Vote Smart's Synopsis:

Vote to adopt an amendment to HR 3221 that would make changes to the Federal Housing Administration (FHA), amend certain taxes and credits on mortgages, and pursue energy efficient housing.

Highlights:

• Establishes the Federal Housing Finance Agency, with regulatory authority over Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Office of Finance (Sec. 1101).

• Abolishes the Office of Federal Housing Enterprise Oversight of the Department of Housing Development and the Federal Housing Finance Board one year after this act becomes law (Secs. 1301 & 1311).

• Establishes the HOPE (Home Ownership Preservation Entity) for Homeowners Program to insure refinanced mortgages and assist distressed borrowers by reducing the principle balance outstanding and interest rates charged on their mortgages (Sec. 1402).

• Provides that the total original obligation of all insured mortgages may be up to $300 billion (Sec. 1402).

• Requires the Director of the Office of Thrift Supervision to conduct a study to improve default risk evaluation of residential mortgage loans, with emphasis to the technologies and processes that help standardize the risk measurement (Sec. 1602).

• Raises the limits on the size of the principle mortgage obligation that is eligible for insurance for most homeowners (Sec. 2112).

• Eliminates the General Insurance Fund as a source of mortgage insurance and transfers its responsibilities to the Mutual Mortgage Insurance Fund; increases the initial single premium payment to a maximum of 3 percent from 2.25 percent of the original insured principal obligation of the mortgage and provides that for a first-time homebuyer who completes a program of homeownership counseling the payment shall increase to a maximum of 2.75 percent from 2 percent (Sec. 2114).

• Establishes that the costs of energy efficient mortgage program improvements not exceed the greater of 5 percent of the property value of the dollar limitation established under Sec. 2112 of this amendment or 2 percent of the sum of the amount of the mortgage insurance premium paid at the time the mortgage is insured and (Sec. 2123):
• 98.75 percent of the appraised value of the properties appraised at or below $50,000
• 97.65 percent of the appraised value of the properties appraised at or below $125,000
• 97.15 percent of the appraised value of properties appraised above $125,000.

• Authorizes $25 million each fiscal year between 2009 through 2013 to the Secretary of Housing and Urban Development for purposes of enhancing technology, processes, and program performance, and for eliminating fraud and paying staff in regards to mortgage insurance programs under the National Housing Act (Sec. 2126).

• Increases the maximum loan guaranty amount temporarily for veterans' housing to either 25 percent of $417,000, which will be annually adjusted in accordance with the housing price index, or 25 percent of 125 percent of the area median price for the single-family residence (Sec. 2201).

• Appropriates $4 billion for the fiscal year 2008 until it is expended as emergency funds to states and local governments for the redevelopment of abandoned and foreclosed homes (Sec. 2301).

• Appropriates $100 million for fiscal year 2008 until September 30, 2008 for housing counseling resources to the Neighborhood Reinvestment Corporation (Sec. 2401).

• Increases the state low-income housing credit maximum capacity for 2008 and 2009 (Sec. 3001).

• Establishes a first-time homebuyer credit for single-family housing at 10 percent of the purchase price of the residence, with a maximum of $8,000 (Sec. 3011).

• Allows individuals who do not itemize their income tax deductions to deduct the real property tax deduction (Sec. 3012).

Full Bill Text

Full Bill Text