Topic: Domestic Commerce — Consumer Finance
Subject: Housing and community development
Date: 2009-01-13 00:00:00

Family Foreclosure Rescue Corporation Act of 2009 - Amends the Emergency Economic Stabilization Act of 2008 (EESA) to authorize the Secretary of the Treasury to establish: (1) a Family Foreclosure Rescue Corporation (FFRC) to purchase home mortgage loans from any financial institution; and (2) a program to guarantee home mortgages. Establishes a Home Mortgage Insurance Financing Fund within the FFRC and a FFRC Oversight Board. Requires the Secretary, to the extent home mortgages (including those securing loans for multifamily housing) are acquired, to implement a plan that seeks to maximize loan restructuring on a sustainable basis and to minimize foreclosures. Authorizes the use of loan guarantees and other credit enhancements to: (1) facilitate loan modifications; (2) prevent avoidable foreclosures; and (3) provide necessary liquidity to home mortgage markets. Requires the federal property manager (the Federal Housing Finance Agency (FHFA), the Federal Deposit Insurance Corporation (FDIC), or the Federal Reserve Board), to the extent that it holds, owns, or controls mortgages, mortgage backed securities, and other assets secured by residential real estate, to: (1) implement a systematic plan that seeks to maximize assistance for homeowners and minimize foreclosures; (2) use its authority to modify the mortgage loans it holds; and (3) provide incentives to the servicers of other mortgage loans to take advantage of the HOPE for Homeowners Program under the National Housing Act, authorities under this Act, and other available programs to minimize foreclosures. Directs each federal property manager to make available for purchase at a discount, to any state or local government receiving emergency assistance under the Foreclosure Prevention Act of 2008 for the redevelopment of abandoned and foreclosed homes and residential properties, of any residential properties it owns through foreclosure in that state or locality. Directs the Secretary to use authority under this Act in a manner that will minimize any potential long-term negative impact on the taxpayer. Requires the Secretary to make available to the public, in electronic form, specified information on assets acquired under this Act within two business days of purchase, trade, or other disposition. Directs the Comptroller General to undertake ongoing oversight of the activities and performance of the Secretary under this Act, and of any agents and representatives. Subjects actions of the Secretary to judicial review. Allows a Qualified Special Purpose Entity (QSPE) to participate in any program established under this Act by selling, disposing of, or modifying any home mortgage loan from the QSPE's assets without altering its status as a QSPE. Declares that, if a Real Estate Mortgage Investment Conduit (REMIC) sells, modifies or otherwise disposes of a home mortgage loan under any program established under this Act: (1) such sale, modification, or disposition shall not be treated as a prohibited transaction under the Internal Revenue Code; and (2) an interest in the REMIC shall not fail to be treated as a regular interest solely because of such a transaction, and any proceeds of the transaction shall be treated as amounts received under qualified mortgages. Specifies circumstances in which a REMIC shall cease to be one.