text: 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.
target: 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.
feat_title: To prevent foreclosure of home mortgages and increase the availability of affordable new mortgages.