under this title includes 
the authority to provide support to State and local 
governments, and other issuers of municipal securi-
ties, which are having difficulty accessing appro-
priate financing in the capital markets. Such sup-
port includes the direct purchase of municipal secu-
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rities and providing credit enhancement in connec-
tion with municipal securities whose purchase is fi-
nanced under any facility provided by the Board or 
any Federal reserve bank. 
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘municipal security’ has the mean-
ing given the term ‘State or local bond’ in section 
103(c) of the Internal Revenue Code of 1986 (26 
U.S.C. 103(c)) and the regulations issued there-
under or any other entity eligible to issue bonds the 
interest on which is excludable from gross income 
for Federal income tax purposes.’’. 
SEC. 403. COMMERCIAL REAL ESTATE LOANS. 
Title I of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5211 et seq.) is amended by adding 
after section 137 (as added by section 401 of this title) 
the following new section: 
‘‘SEC. 138. CLARIFICATION OF AUTHORITY REGARDING 
COMMERCIAL REAL ESTATE LOANS. 
‘‘The authority of the Secretary to take any action 
under this title includes the authority to establish or sup-
port facilities to support the availability of commercial real 
estate loans, including loans for multifamily housing, in-
cluding through purchase of asset-backed securities, di-
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(1) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(4) the use of the authority for the purposes 
specified in the amendments made by title IV of the 
TARP Reform and Accountability Act of 2009.’’. 
TITLE 
V—HOPE 
FOR 
HOME-
OWNERS PROGRAM IMPROVE-
MENTS 
SEC. 501. CHANGES TO HOPE FOR HOMEOWNERS PRO-
GRAM. 
Section 257 of the National Housing Act (12 U.S.C. 
1715z–23) is amended— 
(1) in subsection (e)— 
(A) by striking paragraph (1); 
(B) in paragraph (2)(B), by striking ‘‘90 
percent’’ and inserting ‘‘93 percent’’; 
(C) by striking paragraph (7); 
(D) in paragraph (9), by striking ‘‘by pro-
curing’’ and all that follows through ‘‘by any 
other method’’; and 
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(E) by redesignating paragraphs (2), (3), 
(4), (5), (6), (8), (9), (10), and (11) as para-
graphs (1), (2), (3), (4), (5), (6), (7), (8), and 
(9), respectively; 
(2) in subsection (h)(2), by striking ‘‘, or in any 
case in which a mortgagor fails to make the first 
payment on a refinanced eligible mortgage’’; 
(3) by striking subsection (i) and inserting the 
following new subsection: 
‘‘(i) ANNUAL PREMIUMS.— 
‘‘(1) IN GENERAL.—For each refinanced eligible 
mortgage insured under this section, the Secretary 
shall establish and collect an annual premium in an 
amount equal to not less than 0.55 percent of the 
amount of the remaining insured principal balance 
of the mortgage and not more than 0.75 percent of 
such remaining insured principal balance, as deter-
mined according to a schedule established by the 
Board that assigns such annual premiums based 
upon the credit risk of the mortgage. 
‘‘(2) REDUCTION
OR
TERMINATION
DURING 
MORTGAGE TERM.—Notwithstanding paragraph (1), 
the Secretary may provide that the annual premiums 
charged for refinanced eligible mortgages insured 
under this section are reduced over the term of the 
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mortgage or that the collection of such premiums is 
discontinued at some time during the term of the 
mortgage, in a manner that is consistent with poli-
cies for such reduction or discontinuation of annual 
premiums charged for mortgages in accordance with 
section 203(c).’’; 
(4) in subsection (k)— 
(A) by striking the subsection heading and 
inserting ‘‘EXIT FEE’’; 
(B) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘such sale 
or refinancing’’ and inserting ‘‘the mortgage 
being insured under this section’’; and 
(C) by striking paragraph (2); 
(5) in subsection (s)(3)(A)(ii), by striking ‘‘sub-
section (e)(1)(B) and such other’’ and inserting 
‘‘such’’; 
(6) in subsection (v), by inserting after the pe-
riod at the end the following: ‘‘The Board shall con-
form documents, forms, and procedures for mort-
gages insured under this section to those in place for 
mortgages insured under section 203(b) to the max-
imum extent possible consistent with the require-
ments of this section.’’; 
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(7) 
in 
subsection 
(w)(1)(C), 
by 
striking 
‘‘(e)(4)(A)’’ and inserting ‘‘(e)(3)(A)’’; and 
(8) by adding at the end the following new sub-
section: 
‘‘(x) PAYMENT TO EXISTING LOAN SERVICER.—The 
Board may establish a payment to the servicer of the exist-
ing senior mortgage for every loan insured under the 
HOPE for Homeowners Program.’’. 
TITLE VI—HOME BUYER 
STIMULUS 
SEC. 601. HOME BUYER STIMULUS PROGRAM. 
(a) IN GENERAL.—The Secretary of the Treasury (in 
this title referred to as the ‘‘Secretary’’) shall establish 
and implement, within 60 days of the date of the enact-
ment of the TARP Reform and Accountability Act of 
2009, a program to stimulate demand for home purchases 
and reduce unsold inventories of residential properties, by 
providing mechanisms to ensure the availability of afford-
able, below-market interest rates on mortgages made for 
the purchase, by qualified home buyers, of 1- to 4-family 
residential properties. 
(b) IMPLEMENTATION.—The Secretary shall execute 
the program under this section using the authority to pur-
chase obligations and other securities issued by the Fed-
eral National Mortgage Association, the Federal Home 
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Loan Mortgage Corporation, and the Federal Home Loan 
Banks made available by the Housing and Economic Re-
covery Act of 2008 and such other authority as the Sec-
retary may have (other than that provided by title I of 
the Emergency Economic Stabilization Act of 2008) to 
make affordable, below-market interest rates available di-
rectly through portfolio lenders. 
(c) AVAILABILITY OF AFFORDABLE LOANS UNDER 
HOPE FOR HOMEOWNERS PROGRAM.—The Secretary, in 
consultation with the Secretary of Housing and Urban De-
velopment, shall ensure that the affordable, below-market 
interest rates made available through the program under 
this section are made available in connection with mort-
gages made for refinancing eligible mortgages, as such 
term is defined in section 257 of the National Housing 
Act (12 U.S.C. 1715z–23), to be insured under the HOPE 
for Homeowners Program under such section. 
(d) TARGETING FOR HOUSING DISASTER AREAS.— 
(1) IN GENERAL.—In carrying out the program 
under this section, the Secretary shall take into con-
sideration impact of activities under the program on 
housing disaster areas. 
(2) REPORT.—Not later than 60 days after the 
Secretary first has authority to purchase troubled 
assets pursuant to section 115(a)(3) of the Emer-
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