H.R. 3221 is intended to provide needed housing reform.

== Detailed Summary ==

<summary>
Foreclosure PreventionHousing and Economic Recovery Act of 2008 <b>- Title I: FHA Modernization- <b>Division A: Housing Finance Reform</b> - Federal Housing Finance Regulatory Reform Act of 2008 - </b>FHA Modernization Act<b>Title I: Reform of 2008<b>Regulation of Enterprises - Subtitle A: Building American Homeownership - </b>Building American Homeownership ActImprovement of 2008Safety and Soundness Supervision</b> - (Sec. 112)1101) Amends the NationalFederal Housing Enterprises Financial Safety and Soundness Act (NHA)of 1992 to revise mortgage insurance eligibility requirements. Altersreplace the respective formulas to increaseOffice of Federal Housing Enterprise Oversight of the percentagesDepartment of Housing and Urban Development (HUD) with the maximum principal loan obligations applicable to family residences located in:Federal Housing Finance Agency (Agency), headed by a Director with regulatory authority over: (1) the United States; andOffice of Finance; (2) Alaska, Guam, Hawaii, or the Virgin Islands.Federal Home Loan Banks (FHLBs); (3) the Federal National Mortgage Association (Fannie Mae); and (4) the Federal Home Loan Mortgage Corporation (Freddie Mac). (Fannie Mae and Freddie Mac are referred to jointly as the enterprises.)

ProhibitsDivides the maximum principal loan obligation from exceeding 100%Agency into Divisions of the appraised valueEnterprise Regulation, of the property.Enterprise Regulation, and for Housing Mission and Goals, each headed by a Deputy Director.

(Sec. 113) Increases from 3%1103) Establishes the Federal Housing Finance Oversight Board to 3.5% of the appraised value of a property the mortgagor's required cash (or equivalent) investment (downpayment). Prohibits any funds for such cash investment from: (1) the seller or any other person or entity benefiting financially fromadvise the transaction (seller-funded downpayment assistance); or (2) any third party or entity reimbursed by any of such parties.Director.

(Sec. 114) Increases maximum mortgage insurance premiums for certain small family dwellings that are an obligation of1104) Authorizes the Mutual Mortgage Insurance Fund (MMIF). Director to require such regulated entities to submit regular reports of condition, subject to specified administrative penalties for failure to do so..

Removes(Sec. 1105) Establishes within the Agency an Office of Inspector General Insurance Fund (GIF) and condominium mortgages from applicationan Office of premium requirements (leaving only MMIF mortgages subject to such requirements). the Ombudsman.

(Sec. 115) Repeals1106) Requires the termination date for, thus making permanent,Director to establish: (1) assessments to collect from the authority of the Secretary of Housing and Urban Development (HUD)regulated entities in order to insure loansprovide for rehabilitationAgency expenses; (2) standards for management and operations of one-the regulated entities; (3) criteria to four-family structures used primarily for residential purposes.ensure that enterprise portfolio holdings are backed by sufficient capital and consistent with entity mission and safe and sound operations; and (4) risk-based capital and minimum capital requirements to support risks in entity operations and management.

Replaces all references to(Sec. 1111) Prescribes the GIF with references to the MMIF.minimum capital level for each FHLB.

(Sec. 116) InstructsAuthorizes the SecretaryDirector, in order to notifyensure safe and sound operations, to: (1) set higher minimum capital levels for the Secretary of Agriculture (instead ofFHLBs and the Administrator ofother regulated entities; (2) increase the Farmers Home Administration, as under current law) whenever HUD acts to suspendminimum capital level for a regulated entity on a temporary basis, and rescind increases; and (3) establish capital or revoke the approval ofreserve requirements for any mortgagee to participate in the mortgage insurance program.products or activities.

(Sec. 117) Requires any mortgage in a one-family unit in a condominium project insured by HUD1112) Amends the Securities Exchange Act of 1934 to have a blanket mortgage also insured by HUD. subject the regulated entities to its registration and reporting requirements.

Redefines mortgage(Sec. 1113) Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 with respect to include a one-family condominium unitthe prohibition against excessive executive compensation. Authorizes the Director to require an entity to withhold such compensation, or to place it in certain multifamily projects.an escrow account, during the review of its reasonableness and comparability.

(Sec. 118) Revises requirements governing1114) Authorizes the MMIF. Limits commitments for loan guaranteesDirector to those specified in appropriations Acts. Requires an annual independent actuarial study of the Fund, as well as quarterly reports to Congress.prohibit or limit golden parachute and indemnification payments.

Authorizes(Sec. 1115) Directs the SecretaryDirector to adjust premiums and other features of the program as necessaryrequire regulated entities to reduce the risk to the Fund if it is not meeting specified operational goals, includingreport the institutionpurchase or sale of fraud prevention quality control screening.fraudulent loans or financial instruments upon discovery or suspicion.

(Sec. 119) Revises requirements1116) Requires each enterprise to establish an Office of Minority and Women Inclusion responsible for single-family mortgage insurance on Hawaiian home landsimplementing diversity in management, employment, and on Indian reservations to replace the GIFbusiness activities in accordance with criteria established by the MMIF as the obligated Fund.Director.

(Sec. 121) Redefines "home mortgage"1117) Amends the Federal National Mortgage Association Charter Act, the Federal Home Loan Mortgage Corporation Act, and "mortgage" in connection with cooperative housing projectsthe Federal Home Loan Bank Act to include a subordinate mortgage. grant the Secretary of the Treasury temporary authority to purchase obligations of Fannie Mae, Freddie Mac, and the FHLBs.

(Sec. 122)1118) Requires the mortgagorDirector, before issuing any regulations about the exercise of a home equity conversion mortgage (reverse mortgage)additional authority regarding prudential management and operations standards, safe and sound operations of, and capital requirements and portfolio standards, to receive counseling from an independent third party that is neither associated with nor compensated by a party involved in: (1) originating or servicingconsider the mortgage; (2) fundingviews of the loan underlyingChairman of the mortgage; or (3) the saleBoard of annuities, investments, long-term care insurance, or any other typeGovernors of the Federal Reserve System regarding risks posed to the financial or insurance product.system by the regulated entities.

Requires<b>Subtitle B: Improvement of Mission Supervision</b> - (Sec. 1122) Amends the SecretaryFederal Housing Enterprises Financial Safety and Soundness Act of 1992 to establish mandatory qualification standardstransfer to the Director specified HUD responsibilities, including: (1) public access to mortgage information; (2) denial of public access to proprietary information; and (3) monitoring and uniform counseling protocols for counselors for home equity conversion mortgages for elderly homeowners.enforcement of compliance with housing goals.

Repeals(Sec. 1123) Requires the mandatory waiverDirector to require each enterprise to obtain the Director's prior approval of upfront premiums for mortgages that fund long-term care insurance.enterprise products.

Revises funding for consumer education counseling(Sec. 1124) Amends the Federal National Mortgage Association Charter Act and outreach to authorize the SecretaryFederal Home Loan Mortgage Corporation Act to use a portion of the mortgage insurance premiums to fund mandatory counselingset forth increased loan limitations for Fannie Mae and disclosure activities, including counseling for homeowners who elect not to take out a home equity conversion mortgage. Freddie Mac.

AuthorizesExpresses the Secretary to insure a home equity conversion mortgagesense of Congress that will be used to purchase a one- to four-family dwelling unit, one unitsecuritization of which the mortgagor will occupy as a primary residence,mortgages by Fannie Mae and Freddie Mac plays an important role in providing liquidity to provide for any future paymentsdomestic housing markets. Encourages Fannie Mae and Freddie Mac to securitize mortgages acquired under the mortgagor, based upon available equity. Sets a limit upon such principal obligation.increased conforming loan limits established under this Act.

Prohibits mortgage originators from participating or associating with or employing any party that participates in or is associated with any other financial or insurance activity. Requires mortgage originators, in(Sec. 1125) Amends the alternativeFederal Housing Emterprises Financial Safety and Soundness Act of 1992 to such outright prohibition, to demonstrate thatinstruct the mortgagee or other party will maintain safeguards designed to ensure that:Director to: (1) mortgage origination participants have no involvement with nor incentivereport annually to provide the mortgagor with any other financial or insurance product;certain congressional committees on housing issues; and (2) the mortgagor shall not be required, as a conditionconduct monthly surveys of obtaining a mortgage, to purchase any other financial or insurance product.mortgage markets.

Requires all mortgage origination participants in a HUD-insured mortgagethe Director to be HUD-approved.establish and maintain a method of assessing the national average one-family house price for use in adjusting the conforming loan limitations of the enterprises.

Declares that a mortgagor shall not be required by(Sec. 1127) Requires the mortgageeDirector to: (1) require public disclosure of certain information relating to purchase an insurance, annuity, or other additional product as a prerequisite to eligibilitysingle family mortgage data of the enterprises; and (2) establish annual single-family (including refinance) and multifamily special affordable housing goals for a mortgage. mortgage purchases by the regulated entities.

Directs(Sec. 1128) Authorizes the Secretary to: (1) study consumer protections and underwriting standardsDirector, upon petition by an enterprise, to ensure that product purchases are appropriatereduce the level for the consumer; and (2) establish specified limits on the origination fee that may be charged to a mortgagor under a HUD-insured mortgage.goal or subgoal, but only if certain conditions apply.

Directs the Comptroller General(Sec. 1129) Requires each enterprise to study and reportprovide leadership to Congress on the costsmarket in developing loan products and availability of credit under the home equity conversionflexible underwriting guidelines to facilitate a secondary market for mortgages for elderly homeowners program.very low-, low-, and moderate-income families with respect to underserved manufactured housing, affordable housing, and rural housing markets.

(Sec. 123) Amends the Energy Policy Act of 1992 to: (1) modify the maximum permissible costs of cost-effective energy efficiency improvements;1130) Subjects noncompliance with housing goals to cease and (2) prohibit the aggregate numberdesist orders and civil money penalties, as well as submission of mortgages insured under the Energy Efficient Mortgages Pilot Program in any fiscal year from exceeding 5% of the aggregate number of mortgages for one- to four-family HUD-insured residences during the preceding fiscal year.remedial housing plans.

(Sec. 124) Directs1131) Requires the Secretaryenterprises to implement a five-year pilot program to establish, and make available to mortgagees, an automated processset aside specified funds allocations for providing alternative credit rating information for mortgagors under HUD-insured mortgages on one- to four-family residences who have insufficient credit histories to determine their creditworthiness. Permits such alternative credit rating information to include rent, utilities, and insurance payment histories.affordable housing programs.

DirectsInstructs the Comptroller GeneralHUD Secretary to study and reportestablish a Housing Trust Fund to provide grants to Congress on:states to increase: (1) the numbersupply of additional mortgagors served using such automated process;rental housing for extremely low- and very low-income families, including homeless families; and (2) the impact of such processhomeownership for extremely low- and its attendant mortgage insurance upon the safety and soundness of the insurance funds under the NHA.very low-income families.

(Sec. 125) InstructsCreates the Secretary andCapital Magnet Fund within the CommissionerCommunity Development Financial Institutions Fund, to enable the Secretary of the Federal Housing Administration (FHA) to: (1) develop andTreasury to implement a plancompetitive grant program to improve the FHA loss mitigation process;attract private capital for: (1) affordable housing for primarily extremely low-, very low-, and low-income families; and (2) report such planeconomic development activities or community service facilities to implement a concerted strategy to certain congressional committees.stabilize or revitalize low-income or underserved rural areas.

(Sec. 126) Authorizes appropriations for FY2009-FY2013 from negative credit subsidy for: (1) certain mortgage insurance programs1132) Instructs the Secretary of the Treasury to improve technology, processes, program performance, eliminate fraud;make grants to eligible organizations to provide financial education and (2) for appropriate staffing in connection with such mortgage insurance programs. counseling services to prospective homebuyers, including up to five related pilot projects.

Directs the Secretary to study and report to Congress on recommendations from participants in the private residential mortgage lending business and the secondary market for such mortgages on upgrades to processes and technologies for certain mortgage insurance programs so that origination, insurance, and servicing procedures conform with those customarily used by secondary market purchasers of residential mortgage loans. Authorizes appropriations.

(Sec. 127) AmendsDirects the HousingComptroller General to study and Urban Development Act of 1968report to revisecertain congressional committees on the eligibility criterion for home ownership counseling involving inability to make or resume full home loan payments, or correct a home loan delinquency within a reasonable time, due to a reduction in the homeowner's income. Includes as possible causeseffectiveness and impact of such an inability: (1) reduction in income due to divorce or death; or (2) a significant increase in basic expenses due to medical expenses, specified property damage, or large property-tax increase.grant program.

Adds as a new eligibility criterion a HUD determination that(Sec. 1133) Transfers to the homeowner's annual income is no greater than established annual incomeAgency certain HUD employees responsible for establishment and enforcement of low- or moderate-income. specified housing goals.

Repeals<b>Subtitle C: Prompt Corrective Action</b> - (Sec. 1141) Requires the eligibilityDirector to establish specified capital classification criteria that:for the FHLBs. Authorizes the Director to reclassify an enterprise in cases of: (1) the applicant be a first-time homebuyer meeting certain requirements; andrapidly depleting core or total capital; or (2) the mortgage involve a principal obligation exceeding 97% of the property's appraised value, and soon be insured.engagement in unsafe or unsound practices.

(Sec. 128) Requires the Secretary to establish a demonstration program to test the effectiveness1143) Prescribes regulatory actions for undercapitalized regulated entities, including: (1) mandatory monitoring; (2) restriction of alternative formsasset growth; and (3) prior approval of pre-purchase home ownership counseling for eligible home buyers.acquisitions, including new products and activities.

(Sec. 129) Amends federal criminal law1144) Requires the Director to subjecttake specified management improvement actions with respect to criminal penalties knowingly false statements, as well as willful overvaluationsa significantly undercapitalized regulated entity, including: (1) dismissal of land, property,directors or security, made toexecutive officers; (2) requiring the FHA in connection with an insurance agreement or application for insurance oremployment of qualified executive officers and (3) ordering the election of a guarantee, as well as other specified financial transactions.new board.

(Sec. 130) Specifies limitsProhibits any significantly undercapitalized enterprise, without the Director's prior approval, from paying an executive officer any: (1) bonus; or (2) compensation exceeding the officer's average rate for the previous 12 months (excluding bonuses, stock options, and conditions on mortgage insurance premium increases.profit sharing).

(Sec. 133) Imposes a 12-month moratorium upon implementation of specified risk-based premiums designed1145) Revises the requirement that the Director appoint conservators for mortgage lenderscritically undercapitalized enterprises. Authorizes the Director to offer borrowers an FHA-insured product that providesappoint the Agency as conservator or receiver of a rangeregulated entity to reorganize or rehabilitate it or wind up its affairs if certain conditions exist short of mortgage insurance premium pricing, based upon the risk the insurance contract represents. but including critical undercapitalization.

<b>Subtitle B: Manufactured Housing Loan Modernization</b> - FHA Manufactured Housing Loan Modernization Act of 2008 - (Sec. 143) AmendsRequires the NHADirector to exempt a manufactured home or its lot fromappoint the prohibition against FHA insurance exceeding 10% of the total amount ofAgency as receiver for a financial institution's loans, advances of credit,regulated entity if: (1) its assets for 60 consecutive calendar days have been less than its obligations to creditors and purchases.others; or (2) it has not for 60 consecutive calendar days been generally paying its debts as they become due.

(Sec. 144) Declares that: (1) any contract of insurance forAuthorizes a financial institution regarding loans, advancesregulated entity to seek judicial review of credit,the Agency's appointment as conservator or purchases for a manufactured home (or its lot) that is executed by the Secretary under this Act is conclusive evidence of the institution's eligibility for insurance; and (2) the validity of such a contract is incontestable.receiver.

(Sec. 145) IncreasesDelineates the maximum loan limits placed upon insuranceAgency's powers as conservator or receiver, including authority, as receiver, to financial institutions, and requires annual indexing.organize a limited-life regulated entity with respect to an FHLB or an enterprise.

(Sec. 146) Sets forth<b>Subtitle D: Enforcement Actions</b> - (Sec. 1151) Revises the manner in which insurance premiums under a loan, credit advance, or purchase in connection with manufactured home loans shall be paid by the borrower.Director's authority to issue charges against adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized enterprises.

(Sec. 147) Revises requirementsReplaces the current grounds for the mannercharges with grounds consisting of unsafe or unsound practices or violations of law engaged in which HUD shall handle and dispose of property acquired by the Secretary in connection with the payment of insurance.either a regulated entity or an affiliate.

(Sec. 148) DirectsAuthorizes the SecretaryDirector to establish underwriting criteria for loans and advances of credit governingdeem a manufactured home (and/or its lot)regulated entity to ensure that the program for insurance for financial institutions against losses from such loans, advances of credit, and purchases is financially sound.be engaging in an unsafe or unsound practice if it receives a less-than-satisfactory rating in its most recent examination.

(Sec. 149) Applies1152) Grants the prohibition against kickbacksDirector enforcement authority regarding unsafe or unsound practices and unearned fees in the Real Estate Settlement Procedures Actviolations of 1974 (RESPA) to each salelaw, including: (1) imposition of a manufactured home financed with an FHA-insured loantemporary cease and desist orders; (2) suspension or extensionremoval of creditofficers and related services.directors (including those of affiliated parties);and imposition of civil money penalties on affiliated parties.

Directs the Secretary to prohibit acts or practices(Sec. 1156) Establishes criminal penalties for participation in connection with FHA-financed loans or extensions of credit for the purchaseaffairs of a manufactured home that the HUD finds to be unfair, deceptive, or otherwise not inregulated entity without the borrower's interests.Director's prior written approval.

(Sec. 150) Prohibits granting FHA insurance1157) Extends from two to a financial institutionsix years after separation the statue of limitations for any obligation madenotice to finance a manufactured home intended to be located in a manufactured home community pursuant to a lease, unless the lease meets specified leasehold requirements, includingor proceeding against an initial, renewable term of at least three years.entity-affiliated party.

<b>Title II: Mortgage Foreclosure Protections(Sec. 1158) Revises subpoena authority to authorize the Director to apply to the U.S. District Court for Servicemembers</b> - (Sec. 201) Sets forth a temporary increase, through December 31, 2008, in the maximum loan guaranty amountDistrict of Columbia, or the U.S. district court for certain housing loans guaranteed by the Secretaryjudicial district of Veterans' Affairs.the United States in any territory in which such proceeding is being conducted, or where the witness resides or carries on business, for enforcement of any subpoena or subpoena duces tecum. (Currently, the Director may only request the Attorney General to bring a subpoena enforcement action.)

(Sec. 202) Directs the Secretary of Defense to develop<b>Subtitle E: General Provisions</b> - Sets forth conforming and implement a program to advise members of the Armed Forces who are returning from active duty abroad on actions to prevent or forestall mortgage foreclosures, including credit counseling and home mortgage counseling.technical amendments.

(Sec. 203)1162) Amends the Servicemembers Civil ReliefFederal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to increase from 90 days to nine monthsrevise requirements governing the period of: (1) protection against mortgage foreclosure proceedings; and (2)boards of the stayregulated entities. Changes the number of proceedingsboard members for Fannie Mae and adjustmentFreddie Mac from 18 to 13, or any other number the Director determines appropriate. Eliminates presidential appointments of mortgage obligations. Sunsets such provisions December 31, 2010. board members.

Revises<b>Title II: Federal Home Loan Banks</b> - (Sec. 1201) Amends the 6% interest rate limitation duringFederal Housing Enterprises Financial Safety and Soundness Act of 1992 to require the period of military service for debts incurredDirector, before military service whose interest rate did not exceed that percentage. Extendspromulgating regulations or taking any action relating to the 6% limitation for one year beyondFHLBs, to consider differences between the period of military service ifFHLBs and the debt is a mortgage, trust deed, or other security inregulated entities with respect to: (1) cooperative ownership structure; (2) the naturemission of a mortgage.providing liquidity to members; (3) affordable housing and community development mission; (4) capital structure; and (5) joint and several liability.

<b>Title III: Emergency Assistance for(Sec. 1202) Amends the RedevelopmentFederal Home Loan Bank Act to: (1) revise requirements governing membership, terms, and compensation of Abandonedthe board of directors; and Foreclosed Homes</b> - (Sec. 301) Appropriates funds for assistance to state and local governments to redevelop abandoned and foreclosed homes and residential properties. (2) place the FHLBs under Agency oversight.

Sets forth allocation and distribution requirements, including a low- and moderate income requirement.(Sec. 1205) Instructs the Director to establish housing goals regarding mortgage purchases by the FHLBs.

(Sec. 302) Requires each state1206) Makes community development financial institutions eligible to receive not less than 0.5% of emergency assistance funds for such redevelopment.join the FHLB system.

(Sec. 303) Prohibits a state or local governmental unit from using emergency assistance funds1207) Requires the Director to fund any project that seeks to useshare information with FHLBs regarding the powercondition of eminent domain, unless eminent domain is employed only for a public use. Prohibits public use from being construed to include economic development that primarily benefits private entities.another FHLB.

(Sec. 304) Prohibits1208) Amends the distribution of funds made available under this title or title IVFederal Home Loan Bank Act to an organization which:exempt the FHLBs from compliance with certain SEC regulations, including: (1) has been indicted for a violation under federal law relating to an election for federal office; ortransactions in FHLB capital stock; (2) employs individuals who have been indicted for such a violation.the transfer of FHLB securities; and (3) certain reporting requirements.

(Sec. 305) Appropriates specified amounts for emergency assistance and for housing counseling resources. 1209) Authorizes voluntary mergers among the FHLBs.

Allocates $30 million for(Sec. 1210) Permits the Neighborhood Reinvestment Corporation (NRC) to: (1) make grants to HUD-approved counseling intermediaries; or (2) hire attorneys to assist homeowners who have legal issues directly related to foreclosure, delinquency, or short sale.reduction of FHLB districts as a result of voluntary FHLB mergers.

<b>Title IV: Housing Counseling Resources</b> - (Sec. 401) Appropriates funds(Sec. 1211) Increases from $500 million to $1 billion the total asset prerequisite for a community financial institution member. Authorizes the Neighborhood Reinvestment Corporation (NRC) to remain available until September 30, 2008,use of FHLB advances for foreclosure mitigation (namely housing counseling)community development activities.

(Sec. 402)1212) Requires entities approved by the NRC, HUD, or state housing finance entities receiving funds under this ActDirector to: (1) report annually to identifycertain congressional committees on collateral pledged to FHLBs, including an analysis of collateral by type and by district; and coordinate with nonprofit organizations operating national or statewide toll-free foreclosure prevention hotlines.(2) establish a public use database that incorporates census tract level data for mortgages purchased.

<b>Title V: Mortgage Disclosure Improvement Act</b> - Mortgage Disclosure Improvement Act of 2008 - (Sec. 502) Amends(Sec. 1214) Requires the Truth in Lending ActDirector to set forth additional disclosure requirements governing any extensions of credit (not only mortgages) secured by the dwelling ofprovide 30 days advance notice before liquidating or reorganizing an FHLB. Permits an FHLB to contest that determination in a hearing before the consumer. Director.

Requires such disclosures, among other things, to:(Sec. 1215) Instructs the Director to study and report to Congress on: (1) informsecuritization of home mortgage loans purchased from member financial institutions under the consumer that payments will vary based on interest rate changes;Acquired Member Assets programs; and (2) be received by the consumer before paying any feeextent to the creditor or other person in connectionwhich loans and securities used as collateral to support FHLB advances are consistent with the consumer's application for an extension of credit secured by the consumer's dwelling. Allows the consumer to waive the timeliness of such disclosures in emergency circumstances.interagency guidance on nontraditional mortgage products.

Increases(Sec. 1218) Grants the actual damagesDirector refinancing authority for which a creditor is liable for noncompliance with such Act in the case of an individual action relating to a credit transaction not under an open end credit plan that is secured by real property or a dwelling. Replaces the current range of damages from $200 to $2,000 with a range from $400 to $4,000.specified FHLB residential mortgage loans.

(Sec. 504) Amends the Federal Home Loan Bank Act regarding affordable housing program standards to require<b>Title III: Transfer of Functions, Personnel, and Property of OFHEO and the Federal Housing Finance Board's regulations to permit Federal Home Loan Banks to use certain subsidized advances, duringBoard - Subtitle A: OFHEO</b> - (Sec. 1301) Abolishes the two-year period following enactmentHUD Office of this Act,Federal Housing Enterprise Oversight (OFHEO). Transfers OFHEO employees, property and facilities to refinance loans secured by a first mortgage on a primary residence of any family having an income at or below 80% of the median income for the area.<br> Agency.

<b>Title VI: Tax-Related Provisions</b><b>Subtitle B: Federal Housing Finance Board</b> - (Sec. 601) Allows taxpayers1311) Abolishes the Federal Housing Finance Board. Transfers its employees, property and facilities to elect an extended four-year net operating loss carryback period (currently, two years) for losses arising in 2008 or 2009. Suspends in 2008 and 2009 limitations on net operating loss carrybacks for purposes of the alternative minimum tax (AMT). Directs the Secretary of the Treasury to prescribe rules to prevent abuse of such extended carryback provisions. Agency.

(Sec. 602) Allows the use<b>Title IV: HOPE for Homeowners</b> - HOPE for Homeowners Act of qualified mortgage bond proceeds to refinance subprime residential mortgages. Increases to $10 billion in 2008 - (Sec. 1402) Amends the volume capNational Housing Act (NHA) to establish the HOPE for such bonds. Exempts tax-exempt interest from such bonds fromHomeowners Program in the AMT.Federal Housing Administration (FHA).

(Sec. 603) Allows a one-time tax creditAuthorizes the Secretary of upHousing and Urban Development (HUD) under the Program to $7,000 of the purchase price of a single-family principal residenceinsure eligible mortgages that have been refinanced in foreclosure.accordance with specified requirements.

(Sec. 604) Allows taxpayers who do not itemize their tax deductionsInstructs the Board of Directors of the Program to takestudy and report to Congress on the need for an additional standard deductionauction or bulk refinancing mechanism to facilitate refinancing existing residential mortgages at risk for real property taxes. foreclosure into mortgages that are insured under this Act.

(Sec. 605) Allows corporate taxpayers an election to claim accelerated AMT and research and development creditsEstablishes in lieu of bonus depreciation. the FHA the Home Ownership Preservation Entity Fund (HOPE) to implement mortgage insurance obligations.

(Sec. 606) Allows taxpayers who claimed a casualty loss deduction for damage to a personal residence caused by Hurricanes Katrina, Rita, or Wilma and who subsequently received a grant as compensation for such damage to file an amended tax return to disallowLimits the casualty loss deduction without paymentaggregate original principal obligation of any tax penalty. all mortgages insured under this Act to $300 billion.

(Sec. 607) Eliminates the deadline for beginning construction projects inRequires HUD to ensure that securities based upon and backed by a trust or pool of mortgages insured under this Act are available to be guaranteed by the Gulf Opportunity (GO) ZoneGovernment National Mortgage Association (GNMA) for purposestimely payment of bonus depreciation eligibility.principal and interest. Authorizes GNMA to make such guarantees.

(Sec. 608) ExtendsTerminates HUD's authority to businesses and individuals in certain Kansas counties declared by the Presidentinsure such refinanced mortgages as major disaster areas under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (FEMA-1699-DR, as in effect on the date of enactment of this Act) by reason of severe storms and tornados beginning on May 4, 2007, provisions of the Internal Revenue Code allowing: (1) suspension of certain limitations on personal casualty losses; (2) an extension of the period for replacing damaged property without recognizing gain; (3) an employee retention tax credit for affected businesses; (4) 50% bonus depreciation for affected businesses; (5) increased expensing of small business assets; (6) increased expensing of demolition and cleanup costs; (7) extended net operating loss carryback periods for losses attributable to storms and tornadoes and for public utility property disaster losses; (8) relaxed income verification requirements for tenants in low-income rental projects; and (9) penalty-free withdrawals and loans from individual retirement accounts and other tax-exempt pension plans. Designates this provision as an emergency requirement for budgetary purposes. September 30, 2011.

<b>Title VII: Emergency Designation</b> - Designates all provisionsInstructs the Secretary of this Act, for purposes of Senate enforcement, as emergency requirements and necessary to meet emergency needs pursuant the concurrent resolution on the budgetTreasury to issue HOPE Bonds to pay for FY2008. the net federal Program costs.

<b>Title VIII: REIT Investment Diversification and Empowerment</b> - REIT Investment Diversification and Empowerment(Sec. 1403) Amends the Truth in Lending Act of 2008 - <b>Subtitle A: Taxable REIT Subsidiaries</b> - Amends Internal Revenue Code provisions relating to real estate investment trusts (REITs) to increase from 20 to 25% the the maximum value of an REIT's total assets that may be represented by securitiesimpose a fiduciary duty upon servicers of one or more taxable REIT subsidiaries.pooled residential mortgages.

<b>Subtitle B: Dealer Sales</b> - Reduces from fourDeclares that a servicer of pooled residential mortgages: (1) owes any duty to two yearsmaximize the REIT safe harbor holding period for purposesnet present value of the exemption frompooled mortgages in an investment to all investors and parties having a direct or indirect interest in such investment, not to any individual party or group of parties; and (2) shall be deemed to act in the best interests of all such investors and parties if the servicer agrees to or implements a modification or workout plan, including any modification or refinancing undertaken pursuant to the HOPE for Homeowners Act of 2008, for a residential mortgage or a class of residential mortgages that constitute a part or all of the tax on income from prohibited transactionspooled mortgages in such investment, provided that any mortgage so modified meets specified criteria.

Revises(Sec. 1404) Amends the amounts of salesNational Housing Act (NHA) to require FHA appraisers to: (1) be certified by the state in a taxable year that qualify forwhich the prohibited transactions tax safe harborproperty to allow sales 10% of the aggregate bases of all assets in an REITbe appraised is located, or 10% of the aggregate fair market value of all assetsby a nationally recognized professional appraisal organization; and (2) have demonstrated verifiable education in an REIT.FHA appraisal requirements.

<b>Subtitle C: Health Care REITs</b><b>Title V: S.A.F.E. Mortgage Licensing Act</b> - Treats rental payments made bySecure and Fair Enforcement for Mortgage Licensing Act of 2008 or S.A.F.E. Mortgage Licensing Act of 2008 - (Sec. 1501) Encourages the states, through the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, to establish a health care facilityNationwide Mortgage Licensing System and Registry for the residential mortgage industry in order to an REIT as qualifying REIT income. increase uniformity, reduce regulatory burdens, enhance consumer protection, and reduce fraud.

<b>Subtitle D: Effective Dates and Sunset</b> - (Sec. 841)(Sec. 1504) Sets forth as the general effective dateregistration and state-licensing requirements, including one for provisions of this Act taxable years beginning after the enactment of this Act. Establishes a terminating date (sunset)unique identifier, for amendments made by this Title of five years after enactment. engaging in loan origination transactions.

<b>Title IX: Veterans Housing Matters</b> - (Sec. 901) Amends federal law to authorize the Secretary of Veterans' Affairs (Secretary in this title) to furnish improvements and structural alterations as part of home health services to a member of the Armed Forces who is hospitalized or receiving outpatient medical care, services, or treatment(Sec. 1505) Prescribes requirements for a permanent service-connected disability if the member is determined likely to be discharged or released from the Armed Forces for such disability.state licensing and registration applications and issuance, including testing.

(Sec. 902) Authorizes the Secretary to provide assistance1506) Prescribes minimum standards for specially adapted housing to: (1) an active-duty member of the Armed Forces with certain service-connected disabilities; and (2) such members who reside outside the United States. license renewal for state-licensed loan originators, including continuing education

(Sec. 903) Makes individuals with severe burn injuries eligible1507) Requires federal banking agencies jointly, through the Federal Financial Institutions Examination Council, to develop and maintain a system for specially adapted housing assistance.registering with the Nationwide Mortgage Licensing System and Registry (Registry) as registered loan originators any employees of a depository institution, a subsidiary owned and controlled by a depository institution and regulated by a federal banking agency, or an institution regulated by the Farm Credit Administration.

(Sec. 904) Extends through December 31, 2011,1508) Directs the HUD Secretary to establish and maintain a backup licensing and registration system for loan originators operating in a state that either: (1) does not, after a certain period of assistancetime, have a licensing and registering system for individuals residing temporarilyloan originators that meets the requirements of this Act; or (2) does not participate in housing owned by a family member.the Registry.

(Sec. 905) Increases: (1) from $10,000 to $12,0001509) Requires the maximum assistance authorized for specially adapted housing benefits for disabled veterans; and (2) from $50,000HUD Secretary to $60,000establish and from $10,000 to $12,000maintain a nationwide mortgage licensing and registry system upon determining that the aggregate amount of specially adapted housing assistance available to veterans with different specified disabilities. Requires annual increasesRegistry is not in such amounts for inflation. Instructs the Secretary,compliance with respect to such annual increases, to establish a residential home cost-of-construction index to reflect a uniform, national average change in the cost of residential home construction.this Act.

(Sec. 906) Directs1510) Authorizes the Secretary to report to certain congressional committees onfederal banking agencies, the adequacy ofFarm Credit Administration, the authorities available toHUD Secretary, and the SecretaryRegistry to assist eligible disabled individuals in acquiring: (1) suitable housing units with special fixtures or movable facilities required for their disabilities andcharge fees to cover the necessary land; (2) necessary adaptations to their residences becausecosts of their disabilities;maintaining and (3) residences already adapted with special features determinedproviding access to be necessary as a result of such disabilities.information from the Registry.

(Sec. 907) Instructs1511) Directs the SecretaryAttorney General to report to certain congressional committees on specially adapted housing assistanceprovide state officials responsible for individuals who reside in housing owned by a family member on a permanent basis.regulating state-licensed loan originators access to all criminal history information to the extent criminal history background checks are required under the laws of the requesting state.

(Sec. 908) Amends1514) Grants the United States Housing Act of 1937 to exclude from income for purposes of public rental housing programs any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts.HUD Secretary enforcement powers under its backup licensing system.

(Sec. 909) Revises requirements for pay and allowances for the Uniformed Services to entitle members of the Armed Forces who relocate from leased or rental housing by reason of foreclosure to transportation of baggage and household effects under the same conditions and limitations as similarly circumstanced members entitled1515) Grants state licensing agencies authority to transportation of baggageinvestigate and household effects.examine loan originators.

<b>Title X: Clean Energy Tax Stimulus - </b>Clean Energy Tax Stimulus Act of 2008 -<b> Subtitle A: Extension of Clean Energy Production Incentives </b>- (Sec. 1011) Extends through 2009(Sec. 1517) Instructs the tax credit for the production of electricity from renewable resources (e.g., biomass, geothermal energy, landfill gas,HUD Secretary to study and trash combustion). Includes marine and hydrokinetic renewable energy as a renewable resource eligible for such credit. Allows sales of electricity produced from renewable resourcesreport to regulated public utilities. ModifiesCongress on the definitionroot causes of "trash combustion facilities" for purposes of such credit. home loan defaults and foreclosures.

(Sec. 1012) Extends<b>Title VI: Miscellaneous</b> - (Sec. 1601) Requires the energy investment tax credits for solar energy (through 2016)Director to study and for fuel cellreport to Congress on: (1) mortgage guarantee fees charged by the regulated entities; and microturbine property (through 2017). Allows an offset against alternative minimum tax (AMT) liability for energy tax credit amounts. Repeals(2) possible improvements to the dollar per kilowatt limitation for fuel cell property under the energy investment tax credit. Allows public electric utilities to qualifyoverall default risk evaluation used for such credit.residential mortgage loans.

(Sec. 1013) Extends through 20091603) Authorizes the tax creditHUD Secretary, upon request of an owner of certain large multifamily housing projects subject to a contract for residential energy efficient property expenditures. Repeals the $2,000 limitation on the tax creditsection 8 project-based rental assistance and a Rental Assistance Payment contract, to convert such contracts to a contract for solar electric property. Allows an offset againstproject-based rental assistance under section 8 of the AMTUnited States Housing Act of tax credit amounts. 1937 [sic].

(Sec. 1014) Extends through 20091604) Amends the tax credit for investment in clean renewable energy bonds. Increases the national limitation amount for such bonds.Federal Deposit Insurance Act to rename new banks as new depository institutions and bridge banks as bridge depository institutions.

(Sec. 1015) Extends through 2009 deferral provisions relating to1605) Expresses the recognitionsense of gain by certain electric utilities. the Senate that, in implementing this Act, the Senate supports a policy of noninterference regarding local government requirements that the holder of a foreclosed property maintain that property.

<b>Subtitle<b>Division B: ExtensionForeclosure Prevention</b> - Foreclosure Prevention Act of Incentives to Improve Energy Efficiency</b>2008 - (Sec. 1021) Extends through 2009 the tax credit for residential energy efficiency improvements. Allows a tax credit for stoves using the burningDesignates all provisions of biomass fuel (any plant-derived fuel available on a renewable or recurring basis)this Division as emergency requirements necessary to heat a residence. Modifies energy efficiency standards for electric heat pumps, central air conditioners, water heaters, and oil furnaces and hot water boilers for purposes of such credit. meet emergency needs pursuant to FY2008 budget resolution.

(Sec. 1022) Extends through 2010<b>Title I: FHA Modernization Act of 2008</b> - FHA Modernization Act of 2008 - <b>Subtitle A: Building American Homeownership</b> - Building American Homeownership Act of 2008 - (Sec. 2112) Amends the tax creditNational Housing Act to modify requirements for new energy efficient homes.the maximum principal loan obligation: (1) changing one element in the formula from 95% to 100% of the median one-family house price in the area; and (2) increasing other percentages in the formula.

(Sec. 1023) Extends through 2009Limits the tax deduction for energy efficient commercial buildings. Increasesprincipal loan obligation to 100% of the appraised value of the property. Prohibits any increase in the maximum amount of such deduction.a mortgage by the amount of the mortgage insurance premium paid at the time the mortgage is insured.

(Sec. 1024) Extends through 20092113) Amends the tax creditNational Housing Act to revise eligibility criteria for energy efficient appliances (i.e., dishwashers, clothes washers, and refrigerators). Modifies energy efficiency standardscash down payment for Federal Housing Administration (FHA) mortgage insurance. Increases such appliances.payment from the current 3% to 3.5% of the appraised value of the property.

<b>Title XI: SenseRepeals the authority of corporations or other persons to pay the Senatedown payment for: (1) individuals at age 60 or older at the time the mortgage was endorsed for insurance or if the mortgage met the requirement for single-family housing in outlying areas; or (2) covering a single-family home being purchased under the low-income housing demonstration project or a housing unit in connection with a homeownership program under the Homeownership and Opportunity Through HOPE Act.

Requires the Secretary of Housing and Urban Development (HUD), with respect to cash down payments, to consider as cash or its equivalent any amounts borrowed from (currently, gifted by) a family member, provided such funds are paid back (as under current law). Provides that the principal obligation of the mortgage and the obligation secured by such lien may not exceed 100% of the appraised value of the property plus specified related charges and fees (as under current law). Repeals the inclusion of any initial service charges, appraisal, inspection and other fees in connection with the mortgage.

Prohibits cash down payments from consisting, in whole or in part, of funds provided before, during, or after closing of the property sale by: (1) the seller or any other person or entity that financially benefits from the transaction; or (2) any third party or entity that is reimbursed, directly or indirectly, by such parties.

(Sec. 2114) Releases from HUD upfront mortgage insurance premium requirements: (1) certain mortgages secured by one- to four-family dwellings that are obligations of the General Insurance Fund (GIF); (2) insured rehabilitation loans for one- to four-family structures; and (3) condominium mortgages.

Increases from: (1) 2.25% to 3% the maximum upfront mortgage insurance premium HUD may collect on mortgages secured by a one- to four-family dwelling that is an obligation of the Mutual Mortgage Insurance (MMI) Fund; and (2) 2% to 2.75% such premium if, as under current law, the mortgagor is a first-time homebuyer who completes a HUD approved program of counseling with respect to the responsibilities and financial management involved in homeownership.

(Sec. 2115) Replaces the GIF with the MMI Fund with respect to funds received and disbursements made in connection with rehabilitation loans for one- to four-family structures.

(Sec. 2116) Requires the HUD Secretary to notify the Secretary of Agriculture (among others) whenever any discretionary action has been taken to suspend or revoke the approval of any mortgagee to participate in any mortgage insurance program.

(Sec. 2117) Permits the Secretary to insure any mortgage covering a one-family unit in a condominium if, in addition to other specified requirements, the project of which it is part has a certain HUD-insured blanket mortgage.

Includes among insurable one-family units (condominiums) in multifamily projects those in which the dwelling units are manufactured housing units, semidetached or detached.

(Sec. 2118) Revises requirements for the MMI Fund, specifying operating goals among other things. Requires an annual independent actuarial study of the Fund, on the basis of which the Secretary may make either: (1) programmatic adjustments to reduce any risk to the Fund; or (2) appropriate premium adjustments.

Makes insured mortgages used in conjunction with the Homeownership Voucher program, as well as reverse mortgages, obligations of the MMI Fund.

(Sec. 2119) Makes insurance of a Native Hawaiian or Indian reservation mortgage the obligation of the MMI Fund (instead of the GIF).

(Sec. 2121) Redefines &quot;home mortgage&quot; and &quot;mortgage&quot; to include subordinate mortgage, with respect to FHA insurance of cooperative housing projects.

(Sec. 2122) Eliminates the limitation on the aggregate number of home equity conversion mortgages (HECMs, or reverse mortgages) for elderly homeowners insured under the National Housing Act.

Revises insurance eligibility requirements for mortgagees and mortgagors. Requires the HUD Secretary to establish qualification standards and counseling protocols for mortgagor counselors.

Repeals the prohibition against up-front premiums for mortgages to fund long-term care insurance, together with the related authority to refinance existing mortgage and finance closing costs.

Revises funding requirements for the mortgagor counseling program to allow use of a portion of collected mortgage insurance premiums to adequately fund required counseling and disclosure activities, including counseling for those homeowners who elect not to take out a home equity conversion mortgage, provided that the use of such funds is based upon accepted actuarial principles.

Authorizes the Secretary to insure an HECM to: (1) enable an elderly mortgagor to purchase a one- to four-family dwelling unit, one unit of which the mortgagor will occupy as a primary residence; and (2) provide for any future payments to the mortgagor, based on available equity.

Establishes a single national loan limit for HECMs equivalent to the limit for a one-family residence under the Federal Home Loan Mortgage Corporation Act.

Directs: (1) the Secretary to establish specified limits on the origination fee that may be charged to an HECM mortgagor, including a maximum fee of $6,000, adjustable for inflation; and (2) the Comptroller General to study and report to Congress on the costs and availability of credit under the HECMs for elderly homeowners program.

(Sec. 2123) Amends the Energy Policy Act of 1992 to raise the cap on the price of the cost-effective energy efficiency improvements under the energy efficiency mortgages program.

(Sec. 2124) Amends the National Housing Act to require the Secretary to carry out a pilot program to establish, and make available to mortgagees, an automated process for providing alternative credit rating information for mortgagors and prospective mortgagors (under mortgages on one- to four-family residences) without sufficient credit history, for determining their creditworthiness. Allows such alternative credit rating information to include among other information, rent, utilities, and insurance payment histories.

Requires the Comptroller General to identify to Congress: (1) the number of additional mortgagors served using the automatic process; and (2) the impact of such process and the insurance of mortgages pursuant to it on the safety and soundness of FHA mortgage insurance funds of which such mortgages are obligations.

(Sec. 2125) Requires the Secretary and the FHA Commissioner to develop, implement, and report to specified congressional committees a plan to improve the FHA loss mitigation process.

(Sec. 2126) Authorizes appropriations to the Secretary for FY2008-FY2012 from the negative credit subsidy for FHA mortgage insurance programs to increase funding for: (1) technology; (2) processes; (3) program performance; (4) fraud elimination; and (5) appropriate staffing in connection with such programs.

Conditions such authorization for any fiscal year upon certification by the Secretary that mortgage insurance premiums charged during it: (1) are established at the minimum amount sufficient to comply with the requirements for the MMI capital ratio; and (2) ensure the safety and soundness of the other FHA mortgage insurance funds. Requires any such negative credit subsidy to ensure adequately the efficient delivery and availability of FHA mortgage insurance programs.

Requires the Secretary to study and report to Congress on how best to update and upgrade FHA mortgage insurance program processes and technologies so that: (1) the procedures for originating, insuring, and servicing of mortgages conform with those customarily used by secondary market purchasers of residential mortgage loans; and (2) such processes and technology provide appropriate staffing for such programs.

(Sec. 2127) Amends the Housing and Urban Development Act of 1968 to revise post-purchase housing counseling eligibility requirements for homeowners who are, or are expected to be, unable to make payments, correct a home loan delinquency within a reasonable time, or resume full home loan payments due to a reduction in the homeowner's income.

Extends eligibility to such a homeowner that has a significant: (1) reduction in household income due to divorce or death; or (2) increase in his or her basic expenses or those of an immediate family member (including the spouse, child, or parent for whom the homeowner provides substantial care or financial assistance) due to an unexpected or significant increase in medical expenses, a divorce, unexpected and significant damage to the property, the repair of which will not be covered by private or public insurance, or a large property-tax increase.

Adds as an alternative criterion that the annual income of the homeowner is no longer greater than the annual low- or moderate-income.

Repeals the automatic counseling eligibility of first-time home buyers whose mortgage: (1) principal obligation exceeds 97% of the property's appraised value; and (2) will be insured.

(Sec. 2128) Requires the Secretary to establish a demonstration program to test the effectiveness of alternative forms of pre-purchase homeownership counseling for up to 3,000 first-time homebuyers approved for a home loan with a loan-to-value (LTV) ratio between 97% and 98.5% (eligible homebuyers).

Specifies such alternative forms as: (1) telephone counseling; (2) individual in-person counseling; (3) web-based counseling; (4) counseling classes; or (5) any other appropriate form or type of counseling.

Authorizes the Secretary to provide incentives to eligible homebuyers to participate in the demonstration program, including reduction of any FHA insurance premium charges owed.

(Sec. 2129) Amends the federal criminal code to subject an individual to a fine of up to $1 million and imprisonment for up to 30 years, or both, for certain fraudulent actions intended to influence FHA action in any way, including with respect to an insurance agreement or application for insurance or a guarantee.

(Sec. 2130) Prohibits the Secretary, through FY2009, from increasing premiums for the FHA multifamily insurance program above the FY2006 premiums, unless without such increase, insurance of additional mortgages under the program would require the appropriation of new budget authority to cover the costs of such insurance.

Requires the Secretary, at least 30 days before such an increase takes effect, to: (1) notify specified congressional committees of the increase; and (2) publish notice of it in the Federal Register.

Authorizes the Secretary to waive the 30-day notice requirement if waiting 30 days before increasing premiums would cause substantial damage to the solvency of multifamily housing programs.

(Sec. 2133) Prohibits the Secretary, for 12 months beginning on October 1, 2008, from taking any action to implement or carry out risk-based premiums designed for mortgage lenders to offer borrowers an FHA-insured product that provides a range of mortgage insurance premium pricing, based on the risk the insurance contract represents.

Prohibits the Secretary, during the same period, from taking any action to implement or carry out any other risk-based premium product related to the insurance of any mortgage on a single family residence under title II of the National Housing Act, where the premium price for such new product is based in whole or in part on a borrower's Decision Credit Score or any successor score.

<b>Subtitle B: Manufactured Housing Loan Modernization</b> - </b>(Sec. 1101) ExpressesFHA Manufactured Housing Loan Modernization Act of 2008 - (Sec. 2143) Amends the senseNational Housing Act with respect to FHA housing loan insurance for manufactured homes (or lots for such homes).

Exempts such loans from certain financial institution portfolio limits, increasing an allowable claim for loss from 10% to 90% of an institution's total amount of such loans, credit advances, and purchases.

(Sec. 2144) Makes any new contract of insurance for such loans, credit advances, or purchases conclusive evidence of an institution's insurance eligibility. (Thus requires each loan to be insured individually instead of as part of a bundle of such loans.)

(Sec. 2145) Increases loan limits, requiring annual indexing.

(Sec. 2146) Prescribes requirements for payment by a borrower of premium charges for credit insurance, including an upfront premium of up to 2.25% and an annual premium of up to 1%.

(Sec. 2147) Revises requirements for the Senate that,handling and disposal of any real or personal property conveyed to or acquired by the Secretary, and the pursuit of all claims against mortgagors assigned to the Secretary by mortgagees.

(Sec. 2148) Directs the Secretary to: (1) establish underwriting criteria for loans and credit in implementingconnection with a manufactured home, or a lot for one, that will ensure the manufactured housing program's financial soundness; and (2) revise within six months existing criteria to accord with those established under this Act.

(Sec. 2149) Amends the National Housing Act to apply the prohibition against kickbacks and unearned fees in the Real Estate Settlement Procedures Act of 1974 (RESPA) to each sale of a manufactured homes financed with an FHA-insured loan or extension of credit and related services.

Authorizes the Secretary to: (1) determine the manner and extent to which such RESPA prohibition against kickbacks and unearned fees may reasonably be applied to such sale; and (2) grant necessary exemptions to achieve such purpose.

Requires the Secretary, in connection with the purchase of a manufactured home financed with a FHA loan or extension of credit, to prohibit acts or practices in connection with loans or extensions of credit that the Secretary finds to be unfair, deceptive, or otherwise not in the interests of the borrower.

(Sec. 2150) Prescribes certain lease requirements as prerequisites for HUD insurance of a financial institution with respect to a mortgage loan to finance a manufactured home intended to be leased in a manufactured home community.

<b>Title II: Mortgage Foreclosure Protections for Servicemembers</b> - (Sec. 2201) Sets forth a temporary increase in the maximum loan guaranty for certain housing loans guaranteed by the Secretary of Veterans Affairs.

(Sec. 2202) Instructs the Secretary of Defense to develop and implement a program to advise members of the Armed Forces returning from active duty abroad on actions to prevent or forestall mortgage foreclosures.

(Sec. 2203) Amends the Servicemembers Civil Relief Act to lengthen from 90 days to nine months after a servicemember's military service the protection and stay-of-proceedings periods with respect to the sale, foreclosure, or seizure of property for a breach of a mortgage obligation.

<b>Title III: Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes</b> - (Sec. 2301) Authorizes FY2008 appropriations for emergency assistance to states and local governments for the redevelopment of abandoned and foreclosed homes and residential properties.

(Sec. 2302) Requires each state to receive at least 0.5% of funds made available under this title.

(Sec. 2303) Prohibits: (1) the use of such funds for any provisionproject that seeks to use the power of eminent domain, unless it is employed only for a public use; or amendment(2) distribution of such funds to individuals or organizations indicted for violations of federal law.

(Sec. 2305) Makes appropriations. Earmarks specified appropriations for counseling organizations that target services regarding loss mitigation to minority and low-income homeowners or provide such services in neighborhoods with high concentrations of minority and low-income homeowners

Earmarks other appropriations for the Neighborhood Reinvestment Corporation (NRC) to make grants to HUD-approved counseling intermediaries or to hire attorneys to assist homeowners with legal issues directly related to the homeowner's foreclosure, delinquency or short sale.

Prohibits use of such funds to provide, obtain, or arrange on behalf of a homeowner any legal representation involving or for the purposes of civil litigation.

<b>Title IV: Housing Counseling Resources</b> - (Sec. 2401) Authorizes appropriations for FY2008 to the NRC for foreclosure mitigation activities.

(Sec. 2402) Requires entities approved by the NRC or the Secretary and state housing finance entities receiving funds under this Act. To work to identify and coordinate with non-profit organizations operating national or statewide toll-free foreclosure prevention hotlines.

<b>Title V: Mortgage Disclosure Improvement Act</b> - Mortgage Disclosure Improvement Act of 2008 - (Sec. 2502) Amends the Truth in Lending Act to set forth additional disclosure requirements governing any extensions of credit (not only home mortgages) secured by the dwelling of a consumer.

Increases the actual damages for which a creditor is liable for noncompliance with such Act in the case of an individual action relating to a credit transaction not under an open end credit plan that is secured by real property or a dwelling. Replaces the current range of damages from $200 to $2,000 with one from $400 to $4,000.

<b>Title VI: Veterans Housing Matters</b> - (Sec. 2601) Amends veterans' benefits law to authorize home improvements and structural alterations for veterans with a total service-connected disability before discharge or release from the Armed Forces, if the member is likely to be discharged or released for such disability.

(Sec. 2602) Authorizes the Secretary of Veterans Affairs (Secretary in this title) to provide assistance for specially adapted housing to any veterans with service-connected disabilities, including: (1) individuals residing outside the United States, and (2) individuals with severe burn injuries.

(Sec. 2604) Extends through December 31, 2011, the authority to provide assistance for specially adapted housing to individuals with permanent and total service-connected disabilities who are residing temporarily in housing owned by a family member.

(Sec. 2605) Increases the maximum assistance for specially adapted housing benefits for disabled veterans: (1) from $10,000 to $12,000 for adaptations to a residence, including housing owned by a family member where an individual will reside temporarily; and (2) from $50,000 to $60,000 for acquisition of housing with special features. Requires annual adjustments to such maximums according to increases in a cost-of-construction index which the Secretary shall establish.

(Sec. 2606) Requires the Secretary to report to certain congressional committees on: (1) the adequacy of the authorities available to assist eligible disabled individuals in acquiring special features for specially adapted housing; and (2) specially adapted housing assistance for individuals who reside on a permanent basis in housing owned by a family member.

(Sec. 2608) Amends the United States Housing Act of 1937 regarding eligibility for section 8 rental assistance and other low-income housing programs to exclude from consideration as income certain deferred disability benefits received from the Department of Veterans Affairs.

(Sec. 2609) Entitles to payment for transportation of baggage and household effects any members of the armed forces who relocate due to foreclosure of leased or rental housing.

<b>Title VII: Small Public Housing Authorities Paperwork Reduction Act</b> - Small Public Housing Authorities Paperwork Reduction Act - (Sec. 2702) Amends the United States Housing Act of 1937 to exempt a qualified public housing agency (PHA) from the requirement to prepare an annual public agency plan if the agency: (1) administers 500 or fewer public housing dwelling units, or section 8 vouchers; and (2) is not designated as a troubled agency.

Requires an agency to: (1) continue to make an annual civil rights certification and establish, and consult with, one or more resident advisory boards; and (2) conduct a public hearing to discuss changes to agency goals and policies and make the information available to the public at the agency's principal office.

<b>Title VIII: Housing Preservation - Subtitle A: Preservation Under Federal Housing Program</b> - (Sec. 2801) States that the Deficit Reduction Act of 2005 governing FHA asset disposition does not apply to transactions of multifamily real property for which: (1) the HUD Secretary has received written expressions of interest in purchasing the property, before the date of the enactment of such Act, from both a city government and its housing commission; (2) the HUD Secretary acquires title to the property at a foreclosure sale after receipt of such expression of interest; and (3) the city government and housing commission have resolved a previous disagreement regarding property disposition.

(Sec. 2802) Considers the Heritage Apartments in Malden, Massachusetts, eligible low-income housing for purposes of resident eligibility for certain enhanced voucher assistance.

Requires that such residents receive enhanced rental housing vouchers upon the prepayment of the mortgage loan for the property.

Directs the Secretary to approve such prepayment and subsequent transfer of the property without any further condition; but limits occupancy of the property, until the original maturity date of the prepaid mortgage loan, to families with incomes not exceeding 80% of the adjusted median income for the area in which the property is located.

(Sec. 2803) Instructs the HUD Secretary, upon owner request, to transfer certain rental assistance contracts on housing owned or managed by: (1) Community Properties of Ohio Management Services LLC or an affiliate of Ohio Capital Corporation for Housing located in Franklin County, Ohio, to other properties in such County; and (2) The Model Group, Inc., located in Hamilton County, Ohio, to other properties located in Hamilton County, Ohio.

(Sec. 2804) Amends the United States Housing Act of 1937 to repeal: (1) the authorization for any PHA receiving income from nonrental sources to retain and use such amounts without any decrease in the amounts received from the Capital or Operating Fund; and (2) the requirement that any retained nonrental amounts be used only for low-income housing or to benefit the residents assisted by the PHA.

(Sec. 2805) Deems unassisted low and moderate-income residents of Nihonmachi Terrace (San Francisco, California) eligible for Section 8 voucher assistance following refinancing of the existing federally insured mortgage upon such property.

<b>Subtitle B: Coordination of Federal Housing Programs and Tax Incentives for Housing</b> - Housing Tax Credit Coordination Act of 2008 - (Sec. 2832) Directs the Secretary of Housing and Urban Development (HUD) to implement administrative and procedural changes to expedite approval of multifamily housing projects under HUD jurisdiction that meet HUD requirements, including: (1) projects for which assistance is provided by HUD in conjunction with low-income housing tax credits or tax-exempt housing bonds; and (2) existing public and assisted housing projects for which HUD approval is necessary for transactions involving project preservation or rehabilitation.

Requires the Secretary to: (1) consult with the Commissioner of the Internal Revenue Service (IRS) in coordinating multifamily housing projects rules with the low-income housing tax credit and tax-exempt bond financing; (2) seek recommendations regarding rule changes from project owners and other interested parties; and (3) report to the House Committee on Financial Services and the Senate supportsCommittee on Banking, Housing, and Urban Affairs on changes in the multifamily housing project program.

(Sec. 2833) Amends the Housing Act of 1949 to direct the Secretary to facilitate, for rehabilitation or preservation purposes, timely approval of requests to transfer ownership or control of certain multifamily farm housing projects assisted by the Secretary of Agriculture in conjunction with low-income housing tax credits or tax-exempt housing bonds.

(Sec. 2834) Amends the Department of Housing and Urban Development Reform Act of 1989 to exclude mortgage insurance from certain limits on HUD assistance to housing projects.

Amends the National Housing Act to exempt from builders' costs certification requirements certain housing projects assisted with low-income housing tax credits.

Sets forth rules for the treatment of mortgages executed in connection with the construction, rehabilitation, purchase, or refinancing of a policymultifamily housing project for which equity is provided through any low-income housing tax credit.

(Sec. 2835) Amends specified housing laws with respect to: (1) the term for PHA project-based housing assistance payment contracts; (2) housing assistance contracts for dwelling units in cooperative housing and high-rise elevator buildings; (3) waiver of subsidy layering and environmental reviews for housing assistance payments contracts for existing structures; (4) treatment of tax credit projects under voucher program rent reasonableness requirements; (5) delegation to state or local housing agencies of noninterferenceprocessing authority for capital advances in connection with housing for the elderly; (6) contract renewals in connection with a shelter for the homeless; and (7) collection of information on tenants in tax credit projects. Authorizes appropriations for FY2009-FY2013 for collection of such information.

<b>Title IX: Miscellaneous</b> - (Sec. 2901) Amends the McKinney-Vento Homeless Assistance Act to increase funding for homeless assistance and provide for emergency assistance under such Act.

(Sec. 2902) Directs the HUD Secretary, in conjunction with the Secretary of Energy and the Administrator of the Environmental Protection Agency (EPA), to: (1) consult with the residential mortgage industry and states to develop recommendations to eliminate barriers to increasing the availability, use, and purchase of energy efficient mortgages; and (2) report on such recommendations to Congress. Authorizes appropriations.

<b>Division C: Tax-Related Provisions</b> - Housing Assistance Tax Act of 2008 - Amends Internal Revenue Code provisions relating to the low-income housing tax credit and tax-exempt bond rules for financing low-income housing projects.

<b>Title I: Housing Tax Incentives - Subtitle A: Multi-Family Housing - Part I: Low-Income Housing Tax Credit</b> - (Sec. 3001) Increases in 2008 and 2009 the per capita amount of the low-income housing tax credit allocable by each state.

(Sec. 3002) Modifies rules for the low-income housing tax credit to: (1) eliminate the distinction between new and existing buildings for purposes of such credit; (2) establish a minimum credit rate for nonfederally subsidized buildings; (3) set forth criteria for designating a building as federally subsidized and for considering federal assistance in calculating such credit; and (4) revise basis rules for certain state buildings and community service facilities.

(Sec. 3004) Repeals: (1) the prohibition against providing low-income housing tax credits to properties receiving moderate rehabilitation assistance under the Housing Act of 1937; and (2) bond posting requirements relating to the disposition of buildings for which a low-income housing tax credit was claimed.

Requires the Comptroller General, not later than December 31, 2012, to submit to Congress a report on amendments to the low-income housing tax credit made by this Act.

Requires states to consider the energy efficiency of a low-income housing project and its historical nature in allocating credit amounts among such projects.

Extends eligibility for the low-income housing tax credit to students who receive foster care assistance under title IV (Grants to States for Aid and Services to Needy Families with Children and for Child-Welfare Services) of the Social Security Act.

(Sec. 3005) Exempts basic military housing allowances from the income test for programs financed by tax-exempt housing bonds.

<b>Part II: Modifications to Tax-Exempt Housing Bond Rules</b> - (Sec. 3007) Modifies rules pertaining to tax-exempt housing bonds to: (1) permit treatment of certain residential rental project bonds as refunding bonds, regardless of any change in the obligors of such bonds; and (2) allow continued eligibility for low-income housing tax benefits with respect to new tenants, students, and single-room occupancies.

<b>Part III: Reforms Related to the Low-Income Housing Credit and Tax-exempt Housing Bonds</b> - (Sec. 3009) Requires that median gross income levels established for calendar years after 2008 for determining eligibility for low-income housing tax benefits remain at the same level as preceding calendar years.

(Sec. 3010) Waives annual income verification requirements for residents of low-income rental projects whose incomes do not exceed applicable limits.

<b>Subtitle B: Single Family Housing</b> - (Sec. 3011) Allows first-time homebuyers a tax credit for 10% of the purchase price of a principal residence. Limits the dollar amount of such credit to $7,500. Reduces the amount of such credit for taxpayers with adjusted gross incomes over $75,000 ($150,000 for married taxpayers filing jointly). Requires repayment of such credit over a 15-year period, without interest.

(Sec. 3012) Allows individual taxpayers who claim the standard deduction an additional deduction from gross income for state and local governmentreal property taxes.

<b>Subtitle C: General Provisions</b> - (Sec. 3021) Authorizes in 2008 an increase in the volume cap for issuing tax-qualified bonds for certain residential rental projects.

Allows, until December 31, 2010, the use of mortgage bond proceeds to refinance certain subprime residential mortgage loans made between 2002 and 2008.

(Sec. 3022) Exempts from the alternative minimum tax (AMT) tax-exempt interest on certain housing bonds. Allows low-income housing and rehabilitation tax credit amounts to offset AMT liability.

(Sec. 3023) Allows certain municipal bonds that are guaranteed by federal home loan banks to qualify as tax-exempt bonds.

(Sec. 3024) Sets forth an alternative procedure for furnishing a nonforeign affidavit in connection with the sale of a U.S. real property interest (USRPI) and the exemption from withholding of tax requirements. Allow a transferor of a USRPI to furnish a nonforeign affidavit to a qualified substitute (i.e., a person responsible for closing the transaction involving a USRPI or the transferee's agent). Denies an exemption from withholding of tax requirements if the qualified substitute or a transferee has actual knowledge that the holdernonforeign affidavit is false.

(Sec. 3025) Increases from 35 to 50 the percentage of property that may be leased to a foreclosedtax-exempt entity without affecting such property's allowable rehabilitation tax credit.

(Sec. 3026) Extends until January 1, 2010, rules relating to mortgage revenue bonds for residences located in presidentially declared disaster areas.

(Sec. 3027) Authorizes the Secretary of the Treasury to transfer funds for the payment of 2008 recovery rebates.

<b>Title II: Reforms Related to Real Estate Investment Trusts - Subtitle A: Foreign Currency and Other Qualified Activities</b> - (Sec. 3031) Amends the Internal Revenue Code relating to real estate investment trusts (REITs) to treat passive foreign exchange gains attributable to overseas real estate investment as qualifying REIT income. Revises income and asset tests for such REITs for purposes of determining REIT qualifying income.

<b>Subtitle B: Taxable REIT Subsidiaries</b> - (Sec. 3041) Increases from 20 to 25% the the maximum value of a REIT's total assets that may be represented by securities of one or more taxable REIT subsidiaries.

<b>Subtitle C: Dealer Sales</b> - (Sec. 3051) Reduces from four to two years the holding period for certain assets exempted from prohibited transaction rules for REITs.

(Sec. 3052) Revises criteria for imposing an excise tax penalty for prohibited transactions for sales by REITs.

<b>Subtitle D: Health Care REITS</b> - (Sec. 3061) Allows the treatment of rental payments by a health care facility to a taxable REIT subsidiary to be treated as qualifying REIT rental income.

<b>Subtitle E: Effective Dates</b> - (Sec. 3071) Sets forth the effective dates for provisions of this subtitle.

<b>Title III: Revenue Provisions - Subtitle A: General Provisions</b> - (Sec. 3081) Allows corporate taxpayers to elect an increase in credit amounts allowed against the alternative minimum tax (AMT) and for research expenses in lieu of certain bonus depreciation allowances.

(Sec. 3082) Allows taxpayers who claimed a casualty loss deduction for damage to a personal residence caused by Hurricanes Katrina, Rita, or Wilma and who subsequently received a grant as compensation for such damage to file an amended tax return to disallow the casualty loss deduction without payment of any tax penalty. Waives deadlines for starting construction for property maintainin the Gulf Opportunity (GO) Zone eligible for bonus depreciation. Includes Colbert and Dallas Counties in Alabama within the GO Zone for purposes of tax-exempt bond financing.

(Sec. 3083) Increases the statutory limit on the public debt (to $10.615 trillion).

<b>Subtitle B: Revenue Offsets</b> - (Sec. 3091) Requires payment settlement entities (e.g., banks and third party settlement organizations) to report identifying information and the gross amount of reportable payment transactions (i.e., payment card and third party network transactions) to the Internal Revenue Service (IRS).

(Sec. 3092) Limits the exclusion from gross income of gain from the sale of a principal residence by denying an exclusion of the gain that property.is allocable to a nonqualified use of such residence (i.e., use other than as a principal residence).

(Sec. 3093) Delays until 2011 the application of special rules for the worldwide allocation of interest for purposes of computing the limitation on the foreign tax credit.

(Sec. 3094) Amends the Tax Increase Prevention and Reconciliation Act of 2005 to: (1) repeal the adjustment to the estimated tax liability of corporations with at least $1 billion in assets for the third quarter of 2012; and (2) increase the estimated tax payments of such corporations in the third quarter of 2013 by 16.75%.
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== Status of the Legislation ==

<status>
Latest Major Action: 6/20/2008: Considered by Senate.7/29/2008: Presented to President.
</status>

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== Points in Favor ==

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== Points Against ==

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