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

== Detailed Summary ==

<summary>
American Housing RescueHousing and Foreclosure PreventionEconomic Recovery Act of 2008 - <b>Title I: FHA<b>Division A: Housing Stabilization and Homeownership Retention</b>Finance Reform</b> - FHAFederal Housing Stabilization and Homeownership RetentionFinance Regulatory Reform Act of 2008 - <b>Subtitle<b>Title I: Reform of Regulation of Enterprises - Subtitle A: Homeownership Retention</b>Improvement of Safety and Soundness Supervision</b> - (Sec. 112)1101) Amends the NationalFederal Housing Enterprises Financial Safety and Soundness Act (NHA)of 1992 to createreplace the Refinance ProgramOffice of Federal Housing Enterprise Oversight Board, which shall establishof the Department of Housing and overseeUrban Development (HUD) with the Federal Housing Finance Agency (Agency), headed by a program for insuring homeownership retention mortgages.Director with regulatory authority over: (1) the Office of Finance; (2) the 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.)

InstructsDivides the SecretaryAgency into Divisions of Enterprise Regulation, of Enterprise Regulation, and for Housing Mission and Urban Development (HUD) to insure any homeownership retention mortgage coveringGoals, each headed by a one- to four-family residence made to pay or prepay outstanding obligations under an existing mortgage on the residence.Deputy Director.

Sets forth mortgagor eligibility criteria, including mortgagor certification that: (1)(Sec. 1103) Establishes the residence is the only residence in which the mortgagor has any present ownership interest; (2) the mortgagor has not intentionally defaulted on the existing mortgage, nor knowingly, willfully, and with actual knowledge furnished material information knownFederal Housing Finance Oversight Board to be false for the purpose of obtainingadvise the existing mortgage.Director.

Requires waiver or forgiveness(Sec. 1104) Authorizes the Director to require such regulated entities to submit regular reports of all: (1) prepayment penalties; and (2) fees andcondition, subject to specified administrative penalties relatedfor failure to default or delinquency on existing mortgages.do so..

Sets forth terms for required: (1) reduction of indebtedness under(Sec. 1105) Establishes within the Agency an existing senior mortgage; (2) extinguishmentOffice of debt by refinancing;Inspector General and (3) treatmentan Office of multiple mortgage liens.the Ombudsman.

Requires debt service payments due under a mortgage insured under this Act(Sec. 1106) Requires the Director to be substantially reducedestablish: (1) assessments to collect from the debt service payments due underregulated entities in order to provide for Agency expenses; (2) standards for management and operations of the existing mortgage or mortgages.regulated entities; (3) criteria to 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.

Requires(Sec. 1111) Prescribes the mortgage to provide that the HUD Secretary retain a lien on the residence which shall: (1) be subordinate to the mortgage insured under this Act, but senior to all other existing mortgages on it; and (2) secure the repayment.minimum capital level for each FHLB.

InstructsAuthorizes the Oversight BoardDirector, in order to prohibit borrowers from granting a new second lien onensure safe and sound operations, to: (1) set higher minimum capital levels for the mortgaged property duringFHLBs and the first five yearsother regulated entities; (2) increase the mortgage is insured under this Act.minimum capital level for a regulated entity on a temporary basis, and rescind increases; and (3) establish capital or reserve requirements for any products or activities.

Requires(Sec. 1112) Amends the mortgageeSecurities Exchange Act of 1934 to documentsubject the regulated entities to its registration and verify mortgagor income.reporting requirements.

Requires a mortgage insured under this Act to: (1) bear interest at a single fixed rate for(Sec. 1113) Amends the entire mortgage term;Federal Housing Enterprises Financial Safety and (2) involve a principal obligation that does not exceedSoundness Act of 1992 with respect to the limitation that would be allowable for a mortgage insured pursuantprohibition against excessive executive compensation. Authorizes the Director to require an entity to withhold such compensation, or to place it in an escrow account, during the Economic Stimulus Actreview of 2008.its reasonableness and comparability.

Requires(Sec. 1114) Authorizes the Oversight BoardDirector to establish specified underwriting standards for mortgages insured under this Act, including a limitation on origination fees.prohibit or limit golden parachute and indemnification payments.

Sets forth criteria for appraisal independence. Subjects violations of such criteria(Sec. 1115) Directs the Director to civil monetary penalties.require regulated entities to report the purchase or sale of fraudulent loans or financial instruments upon discovery or suspicion.

Prohibits the aggregate original principal obligation(Sec. 1116) Requires each enterprise to establish an Office of all mortgages insured under this Act from exceeding $300 billion.Minority and Women Inclusion responsible for implementing diversity in management, employment, and business activities in accordance with criteria established by the Director.

Directs: (1)(Sec. 1117) Amends the Oversight BoardFederal National Mortgage Association Charter Act, the Federal Home Loan Mortgage Corporation Act, and the HUD SecretaryFederal Home Loan Bank Act to monitor independent quality reviews of designated underwriters; and (2)grant the Inspector GeneralSecretary of HUDthe Treasury temporary authority to conduct an annual compliance auditpurchase obligations of Fannie Mae, Freddie Mac, and the mortgage insurance program under this Act. FHLBs.

Requires(Sec. 1118) Requires the HUD Secretary to ensure that securities based onDirector, before issuing any regulations about the exercise of additional authority regarding prudential management and backed by a pool or trust composedoperations standards, safe and sound operations of, and capital requirements and portfolio standards, to consider the views of mortgages insured under this Act are availablethe Chairman of the Board of Governors of the Federal Reserve System regarding risks posed to be guaranteedthe financial system by the Government National Mortgage Association (GNMA) for timely payment of principal and interest.regulated entities.

Makes the insurance<b>Subtitle B: Improvement of each mortgage under this ActMission Supervision</b> - (Sec. 1122) Amends the obligationFederal Housing Enterprises Financial Safety and Soundness Act of 1992 to transfer to the Special Risk Insurance Fund established by this Act.Director specified HUD responsibilities, including: (1) public access to mortgage information; (2) denial of public access to proprietary information; and (3) monitoring and enforcement of compliance with housing goals.

Sets forth a sunset date of two years after enactment of this Act for commitments(Sec. 1123) Requires the Director to insure under it.require each enterprise to obtain the Director's prior approval of enterprise products.

Authorizes appropriations for FY2008-FY2009, including specified funds earmarked for: (1) counseling for veterans recently returning from active duty in(Sec. 1124) Amends the Armed Forces;Federal National Mortgage Association Charter Act and (2) the Neighborhood ReinvestmentFederal Home Loan Mortgage Corporation (NRC). Act to set forth increased loan limitations for Fannie Mae and Freddie Mac.

RepealsExpresses the limitation on the aggregate numbersense of Congress that securitization of home equity conversion mortgages for elderly homeowners insuredby Fannie Mae and Freddie Mac plays an important role in providing liquidity to domestic housing markets. Encourages Fannie Mae and Freddie Mac to securitize mortgages acquired under the increased conforming loan limits established under this Act.

(Sec. 113) Directs1125) Amends the Board of GovernorsFederal Housing Emterprises Financial Safety and Soundness Act of 1992 to instruct the Federal Reserve System to study andDirector to: (1) report annually to specifiedcertain congressional committees on the need for an auction or bulk refinancing mechanism to facilitate refinancinghousing issues; and (2) conduct monthly surveys of existing residential mortgages that are at risk for foreclosure into mortgages insured under the NHA. mortgage markets.

(Sec. 114) EstablishesRequires the Director to establish and maintain a temporary increase inmethod of assessing the maximum loan guaranty amountnational average one-family house price for certain housing loans guaranteed byuse in adjusting the Secretaryconforming loan limitations of Veterans Affairs.the enterprises.

(Sec. 115)1127) Requires the Securities and Exchange Commission (SEC) to study and report to Congress on:Director to: (1) fair value accounting standards applicable to financial institutions with respect to residential mortgages at riskrequire public disclosure of foreclosure and mortgage-backed securities involving such mortgages; (2) the effects of such accounting standards upon such institutions' balance sheets and capacitycertain information relating to provide refinancing to residential mortgagors at risksingle family mortgage data of foreclosure, including residential mortgagors during periods of market value declines and increased foreclosures; and (3) the advisabilityenterprises; 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(2) establish annual single-family (including refinance) and assuremultifamily special affordable housing goals for mortgage purchases by the availability of credit to refinance such mortgages.regulated entities.

(Sec. 116) Instructs1128) Authorizes the Comptroller General of the United StatesDirector, upon petition by an enterprise, to study and report to Congress onreduce the effects of tightening credit markets upon prospective first-time homebuyers in selected communities that have been most detrimentally affected by subprime mortgage foreclosure crises and predatory mortgage lending.level for a goal or subgoal, but only if certain conditions apply.

<b>Subtitle B: Office of Housing Counseling</b> - Expand and Preserve Home Ownership Through Counseling Act - (Sec. 132) Amends(Sec. 1129) Requires each enterprise to provide leadership to the Department of Housingmarket in developing loan products and Urban Development Actflexible underwriting guidelines to establish the Office of Housing Counseling.facilitate a secondary market for mortgages for very low-, low-, and moderate-income families with respect to underserved manufactured housing, affordable housing, and rural housing markets.

(Sec. 133) Amends the Housing1130) Subjects noncompliance with housing goals to cease and Urban Development Actdesist orders and civil money penalties, as well as submission of 1968 to: (1) prescribe homeownership and rental counseling procedures and requirements; (2) direct the Secretary to make grants to qualified organizations for homeownership or rental counseling assistance; and (3) require such organizations to use only HUD-certified counselors.remedial housing plans.

(Sec. 136) Directs1131) Requires the HUD Secretaryenterprises to study and report to Congress on the root causes of home loan defaults and foreclosures, including the role of escrow accounts in helping prime and nonprime borrowers avoid defaults and foreclosures.set aside specified funds allocations for affordable housing programs.

(Sec. 138) AmendsInstructs the Real Estate Settlement Procedures Act of 1974HUD Secretary to requireestablish a revampingHousing Trust Fund to provide grants to states to increase: (1) the supply of a public information booklet regarding federally related mortgage loans, with specified contents.rental housing for extremely low- and very low-income families, including homeless families; and (2) homeownership for extremely low- and very low-income families.

<b>Subtitle C: Combating Mortgage Fraud</b> - (Sec. 151) Authorizes appropriationsCreates the Capital Magnet Fund within the Community Development Financial Institutions Fund, to enable the Secretary of the Treasury to implement a competitive grant program to attract private capital for: (1) affordable housing for FY2008-FY2012 for federal prosecution of mortgage fraud.primarily extremely low-, very low-, and low-income families; and (2) economic development activities or community service facilities to implement a concerted strategy to stabilize or revitalize low-income or underserved rural areas.

<b>Title II: FHA Reform and Manufactured Housing Loan Insurance Modernization - Subtitle A: FHA Reform</b> - Expanding American Homeownership Act(Sec. 1132) Instructs the Secretary of 2008 - (Sec. 203) Amends the NHA to: (1) increase the maximum principal loan obligation on residential homesTreasury to make grants to eligible for mortgage insurance; (2) extend the mortgage term from 30 yearsorganizations to 40 years; (3) modify downpayment standards; (4) set a maximum premium payment for a mortgage for which any amounts are gifted by a qualified homeownership assistance entity at 3% of the original insured principal obligation; (5) direct the HUD Secretaryprovide financial education and counseling services to establish underwriting standards for mortgage insurance for higher-risk borrowers; and (6) authorize the Secretaryprospective homebuyers, including up to establish flexible risk-based mortgage insurance premium structure involving a single premium payment.five related pilot projects.

(Sec. 208) Sets forth: (1) discretionary three-year and mandatory five-year payment incentives for higher-risk borrowers; and (2) protections for higher-risk borrowers, including additional mandatory disclosures and counseling and a notice of the availability of foreclosure prevention counseling.Authorizes appropriations.

(Sec. 210) RequiresDirects the HUD SecretaryComptroller General to establish related underwriting standardsstudy and facilitate payment or prepayment (refinancing) of existing mortgages for borrowers: (1) with either adverse terms or rates in such mortgages; or (2) without accessreport to mortgages at reasonable ratescertain congressional committees on the effectiveness and terms becauseimpact of adverse market conditions.such grant program.

Authorizes(Sec. 1133) Transfers to the Agency certain HUD Secretary to insure mortgages to borrowers in default or at imminent riskemployees responsible for establishment and enforcement of being in default, if such loans meet HUD-established underwriting standards. specified housing goals.

(Sec. 211)<b>Subtitle C: Prompt Corrective Action</b> - (Sec. 1141) Requires the HUD SecretaryDirector to collect information on default and foreclosure ratesestablish specified capital classification criteria for HUD mortgage insurance, including actions taken for loss mitigation.the FHLBs. Authorizes the Director to reclassify an enterprise in cases of: (1) rapidly depleting core or total capital; or (2) engagement in unsafe or unsound practices.

(Sec. 212) Increases the maximum mortgage amount limitation1143) Prescribes regulatory actions for a residence licensedundercapitalized regulated entities, including: (1) mandatory monitoring; (2) restriction of asset growth; and certificated to operate a child care facility.(3) prior approval of acquisitions, including new products and activities.

(Sec. 213)1144) Requires all funds received and disbursementsthe Director to take specified management improvement actions with respect to rehabilitation loans to be crediteda significantly undercapitalized regulated entity, including: (1) dismissal of directors or charged, as appropriate, toexecutive officers; (2) requiring the Mutual Mortgage Insurance Fund (MMIF) (currently, toemployment of qualified executive officers and (3) ordering the General Insurance Fund).election of a new board.

(Sec. 215) Requires a multifamily condominium project to haveProhibits any significantly undercapitalized enterprise, without the Director's prior approval, from paying an insured blanket mortgage in order for a one-family unit inexecutive officer any: (1) bonus; or (2) compensation exceeding the project to qualifyofficer's average rate for mortgage insurance. Increase from 35 to 40 years the term of such a mortgage. previous 12 months (excluding bonuses, stock options, and profit sharing).

Provides(Sec. 1145) Revises the requirement that the Director appoint conservators for mortgage insurance for manufactured housing.critically undercapitalized enterprises. Authorizes the Director to appoint the Agency as conservator or receiver of a regulated entity to reorganize or rehabilitate it or wind up its affairs if certain conditions exist short of but including critical undercapitalization.

(Sec. 216) LimitsRequires the authority of the HUD SecretaryDirector to useappoint the MMIFAgency as receiver for mortgage loan guaranteesa regulated entity if: (1) its assets for a particular fiscal year60 consecutive calendar days have been less than its obligations to the aggregate original principal loan amount specified in appropriations Actscreditors and others; or (2) it has not for that fiscal year.60 consecutive calendar days been generally paying its debts as they become due.

Requires the Secretary to: (1) provide for an annual independent actuarial studyAuthorizes a regulated entity to seek judicial review of the MMIF; and (2) make quarterly reports to Congress..Agency's appointment as conservator or receiver.

(Sec. 217) Makes insurance of mortgages in Hawaiian home lands and Indian reservations obligations ofDelineates the MMIF (currently, of the General Insurance Fund).Agency's powers as conservator or receiver, including authority, as receiver, to organize a limited-life regulated entity with respect to an FHLB or an enterprise.

(Sec. 219)<b>Subtitle D: Enforcement Actions</b> - (Sec. 1151) Revises requirements for insurance of home equity conversion mortgages for elderly homeowners.the Director's authority to issue charges against adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized enterprises.

Includes among such insurable mortgages a leasehold under a leaseReplaces the current grounds for charges with a term ending no earlier than the minimum numbergrounds consisting of years, as specifiedunsafe or unsound practices or violations of law engaged in by the Secretary, beyond the actuarial life expectancy of the mortgagoreither a regulated entity or comortgagor, whichever is the later date.an affiliate.

LimitsAuthorizes the benefits of such mortgage insuranceDirector to 132% ofdeem a specified dollar amount limitation forregulated entity to be engaging in an unsafe or unsound practice if it receives a one-family residence. less-than-satisfactory rating in its most recent examination.

Permits insurance of such a mortgage when(Sec. 1152) Grants the primary purposeDirector enforcement authority regarding unsafe or unsound practices and violations of the home equity conversion mortgage is to enable an elderly mortgagor to purchase a one- to four-family dwelling in which the mortgagor will occupylaw, including: (1) imposition of temporary cease and desist orders; (2) suspension or occupies oneremoval of the units.officers and directors (including those of affiliated parties);and imposition of civil money penalties on affiliated parties.

Allows insurance(Sec. 1156) Establishes criminal penalties for participation in the affairs of subordinate mortgages or liens on cooperative dwelling units.a regulated entity without the Director's prior written approval.

Prohibits an applicant mortgagor(Sec. 1157) Extends from satisfyingtwo to six years after separation the third party adequate counseling requirement by receiving such counseling from a reverse mortgage lender, servicer or investor, or an entity engaged in the salestatue of annuities, investments, long-term care insurance, orlimitations for any other type of financialnotice to or insurance product.proceeding against an entity-affiliated party.

Repeals: (1)(Sec. 1158) Revises subpoena authority to authorize the waiverDirector to apply to the U.S. District Court for the District of upfront premiumsColumbia, or the U.S. district court for insured mortgages whose total amount will be usedthe judicial district of 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 fund long-term care insurance; and (2) funding for counseling and consumer education and outreach.bring a subpoena enforcement action.)

Instructs the HUD Secretary to: (1) prescribe regulations protecting elderly homeowners from the marketing of financial<b>Subtitle E: General Provisions</b> - Sets forth conforming and insurance products not in their interest, including the marketing or sale of an annuity as a condition of obtaining any home equity conversion mortgage; (2) establish limits upon origination fees; and (3) study and report to Congress on mortgage insurance premiums that insure home equity conversion mortgages for elderly homeowners.technical amendments.

Amends(Sec. 1162) Amends the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to authorizerevise requirements governing the Federal National Mortgage Association (Fannie Mae)boards of the regulated entities. Changes the number of board members for Fannie Mae and Freddie Mac from 18 to 13, or any other number the Federal Home Loan Mortgage Corporation (Freddie Mac) to deal in NHA-insured mortgages, notwithstanding certain limitations upon maximum original principal obligations. Director determines appropriate. Eliminates presidential appointments of board members.

(Sec. 220) Instructs<b>Title II: Federal Home Loan Banks</b> - (Sec. 1201) Amends the Comptroller General to studyFederal Housing Enterprises Financial Safety and reportSoundness Act of 1992 to Congress onrequire the impactDirector, before promulgating regulations or taking any action relating to the FHLBs, to consider differences between the FHLBs and the regulated entities with respect to: (1) cooperative ownership structure; (2) the mission of financial auditproviding liquidity to members; (3) affordable housing and net worth requirements upon mortgage brokerscommunity development mission; (4) capital structure; and correspondent lenders,(5) joint and specified related matters.several liability.

(Sec. 221) Revises1202) Amends the authorityFederal Home Loan Bank Act to: (1) revise requirements governing membership, terms, and compensation of the HUD Secretary to insure mortgages for disaster housing to increase the limit on the principal obligation by the amountboard of any initial service charges, appraisal, inspection,directors; and other fees.(2) place the FHLBs under Agency oversight.

Authorizes(Sec. 1205) Instructs the HUD Secretary, after a presidential major disaster declaration,Director to enter, for up to 36 months, into agreements to insure aestablish housing goals regarding mortgage which involves a principal obligation of up to 100% of a specified dollar amount limitation for a single-family mortgage. purchases by the FHLBs.

(Sec. 222) Establishes penalties for: (1) failure by a mortgage servicer to make timely payments from escrow accounts; and (2) submission of information to a consumer reporting agency regarding such failure that is adverse1206) Makes community development financial institutions eligible to join the mortgagor's credit rating or interest. Prohibits the HUD Secretary from submitting such information to a consumer reporting agency.FHLB system.

(Sec. 223) Prescribes acceptable forms of identification for FHA mortgagors. Prohibits1207) Requires the Secretary from insuring a mortgage unlessDirector to share information with FHLBs regarding the mortgagor provides such identification.condition of another FHLB.

(Sec. 224) Directs1208) Amends the HUD SecretaryFederal Home Loan Bank Act to implement a pilot program to make available to mortgagees an automated process for providing alternative credit rating information for actualexempt the FHLBs from compliance with certain SEC regulations, including: (1) transactions in FHLB capital stock; (2) the transfer of FHLB securities; and prospective mortgagors, under mortgages for one- to four-family residences to be insured, who have insufficient credit histories for determining their creditworthiness.(3) certain reporting requirements.

Directs(Sec. 1209) Authorizes voluntary mergers among the Comptroller General to report to Congress on the number of additional mortgagors served using such automated process, and its impact upon the safety and soundness of the insurance funds under the NHA. FHLBs.

(Sec. 225) Expresses1210) Permits the sensereduction of the Congress that: (1) the HUD Secretary should useFHLB districts as a portionresult of the funds received from premiums paid for FHA single family housing mortgage insurance that exceed the amounts paid out in claims to increase the funding for technology used in such FHA program; (2) the goal of this investment should be to bring such technology up to or 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.voluntary FHLB mergers.

(Sec. 226) States that1211) Increases from $500 million to $1 billion the Deficit Reduction Act of 2005 governing FHAtotal asset disposition does not apply to a multifamily real property transactionprerequisite 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,community financial institution member. Authorizes the Secretary acquires title to the property at a foreclosure sale; and (3) such city government and housing commission have resolved a previous disagreement regarding dispositionuse of the property.FHLB advances for community development activities.

(Sec. 227) Directs1212) Requires the 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 or local governmental entity (including repair costs:Director to: (1) report annually to bring the propertycertain congressional committees on collateral pledged to minimum stateFHLBs, including an analysis of collateral by type and local code standards;by district; and (2) of maintaining the affordability restrictions upon the multifamily real property or multifamily loan).establish a public use database that incorporates census tract level data for mortgages purchased.

(Sec. 228) Prohibits mortgage insurance premium increases above1214) Requires the level in effect on October 1, 2006, unless in the absence of suchDirector to provide 30 days advance notice before liquidating or reorganizing an increase the appropriation of new budget authority would be requiredFHLB. Permits an FHLB to covercontest that determination in a hearing before the costs of such insurance. Director.

(Sec. 229) Establishes civil money penalties for improperly influencing appraisals in connection1215) Instructs the Director to study and report to Congress on: (1) securitization of home mortgage loans purchased from member financial institutions under the Acquired Member Assets programs; and (2) the extent to which loans and securities used as collateral to support FHLB advances are consistent with an insured mortgage.interagency guidance on nontraditional mortgage products.

(Sec. 230) Requires1218) Grants the HUD Secretary to provide refunds of unearnedDirector refinancing authority for specified FHLB residential mortgage insurance premium charges paid with respect to certain insured mortgages. Authorizes appropriations.loans.

<b>Subtitle B: FHA Manufactured<b>Title III: Transfer of Functions, Personnel, and Property of OFHEO and the Federal Housing Loan Insurance Modernization</b>Finance Board - FHA Manufactured Housing Loan Modernization Act of 2008Subtitle A: OFHEO</b> - (Sec. 253) Exempts a manufactured home or its lot from1301) Abolishes the limitation on insurance for a financial institution's loans, advancesHUD Office of credit,Federal Housing Enterprise Oversight (OFHEO). Transfers OFHEO employees, property and purchases.facilities to the Agency.

(Sec. 254) Makes any contract of insurance with respect to loans, advances of credit, or purchases in connection with a manufactured home or<b>Subtitle B: Federal Housing Finance Board</b> - (Sec. 1311) Abolishes the Federal Housing Finance Board. Transfers its lot conclusive evidence ofemployees, property and facilities to the institution's eligibility for insurance.Agency.

(Sec. 255) Increases maximum loan limits<b>Title IV: HOPE for such insurance.Homeowners</b> - HOPE for Homeowners Act of 2008 - (Sec. 1402) Amends the National Housing Act (NHA) to establish the HOPE for Homeowners Program in the Federal Housing Administration (FHA).

(Sec. 256) Prescribes requirements for insurance premiums.Authorizes the Secretary of Housing and Urban Development (HUD) under the Program to insure eligible mortgages that have been refinanced in accordance with specified requirements.

(Sec. 258) DirectsInstructs the SecretaryBoard of Directors of the Program to establish insurance underwriting criteria for loansstudy and advances of creditreport to Congress on the need for such homesan auction or lots.bulk refinancing mechanism to facilitate refinancing existing residential mortgages at risk for foreclosure into mortgages that are insured under this Act.

(Sec. 259) Requires a borrower to have a valid Social Security account numberEstablishes in order for any obligationthe FHA the Home Ownership Preservation Entity Fund (HOPE) to be insured.implement mortgage insurance obligations.

(Sec. 260) InstructsLimits the Comptroller Generalaggregate original principal obligation of all mortgages insured under this Act to assess and report to Congress on how the HUD Secretary utilizes the FHA manufactured housing loan insurance program to mitigate tornado risks to manufactured housing residents and communities.$300 billion.

<b>Title III: Reform of Government-Sponsored Entities for Housing Finance</b> - Federal Housing Finance Reform Act of 2008 - <b>Subtitle A: Reform of Regulation of EnterprisesRequires HUD to ensure that securities based upon and Federal Home Loan Banks - Chapter 1: Improvementbacked by a trust or pool of Safety and Soundness</b> - (Sec. 311) Amends the Housing and Community Developmentmortgages insured under this Act of 1992are available to replacebe guaranteed by the OfficeGovernment National Mortgage Association (GNMA) for timely payment of Federal Housing Enterprise Oversight (OFHEO) with the Federal Housing Finance Agency (Agency). Grants the Agency supervisoryprincipal and regulatory authority over Fannie Mae, Freddie Mac, and the federal home loan banks (enterprises). interest. Authorizes GNMA to make such guarantees.

Requires the AgencyTerminates HUD's authority to have Deputy Directors: (1)insure such refinanced mortgages as of the Division of Enterprise Regulation; (2) of the Division of Federal Home Loan Bank Regulation; and (3) for Housing. Requires the Agency Director to establish the position of Ombudsman.September 30, 2011.

Instructs the DirectorSecretary of the Treasury to issue HOPE Bonds to establish prudential management and operations standardspay for the enterprises.net federal Program costs.

(Sec. 313) Establishes1403) Amends the Federal Housing Enterprise BoardTruth in Lending Act to advise the Director on overall strategies and policies.impose a fiduciary duty upon servicers of pooled residential mortgages.

(Sec. 315) Authorizes the DirectorDeclares that a servicer of pooled residential mortgages: (1) owes any duty to requiremaximize the enterprises to: (1) report fraudulent financial transactions;net present value of the pooled 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) disclose charitable contributions they have made.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 pooled mortgages in such investment, provided that any mortgage so modified meets specified criteria.

(Sec. 316) Prescribes annual assessments1404) Amends the National Housing Act (NHA) to require FHA appraisers to: (1) be collected fromcertified by the enterprises. Requiresstate in which the Comptroller Generalproperty to audit annuallybe appraised is located, or by a nationally recognized professional appraisal organization; and report to Congress on the financial transactions of the Agency. (2) have demonstrated verifiable education in FHA appraisal requirements.

(Sec. 318) Revises the prohibition against excessive executive compensation<b>Title V: S.A.F.E. Mortgage Licensing Act</b> - Secure and Fair Enforcement for officersMortgage 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 Nationwide Mortgage Licensing System and Registry for the enterprises.residential mortgage industry in order to increase uniformity, reduce regulatory burdens, enhance consumer protection, and reduce fraud.

Authorizes the Director to require(Sec. 1504) Sets forth general registration and state-licensing requirements, including one for a regulated entity to withhold any payment, transfer, or disbursement of compensation to an executive officer, or to place such compensationunique identifier, for engaging in an escrow account, during the review of the compensation's reasonableness and comparability. loan origination transactions.

(Sec. 320) Requires each regulated entity to either establish an Office of Minority and Women Inclusion, or designate an office responsible1505) Prescribes requirements for diversity in management, employment,state licensing and registration applications and business activities.issuance, including testing.

Requires the Agency to take affirmative steps to seek diversity at all levels in its workforce consistent with the demographic diversity of the United States. (Sec. 1506) Prescribes minimum standards for license renewal for state-licensed loan originators, including continuing education

(Sec. 321) Repeals1507) Requires federal banking agencies jointly, through the requirementFederal Financial Institutions Examination Council, to develop and maintain a system for congressional reviewregistering with the Nationwide Mortgage Licensing System and Registry (Registry) as registered loan originators any employees of regulations proposeda depository institution, a subsidiary owned and controlled by a depository institution and regulated by a federal banking agency, or an institution regulated by the Director.Farm Credit Administration.

(Sec. 322) Declares1508) Directs the HUD Secretary to establish and maintain a backup licensing and registration system for loan originators operating in a state that submission by any person to the Agencyeither: (1) does not, after a certain period of any informationtime, have a licensing and registering system for any purpose inloan originators that meets the courserequirements of any supervisorythis Act; or regulatory process shall(2) does 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 thanparticipate in the Agency.Registry.

(Sec. 323) Revises requirements for risk-based capital levels for1509) Requires the enterprises, including federal home loan banks.HUD Secretary to establish and maintain a nationwide mortgage licensing and registry system upon determining that the Registry is not in compliance with this Act.

(Sec. 324) Prescribes minimum and critical capital levels for1510) Authorizes the federal home loan banksbanking agencies, the Farm Credit Administration, the HUD Secretary, and the Registry to charge fees to cover the costs of maintaining and providing access to information from the enterprises.Registry.

Empowers(Sec. 1511) Directs the Director to: (1) increase temporarilyAttorney General to provide state officials responsible for regulating state-licensed loan originators access to all criminal history information to the minimum capital level for a 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 ofextent criminal history background checks are required under the entities and monitor their portfolios; and (5) require disposition or acquisitionlaws of assets and liabilities by the enterprises.requesting state.

(Sec. 326) Sets forth corporate governance and risk-management requirements for1514) Grants the enterprises, including a specified code of ethics.HUD Secretary enforcement powers under its backup licensing system.

(Sec. 327) Requires each of them1515) Grants state licensing agencies authority to register at least one class of its stock with the SEC.investigate and examine loan originators.

(Sec. 328) Amends1517) Instructs the Federal Financial Institutions Examination Council Act of 1978HUD Secretary to require one representative of the Agencystudy and report to sitCongress on the liaison committeeroot causes of the Federal Financial Institutions Examination Council.home loan defaults and foreclosures.

(Sec. 329)<b>Title VI: Miscellaneous</b> - (Sec. 1601) Requires the Director to study and report to Congress onon: (1) mortgage guarantee fees charged by the pricing, transparency,regulated entities; and reporting of the enterprises with respect(2) possible improvements to guarantee fees and analogous practices, transparency, and reporting requirements of other participants in the overall default risk evaluation used for residential mortgage purchasing and securitization business (including advances pricing practices by the federal home loan banks).loans.

<b>Chapter 2: Improvement of Mission Supervision</b> - (Sec. 332) Instructs(Sec. 1603) Authorizes the DirectorHUD Secretary, upon request of an owner of certain large multifamily housing projects subject to require the enterprises to obtain the Director's approval before offering a product. Sets forth approval standardscontract for section 8 project-based rental assistance and procedures, including expedited review.a Rental Assistance Payment contract, to convert such contracts to a contract for project-based rental assistance under section 8 of the United States Housing Act of 1937 [sic].

(Sec. 333)1604) Amends the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage CorporationDeposit Insurance Act to increase the limitations governing the maximum original obligation of conventional mortgages purchased by Fannie Maerename new banks as new depository institutions and Freddie Mac for 2008. Prescribes a formula for calculating such limitations for mortgages originated on or after January 1, 2009.bridge banks as bridge depository institutions.

Instructs(Sec. 1605) Expresses the Director to establish and maintain a methodsense of assessing the national average one-family house price (housing price index) for useSenate that, in adjustingimplementing this Act, the conforming loan limitationsSenate supports a policy of noninterference regarding local government requirements that the enterprises.holder of a foreclosed property maintain that property.

Requires the Comptroller General<b>Division B: Foreclosure Prevention</b> - Foreclosure Prevention Act of 2008 - Designates all provisions of this Division as emergency requirements necessary to audit the Director's methodology and report the resultsmeet emergency needs pursuant to certain congressional committees.FY2008 budget resolution.

Expresses the sense<b>Title I: FHA Modernization Act of Congress that: (1) securitization2008</b> - FHA Modernization Act of mortgages by2008 - <b>Subtitle A: Building American Homeownership</b> - Building American Homeownership Act of 2008 - (Sec. 2112) Amends the enterprises plays an important roleNational Housing Act to modify requirements for the maximum principal loan obligation: (1) changing one element in providing liquiditythe formula from 95% to 100% of the median one-family house price in the U.S. housing markets;area; and (2) Congress encourages them to securitize mortgages acquired underincreasing other percentages in the increased conforming loan limits established by this Act.formula.

(Sec. 334) RequiresLimits the Directorprincipal loan obligation to report annually to specified congressional committees on100% of the appraised value of the property. Prohibits any increase in the maximum amount of a mortgage by the amount of the mortgage insurance premium paid at the time the enterprises.mortgage is insured.

(Sec. 335) Requires2113) Amends the enterprisesNational Housing Act to report annuallyrevise eligibility criteria for cash down payment for Federal Housing Administration (FHA) mortgage insurance. Increases such payment from the current 3% to Congress on affordable housing stock.3.5% of the appraised value of the property.

(Sec. 336) RequiresRepeals the Directorauthority of corporations or other persons to establish and enforce standards that:pay the down payment for: (1) prohibitindividuals at age 60 or older at the enterprises fromtime the purchase, service, holding, selling, lending onmortgage was endorsed for insurance or if the security of, or otherwise dealing with any mortgage on a one- to four-family residence that will be used asmet the principal residence ofrequirement for single-family housing in outlying areas; or (2) covering a mortgagor that does not have a Social Security number (mortgagor identification requirements); and (2) prohibitsingle-family home being purchased under the federal home loan banks from providing any advances tolow-income housing demonstration project or a member for usehousing unit in financing, and from accepting as collateral for any advance toconnection with a member, any mortgage on a one- to four-family residence that will be used ashomeownership program under the principal residence of the mortgagor that does not have such a number.Homeownership and Opportunity Through HOPE Act.

(Sec. 337) InstructsRequires the Director to establishSecretary of Housing and report annually to Congress on annual single family and multifamily special affordable housing goalsUrban 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 purchasesand 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 enterprises.mortgage.

Authorizes an enterprise to petitionProhibits cash down payments from consisting, in whole or in part, of funds provided before, during, or after closing of the Director during a year to reduceproperty sale by: (1) the level ofseller or any other person or entity that financially benefits from the transaction; or (2) any goal forthird party or entity that year. Prescribes standards foris reimbursed, directly or indirectly, by such a goal reduction.parties.

(Sec. 338) Amends the Housing and Community Development Act2114) Releases from HUD upfront mortgage insurance premium requirements: (1) certain mortgages secured by one- to four-family dwellings that are obligations of 1992 to impose a duty upon the enterprisesGeneral Insurance Fund (GIF); (2) insured rehabilitation loans for one- to serve underserved markets (rural marketsfour-family structures; 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. (3) condominium mortgages.

(Sec. 339) Requires the DirectorIncreases from: (1) 2.25% to assign additional credit toward achievement of3% the housing goals for enterprisemaximum upfront mortgage purchase activitiesinsurance premium HUD may collect on mortgages secured by a one- to four-family dwelling that comply with such goals and support: (1) environmental housing standards;is an obligation of the Mutual Mortgage Insurance (MMI) Fund; and (2) housing that includes2% to 2.75% such premium if, as under current law, the mortgagor is a licensed childcare center.first-time homebuyer who completes a HUD approved program of counseling with respect to the responsibilities and financial management involved in homeownership.

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

(Sec. 340) Instructs2116) Requires the DirectorHUD Secretary to establish an affordable housing fund with amounts allocated bynotify 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 tractsSecretary of Agriculture (among others) whenever any discretionary action has been taken to suspend or an area of chronic economic distress; (3) increase and preserverevoke the supplyapproval of rental and owner-occupied housing for extremely low- and very low-income families; (4) investany mortgagee to participate in public infrastructure development; and (5) leverage investments from other sources to affordable housing and its attendant public infrastructure development.any mortgage insurance program.

Sunsets(Sec. 2117) Permits the affordable housing fund program after five years.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.

ProhibitsIncludes among insurable one-family units (condominiums) in multifamily projects those in which the enterprises from redirecting (passing through) costs to the originators of mortgages they purchaseddwelling units are manufactured housing units, semidetached or securitized. Prescribes formulas for affordable housing needs allocations for Louisiana and Mississippi. Requires each grantee to establish an allocation plan.detached.

Cites Social Security, photo, REAL ID, passport, and USCIS photo identification(Sec. 2118) Revises requirements for recipientsthe MMI Fund, specifying operating goals among other things. Requires an annual independent actuarial study of affordable housing grants.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.

InstructsMakes insured mortgages used in conjunction with the Comptroller General to study and report to Congress onHomeownership Voucher program, as well as reverse mortgages, obligations of 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. MMI Fund.

(Sec. 342) Specifies additional grounds for2119) Makes insurance of a Native Hawaiian or Indian reservation mortgage the obligation of the issuanceMMI Fund (instead of cease-and-desist orders by the Director upon an enterprise.GIF).

<b>Chapter 3: Prompt Corrective Action</b> - (Sec. 345) Requires the Director(Sec. 2121) Redefines &quot;home mortgage&quot; and &quot;mortgage&quot; to establish specified capital classification criteria for the federal home loan banks. Authorizes the Directorinclude subordinate mortgage, with respect to reclassify an enterprise in circumstancesFHA insurance of rapidly depleting of core or total capital or engagement in unsafe or unsound practices.cooperative housing projects.

(Sec. 346) Specifies regulatory actions for enterprises which are undercapitalized, including: (1) mandatory monitoring; (2) restricted asset growth; and (3) prior approval2122) Eliminates the limitation on the aggregate number of acquisitions, including new products and new activities.home equity conversion mortgages (HECMs, or reverse mortgages) for elderly homeowners insured under the National Housing Act.

(Sec. 347) Specifies management improvement actions, including dismissal of directors or executive officersRevises insurance eligibility requirements for mortgagees and orderingmortgagors. Requires the election of a new board, the Director must take with respectHUD Secretary to a significantly undercapitalized enterprise.establish qualification standards and counseling protocols for mortgagor counselors.

Prohibits any significantly undercapitalized enterprise, withoutRepeals the Director's prior approval, from paying an executive officer ofprohibition against up-front premiums for mortgages to fund long-term care insurance, together with the enterprise: (1) any bonus; or (2) any compensation exceeding the officer's average rate (excluding bonuses, stock options,related authority to refinance existing mortgage and profit sharing) for the previous 12 months.finance closing costs.

(Sec. 348) Changes from mandatory to discretionaryRevises funding requirements for the authority of the Directormortgagor counseling program to appointallow use of a conservator or receiverportion 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 critically undercapitalized enterprise. home equity conversion mortgage, provided that the use of such funds is based upon accepted actuarial principles.

RequiresAuthorizes the DirectorSecretary to appointinsure an HECM to: (1) enable an elderly mortgagor to purchase a one- to four-family dwelling unit, one unit of which the Agencymortgagor will occupy as such conservator or receiver. Specifies circumstancesa primary residence; and grounds(2) provide for exercise of such authority, including grounds for mandatory receivership.any future payments to the mortgagor, based on available equity.

Authorizes an enterpriseEstablishes a single national loan limit for HECMs equivalent to seek judicial review of the Agency's appointment as conservator or receiver. Revises procedureslimit for a conservatorship or receivership. Specifiesone-family residence under the Agency's powers as conservator or receiver.Federal Home Loan Mortgage Corporation Act.

<b>Chapter 4: Enforcement Actions</b> - (Sec. 351) RevisesDirects: (1) the Director's authoritySecretary to establish specified limits on the origination fee that may be charged to issue charges and/or a temporary cease-and-desist order upon an enterprise or affiliated party for unsafe or unsound practices or violationsHECM mortgagor, including a maximum fee of law. Authorizes$6,000, adjustable for inflation; and (2) the DirectorComptroller General to deem an entitystudy and report to be engaging in an unsafe or unsound practice if it receives a less-than-satisfactory rating in its most recent examination.Congress on the costs and availability of credit under the HECMs for elderly homeowners program.

(Sec. 353) Authorizes a court, upon2123) Amends the applicationEnergy Policy Act of 1992 to raise the Director orcap on the Attorney General, to issue a restraining order: (1) prohibiting any person from disposingprice of any funds or other property of an enterprise (prejudgment attachment); and (2) appointing a person temporarily to administer the order.cost-effective energy efficiency improvements under the energy efficiency mortgages program.

(Sec. 354) Authorizes2124) Amends the DirectorNational Housing Act to apply for enforcement of a notice or order directly (currently, only throughrequire the Attorney General)Secretary to the U.S. District Courtcarry out a pilot program to establish, and make available to mortgagees, an automated process for the District of Columbia, or the U.S. district court within the jurisdiction of which the enterprise's headquarters are located.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.

(Sec. 355) RevisesRequires the three tiersComptroller General to identify to Congress: (1) the number of violations subjectadditional mortgagors served using the automatic process; and (2) the impact of such process and the insurance of mortgages pursuant to civil money penalties. Increasesit on the safety and soundness of FHA mortgage insurance funds of which such penalties.mortgages are obligations.

(Sec. 356) Grants2125) Requires the Director removal, prohibition,Secretary and subpoena authority over an enterprise or affiliated party in violation of any law or order.the FHA Commissioner to develop, implement, and report to specified congressional committees a plan to improve the FHA loss mitigation process.

(Sec. 357) Subjects2126) Authorizes appropriations to criminal liability any person, subjectthe Secretary for FY2008-FY2012 from the negative credit subsidy for FHA mortgage insurance programs to a removal order, who without the Director's prior written approval knowingly participates, directly or indirectly,increase funding for: (1) technology; (2) processes; (3) program performance; (4) fraud elimination; and (5) appropriate staffing in any manner in the affairs of any enterprise.connection with such programs.

(Sec. 358) AuthorizesConditions such authorization for any fiscal year upon certification by the DirectorSecretary that mortgage insurance premiums charged during it: (1) are established at the minimum amount sufficient to apply directlycomply with the requirements for enforcementthe MMI capital ratio; and (2) ensure the safety and soundness of any subpoena or subpoena duces tecum (currently, only through the Attorney General)other FHA mortgage insurance funds. Requires any such negative credit subsidy to ensure adequately the appropriate U.S. District court.efficient delivery and availability of FHA mortgage insurance programs.

<b>Chapter 5: General Provisions</b> - (Sec. 361) AmendsRequires the Federal National Mortgage Association Charter ActSecretary to study and the Federal Home Loan Mortgage Corporation Actreport to Congress on how best to revise requirements governingupdate and upgrade FHA mortgage insurance program processes and technologies so that: (1) the boards of the enterprises. Changes the number of board membersprocedures for Fannie Maeoriginating, insuring, and Freddie Mac from 18,servicing of whom five must be appointedmortgages conform with those customarily used 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.secondary market purchasers of residential mortgage loans; and (2) such processes and technology provide appropriate staffing for such programs.

(Sec. 362) Instructs2127) Amends the Director to report to Congress on portfolio operations, safetyHousing and soundness, and missionUrban Development Act of the enterprises, including an analysis of potential systemic risk implications, the1968 to revise post-purchase housing and capital markets, andcounseling 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 financial system of portfolio holdings.homeowner's income.

(Sec. 364) Requires the DirectorExtends eligibility to study and reportsuch a homeowner that has a significant: (1) reduction in household income due to Congress ondivorce or death; or (2) increase in his or her basic expenses or those of an immediate family member (including the effects uponspouse, 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 housing finance markets of alternativessignificant damage to the current secondary market system for housing finance.property, the repair of which will not be covered by private or public insurance, or a large property-tax increase.

<b>Subtitle B: Federal Home Loan Banks</b> - (Sec. 372) AmendsAdds as an alternative criterion that the Federal Home Loan Bank Act to: (1) bring the federal home loan banks under Agency regulation; (2) revise requirements governing membership, terms, and compensationannual income of the board of directors; (3) permit joint activities byhomeowner is no longer greater than the banks; and (4) permit information sharing and voluntary mergers between such banks.annual low- or moderate-income.

(Sec. 377) ExemptsRepeals the automatic counseling eligibility of first-time home loan banks from specified requirementsbuyers whose mortgage: (1) principal obligation exceeds 97% of the Securities Exchange Act of 1934, the Securities Act of 1933,property's appraised value; 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.will be insured.

(Sec. 378) Increases from $500 million2128) Requires the Secretary to $1 billionestablish a demonstration program to test the total asset requirementeffectiveness of alternative forms of pre-purchase homeownership counseling for up to 3,000 first-time homebuyers approved for a home loan with a community financial institution member.loan-to-value (LTV) ratio between 97% and 98.5% (eligible homebuyers).

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

(Sec. 380) InstructsAuthorizes the Comptroller GeneralSecretary to study and reportprovide incentives to Congress and the Director on: (1) the use of the affordable housing programs of the bankseligible homebuyers 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 assistanceparticipate in meeting the needsdemonstration program, including reduction of affected communities. any FHA insurance premium charges owed.

<b>Subtitle C: Transfer(Sec. 2129) Amends the federal criminal code to subject an individual to a fine of Functions, Personnel,up to $1 million 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).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. 387) Transfers each OFHEO employee2130) 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 Agency.costs of such insurance.

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

(Sec. 393) Transfers each Board employeeAuthorizes the Secretary to waive the 30-day notice requirement if waiting 30 days before increasing premiums would cause substantial damage to the Agency.solvency of multifamily housing programs.

<b>Chapter 3: Department of Housing and Urban Development</b> - (Sec. 395) Transfers specified enterprise-related functions, employees, and property(Sec. 2133) Prohibits the Secretary, for 12 months beginning on October 1, 2008, from HUD and OFHEOtaking 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 Agency Director.insurance contract represents.

<b>Title IV: Emergency Mortgage Loan Modification</b> - Emergency Mortgage Loan Modification ActProhibits 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 2008 - (Sec. 402) Establishesany mortgage on a standardsingle family residence under title II of the National Housing Act, where the premium price for loan modificationssuch new product is based in whole or workout plans for pools of certain residential mortgage loans.in part on a borrower's Decision Credit Score or any successor score.

States that the servicer<b>Subtitle B: Manufactured Housing Loan Modernization</b> - FHA Manufactured Housing Loan Modernization Act of such pooled loans owes a duty to2008 - (Sec. 2143) Amends the securitization vehicleNational Housing Act with respect to maximize recovery of proceedsFHA housing loan insurance 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.manufactured homes (or lots for such homes).

Deems the loan servicerExempts such loans from certain financial institution portfolio limits, increasing an allowable claim for loss from 10% to be acting on behalf90% of the securitization vehicle in the best interestan institution's total amount of investorssuch loans, credit advances, 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.purchases.

Shields a servicer, acting in a manner consistent with(Sec. 2144) Makes any new contract of insurance for such duty, from liability to specified persons for entering into a qualifiedloans, credit advances, or purchases conclusive evidence of an institution's insurance eligibility. (Thus requires each loan modification or workout plan for loss mitigation purposes (including any person obligated to make specified payments pursuant to be insured individually instead of as part of a derivatives instrument).bundle of such loans.)

Defines &quot;qualified(Sec. 2145) Increases 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.limits, requiring annual indexing.

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(Sec. 2146) Prescribes requirements for payment by the issuer,a borrower of mortgage pass-through certificates, participation certificates, mortgage-backed securities, or other similar securities backed bypremium charges for credit insurance, including an asset pool that includes residential mortgage loans;upfront premium of up to 2.25% and (2) holds such loans.an annual premium of up to 1%.

<b>Title V: Other Housing Provisions</b> - (Sec. 501) Amends(Sec. 2147) Revises requirements for the Home Owners' Loan Acthandling and disposal of any real or personal property conveyed to authorize investmentsor acquired by a federal savingsthe Secretary, and loan association to promote the public welfare through the provisionpursuit of housing, services, and jobs that target low- and moderate-income communities or families. all claims against mortgagors assigned to the Secretary by mortgagees.

Prohibits such investment, however, if it would subject a federal savings association to unlimited liability to any person. Sets limitations upon such investments(Sec. 2148) Directs the Secretary to: (1) establish underwriting criteria for loans and credit in connection with a manufactured home, or a lot for one, that will ensure the aggregate.manufactured housing program's financial soundness; and (2) revise within six months existing criteria to accord with those established under this Act.

(Sec. 502) Permits2149) Amends the conversion of two specified HUD contractsNational Housing Act to a contract for project-based rental assistance for low-income families upon request ofapply the owner ofprohibition against kickbacks and unearned fees in the multifamily housing project subjectReal Estate Settlement Procedures Act of 1974 (RESPA) to such contracts. each sale of a manufactured homes financed with an FHA-insured loan or extension of credit and related services.

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

(Sec. 504) DirectsRequires the HUD Secretary to transfer, upon owner request, certain rental assistance contracts on housing owned or managed by: (1) Community PropertiesSecretary, in connection with the purchase of Ohio Management Services LLC,a manufactured home financed with a FHA loan or an affiliateextension of Ohio Capital Corporation for Housing, located in Franklin County, Ohio,credit, to other properties locatedprohibit acts or practices in such county; and (2) The Model Group, Inc., located in Hamilton County, Ohio,connection with loans or extensions of credit that the Secretary finds to other properties locatedbe unfair, deceptive, or otherwise not in such county.the interests of the borrower.

(Sec. 505) Amends federal bankruptcy law2150) Prescribes certain lease requirements as prerequisites for HUD insurance of a financial institution with respect to prohibit a governmental unit that operates a mortgage loan program from denying program benefits (includingto finance a loan guarantee or subsidy)manufactured home intended to a disabled veteran who has been declared a debtorbe leased in bankruptcy, has been insolvent before commencement of a bankruptcy case, or meets related criteria.<br> manufactured home community.

<b>Title VI: Revenue and Other ProvisionsII: Mortgage Foreclosure Protections for Servicemembers</b> - 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(Sec. 2201) Sets forth a temporary increase in the low-income housing tax credit and tax-exempt bond rulesmaximum loan guaranty for financing low-incomecertain housing projects.loans guaranteed by the Secretary of Veterans Affairs.

(Sec. 601) Increases in 2008 and 20092202) Instructs the per capita amountSecretary of Defense to develop and implement a program to advise members of the low-income housing tax credit allocable by each state.Armed Forces returning from active duty abroad on actions to prevent or forestall mortgage foreclosures.

(Sec. 602) Modifies rules for2203) Amends the low-income housing tax credit to: (1) eliminateServicemembers Civil Relief Act to lengthen from 90 days to nine months after a servicemember's military service the distinction between newprotection and existing buildingsstay-of-proceedings periods with respect to the sale, foreclosure, or seizure of property for purposesa breach 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.mortgage obligation.

(Sec. 604) Repeals: (1)<b>Title III: Emergency Assistance for the prohibition against providing low-income housing tax credits to properties receiving moderate rehabilitation assistance under the Housing ActRedevelopment of 1937;Abandoned and (2) bond posting requirements relatingForeclosed Homes</b> - (Sec. 2301) Authorizes FY2008 appropriations for emergency assistance to states and local governments for the dispositionredevelopment of buildings for which a low-income housing tax credit was claimed.abandoned and foreclosed homes and residential properties.

Requires states(Sec. 2302) Requires each state to consider the energy efficiencyreceive at least 0.5% of a low-income housing project and its historical nature in allocating credit amounts among such projects.funds made available under this title.

Extends eligibility for(Sec. 2303) Prohibits: (1) the low-income housing tax credituse of such funds for any project that seeks to students who receive foster care assistance under title IV (Grants to Statesuse the power of eminent domain, unless it is employed only for Aid and Servicesa public use; or (2) distribution of such funds to Needy Families with Children andindividuals or organizations indicted for Child-Welfare Services)violations of the Social Security Act. federal law.

<b>Subpart B: Modifications(Sec. 2305) Makes appropriations. Earmarks specified appropriations for counseling organizations that target services regarding loss mitigation 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 changeminority and low-income homeowners or provide such services in the obligorsneighborhoods with high concentrations of such bonds;minority and (2) allow continued eligibility for low-income housing tax benefits with respect to new tenants, students, and single-room occupancies. homeowners

<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 establishedEarmarks other appropriations for calendar years after 2008 for determining eligibility for low-income housing tax benefits remain at the same level as preceding calendar years. 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.

(Sec. 610) Waives annual income recertification requirementsProhibits use of such funds to provide, obtain, or arrange on behalf of a homeowner any legal representation involving or for residentsthe purposes of low-income rental projects whose incomes do not exceed applicable limits.civil litigation.

<b>Part 2: Single Family Housing</b><b>Title IV: Housing Counseling Resources</b> - (Sec. 612) Allows first-time homebuyers a tax credit2401) Authorizes appropriations for 10% of the purchase price of a principal residence. Limits the dollar amount of such creditFY2008 to $7,500.the NRC for foreclosure mitigation activities.

(Sec. 613) Allows individual taxpayers who claim2402) Requires entities approved by the standard deduction an additional deduction from gross income forNRC or the Secretary and state housing finance entities receiving funds under this Act. To work to identify and local real property taxes. coordinate with non-profit organizations operating national or statewide toll-free foreclosure prevention hotlines.

<b>Part 3: General Provisions</b><b>Title V: Mortgage Disclosure Improvement Act</b> - Mortgage Disclosure Improvement Act of 2008 - (Sec. 615) Authorizes2502) Amends the Truth in 2008 anLending Act to set forth additional $10 billion indisclosure requirements governing any extensions of credit (not only home mortgages) secured by the volume cap for issuing tax-qualified bonds for certain residential rental projects.dwelling of a consumer.

Allows, until December 31, 2010,Increases the useactual damages for which a creditor is liable for noncompliance with such Act in the case of mortgage bond proceedsan 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 refinance certain subprime residential mortgage loans made between 2002 and 2008.$4,000.

(Sec. 616) Exempts<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 alternative minimum tax (AMT) tax-exempt interest on certain housing bonds. Allows low-income housing and rehabilitation tax credit amountsArmed Forces, if the member is likely to offset AMT liability. be discharged or released for such disability.

(Sec. 617) Allows certain municipal bonds that are guaranteed by federal home loan banks2602) Authorizes the Secretary of Veterans Affairs (Secretary in this title) to qualify as tax-exempt bonds. 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. 618) Sets forth an alternative procedure2604) Extends through December 31, 2011, the authority to provide assistance for furnishing a nonforeign affidavit in connectionspecially adapted housing to individuals with the sale of a U.S. real property interest (USRPI)permanent and the exemption from withholding of tax requirements. Allowtotal service-connected disabilities who are residing temporarily in housing owned by 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 nonforeign affidavit is false. family member.

(Sec. 619)2605) Increases the maximum assistance for specially adapted housing benefits for disabled veterans: (1) from 35$10,000 to 50 the percentage of property that may be leased$12,000 for adaptations to a tax-exempt entity without affectingresidence, 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 property's allowable rehabilitation tax credit.maximums according to increases in a cost-of-construction index which the Secretary shall establish.

<b>Subtitle B: Reforms Related to Real Estate Investment Trusts - Part 1: Foreign Currency And Other Qualified Activities</b> - (Sec. 621) Amends(Sec. 2606) Requires the Internal Revenue Code relatingSecretary to real estate investment trusts (REITs)report to treat passive foreign exchange gains attributablecertain congressional committees on: (1) the adequacy of the authorities available to overseas real estate investment as qualifying REIT income. Revises incomeassist eligible disabled individuals in acquiring special features for specially adapted housing; and asset tests(2) specially adapted housing assistance for such REITs for purposes of determining REIT qualifying income.individuals who reside on a permanent basis in housing owned by a family member.

<b>Part 2: Taxable REIT Subsidiaries</b> - (Sec. 625) Increase from 20 to 25%(Sec. 2608) Amends the the maximum valueUnited States Housing Act of a REIT's total assets that may be represented by securities1937 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 one or more taxable REIT subsidiaries.Veterans Affairs.

<b>Part 3: Dealer Sales</b> - (Sec. 627) Reduces from four(Sec. 2609) Entitles to two years the holding periodpayment for certain assets exempted from prohibited transaction rules for REITs.transportation of baggage and household effects any members of the armed forces who relocate due to foreclosure of leased or rental housing.

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

<b>Part 4: Health Care REITS</b> - (Sec. 630) Allows the treatment of rental payments by a health care facilityRequires 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 taxable REIT subsidiarypublic hearing to be treated as qualifying REIT rental income.discuss changes to agency goals and policies and make the information available to the public at the agency's principal office.

<b>Part 5: Effective Dates</b><b>Title VIII: Housing Preservation - Subtitle A: Preservation Under Federal Housing Program</b> - (Sec. 632) Sets forth2801) States that the effective datesDeficit Reduction Act of 2005 governing FHA asset disposition does not apply to transactions of multifamily real property for provisionswhich: (1) the HUD Secretary has received written expressions of this Subtitle. 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.

<b>Subtitle C: Revenue Provisions</b> - (Sec. 641) Requires brokers who are required to report gross proceeds from(Sec. 2802) Considers the saleHeritage Apartments in Malden, Massachusetts, eligible low-income housing for purposes 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.resident eligibility for certain enhanced voucher assistance.

(Sec. 642) Delays until 2010Requires that such residents receive enhanced rental housing vouchers upon the applicationprepayment of special rules for the worldwide allocation of interestmortgage loan for purposes of computing the limitation on the foreign tax credit.property.

(Sec. 643) AmendsDirects the Tax Increase PreventionSecretary to approve such prepayment and Reconciliation Actsubsequent transfer of 2005 to: (1) repeal the adjustment to the estimated tax liabilityproperty without any further condition; but limits occupancy of corporations with at least $1 billion in assets for the third quarterproperty, until the original maturity date of 2012; and (2) increase the estimated tax paymentsprepaid mortgage loan, to families with incomes not exceeding 80% of such corporationsthe adjusted median income for the area in which the third quarter of 2013 by 13%.<br> property is located.

<b>Subtitle D: Coordination of Federal Housing Programs and Tax Incentives for Housing</b> - Housing Tax Credit Coordination Act of 2008 - (Sec. 652)(Sec. 2803) Instructs the HUD SecretarySecretary, upon owner request, to implement administrative and procedural changes to expedite approval of multifamilytransfer certain rental assistance contracts on housing projects under HUD jurisdiction that meet HUD requirements, including:owned or managed by: (1) projectsCommunity Properties of Ohio Management Services LLC or an affiliate of Ohio Capital Corporation for which assistance is provided by HUDHousing located in conjunction with low-income housing tax credits or tax-exempt housing bonds;Franklin County, Ohio, to other properties in such County; and (2) existing public and assisted housing projects for which HUD approval is necessary for transactions involving project preservation or rehabilitation.The Model Group, Inc., located in Hamilton County, Ohio, to other properties located in Hamilton County, Ohio.

(Sec. 653)2804) Amends the United States Housing Act of 19491937 to directrepeal: (1) the HUD Secretaryauthorization for any PHA receiving income from nonrental sources to facilitate,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 rehabilitationlow-income housing or preservation purposes, timely approval of requests to transfer ownership or control of certain multifamily farm housing projectsbenefit the residents assisted by the Secretary of Agriculture in conjunction with low-income housing tax credits, or tax-exempt housing bonds.PHA.

(Sec. 654)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 Committee 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.

Prescribes procedures governingSets forth rules for 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. 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 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 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 real 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 nonforeign affidavit is false.

(Sec. 3025) Increases from 35 to 50 the percentage of property that may be leased to a tax-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 in 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).

(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<b>Subtitle B: Revenue Offsets</b> - (Sec. 3091) Requires payment contracts; (2) housing assistance contracts for dwelling units in cooperative housingsettlement entities (e.g., banks and high-rise elevator buildings; (3) waiverthird party settlement organizations) to report identifying information and the gross amount of subsidy layeringreportable payment transactions (i.e., payment card and environmental reviews for housing assistance payments contracts for existing structures; (4) treatment of tax credit projects under voucher program rent reasonableness requirements; (5) delegationthird party network transactions) 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.Internal Revenue Service (IRS).

<b>Subtitle E: Limitation on Sale, Foreclosure, or Seizure of Property Owned by Servicemembers - </b>(Sec. 661) Amends(Sec. 3092) Limits the Servicemembers Civil Relief Act to extendexclusion from gross income of gain from 90 days to one year after the periodsale of a servicemember's military serviceprincipal residence by denying an exclusion of the periodgain that is allocable to a nonqualified use of protection against mortgage foreclosure.such residence (i.e., use other than as a principal residence).

(Sec. 662) Requires3093) Delays until 2011 the mortgagor or loan servicer, in the caseapplication of a servicemember who defaults on a mortgage obligationspecial rules for two consecutive months, to furnish the servicemember with a written financial disclosure describing the servicemember's liabilityworldwide allocation of interest for purposes of computing the period during which a sale, foreclosure, or seizure oflimitation on the property is not valid.foreign tax credit.

States that neither this Act,(Sec. 3094) Amends the National Bank Act, nor the Home Owners' LoanTax Increase Prevention and Reconciliation Act preempts state law regulating foreclosure of residential real property or2005 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 treatmentthird quarter of foreclosed property.2013 by 16.75%.
</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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