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

== Detailed Summary ==

<summary>
ForeclosureAmerican Housing Rescue and Foreclosure Prevention Act of 2008 <b>- Title- <b>Title I: FHA ModernizationHousing Stabilization and Homeownership Retention</b> - FHA Housing Stabilization and Homeownership Retention Act of 2008 - </b>FHA Modernization Act of 2008<b> - Subtitle<b>Subtitle A: Building American Homeownership - </b>Building American Homeownership Act of 2008Retention</b> - (Sec. 112) Amends the National Housing Act (NHA) to revise mortgage insurance eligibility requirements. Alterscreate the respective formulas to increase the percentages of the maximum principal loan obligations applicable to family residences located in: (1) the United States;Refinance Program Oversight Board, which shall establish and (2) Alaska, Guam, Hawaii, or the Virgin Islands.oversee a program for insuring homeownership retention mortgages.

ProhibitsInstructs the maximum principal loan obligation from exceeding 100%Secretary of Housing and Urban Development (HUD) to insure any homeownership retention mortgage covering a one- to four-family residence made to pay or prepay outstanding obligations under an existing mortgage on the appraised value of the property.residence.

(Sec. 113) Increases from 3% to 3.5% ofSets forth mortgagor eligibility criteria, including mortgagor certification that: (1) the appraised value of a propertyresidence is the only residence in which the mortgagor's required cash (or equivalent) investment (downpayment). Prohibitsmortgagor has any fundspresent ownership interest; (2) the mortgagor has not intentionally defaulted on the existing mortgage, nor knowingly, willfully, and with actual knowledge furnished material information known to be false for such cash investment from: (1) the seller or any other person or entity benefiting financially frompurpose of obtaining the transaction (seller-funded downpayment assistance); or (2) any third party or entity reimbursed by any of such parties.existing mortgage.

(Sec. 114) Increases maximum mortgage insurance premiums for certain small family dwellings that are an obligationRequires waiver or forgiveness of the Mutual Mortgage Insurance Fund (MMIF). all: (1) prepayment penalties; and (2) fees and penalties related to default or delinquency on existing mortgages.

Removes General Insurance Fund (GIF)Sets forth terms for required: (1) reduction of indebtedness under an existing senior mortgage; (2) extinguishment of debt by refinancing; and condominium mortgages from application(3) treatment of premium requirements (leaving only MMIF mortgages subject to such requirements). multiple mortgage liens.

(Sec. 115) RepealsRequires debt service payments due under a mortgage insured under this Act to be substantially reduced from the termination date for, thus making permanent,debt service payments due under the authority of the Secretary of Housing and Urban Development (HUD) to insure loans for rehabilitation of one- to four-family structures used primarily for residential purposes.existing mortgage or mortgages.

Replaces all referencesRequires the mortgage to provide that the GIF with referencesHUD Secretary retain a lien on the residence which shall: (1) be subordinate to the MMIF.mortgage insured under this Act, but senior to all other existing mortgages on it; and (2) secure the repayment.

(Sec. 116) InstructsInstructs the SecretaryOversight Board to notifyprohibit borrowers from granting a new second lien on the Secretary of Agriculture (instead ofmortgaged property during the Administrator offirst five years the Farmers Home Administration, asmortgage is insured under current law) whenever HUD acts to suspend or revoke the approval of any mortgagee to participate in the mortgage insurance program.this Act.

(Sec. 117) Requires any mortgage in a one-family unit in a condominium project insured by HUDRequires the mortgagee to have a blanket mortgage also insured by HUD. document and verify mortgagor income.

RedefinesRequires a mortgage to includeinsured under this Act to: (1) bear interest at a one-family condominium unit in certain multifamily projects.single fixed rate for the entire mortgage term; and (2) involve a principal obligation that does not exceed the limitation that would be allowable for a mortgage insured pursuant to the Economic Stimulus Act of 2008.

(Sec. 118) Revises requirements governingRequires the MMIF. Limits commitments for loan guaranteesOversight Board to thoseestablish specified in appropriations Acts. Requires an annual independent actuarial study of the Fund, as well as quarterly reports to Congress.underwriting standards for mortgages insured under this Act, including a limitation on origination fees.

Authorizes the Secretary to adjust premiums and other featuresSets forth criteria for appraisal independence. Subjects violations of the program as necessarysuch criteria to reduce the risk to the Fund if it is not meeting specified operational goals, including the institution of fraud prevention quality control screening.civil monetary penalties.

(Sec. 119) Revises requirements for single-family mortgage insurance on Hawaiian home lands and on Indian reservations to replaceProhibits the GIF with the MMIF as the obligated Fund.aggregate original principal obligation of all mortgages insured under this Act from exceeding $300 billion.

(Sec. 121) Redefines "home mortgage"Directs: (1) the Oversight Board and "mortgage" in connection with cooperative housing projectsthe HUD Secretary to include a subordinate mortgage.monitor independent quality reviews of designated underwriters; and (2) the Inspector General of HUD to conduct an annual compliance audit of the mortgage insurance program under this Act.

(Sec. 122) RequiresRequires the mortgagor of a home equity conversion mortgage (reverse mortgage)HUD Secretary to receive counseling from an independent third partyensure that is neither associated with nor compensatedsecurities based on and backed by a party involved in: (1) originatingpool or servicingtrust composed of mortgages insured under this Act are available to be guaranteed by the mortgage; (2) funding the loan underlying the mortgage; or (3) the saleGovernment National Mortgage Association (GNMA) for timely payment of annuities, investments, long-term care insurance, or any other type of financial or insurance product.principal and interest.

RequiresMakes the Secretary to establish mandatory qualification standards and uniform counseling protocols for counselors for home equity conversion mortgages for elderly homeowners.insurance of each mortgage under this Act the obligation of the Special Risk Insurance Fund established by this Act.

Repeals the mandatory waiverSets forth a sunset date of upfront premiumstwo years after enactment of this Act for mortgages that fund long-term care insurance.commitments to insure under it.

Revises fundingAuthorizes appropriations for consumer educationFY2008-FY2009, including specified funds earmarked for: (1) counseling for veterans recently returning from active duty in the Armed Forces; and outreach to authorize(2) the Secretary to use a portion of the mortgage insurance premiums to fund mandatory counseling and disclosure activities, including counseling for homeowners who elect not to take out a home equity conversion mortgage.Neighborhood Reinvestment Corporation (NRC).

AuthorizesRepeals the Secretary to insure alimitation on the aggregate number of home equity conversion mortgage that will be used to purchase a one- to four-family dwelling unit, one unit of which the mortgagor will occupy as a primary residence, and to providemortgages for any future payments to the mortgagor, based upon available equity. Sets a limit upon such principal obligation.elderly homeowners insured 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. 113) Directs the alternativeBoard of Governors of the Federal Reserve System to such outright prohibition,study and report to demonstrate thatspecified congressional committees on the mortgageeneed for an auction or other party will maintain safeguards designedbulk refinancing mechanism to ensure that: (1) mortgage origination participants have no involvement with nor incentive to providefacilitate refinancing of existing residential mortgages that are at risk for foreclosure into mortgages insured under the mortgagor with any other financial or insurance product; and (2) the mortgagor shall not be required, as a condition of obtaining a mortgage, to purchase any other financial or insurance product. NHA.

Requires all mortgage origination participants in(Sec. 114) Establishes a HUD-insured mortgage to be HUD-approved.temporary increase in the maximum loan guaranty amount for certain housing loans guaranteed by the Secretary of Veterans Affairs.

Declares that a mortgagor shall not be required by(Sec. 115) Requires the mortgageeSecurities and Exchange Commission (SEC) to purchase an insurance, annuity, or other additional product as a prerequisitestudy and report to eligibility for a mortgage. Congress on: (1) fair value accounting standards applicable to financial institutions with respect to residential mortgages at risk of foreclosure and mortgage-backed securities involving such mortgages; (2) the effects of such accounting standards upon such institutions' balance sheets and capacity to provide refinancing to residential mortgagors at risk of foreclosure, including residential mortgagors during periods of market value declines and increased foreclosures; and (3) the advisability and feasibility of modifications of such standards during periods of market fluctuation in order to maintain the institution's ability to continue to carry mortgages on residential property at risk of foreclosure and assure the availability of credit to refinance such mortgages.

Directs(Sec. 116) Instructs the Secretary to: (1)Comptroller General of the United States to study consumer protections and underwriting standardsreport to ensure that product purchases are appropriate for the consumer; and (2) establish specified limitsCongress on the origination feeeffects of tightening credit markets upon prospective first-time homebuyers in selected communities that may be charged to a mortgagor under a HUD-insured mortgage.have been most detrimentally affected by subprime mortgage foreclosure crises and predatory mortgage lending.

Directs<b>Subtitle B: Office of Housing Counseling</b> - Expand and Preserve Home Ownership Through Counseling Act - (Sec. 132) Amends the Comptroller General to studyDepartment of Housing and reportUrban Development Act to Congress onestablish the costs and availabilityOffice of credit under the home equity conversion mortgages for elderly homeowners program.Housing Counseling.

(Sec. 123)133) Amends the Energy PolicyHousing and Urban Development Act of 19921968 to: (1) modify the maximum permissible costs of cost-effective energy efficiency improvements;prescribe homeownership and rental counseling procedures and requirements; (2) prohibitdirect the aggregate number of mortgages insured under the Energy Efficient Mortgages Pilot Program in any fiscal year from exceeding 5% of the aggregate number of mortgagesSecretary to make grants to qualified organizations for one-homeownership or rental counseling assistance; and (3) require such organizations to four-family HUD-insured residences during the preceding fiscal year.use only HUD-certified counselors.

(Sec. 124)136) Directs the HUD Secretary to implement a five-year pilot program to establish,study and make availablereport to mortgagees, an automated process for providing alternative credit rating information for mortgagors under HUD-insured mortgagesCongress 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,the root causes of home loan defaults and foreclosures, including the role of escrow accounts in helping prime and nonprime borrowers avoid defaults and insurance payment histories.foreclosures.

Directs(Sec. 138) Amends the Comptroller GeneralReal Estate Settlement Procedures Act of 1974 to study and report to Congress on: (1) the numberrequire a revamping of additional mortgagors served using such automated process; and (2) the impact of such process and its attendanta public information booklet regarding federally related mortgage insurance upon the safety and soundness of the insurance funds under the NHA.loans, with specified contents.

(Sec. 125) Instructs the Secretary and the Commissioner<b>Subtitle C: Combating Mortgage Fraud</b> - (Sec. 151) Authorizes appropriations for FY2008-FY2012 for federal prosecution of the Federal Housing Administration (FHA) to: (1) develop and implement a plan to improve the FHA loss mitigation process; and (2) report such plan to certain congressional committees.mortgage fraud.

(Sec. 126) Authorizes appropriations<b>Title II: FHA Reform and Manufactured Housing Loan Insurance Modernization - Subtitle A: FHA Reform</b> - Expanding American Homeownership Act of 2008 - (Sec. 203) Amends the NHA to: (1) increase the maximum principal loan obligation on residential homes eligible for FY2009-FY2013mortgage insurance; (2) extend the mortgage term from negative credit subsidy for: (1) certain30 years to 40 years; (3) modify downpayment standards; (4) set a maximum premium payment for a mortgage insurance programsfor which any amounts are gifted by a qualified homeownership assistance entity at 3% of the original insured principal obligation; (5) direct the HUD Secretary to improve technology, processes, program performance, eliminate fraud; and (2)establish underwriting standards for appropriate staffing in connection with such mortgage insurance programs. for higher-risk borrowers; and (6) authorize the Secretary to establish flexible risk-based mortgage insurance premium structure involving a single premium payment.

Directs the Secretary to study(Sec. 208) Sets forth: (1) discretionary three-year and report to Congress on recommendations from participants in the private residential mortgage lending business and the secondary marketmandatory five-year payment incentives for such mortgages on upgrades to processeshigher-risk borrowers; and technologies(2) protections for certain mortgage insurance programs so that origination, insurance,higher-risk borrowers, including additional mandatory disclosures and servicing procedures conform with those customarily used by secondary market purchaserscounseling and a notice of the availability of residential mortgage loans. foreclosure prevention counseling.

(Sec. 127) Amends210) Requires the HousingHUD Secretary to establish related underwriting standards and Urban Development Actfacilitate payment or prepayment (refinancing) of 1968 to revise the eligibility criterionexisting mortgages for home ownership counseling involving inability to makeborrowers: (1) with either adverse terms or resume full home loan payments, or correct a home loan delinquency within a reasonable time, due to a reductionrates in the homeowner's income. Includes as possible causes of such an inability: (1) reduction in income due to divorce or death;mortgages; or (2) a significant increase in basic expenses duewithout access to medical expenses, specified property damage, or large property-tax increase.mortgages at reasonable rates and terms because of adverse market conditions.

Adds as a new eligibility criterion a HUD determination thatAuthorizes the homeowner's annual income is no greater than established annual income of low-HUD Secretary to insure mortgages to borrowers in default or moderate-income.at imminent risk of being in default, if such loans meet HUD-established underwriting standards.

Repeals(Sec. 211) Requires the eligibility criteria that: (1) the applicant be a first-time homebuyer meeting certain requirements;HUD Secretary to collect information on default and (2) theforeclosure rates for HUD mortgage involve a principal obligation exceeding 97% of the property's appraised value, and soon be insured.insurance, including actions taken for loss mitigation.

(Sec. 128) Requires212) Increases the Secretarymaximum mortgage amount limitation for a residence licensed and certificated to establishoperate a demonstration program to test the effectiveness of alternative forms of pre-purchase home ownership counseling for eligible home buyers.child care facility.

(Sec. 129) Amends federal criminal law213) Requires all funds received and disbursements with respect to subjectrehabilitation loans to criminal penalties knowingly false statements,be credited or charged, as well as willful overvaluations of land, property, or security, madeappropriate, to the FHA in connection with an insurance agreement or application for insurance or a guarantee, as well as other specified financial transactions.Mutual Mortgage Insurance Fund (MMIF) (currently, to the General Insurance Fund).

(Sec. 130) Specifies limits and conditions on215) Requires a multifamily condominium project to have an insured blanket mortgage insurance premium increases. in order for a one-family unit in the project to qualify for mortgage insurance. Increase from 35 to 40 years the term of such a mortgage.

(Sec. 133) Imposes a 12-month moratorium upon implementation of specified risk-based premiums designedProvides for mortgage lenders to offer borrowers an FHA-insured product that provides a range of mortgage insurance premium pricing, based upon the risk the insurance contract represents. for manufactured housing.

<b>Subtitle B: Manufactured Housing Loan Modernization</b> - FHA Manufactured Housing Loan Modernization Act(Sec. 216) Limits the authority of 2008 - (Sec. 143) Amends the NHAHUD Secretary to exemptuse the MMIF for mortgage loan guarantees for a manufactured home or its lot fromparticular fiscal year to the prohibition against FHA insurance exceeding 10% of the totalaggregate original principal loan amount of a financial institution's loans, advances of credit, and purchases.specified in appropriations Acts for that fiscal year.

(Sec. 144) Declares that:Requires the Secretary to: (1) any contract of insuranceprovide for a financial institution regarding loans, advancesan annual independent actuarial study of credit, 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;MMIF; and (2) the validity of such a contract is incontestable.make quarterly reports to Congress..

(Sec. 145) Increases the maximum loan limits placed upon217) Makes insurance to financial institutions,of mortgages in Hawaiian home lands and requires annual indexing.Indian reservations obligations of the MMIF (currently, of the General Insurance Fund).

(Sec. 146) Sets forth the manner in which219) Revises requirements for insurance premiums under a loan, credit advance, or purchase in connection with manufacturedof home loans shall be paid by the borrower.equity conversion mortgages for elderly homeowners.

(Sec. 147) Revises requirements forIncludes among such insurable mortgages a leasehold under a lease with a term ending no earlier than the manner in which HUD shall handle and disposeminimum number of property acquiredyears, as specified by the Secretary in connection withSecretary, beyond the paymentactuarial life expectancy of insurance.the mortgagor or comortgagor, whichever is the later date.

(Sec. 148) DirectsLimits the Secretarybenefits of such mortgage insurance to establish underwriting criteria for loans and advances132% of credit governing a manufactured home (and/or its lot) to ensure that the programspecified dollar amount limitation for insurance for financial institutions against losses from such loans, advances of credit, and purchases is financially sound. a one-family residence.

(Sec. 149) Applies the prohibition against kickbacks and unearned fees in the Real Estate Settlement Procedures Act of 1974 (RESPA) to each salePermits insurance of such a manufacturedmortgage when the primary purpose of the home financed withequity conversion mortgage is to enable an FHA-insured loanelderly mortgagor to purchase a one- to four-family dwelling in which the mortgagor will occupy or extensionoccupies one of credit and related services.the units.

Directs the Secretary to prohibit acts or practices in connection with FHA-financed loans or extensions of credit for the purchaseAllows insurance of a manufactured home that the HUD finds to be unfair, deceptive,subordinate mortgages or otherwise not in the borrower's interests.liens on cooperative dwelling units.

(Sec. 150) Prohibits granting FHA insurance toProhibits an applicant mortgagor from satisfying the third party adequate counseling requirement by receiving such counseling from a financial institution for any obligation made to finance a manufactured home intended to be locatedreverse mortgage lender, servicer or investor, or an entity engaged in a manufactured home community pursuant to a lease, unless the lease meets specified leasehold requirements, including an initial, renewable termsale of at least three years.annuities, investments, long-term care insurance, or any other type of financial or insurance product.

<b>Title II: Mortgage Foreclosure ProtectionsRepeals: (1) the waiver of upfront premiums for Servicemembers</b> - (Sec. 201) Sets forth a temporary increase, through December 31, 2008, in the maximum loan guarantyinsured mortgages whose total amount will be used only to fund long-term care insurance; and (2) funding for certain housing loans guaranteed by the Secretary of Veterans' Affairs.counseling and consumer education and outreach.

(Sec. 202) DirectsInstructs the HUD Secretary to: (1) prescribe regulations protecting elderly homeowners from the marketing of Defense to developfinancial and implementinsurance products not in their interest, including the marketing or sale of an annuity as a program to advise memberscondition of the Armed Forces who are returning from active duty abroad on actionsobtaining any home equity conversion mortgage; (2) establish limits upon origination fees; and (3) study and report to prevent or forestallCongress on mortgage foreclosures, including credit counseling andinsurance premiums that insure home mortgage counseling.equity conversion mortgages for elderly homeowners.

(Sec. 203) AmendsAmends the Servicemembers Civil ReliefFederal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to increase from 90 days to nine monthsauthorize the period of: (1) protection against mortgage foreclosure proceedings;Federal National Mortgage Association (Fannie Mae) and (2) the stay of proceedings and adjustment of mortgageFederal Home Loan Mortgage Corporation (Freddie Mac) to deal in NHA-insured mortgages, notwithstanding certain limitations upon maximum original principal obligations. Sunsets such provisions December 31, 2010.

Revises(Sec. 220) Instructs the 6% interest rate limitation duringComptroller General to study and report to Congress on the periodimpact of military service for debts incurred before military service whose interest rate did not exceed that percentage. Extends the 6% limitation for one year beyond the period of military service if the debt is a mortgage, trust deed, or other security in the nature of a mortgage.financial audit and net worth requirements upon mortgage brokers and correspondent lenders, and specified related matters.

<b>Title III: Emergency Assistance for(Sec. 221) Revises the Redevelopmentauthority of Abandoned and Foreclosed Homes</b> - (Sec. 301) Appropriates fundsthe HUD Secretary to insure mortgages for assistancedisaster housing to state and local governments to redevelop abandoned and foreclosed homesincrease the limit on the principal obligation by the amount of any initial service charges, appraisal, inspection, and residential properties. other fees.

Sets forth allocation and distribution requirements, includingAuthorizes the HUD Secretary, after a low- and moderate income requirement. presidential major disaster declaration, to enter, for up to 36 months, into agreements to insure a mortgage which involves a principal obligation of up to 100% of a specified dollar amount limitation for a single-family mortgage.

(Sec. 302) Requires each state222) Establishes penalties for: (1) failure by a mortgage servicer to receive not less than 0.5%make timely payments from escrow accounts; and (2) submission of emergency assistance funds forinformation to a consumer reporting agency regarding such redevelopment.failure that is adverse to the mortgagor's credit rating or interest. Prohibits the HUD Secretary from submitting such information to a consumer reporting agency.

(Sec. 303) Prohibits a state or local governmental unit from using emergency assistance funds to fund any project that seeks to use the power223) Prescribes acceptable forms of eminent domain, unless eminent domain is employed onlyidentification for a public use.FHA mortgagors. Prohibits public usethe Secretary from being construed to include economic development that primarily benefits private entities.insuring a mortgage unless the mortgagor provides such identification.

(Sec. 304) Prohibits224) Directs the distribution of funds madeHUD Secretary to implement a pilot program to make available under this title or title IV to mortgagees an organization which: (1) has been indictedautomated process for a violationproviding alternative credit rating information for actual and prospective mortgagors, under federal law relating to an electionmortgages for federal office; or (2) employs individualsone- to four-family residences to be insured, who have been indictedinsufficient credit histories for such a violation.determining their creditworthiness.

(Sec. 305) Appropriates specified amounts for emergency assistanceDirects the Comptroller General to report to Congress on the number of additional mortgagors served using such automated process, and for housing counseling resources.its impact upon the safety and soundness of the insurance funds under the NHA.

Allocates $30 million for(Sec. 225) Expresses the Neighborhood Reinvestment Corporation (NRC) to:sense of the Congress that: (1) make grantsthe HUD Secretary should use a portion of the funds received from premiums paid for FHA single family housing mortgage insurance that exceed the amounts paid out in claims to HUD-approved counseling intermediaries; orincrease the funding for technology used in such FHA program; (2) hire attorneysthe goal of this investment should be to assist homeowners who have legal issues directly relatedbring such technology up to foreclosure, delinquency, or short sale.in excess of the level of technology used in the conventional mortgage lending market; and (3) the HUD Secretary should report to Congress on progress made toward such goal and the resources needed for greater progress.

<b>Title IV: Housing Counseling Resources</b> - (Sec. 401) Appropriates funds for(Sec. 226) States that the Neighborhood Reinvestment Corporation (NRC)Deficit Reduction Act of 2005 governing FHA asset disposition does not apply to remain available until September 30, 2008,a multifamily real property transaction for which: (1) the HUD Secretary has received, before enactment of such Act, written expressions of interest in purchasing the property from both a city government and its housing commission; (2) after such receipt, the Secretary acquires title to the property at a foreclosure mitigation (namelysale; and (3) such city government and housing counseling) activities.commission have resolved a previous disagreement regarding disposition of the property.

(Sec. 402) Requires entities approved by227) Directs the NRC, HUD,Secretary to consider industry standard appraisal practices when determining market value during FY2008 of a multifamily property or for any multifamily loan for noncompetitive sale to a state housing finance entities receiving funds under this Actor local governmental entity (including repair costs: (1) to identifybring the property to minimum state and coordinate with nonprofit organizations operating nationallocal code standards; and (2) of maintaining the affordability restrictions upon the multifamily real property or statewide toll-free foreclosure prevention hotlines.multifamily loan).

<b>Title V: Mortgage Disclosure Improvement Act</b> - Mortgage Disclosure Improvement Act of 2008 - (Sec. 502) Amends(Sec. 228) Prohibits mortgage insurance premium increases above the Truthlevel in Lending Act to set forth additional disclosure requirements governing any extensionseffect on October 1, 2006, unless in the absence of credit (not only mortgages) secured bysuch an increase the dwellingappropriation of new budget authority would be required to cover the consumer.costs of such insurance.

Requires such disclosures, among other things, to: (1) inform the consumer that payments will vary based on interest rate changes; and (2) be received by the consumer before paying any fee to the creditor or other person(Sec. 229) Establishes civil money penalties for improperly influencing appraisals in connection 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.insured mortgage.

Increases(Sec. 230) Requires the actual damages for which a creditor is liable for noncompliance with such Act in the case of an individual action relatingHUD Secretary to a credit transaction not under an open end credit plan that is secured by real property or a dwelling. Replaces the current rangeprovide refunds of damages from $200 to $2,000unearned mortgage insurance premium charges paid with a range from $400respect to $4,000.certain insured mortgages. Authorizes appropriations.

(Sec. 504) Amends the Federal Home<b>Subtitle B: FHA Manufactured Housing Loan Bank Act regarding affordable housing program standards to require the FederalInsurance Modernization</b> - FHA Manufactured Housing Finance Board's regulations to permit Federal Home Loan Banks to use certain subsidized advances, during the two-year period following enactmentModernization Act of this Act, to refinance loans secured by2008 - (Sec. 253) Exempts a first mortgagemanufactured home or its lot from the limitation on insurance for a primary residencefinancial institution's loans, advances of any family having an income at or below 80% of the median income for the area.<br> credit, and purchases.

<b>Title VI: Tax-Related Provisions</b> - (Sec. 601) Allows taxpayers(Sec. 254) Makes any contract of insurance with respect to elect an extended four-year net operating loss carryback period (currently, two years) for losses arisingloans, advances of credit, or purchases in 2008connection with a manufactured home or 2009. Suspends in 2008 and 2009 limitations on net operating loss carrybacks for purposesits lot conclusive evidence of the alternative minimum tax (AMT). Directs the Secretary of the Treasury to prescribe rules to prevent abuse of such extended carryback provisions. institution's eligibility for insurance.

(Sec. 602) Allows the use of qualified mortgage bond proceeds to refinance subprime residential mortgages.255) Increases to $10 billion in 2008 the volume capmaximum loan limits for such bonds. Exempts tax-exempt interest from such bonds from the AMT.insurance.

(Sec. 603) Allows a one-time tax credit of up to $7,000 of the purchase price of a single-family principal residence in foreclosure.256) Prescribes requirements for insurance premiums.

(Sec. 604) Allows taxpayers who do not itemize their tax deductions258) Directs the Secretary to take an additional standard deductionestablish insurance underwriting criteria for real property taxes. loans and advances of credit for such homes or lots.

(Sec. 605) Allows corporate taxpayers an election259) Requires a borrower to claim accelerated AMT and research and development creditshave a valid Social Security account number in lieu of bonus depreciation. order for any obligation to be insured.

(Sec. 606) Allows taxpayers who claimed a casualty loss deduction for damage260) Instructs the Comptroller General to a personal residence caused by Hurricanes Katrina, Rita, or Wilmaassess and who subsequently received a grant as compensation for such damagereport to file an amended tax return to disallowCongress on how the casualty loss deduction without payment of any tax penalty. HUD Secretary utilizes the FHA manufactured housing loan insurance program to mitigate tornado risks to manufactured housing residents and communities.

(Sec. 607) Eliminates the deadline<b>Title III: Reform of Government-Sponsored Entities for beginning construction projects inHousing Finance</b> - Federal Housing Finance Reform Act of 2008 - <b>Subtitle A: Reform of Regulation of Enterprises and Federal Home Loan Banks - Chapter 1: Improvement of Safety and Soundness</b> - (Sec. 311) Amends the Gulf Opportunity (GO) Zone for purposesHousing and Community Development Act of bonus depreciation eligibility. 1992 to replace the Office of Federal Housing Enterprise Oversight (OFHEO) with the Federal Housing Finance Agency (Agency). Grants the Agency supervisory and regulatory authority over Fannie Mae, Freddie Mac, and the federal home loan banks (enterprises).

(Sec. 608) ExtendsRequires the Agency to businesses and individuals in certain Kansas counties declared by the President 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, provisionshave Deputy Directors: (1) of the Internal Revenue Code allowing: (1) suspensionDivision of certain limitations on personal casualty losses;Enterprise Regulation; (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 expensingDivision of demolitionFederal Home Loan Bank Regulation; and cleanup costs; (7) extended net operating loss carryback periods(3) for losses attributableHousing. Requires the Agency Director 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. establish the position of Ombudsman.

<b>Title VII: Emergency Designation</b> - Designates all provisions of this Act,Instructs the Director to establish prudential management and operations standards for purposes of Senate enforcement, as emergency requirements and necessary to meet emergency needs pursuant the concurrent resolution on the budget for FY2008. enterprises.

<b>Title VIII: REIT Investment Diversification and Empowerment</b> - REIT Investment Diversification and Empowerment Act of 2008 - <b>Subtitle A: Taxable REIT Subsidiaries</b> - Amends Internal Revenue Code provisions relating(Sec. 313) Establishes the Federal Housing Enterprise Board to real estate investment trusts (REITs) to increase from 20 to 25%advise the the maximum value of an REIT's total assets that may be represented by securities of one or more taxable REIT subsidiaries.Director on overall strategies and policies.

<b>Subtitle B: Dealer Sales</b> - Reduces from four(Sec. 315) Authorizes the Director to two years the REIT safe harbor holding period for purposes of the exemption fromrequire the tax on income from prohibited transactionsenterprises to: (1) report fraudulent financial transactions; and (2) disclose charitable contributions they have made.

Revises(Sec. 316) Prescribes annual assessments to be collected from the amounts of sales in a taxable year that qualify forenterprises. Requires the prohibited transactions tax safe harborComptroller General to allow sales 10% ofaudit annually and report to Congress on the aggregate bases of all assets in an REIT or 10%financial transactions of the aggregate fair market value of all assets in an REIT. Agency.

<b>Subtitle C: Health Care REITs</b> - Treats rental payments made by a health care facility to an REIT as qualifying REIT income. (Sec. 318) Revises the prohibition against excessive executive compensation for officers of the enterprises.

<b>Subtitle D: Effective Dates and Sunset</b> - (Sec. 841) Sets forth asAuthorizes the general effective date for provisionsDirector to require a regulated entity to withhold any payment, transfer, or disbursement of this Act taxable years beginning aftercompensation to an executive officer, or to place such compensation in an escrow account, during the enactmentreview of this Act. Establishes a terminating date (sunset) for amendments made by this Title of five years after enactment.the compensation's reasonableness and comparability.

<b>Title IX: Veterans Housing Matters</b> - (Sec. 901) Amends federal law(Sec. 320) Requires each regulated entity to authorize the Secretaryeither establish an Office of Veterans' Affairs (Secretary in this title) to furnish improvementsMinority and structural alterations as part of home health services to a member of the Armed Forces who is hospitalizedWomen Inclusion, or receiving outpatient medical care, services, or treatmentdesignate an office responsible for a permanent service-connected disability if the member is determined likely to be discharged or released from the Armed Forces for such disability.diversity in management, employment, and business activities.

(Sec. 902) AuthorizesRequires the SecretaryAgency to provide assistance for specially adapted housing to: (1) an active-duty member of the Armed Forcestake affirmative steps to seek diversity at all levels in its workforce consistent with certain service-connected disabilities; and (2) such members who reside outsidethe demographic diversity of the United States.

(Sec. 903) Makes individuals with severe burn injuries eligible321) Repeals the requirement for specially adapted housing assistance.congressional review of regulations proposed by the Director.

(Sec. 904) Extends through December 31, 2011,322) Declares that submission by any person to the periodAgency of assistanceany information for individuals residing temporarilyany purpose in housing owned by a family member.the course of any supervisory or regulatory process shall not be construed as waiving, destroying, or otherwise affecting any privilege such person may claim with respect to such information under federal or state law as to any person or entity other than the Agency.

(Sec. 905) Increases: (1) from $10,000 to $12,000 the maximum assistance authorized323) Revises requirements for specially adapted housing benefitsrisk-based capital levels for disabled veterans; and (2) from $50,000 to $60,000 and from $10,000 to $12,000 the aggregate amount of specially adapted housing assistance available to veterans with different specified disabilities. Requires annual increases in such amounts for inflation. Instructs the Secretary, 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 residentialenterprises, including federal home construction.loan banks.

(Sec. 906) Directs the Secretary to report to certain congressional committees on the adequacy of the authorities available to the Secretary to assist eligible disabled individuals in acquiring: (1) suitable housing units with special fixtures or movable facilities required324) Prescribes minimum and critical capital levels for their disabilitiesfederal home loan banks and the necessary land; (2) necessary adaptations to their residences because of their disabilities; and (3) residences already adapted with special features determined to be necessary as a result of such disabilities.enterprises.

(Sec. 907) InstructsEmpowers the Secretary to report to certain congressional committees on specially adapted housing assistanceDirector to: (1) increase temporarily the minimum capital level for individuals who reside in housing owned by a family member on a permanent basis.regulated entity; (2) establish additional capital and reserve requirements for particular programs; (3) review core capital maintained by such entities; (4) review assets and liabilities of the entities and monitor their portfolios; and (5) require disposition or acquisition of assets and liabilities by the enterprises.

(Sec. 908) Amends326) Sets forth corporate governance and risk-management requirements for the United States Housing Actenterprises, including a specified code 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.ethics.

(Sec. 909) Revises requirements for pay and allowances for the Uniformed Services to entitle members327) Requires each of the Armed Forces who relocate from leased or rental housing by reason of foreclosurethem to transportationregister at least one class of baggage and household effects underits stock with the same conditions and limitations as similarly circumstanced members entitled to transportation of baggage and household effects.SEC.

<b>Title X: Clean Energy Tax Stimulus - </b>Clean Energy Tax Stimulus(Sec. 328) Amends the Federal Financial Institutions Examination Council Act of 2008 -<b> Subtitle A: Extension1978 to require one representative of Clean Energy Production Incentives </b>- (Sec. 1011) Extends through 2009 the tax credit forAgency to sit on the productionliaison committee of electricity from renewable resources (e.g., biomass, geothermal energy, landfill gas, and trash combustion). Includes marine and hydrokinetic renewable energy as a renewable resource eligible for such credit. Allows sales of electricity produced from renewable resources to regulated public utilities. Modifies the definition of "trash combustion facilities" for purposes of such credit. Federal Financial Institutions Examination Council.

(Sec. 1012) Extends329) Requires the energy investment tax credits for solar energy (through 2016)Director to study and for fuel cellreport to Congress on the pricing, transparency, and microturbine property (through 2017). Allows an offset against alternative minimum tax (AMT) liability for energy tax credit amounts. Repealsreporting of the dollar per kilowatt limitation for fuel cell property under the energy investment tax credit. Allows public electric utilitiesenterprises with respect to qualify for such credit.guarantee fees and analogous practices, transparency, and reporting requirements of other participants in the mortgage purchasing and securitization business (including advances pricing practices by the federal home loan banks).

(Sec. 1013) Extends through 2009<b>Chapter 2: Improvement of Mission Supervision</b> - (Sec. 332) Instructs the tax credit for residential energy efficient property expenditures. RepealsDirector to require the $2,000 limitation onenterprises to obtain the tax credit for solar electric property. Allows an offset against the AMT of tax credit amounts. Director's approval before offering a product. Sets forth approval standards and procedures, including expedited review.

(Sec. 1014) Extends through 2009333) Amends the tax credit for investment in clean renewable energy bonds. IncreasesFederal National Mortgage Association Charter Act and the national limitation amountFederal Home Loan Mortgage Corporation Act to increase the limitations governing the maximum original obligation of conventional mortgages purchased by Fannie Mae and Freddie Mac for 2008. Prescribes a formula for calculating such bonds.limitations for mortgages originated on or after January 1, 2009.

(Sec. 1015) Extends through 2009 deferral provisions relatingInstructs the Director to establish and maintain a method of assessing the recognitionnational average one-family house price (housing price index) for use in adjusting the conforming loan limitations of gain by certain electric utilities. the enterprises.

<b>Subtitle B: Extension of IncentivesRequires the Comptroller General to Improve Energy Efficiency</b> - (Sec. 1021) Extends through 2009audit the tax credit for residential energy efficiency improvements. Allows a tax credit for stoves usingDirector's methodology and report the burning of biomass fuel (any plant-derived fuel available on a renewable or recurring basis)results 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. certain congressional committees.

(Sec. 1022) Extends through 2010Expresses the tax credit for new energy efficient homes.sense of Congress that: (1) securitization of mortgages by the enterprises plays an important role in providing liquidity to the U.S. housing markets; and (2) Congress encourages them to securitize mortgages acquired under the increased conforming loan limits established by this Act.

(Sec. 1023) Extends through 2009334) Requires the tax deduction for energy efficient commercial buildings. IncreasesDirector to report annually to specified congressional committees on the maximum amount of such deduction.enterprises.

(Sec. 1024) Extends through 2009335) Requires the tax credit for energy efficient appliances (i.e., dishwashers, clothes washers, and refrigerators). Modifies energy efficiency standards for such appliances.enterprises to report annually to Congress on affordable housing stock.

<b>Title XI: Sense(Sec. 336) Requires the Director to establish and enforce standards that: (1) prohibit the enterprises from the purchase, service, holding, selling, lending on the security of, or otherwise dealing with any mortgage on a one- to four-family residence that will be used as the principal residence of a mortgagor that does not have a Social Security number (mortgagor identification requirements); and (2) prohibit the Senatefederal home loan banks from providing any advances to a member for use in financing, and from accepting as collateral for any advance to a member, any mortgage on a one- to four-family residence that will be used as the principal residence of the mortgagor that does not have such a number.

(Sec. 337) Instructs the Director to establish and report annually to Congress on annual single family and multifamily special affordable housing goals with respect to mortgage purchases by the enterprises.

Authorizes an enterprise to petition the Director during a year to reduce the level of any goal for that year. Prescribes standards for such a goal reduction.

(Sec. 338) Amends the Housing and Community Development Act of 1992 to impose a duty upon the enterprises to serve underserved markets (rural markets and very low-, low-, and moderate-income families). Prescribes requirements for enterprise development of loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on manufactured homes.

(Sec. 339) Requires the Director to assign additional credit toward achievement of the housing goals for enterprise mortgage purchase activities that comply with such goals and support: (1) environmental housing standards; and (2) housing that includes a licensed childcare center.

Sets forth penalties for noncompliance with housing goals.

(Sec. 340) Instructs the Director to establish an affordable housing fund with amounts allocated by the enterprises to: (1) increase homeownership for extremely low-and very low-income families; (2) increase investment in housing in low-income areas, including those designated as qualified census tracts or an area of chronic economic distress; (3) increase and preserve the supply of rental and owner-occupied housing for extremely low- and very low-income families; (4) invest in public infrastructure development; and (5) leverage investments from other sources to affordable housing and its attendant public infrastructure development.

Sunsets the affordable housing fund program after five years.

Prohibits the enterprises from redirecting (passing through) costs to the originators of mortgages they purchased or securitized. Prescribes formulas for affordable housing needs allocations for Louisiana and Mississippi. Requires each grantee to establish an allocation plan.

Cites Social Security, photo, REAL ID, passport, and USCIS photo identification requirements for recipients of affordable housing grants.

Instructs the Comptroller General to study and report to Congress on the effects the affordable housing fund will have upon credit for homebuyers, including: (1) the requirement that Fannie Mae and Freddie Mac make allocations to such fund based on the average total mortgage portfolios; and (2) the extent to which the mandatory allocation costs will either be borne by such entities or will be passed on to homebuyers.

(Sec. 342) Specifies additional grounds for the issuance of cease-and-desist orders by the Director upon an enterprise.

<b>Chapter 3: Prompt Corrective Action</b> - </b>(Sec. 1101) Expresses(Sec. 345) Requires the senseDirector to establish specified capital classification criteria for the federal home loan banks. Authorizes the Director to reclassify an enterprise in circumstances of rapidly depleting of core or total capital or engagement in unsafe or unsound practices.

(Sec. 346) Specifies regulatory actions for enterprises which are undercapitalized, including: (1) mandatory monitoring; (2) restricted asset growth; and (3) prior approval of acquisitions, including new products and new activities.

(Sec. 347) Specifies management improvement actions, including dismissal of directors or executive officers and ordering the election of a new board, the Director must take with respect to a significantly undercapitalized enterprise.

Prohibits any significantly undercapitalized enterprise, without the Director's prior approval, from paying an executive officer of the enterprise: (1) any bonus; or (2) any compensation exceeding the officer's average rate (excluding bonuses, stock options, and profit sharing) for the previous 12 months.

(Sec. 348) Changes from mandatory to discretionary the authority of the Director to appoint a conservator or receiver of a critically undercapitalized enterprise.

Requires the Director to appoint the Agency as such conservator or receiver. Specifies circumstances and grounds for exercise of such authority, including grounds for mandatory receivership.

Authorizes an enterprise to seek judicial review of the Agency's appointment as conservator or receiver. Revises procedures for a conservatorship or receivership. Specifies the Agency's powers as conservator or receiver.

<b>Chapter 4: Enforcement Actions</b> - (Sec. 351) Revises the Director's authority to issue charges and/or a temporary cease-and-desist order upon an enterprise or affiliated party for unsafe or unsound practices or violations of law. Authorizes the Senate that,Director to deem an entity to be engaging in implementingan unsafe or unsound practice if it receives a less-than-satisfactory rating in its most recent examination.

(Sec. 353) Authorizes a court, upon the application of the Director or the Attorney General, to issue a restraining order: (1) prohibiting any person from disposing of any funds or other property of an enterprise (prejudgment attachment); and (2) appointing a person temporarily to administer the order.

(Sec. 354) Authorizes the Director to apply for enforcement of a notice or order directly (currently, only through the Attorney General) to the U.S. District Court for the District of Columbia, or the U.S. district court within the jurisdiction of which the enterprise's headquarters are located.

(Sec. 355) Revises the three tiers of violations subject to civil money penalties. Increases such penalties.

(Sec. 356) Grants the Director removal, prohibition, and subpoena authority over an enterprise or affiliated party in violation of any law or order.

(Sec. 357) Subjects to criminal liability any person, subject to a removal order, who without the Director's prior written approval knowingly participates, directly or indirectly, in any manner in the affairs of any enterprise.

(Sec. 358) Authorizes the Director to apply directly for enforcement of any subpoena or subpoena duces tecum (currently, only through the Attorney General) to the appropriate U.S. District court.

<b>Chapter 5: General Provisions</b> - (Sec. 361) Amends the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to revise requirements governing the boards of the enterprises. Changes the number of board members for Fannie Mae and Freddie Mac from 18, of whom five must be appointed by the President, to 13, or any other number the Director determines appropriate. Eliminates presidential appointments. Requires all board members to be elected by the common stockholders.

(Sec. 362) Instructs the Director to report to Congress on portfolio operations, safety and soundness, and mission of the enterprises, including an analysis of potential systemic risk implications, the housing and capital markets, and the financial system of portfolio holdings.

(Sec. 364) Requires the Director to study and report to Congress on the effects upon financial and housing finance markets of alternatives to the current secondary market system for housing finance.

<b>Subtitle B: Federal Home Loan Banks</b> - (Sec. 372) Amends the Federal Home Loan Bank Act to: (1) bring the federal home loan banks under Agency regulation; (2) revise requirements governing membership, terms, and compensation of the board of directors; (3) permit joint activities by the banks; and (4) permit information sharing and voluntary mergers between such banks.

(Sec. 377) Exempts home loan banks from specified requirements of the Securities Exchange Act of 1934, the Securities Act of 1933, and related SEC regulations regarding: (1) transactions in capital stock of such banks; (2) bonds, debentures and other obligations of such banks; (3) periodic reporting requirements; and (4) tender offers in connection with transactions in capital stock of the banks.

(Sec. 378) Increases from $500 million to $1 billion the total asset requirement for a community financial institution member.

Adds community development activities to the limited uses of a secured long-term advance from a federal home loan bank.

(Sec. 380) Instructs the Comptroller General to study and report to Congress and the Director on: (1) the use of the affordable housing programs of the banks to determine the extent to which such programs are used to assist long-term care facilities for low- and moderate-income individuals; and (2) the effectiveness and adequacy of such assistance in meeting the needs of affected communities.

<b>Subtitle C: Transfer of Functions, Personnel, and Property of Office of Federal Housing Enterprise Oversight, Federal Housing Finance Board, and Department of Housing and Urban Development - Chapter 1: Office of Federal Housing Enterprise Oversight</b> - (Sec. 385) Abolishes the Office of Federal Housing Enterprise Oversight of HUD (OFHEO).

(Sec. 387) Transfers each OFHEO employee to the Agency.

<b>Chapter 2: Federal Housing Finance Board</b> - (Sec. 391) Abolishes the Federal Housing Finance Board.

(Sec. 393) Transfers each Board employee to the Agency.

<b>Chapter 3: Department of Housing and Urban Development</b> - (Sec. 395) Transfers specified enterprise-related functions, employees, and property from HUD and OFHEO to the Agency Director.

<b>Title IV: Emergency Mortgage Loan Modification</b> - Emergency Mortgage Loan Modification Act of 2008 - (Sec. 402) Establishes a standard for loan modifications or workout plans for pools of certain residential mortgage loans.

States that the servicer of such pooled loans owes a duty to the securitization vehicle to maximize recovery of proceeds for the benefit of all investors and holders of beneficial interests in the pooled loans in the aggregate, and not to any individual party or group of parties.

Deems the loan servicer to be acting on behalf of the securitization vehicle in the best interest of investors and holders if the servicer makes certain loss mitigation efforts for a loan in or facing payment default in the reasonable belief that the particular modification, workout plan, or other mitigation actions will maximize the net present value to be realized over that which would be realized through foreclosure.

Shields a servicer, acting in a manner consistent with such duty, from liability to specified persons for entering into a qualified loan modification or workout plan for loss mitigation purposes (including any person obligated to make specified payments pursuant to a derivatives instrument).

Defines &quot;qualified loan modification or workout plan&quot; as one that: (1) is scheduled to remain in place until the borrower sells or refinances the property, or for at least five years from the date of adoption of the plan, whichever is sooner; (2) does not provide for a repayment schedule that results in negative amortization; and (3) does not require the borrower to pay additional points and fees.

Defines &quot;securitization vehicle&quot; as a trust, corporation, partnership, limited liability entity, special purpose entity, or other structure that: (1) is the issuer, or is created by the issuer, of mortgage pass-through certificates, participation certificates, mortgage-backed securities, or other similar securities backed by an asset pool that includes residential mortgage loans; and (2) holds such loans.

<b>Title V: Other Housing Provisions</b> - (Sec. 501) Amends the Home Owners' Loan Act to authorize investments by a federal savings and loan association to promote the public welfare through the provision of housing, services, and jobs that target low- and moderate-income communities or amendmentfamilies.

Prohibits such investment, however, if it would subject a federal savings association to unlimited liability to any person. Sets limitations upon such investments in the aggregate.

(Sec. 502) Permits the conversion of two specified HUD contracts to a contract for project-based rental assistance for low-income families upon request of the owner of the multifamily housing project subject to such contracts.

(Sec. 503) Declares eligible for low-income housing and enhanced housing voucher assistance the Heritage Apartments in Malden, Massachusetts.

(Sec. 504) Directs the HUD Secretary to transfer, upon owner request, 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 located in such county; and (2) The Model Group, Inc., located in Hamilton County, Ohio, to other properties located in such county.

(Sec. 505) Amends federal bankruptcy law to prohibit a governmental unit that operates a mortgage loan program from denying program benefits (including a loan guarantee or subsidy) to a disabled veteran who has been declared a debtor in bankruptcy, has been insolvent before commencement of a bankruptcy case, or meets related criteria.<br>

<b>Title VI: Revenue and Other Provisions - Subtitle A: Housing Tax Incentives - Part 1: Multi-Family Housing - Subpart A: Low-Income Housing Tax Credit</b> - Amends Internal Revenue Code provisions relating to the low-income housing tax credit and tax-exempt bond rules for financing low-income housing projects.

(Sec. 601) Increases in 2008 and 2009 the per capita amount of the low-income housing tax credit allocable by each state.

(Sec. 602) 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. 604) Repeals: (1) the prohibition against providing low-income housing tax credits to properties receiving moderate rehabilitation assistance under this Act, the Senate supportsHousing Act of 1937; and (2) bond posting requirements relating to the disposition of buildings for which a policylow-income housing tax credit was claimed.

Requires states to consider the energy efficiency of noninterferencea low-income housing project and its historical nature in connectionallocating 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.

<b>Subpart B: Modifications to Tax-Exempt Housing Bond Rules</b> - (Sec. 606) 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>Subpart C: Reforms Related to the Low-Income Housing Credit and Tax-exempt Housing Bonds</b> - (Sec. 609) 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. 610) Waives annual income recertification requirements for residents of low-income rental projects whose incomes do not exceed applicable limits.

<b>Part 2: Single Family Housing</b> - (Sec. 612) 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.

(Sec. 613) Allows individual taxpayers who claim the standard deduction an additional deduction from gross income for state and local governmentreal property taxes.

<b>Part 3: General Provisions</b> - (Sec. 615) Authorizes in 2008 an additional $10 billion 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. 616) 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. 617) Allows certain municipal bonds that are guaranteed by federal home loan banks to qualify as tax-exempt bonds.

(Sec. 618) 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. 619) 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.

<b>Subtitle B: Reforms Related to Real Estate Investment Trusts - Part 1: Foreign Currency And Other Qualified Activities</b> - (Sec. 621) 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>Part 2: Taxable REIT Subsidiaries</b> - (Sec. 625) Increase 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>Part 3: Dealer Sales</b> - (Sec. 627) Reduces from four to two years the holding period for certain assets exempted from prohibited transaction rules for REITs.

(Sec. 628) Revises criteria for imposing an excise tax penalty for prohibited transactions for sales by REITs.

<b>Part 4: Health Care REITS</b> - (Sec. 630) 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>Part 5: Effective Dates</b> - (Sec. 632) Sets forth the effective dates for provisions of this Subtitle.

<b>Subtitle C: Revenue Provisions</b> - (Sec. 641) Requires brokers who are required to report gross proceeds from the sale of any publicly-traded security to report the holder's adjusted basis in such security and whether any gain or loss with respect to such security is long or short term.

(Sec. 642) Delays until 2010 the application of special rules for the worldwide allocation of interest for purposes of computing the limitation on the foreign tax credit.

(Sec. 643) 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 13%.<br>

<b>Subtitle D: Coordination of Federal Housing Programs and Tax Incentives for Housing</b> - Housing Tax Credit Coordination Act of 2008 - (Sec. 652) Instructs the HUD Secretary 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.

(Sec. 653) Amends the Housing Act of 1949 to direct the HUD 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. 654) 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.

Prescribes procedures governing the treatment of mortgages executed in connection with the construction, rehabilitation, purchase, or refinancing of a multifamily housing project for which equity is provided through any low-income housing tax credit.

(Sec. 655) Amends specified housing law with respect to: (1) an increase in contract term from 10 to 15 years 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 processing 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 FY2009-FY2013 appropriations for collection of such information.

<b>Subtitle E: Limitation on Sale, Foreclosure, or Seizure of Property Owned by Servicemembers - </b>(Sec. 661) Amends the Servicemembers Civil Relief Act to extend from 90 days to one year after the period of a servicemember's military service the period of protection against mortgage foreclosure.

(Sec. 662) Requires the mortgagor or loan servicer, in the case of a servicemember who defaults on a mortgage obligation for two consecutive months, to furnish the servicemember with a written financial disclosure describing the servicemember's liability for the period during which a sale, foreclosure, or seizure of the property maintainis not valid.

States that neither this Act, the National Bank Act, nor the Home Owners' Loan Act preempts state law regulating foreclosure of residential real property or the treatment of foreclosed property.
</summary>

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== Status of the Legislation ==

<status>
Latest Major Action: 7/29/2008: Presented to President.
</status>

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== Points in Favor ==

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== Points Against ==

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