Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Responsible Homeowner Refinancing
Act of 2012''.

SEC. 2. DEFINITIONS.

In this Act--
(1) the term ''current borrower'' means a mortgagor who is
current on the subject mortgage at the time of the refinancing,
and has had no late payments in the preceding 6 months and not
more than 1 late payment in the preceding 12 months;
(2) the term ''eligible mortgage'' means any mortgage
that--
(A) is an existing first mortgage that was made for
purchase of, or refinancing of another first mortgage
on, a 1- to 4-family dwelling, including a condominium
or a share in a cooperative ownership housing
association, on or before May 31, 2010;
(B) is owned or guaranteed by an enterprise;
(C) with respect to which, the mortgagor is a
current borrower; and
(D) includes existing first mortgages with a loan-
to-value ratio of less than 80 percent.
(3) the term ''enterprise'' means the Federal National
Mortgage Association and the Federal Home Loan Mortgage
Corporation;
(4) the terms ''FHFA'' and ''Director'' mean the Federal
Housing Finance Agency and the Director thereof, respectively;
(5) the terms ''Home Affordable Refinance Program'' and
''Program'' mean the Home Affordable Refinance Program,
administered by the FHFA and the enterprises as part of the
Making Home Affordable initiative announced on March 4, 2009;
(6) the term--
(A) ''LTV'' means loan-to-value, or the ratio of
the amount of the primary mortgage on a property to the
value of that property; and
(B) ''CLTV'' means combined loan-to-value, or the
ratio of all mortgage debt on a property to the value
of the property;
(7) the term ''junior lien'' means a mortgage on the same
property that is--
(A) used as collateral for the eligible mortgage;
and
(B) in a subordinate position in terms of priority
and recording status;
(8) the term ''same servicer'' means a lender that is
providing refinancing for a borrower whose loan they already
service;
(9) the term ''qualified lender'' means a lender who is
eligible to make refinancing loans under the Program;
(10) the terms ''guarantee fee'' has the same meanings as
in section 1327(a) of the Housing and Community Development Act
of 1992 (12 U.S.C. 4547(a)); and
(11) the term ''average fees'' means the average
contractual fee rate of single-family guaranty arrangements by
an enterprise entered into during 2012, plus the recognition of
any up-front cash payments over an estimated average life,
expressed in terms of basis points, such definition to be
interpreted in a manner consistent with the annual report on
guarantee fees by the FHFA.

SEC. 3. STREAMLINED REFINANCING CRITERIA.

(a) In General.--In carrying out the Home Affordable Refinance
Program, each enterprise shall adopt and adhere to the criteria
established under this section.
(b) Borrower Eligibility.--The enterprises shall include as
eligible borrowers in the Home Affordable Refinance Program all current
borrowers who have an eligible mortgage and meet those underwriting
requirements for eligibility for same servicer refinancing in the
Program as of March 1, 2012, except that the enterprises may not
disqualify or impose varying rules within the Program for borrowers
based on LTV, CLTV, employment status or income.
(c) Representations and Warranties.--The enterprises shall not
require of any lender providing a loan under the Program any
representations or warranties for such a loan--
(1) for the value, marketability, condition, or property
type, as evidenced by the appraisal or alternative valuation
methods, if that lender complies with the enterprises' required
methods and standards for ordering an appraisal under the
Program; or
(2) that are not required of same servicers under the
Program as of March 1, 2012, whether that loan is manually
underwritten or underwritten through an automated system,
except that, under no circumstances shall greater
representations and warranties be required for a loan that is
manually underwritten than for one that is underwritten through
an automated system.
(d) Prohibition on Up-Front Fees.--In carrying out the Program, the
enterprises may not charge the qualified lender any loan level price
adjustment, post settlement delivery fee, adverse delivery charge, or
other similar up-front fee.
(e) Appraisals.--The enterprises shall develop and allow
alternative streamlined methods to determine the value of the property
for which refinancing is sought through the Program that eliminate the
costs to the borrower and lender associated with such determination.
Until such time as such method is developed, and when the existing
automated valuation models of the enterprises are unable to determine
the value of a certain property for which refinancing is sought through
the Program, the enterprises shall bear the costs associated with the
use of manual appraisal of that property, without passing on such costs
to the borrower or lender.
(f) Resubordination of Junior Liens.--
(1) In general.--If the holder of a junior lien fails to
resubordinate that lien, thereby preventing the refinancing of
the eligible mortgage through the Program into a new mortgage,
the holder of the junior lien shall be liable for an amount
equal to 5.0 percent of the first mortgage balance, unless--
(A) the new mortgage would increase the first
mortgage payment;
(B) the new mortgage would increase the loan
balance by more than 3 percent or $3,000, whichever is
greater;
(C) the new mortgage is an adjustable rate mortgage
or has a term exceeding 30 years;
(D) the borrower has violated the due-on-sale
clause at any time;
(E) the subordination would put the junior lien at
risk of a bankruptcy strip down;
(F) the lender seeking to originate the loan
through the Program has a lien on the original loan, or
services the loan for a party, that is already in a
junior position to the junior lien holder; or
(G) the underlying trust documents for the junior
lien, as of March 1, 2012, explicitly prohibit the
servicer of the junior lien from impacting the security
interest of the notes through resubordination.
(2) FHFA authority.--At the discretion of the Director, the
FHFA may add to the list of exceptions in paragraph (1)
additional exceptions when the Director determines a refinance
would significantly increase the risk faced by the junior lien
holder, and in which a failure to resubordinate would be
justifiable.
(3) Actions by enterprises.--Upon submission to an
enterprise of documentation by a qualified lender or eligible
borrower that the holder of a junior lien has failed to
resubordinate its lien, thereby preventing the refinancing of
the eligible mortgage through the Program into a new mortgage,
the enterprise shall charge the junior lien holder and recoup
the fine described in paragraph (1), as applicable, and shall
apply the payment to the balance of the borrower's first
mortgage.
(4) Limitations on liabilities.--A junior lien holder shall
not be liable to the enterprise or to anyone else for the fine
described in paragraph (1) if, within 30 days of the
enterprise's written determination that a junior lien holder
has failed to resubordinate its lien for any reason other than
those specified in paragraph (1), that lien holder agrees to
resubordinate its lien in compliance with this section.
(g) Carryover of Mortgage Insurance.--
(1) In general.--If a mortgage insurer backing an eligible
mortgage fails to transfer coverage to a new mortgage
refinanced through the Program or places additional
underwriting criteria or fees beyond those required by the
Program as a condition of transfer approval, thereby preventing
the refinancing of the eligible mortgage through the Program,
that mortgage insurer shall be liable for an amount equal to
5.0 percent of the first mortgage balance, unless the new
mortgage--
(A) would increase the first mortgage payment;
(B) would increase the loan balance by more than 3
percent or $3,000, whichever is greater;
(C) is an adjustable rate mortgage or has a term
exceeding 30 years; or
(D) the borrower has violated the due-on-sale
clause at any time.
(2) Actions by enterprises.--Upon submission to an
enterprise of documentation by a qualified lender or eligible
borrower that the mortgage insurer has prevented the refinance
of an eligible mortgage through the Program into a new
mortgage, the enterprise shall charge the mortgage insurer and
recoup the fine described in paragraph (1), as applicable, and
shall apply the payment to the balance of the borrower's first
mortgage.
(3) Limitation on liability.--A mortgage insurer shall not
be liable to the enterprise or to anyone else for the fine
described in paragraph (1) if, within 30 days of the
enterprise's written determination that a mortgage insurer has
prevented the refinancing of an eligible mortgage for any
reason other than those specified in paragraph (1), that
mortgage insurer agrees to transfer coverage in compliance with
this section.
(h) Limitation.--Notwithstanding any other provision of law, the
enterprises shall not be prevented from purchasing or guaranteeing a
mortgage resulting from the refinancing of an eligible mortgage
pursuant to this section and subject to all other provisions of this
section.
(i) Guarantee Fees.--
(1) In general.--
(A) Average fee.--On each mortgage refinanced under
the Program in accordance with this section, the
enterprises shall set the average fee required under
this Act, as determined by the Director in an amount
not less than the average fees imposed in 2012 for such
guarantees. The Director shall prohibit an enterprise
from offsetting the cost of the fee to the mortgage
originators, borrowers, and investors by decreasing
other charges, fees, or premiums, or in any other
manner.
(B) Authority to limit offer of guarantee.--The
Director shall prohibit an enterprise from consummating
any offer for a guarantee to a lender for mortgage-
backed securities, if the guarantee is inconsistent
with the requirements of this section.
(2) Information collection and analysis.--The Director
shall require each enterprise to provide to the Director, as
part of its annual report submitted to Congress, for loans
refinanced under the Program--
(A) a description of changes made to up-front fees
and annual fees as part of the guarantee fees
negotiated with lenders; and
(B) an assessment of how the changes in the
guarantee fees described in subparagraph (A) met the
requirements of paragraph (1).
(j) Regulations.--Not later than 30 days after the date of
enactment of this Act, the Director shall issue any regulations or
guidance necessary to carry out the changes to the Program established
under this section, which regulations or guidance shall be put into
effect not later than 90 days after the date of enactment of this Act.
(k) Termination.--The requirements of this section shall expire
concurrent with the expiration of the Program.

SEC. 4. INFORMATION FOR BORROWERS ON ELIGIBILITY FOR THE PROGRAM.

(a) Notice to Borrowers.--Not later than 60 days after the date of
enactment of this Act, the enterprises shall notify all borrowers with
a mortgage owned or guaranteed by an enterprise about the Program and
its eligibility criteria, and inform borrowers of the website required
under subsection (b).
(b) Public Access to Eligibility Criteria.--The Director shall
establish, and the enterprises shall display a link on their homepages
to, a single website where borrowers may--
(1) determine their potential eligibility for participation
in the Program;
(2) see a complete list of and links to participating
lenders;
(3) use a mortgage refinance calculator to calculate
potential payment savings based on different interest rates;
and
(4) obtain tips on refinancing their loan.

SEC. 5. CONSISTENT REFINANCING GUIDELINES REQUIRED.

Not later than 60 days after the date of enactment of this Act, the
FHFA shall issue guidance to require the enterprises to make their
refinancing guidelines consistent to ease lender compliance
requirements, and in particular with respect to loans with less than an
80 percent loan-to-value ratio and closing cost policies of the
enterprises, which regulations or guidance shall be put into effect not
later than 90 days after the date of enactment of this Act.

SEC. 6. PROGRESS REPORTS.

The Director shall provide to Congress monthly reports on the
progress of the Program, and each enterprise shall include and
disclose, as part of its filings with the Securities and Exchange
Commission on Form 10-Q, Form 10-K, or any successors thereto, detailed
information on each enterprise's progress and results in implementing
and executing the Program.
Output:
Responsible Homeowners Refinancing Act of 2012 - Requires the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (government sponsored enterprises or GSEs), in carrying out the Home Affordable Refinance Program, to adopt specified criteria pertaining to: (1) borrower eligibility, (2) representations and warranties, (3) prohibition on up-front fees, (4) alternative streamlined methods to appraise the value of a property, (5) an administrative penalty for lien-holder refusal to resubordinate junior liens, (6) carryover of mortgage insurance, and (7) guarantee fees.

Requires the GSE to notify all borrowers with a mortgage owned or guaranteed by a GSE about the Program and its eligibility criteria, and inform borrowers of the website required below.

Directs the Director of the Federal Housing Finance Agency (FHFA) to establish a single website where borrowers may: (1) determine their potential eligibility for participation in the Program, (2) see a complete list of and links to participating lenders, (3) use a mortgage refinance calculator to calculate potential payment savings based on different interest rates, and (4) obtain tips on refinancing their loan.

Directs the FHFA to issue guidelines to require the GSEs to make their refinancing guidelines consistent to ease lender compliance requirements, particularly with respect to: (1) loans with less than an 80% loan-to-value ratio, and (2) GSE closing cost policies.