article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Housing Opportunity and Mortgage Equity Act of 2009''. SEC. 2. AFFORDABLE REFINANCING MORTGAGES AND NEW MORTGAGES. (a) Authority.--The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall each carry out a program under this section to purchase and securitize qualified refinancing mortgages and qualified new mortgages on single-family housing, in accordance with this section and policies and procedures that the Director of the Federal Housing Finance Agency shall establish. (b) Purchase of Qualified Mortgages.-- (1) Requirement to purchase.--If a lender proffers to an enterprise, in accordance with requirements established by the Director, a mortgage or mortgages for purchase under this section, the enterprise shall make a determination of whether such mortgage or mortgages are qualified mortgages. Subject to subsection (g), if the enterprise determines that such mortgage or mortgages meet the requirements for qualified mortgages, the enterprise shall make a commitment to purchase, and shall purchase, the mortgage or mortgages. (2) Advance commitments.--The Director shall require each enterprise to establish a procedure for approval of lenders to receive commitments, in advance of the origination of qualified mortgages, for purchase of such mortgages under this section by the enterprise. (c) Qualified Mortgages.-- (1) Qualified mortgage.--For purposes of this section, the term ``qualified mortgage'' means a mortgage that is a qualified refinancing mortgage or a qualified new mortgage. (2) Qualified refinancing mortgage.--For purposes of this section, the term ``qualified refinancing mortgage'' means a mortgage that meets the following requirements: (A) Single-family housing.--The property subject to the mortgage shall be a one- to four-family dwelling, including a condominium or a share in a cooperative ownership housing association. (B) Principal residence.--The mortgagor under the mortgage shall occupy the property subject to the mortgage as his or her principal residence. (C) Refinancing.--The principal loan amount repayment of which is secured by the mortgage shall be used to satisfy all indebtedness under an existing first mortgage that-- (i) was made for purchase of, or refinancing another first mortgage on, the same property that is subject to the qualified refinancing mortgage; and (ii) was originated on or before January 1, 2008. (D) Interest rate; term to maturity.--The mortgage shall-- (i) bear interest at a single rate that is fixed for the entire term of the mortgage, which shall not exceed 4.0 percent annually; and (ii) have a term to maturity of not less than 30 years and not more than 40 years from the date of the beginning of the amortization of the mortgage. (E) Underwriting standards.--The mortgage shall meet such underwriting standards as the Director shall require. (F) Waiver of prepayment penalties.--All penalties for prepayment or refinancing of the underlying mortgage refinanced by the mortgage, and all fees and penalties related to the default or delinquency on such mortgage, shall have been waived or forgiven. (3) Qualified new mortgage.--For purposes of this section, the term ``qualified new mortgage'' means a mortgage that meets the following requirements: (A) Terms.--The mortgage meets the requirements under subparagraphs (A), (B), (D), and (E) of paragraph (2). (B) Home purchase.--The principal loan amount repayment of which is secured by the mortgage shall be used to purchase the property that is subject to the qualified new mortgage. (C) New mortgages.--The mortgage was originated on or after the date of the enactment of this Act. (d) Exceptions to Underwriting Standards.--Each enterprise shall establish such exceptions to the underwriting standards of the enterprise, including downpayment and credit rating standards, that conform to the underwriting standards established pursuant to subsection (c)(5), as may be necessary to allow the enterprise to purchase and securitize qualified refinancing mortgages and qualified new mortgages under this section, in accordance with such requirements as the Director shall establish. (e) Securitization.-- (1) Requirement.--Each enterprise shall, upon such terms and conditions as it may prescribe, set aside any qualified mortgages purchased by it under this section and, upon approval of the Secretary of the Treasury, issue and sell securities based upon such mortgages set aside. (2) Form.--Securities issued under this subsection may be in the form of debt obligations or trust certificates of beneficial interest, or both. (3) Terms.--Securities issued under this subsection shall have such maturities and bear such rate or rates of interest as may be determined by the enterprise with the approval of the Secretary. (4) Exemption.--Securities issued by an enterprise under this subsection shall, to the same extent as securities which are direct obligations of or obligations guaranteed as to principal and interest by the United States, be deemed to be exempt securities within the meaning of laws administered by the Securities and Exchange Commission. (5) Principal and interest payments.--Mortgages set aside pursuant to this subsection shall at all times be adequate to enable the issuing enterprise to make timely principal and interest payments on the securities issued and sold pursuant to this subsection. (6) Required disclosure.--Each enterprise shall insert appropriate language in all of the securities issued under this subsection clearly indicating that such securities, together with the interest thereon, are not guaranteed by the United States and do not constitute a debt or obligation of the United States or any agency or instrumentality thereof other than the enterprise. (f) Federal Reserve Financing Facility.--The Board of Governors of the Federal Reserve System shall establish a credit facility of the Federal Reserve System to make credit available to the enterprises at interest rates comparable to rates on securities issued by the Secretary of the Treasury under chapter 31 of title 31, United States Code, and having comparable terms, as determined by the Board. (g) Termination.--The requirement under subsection (b)(1) for the enterprises to purchase mortgages shall not apply to any mortgage proferred to an enterprise after December 31, 2010. SEC. 3. DEFINITIONS. For purposes of this Act, the following definitions shall apply: (1) Director.--The term ``Director'' means the Director of the Federal Housing Finance Agency. (2) Enterprise.--The term ``enterprise'' means the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. (3) Secretary.--The term ``Secretary'' means the Secretary of the Treasury.
summary: Housing Opportunity and Mortgage Equity Act of 2009 - Directs the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (the enterprises) to implement a program to purchase and securitize qualified refinancing mortgages and qualified new mortgages on single-family housing in accordance with policies and procedures established by the Director of the Federal Housing Finance Agency (FHFA). Sets forth requirements for the purchase and securitization of qualified mortgages. Directs the Board of Governors of the Federal Reserve System to establish a credit facility of the Federal Reserve System to make credit available to the enterprises at interest rates comparable to certain rates on securities issued by the Secretary of the Treasury. Terminates the requirement under this Act for the enterprises to purchase mortgages after December 31, 2010.