text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Real Estate Mortgage Investment 
  Conduit Improvement Act of 2009''.
  
  SEC. 2. SPECIAL RULES FOR MODIFICATION OR DISPOSITION OF QUALIFIED 
                MORTGAGES OR FORECLOSURE PROPERTY BY REAL ESTATE MORTGAGE 
                INVESTMENT CONDUITS.
  
      (a) In General.--If a REMIC (as defined in section 860D(a) of the 
  Internal Revenue Code of 1986) modifies or disposes of a troubled asset 
  under the Troubled Asset Relief Program established by the Secretary of 
  the Treasury under section 101(a) of the Emergency Economic 
  Stabilization Act of 2008 or under rules established by the Secretary 
  under section 3 of this Act--
              (1) such modification or disposition shall not be treated 
          as a prohibited transaction under section 860F(a)(2) of such 
          Code, and
              (2) for purposes of part IV of subchapter M of chapter 1 of 
          such Code--
                      (A) an interest in the REMIC shall not fail to be 
                  treated as a regular interest (as defined in section 
                  860G(a)(1) of such Code) solely because of such 
                  modification or disposition, and
                      (B) any proceeds resulting from such modification 
                  or disposition shall be treated as amounts received 
                  under qualified mortgages.
      (b) Termination of REMIC.--For purposes of the Internal Revenue 
  Code of 1986, an entity which is a REMIC (as defined in section 860D(a) 
  of the Internal Revenue Code of 1986) shall cease to be a REMIC if the 
  instruments governing the conduct of servicers or trustees with respect 
  to qualified mortgages (as defined in section 860G(a)(3) of such Code) 
  or foreclosure property (as defined in section 860G(a)(8) of such 
  Code)--
              (1) prohibit or restrict (including restrictions on the 
          type, number, percentage, or frequency of modifications or 
          dispositions) such servicers or trustees from reasonably 
          modifying or disposing of such qualified mortgages or such 
          foreclosure property in order to participate in the Troubled 
          Asset Relief Program established by the Secretary of the 
          Treasury under section 101(a) of the Emergency Economic 
          Stabilization Act of 2008 or under rules established by the 
          Secretary under section 3 of this Act,
              (2) commit to a person other than the servicer or trustee 
          the authority to prevent the reasonable modification or 
          disposition of any such qualified mortgage or foreclosure 
          property,
              (3) require a servicer or trustee to purchase qualified 
          mortgages which are in default or as to which default is 
          reasonably foreseeable for the purposes of reasonably modifying 
          such mortgages or as a consequence of such reasonable 
          modification, or
              (4) fail to provide that any duty a servicer or trustee 
          owes when modifying or disposing of qualified mortgages or 
          foreclosure property shall be to the trust in the aggregate and 
          not to any individual or class of investors.
      (c) Effective Dates.--
              (1) Subsection (a).--Subsection (a) shall apply to 
          modification and dispositions after the date of the enactment 
          of this Act, in taxable years ending on or after such date.
              (2) Subsection (b).--
                      (A) In general.--Except as provided in subparagraph 
                  (B), subsection (b) shall take effect on the date that 
                  is 3 months after the date of the enactment of this 
                  Act.
                      (B) Exception.--The Secretary of the Treasury may 
                  waive the application of subsection (b) in whole or in 
                  part for any period of time with respect to any entity 
                  if--
                              (i) the Secretary determines that such 
                          entity is unable to comply with the 
                          requirements of such subsection in a timely 
                          manner, or
                              (ii) the Secretary determines that such 
                          waiver would further the purposes of this Act.
  
  SEC. 3. ESTABLISHMENT OF A HOME MORTGAGE LOAN RELIEF PROGRAM UNDER THE 
                TROUBLED ASSET RELIEF PROGRAM AND RELATED AUTHORITIES.
  
      (a) Establishment.--Not later than 30 days after the date of 
  enactment of this Act, the Secretary of the Treasury shall establish 
  and implement a program under the Troubled Asset Relief Program and 
  related authorities established under section 101(a) of the Emergency 
  Economic Stabilization Act of 2008 (12 U.S.C. 5211(a))--
              (1) to achieve appropriate broad-scale modifications or 
          dispositions of troubled home mortgage loans; and
              (2) to achieve appropriate broad-scale dispositions of 
          foreclosure property.
      (b) Rules.--The Secretary of the Treasury shall promulgate rules 
  governing the--
              (1) reasonable modification of any home mortgage loan 
          pursuant to the requirements of this Act; and
              (2) disposition of any such home mortgage loan or 
          foreclosed property pursuant to the requirements of this Act.
      (c) Considerations.--In developing the rules required under 
  subsection (b), the Secretary of the Treasury shall take into 
  consideration--
              (1) the debt-to-income ratio, loan-to-value ratio, or 
          payment history of the mortgagors of such home mortgage loans; 
          and
              (2) any other factors consistent with the intent to 
          streamline modifications of troubled home mortgage loans into 
          sustainable home mortgage loans.
      (d) Use of Broad Authority.--The Secretary of the Treasury shall 
  use all available authorities to implement the home mortgage loan 
  relief program established under this section, including, as 
  appropriate--
              (1) home mortgage loan purchases;
              (2) home mortgage loan guarantees;
              (3) making and funding commitments to purchase home 
          mortgage loans or mortgage-backed securities;
              (4) buying down interest rates and principal on home 
          mortgage loans;
              (5) principal forbearance; and
              (6) developing standard home mortgage loan modification and 
          disposition protocols, which shall include ratifying that 
          servicer action taken in anticipation of any necessary changes 
          to the instruments governing the conduct of servicers or 
          trustees with respect to qualified mortgages or foreclosure 
          property are consistent with the Secretary of the Treasury's 
          standard home mortgage loan modification and disposition 
          protocols.
      (e) Payments Authorized.--The Secretary of the Treasury is 
  authorized to pay servicers for home mortgage loan modifications or 
  other dispositions consistent with any rules established under 
  subsection (b).
      (f) Rule of Construction.--Any standard home mortgage loan 
  modification and disposition protocols developed by the Secretary of 
  the Treasury under this section shall be construed to constitute 
  standard industry practice.
target: Real Estate Mortgage Investment Conduit Improvement Act of 2009 - Establishes special rules for modification or disposition of a troubled asset (qualified mortgages or foreclosure property) under the Troubled Asset Relief Program (TARP) by real estate mortgage investment conduits (REMICs).
  
  Declares that: (1) such a modification or disposition shall not be treated as a prohibited transaction under the Internal Revenue Code; (2) an interest in the REMIC shall not fail to be treated as a regular interest solely because of such modification or disposition; and (3) any proceeds resulting from such modification or disposition shall be treated as amounts received under qualified mortgages.
  
  Specifies terms of the instruments governing the conduct of servicers or trustees with respect to qualified mortgages which shall terminates a REMIC.
  
  Directs the Secretary of the Treasury to establish and implement a home mortgage loan relief program under TARP.
feat_title: A bill to provide rules for the modification or disposition of certain assets by real estate mortgage investment conduits pursuant to division A of the Emergency Economic Stabilization Act of 2008, and for other purposes.