S 2008

110th CONGRESS
1st Session

S. 2008

To reform the single family housing loan guarantee program under the Housing Act of 1949.

IN THE SENATE OF THE UNITED STATES

August 3, 2007

Ms. LANDRIEU introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To reform the single family housing loan guarantee program under the Housing Act of 1949.

    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 `Home Ownership Made Easier Act' or the `HOME Act'.

SEC. 2. SINGLE FAMILY HOUSING LOAN GUARANTEE PROGRAM.

    Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--

      (1) by amending paragraph (3) to read as follows:

      `(3) INCOME LIMITS FOR ELIGIBLE BORROWERS- To be eligible to receive a guaranteed loan pursuant to this subsection, the income of a borrower--

        `(A) shall not exceed the current 4-person household limit, as defined by the Secretary, for a borrower living in a 1 to 4 person household;

        `(B) shall not exceed the current 8-person household limit, as defined by the Secretary, for a borrower living in a 5 to 8 person household; and

        `(C) shall not exceed the current household limits for households greater than 8 persons, as defined by the Secretary, for a borrower living in a household of more than 8 persons.';

      (2) in paragraph (4)--

        (A) in subparagraph (A) by inserting `and' after the semicolon;

        (B) by striking subparagraph (B);

        (C) by redesignating subparagraph (C) as subparagraph (B); and

        (D) in subparagraph (B), as so redesignated, by striking the period and inserting the following `having a population of not more than 40,000.';

      (3) in paragraph (8), by striking `1 percent' and inserting `2 percent';

      (4) by amending paragraph (9) to read as follows:

      `(9) REFINANCING-

        `(A) IN GENERAL- Any loan guaranteed under this subsection or any loan not guaranteed under this section, but which is owed by an individual who would qualify as an eligible borrower under paragraph (3) on a residence that would qualify under paragraph (4), may be refinanced or extended for any of the following purposes:

          `(i) To pay off any other loan (including a first or second purchase mortgage) not made or guaranteed under this section.

          `(ii) To repair mechanical or structural deficiencies to the residence of the borrower, provided that such repairs are made under the supervision of an eligible lender, as that term is defined in paragraph (6).

          `(iii) To pay for closing costs as may be authorized by the Secretary, which shall include a discount not to exceed 200 basis points and an origination fee not to exceed 100 basis points. For each 100 basis points of discount, there shall be a minimum corresponding reduction of a 50 basis points in the maximum note rate, as defined by the Secretary, charged to the borrower.

          `(iv) To allow the borrower to consolidate the debts of the borrower up to the greater of $10,000 or 10 percent of the loan amount, provided that such amounts shall be disbursed by the settlement agent at the time of the loan closing.

          `(v) For any other purpose, and under such terms and conditions, as the Secretary shall prescribe.

        `(B) LIMITATION- Any loan described under subparagraph (A) may not be refinanced or extended for an additional amount or term which exceeds the limitations under this subsection.'; and

      (5) by adding at the end the following:

      `(15) ELIGIBILITY NOT DEPENDENT ON QUALIFYING UNDER OTHER HOUSING PROGRAMS- In no event or circumstance shall an otherwise eligible borrower be denied a loan or loan guarantee under this section solely because such borrower is not eligible (or is eligible and has not applied for) assistance under any other loan, housing, housing assistance, or other housing related program administered, in whole or in part, by the Federal Government.'.

SEC. 3. INCOME ADJUSTMENTS FOR MINORS, STUDENTS, AND PERSONS WITH DISABILITIES.

    Section 501(b)(5)(A) of the Housing Act of 1949 (42 U.S.C. 1472(b)(5)(A)) is amended by inserting before the period the following: `, except that for purposes of this title the mandatory exclusion amount for minors, students, and persons with disabilities under the definition of adjusted income shall be $2,400'.

END