H. R. 830
IN THE SENATE OF THE UNITED STATES
March 14, 2011
Recevied; read twice and referred to the Committee
on Banking, Housing, and Urban Affairs
To rescind the unobligated funding for the FHA Refinance Program
and to terminate the program.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `FHA Refinance Program Termination Act'.
SEC. 2. RESCISSION OF FUNDING FOR FHA REFINANCE PROGRAM.
Effective on the date of the enactment of this Act, there are rescinded and
permanently canceled all unexpended balances remaining available as of such
date of enactment of the amounts made available under title I of the Emergency
Economic Stabilization Act (Public Law 110-343; 12 U.S.C. 5211 et seq.) that
have been allocated for use under the FHA Refinance Program (pursuant to Mortgagee
Letter 2010-23 of the Secretary of Housing and Urban Development) of the Making
Home Affordable initiative of the Secretary of the Treasury. All such unexpended
balances so rescinded and permanently canceled shall be retained in the general
fund of the Treasury for reducing the debt of the Federal Government.
SEC. 3. TERMINATION OF FHA REFINANCE PROGRAM.
(a) Termination of Mortgagee Letter- The Mortgagee Letter referred to in section
2 shall be void and have no effect and the Secretary of Housing and Urban
Development may not issue any regulation, order, notice, or mortgagee letter
based on or substantially similar to such Mortgagee Letter.
(b) Treatment of Remaining Funds- Notwithstanding subsection (a) of this section,
any amounts made available for use under the Program referred to in section
2 of this Act and expended before the date of the enactment of this Act shall
continue to be governed by the Mortgagee Letter specified in subsection (a)
of this section, and any other provisions of law, regulations, orders, and
notices, applicable to such amounts, as in effect immediately before such
date of enactment.
(c) Termination- After the enactment of this Act, the Secretary of Housing
and Urban Development may not newly insure any mortgage under the FHA Refinance
Program referred to in section 2 of this Act except pursuant to a commitment
to insure made before such enactment, and upon the completion of all activities
with respect to such commitments under the provisions of law, regulations,
orders, notices, and mortgagee letters referred to in subsection (b) of this
section, the Secretary of Housing and Urban Development shall terminate the
FHA Refinance Program referred to in section 2.
(d) Study of Use of Program by Members of the Armed Forces, Veterans, Gold
Star Recipients, and Members and Veterans With Service-connected Disabilities
and Their Families-
(1) STUDY- The Secretary of Housing and Urban Development shall conduct
a study to determine the extent of usage of the FHA Refinance Program referred
to in section 2 by, and the impact of such program on, covered homeowners.
(2) REPORT- Not later than the expiration of the 90-day period beginning
on the date of the enactment of this Act, the Secretary shall submit to
the Congress a report setting forth the results of the study under paragraph
(1) and identifying best practices, with respect to covered homeowners,
that could be applied to the FHA Refinance Program.
(3) COVERED HOMEOWNER- For purposes of this subsection, the term `covered
homeowner' means a homeowner who is--
(A) a member of the Armed Forces of the United States on active duty or
the spouse or parent of such a member;
(B) a veteran, as such term is defined in section 101 of title 38, United
(C) eligible to receive a Gold Star lapel pin under section 1126 of title
10, United States Code, as a widow, parent, or next of kin of a member
of the Armed Forces person who died in a manner described in subsection
(a) of such section; and
(D) such members and veterans of the Armed Forces who have service-connected
injuries, and survivors and dependents of such members and veterans of
the Armed Forces with such injuries.
SEC. 4. PUBLICATION OF MEMBER AVAILABILITY FOR ASSISTANCE.
Not later than 5 days after the date of the enactment of this Act, the Secretary
of Housing and Urban Development shall publish to its Website on the World
Wide Web in a prominent location, large point font, and boldface type the
following statement: `The FHA Short Refinance Program, which was intended
to provide borrowers with refinance opportunities, has been terminated. If
you are having trouble paying your mortgage and need help contacting your
lender or servicer for purposes of negotiating or acquiring a loan modification,
please contact your Member of Congress to assist you in contacting your lender
or servicer for the purpose of negotiating or acquiring a loan modification.'.
Passed the House of Representatives March 10, 2011.
KAREN L. HAAS,