text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Rebuilding Equity Act of 2013''.
  
  SEC. 2. REBUILDING EQUITY PROGRAM.
  
      (a) Establishment of Voluntary Program.--
              (1) Establishment.--
                      (A) Payment of closing costs.--The Federal National 
                  Mortgage Association and the Federal Home Loan Mortgage 
                  Corporation (in this Act referred to as the 
                  ``enterprises'') shall each establish a voluntary 
                  program for borrowers described in paragraph (2), under 
                  which the enterprises shall pay $1,000 toward the 
                  closing costs associated with applying for and 
                  receiving the refinancing when the borrower agrees to 
                  refinance into a fully amortizing loan with a term of 
                  not longer than 20 years.
                      (B) First year of program.--During the 12-month 
                  period that begins on the date of enactment of this 
                  Act, the amount of the closing costs that each 
                  enterprise shall pay under the program shall not vary 
                  based on the term of the mortgage that the borrower 
                  agrees to refinance into.
                      (C) Subsequent years.--
                              (i) Annual recalculation of closing costs 
                          payment.--Upon the expiration of the 12-month 
                          period set forth under subparagraph (B), and 
                          for each of the next two 12-month periods 
                          thereafter, the Director of the Federal Housing 
                          Finance Agency--
                                      (I) shall adjust the amount of the 
                                  portion of the closing costs that each 
                                  enterprise will pay under the program--
                                              (aa) by an amount that 
                                          results in such program being 
                                          revenue neutral for such 12-
                                          month period; and
                                              (bb) based on economic 
                                          conditions generally affecting 
                                          the mortgage and housing 
                                          markets; and
                                      (II) may adjust the amount of the 
                                  closing costs that each enterprise will 
                                  pay under the program based on the term 
                                  of the mortgage that the borrower 
                                  agrees to refinance into.
                              (ii) Report.--The Director of the Federal 
                          Housing Finance Agency shall report any 
                          adjustments made pursuant to the requirements 
                          of clause (i) to the Chair and Ranking Member 
                          of the Committee on Banking, Housing, and Urban 
                          Affairs of the Senate and the Committee on 
                          Financial Services of the House of 
                          Representatives.
              (2) Eligible borrowers.--The program required by paragraph 
          (1) shall be for any borrower--
                      (A) who qualifies for the Home Affordable Refinance 
                  Program carried out by the enterprises;
                      (B) whose subject property has a loan-to-value 
                  ratio of not less than 105 percent; and
                      (C) who refinances from a loan with an original 
                  term of 30 years to a loan with a term of 20 years or 
                  less.
      (b) Sunset.--Each voluntary program under this section shall 
  terminate on the date that is 3 years after the date of establishment 
  of such program.
      (c) Definitions.--As used in this section, the following 
  definitions shall apply:
              (1) Loan-to-value ratio.--The term ``loan-to-value ratio'' 
          means the ratio of the amount of the primary mortgage on a 
          property to the value of that property.
              (2) Closing costs.--The term ``closing costs''--
                      (A) means all reasonable and actual costs charged 
                  to the borrower by a third party to the refinancing 
                  transaction;
                      (B) includes--
                              (i) appraisal and inspection fees;
                              (ii) fees associated with obtaining a 
                          borrower's credit report;
                              (iii) title insurance and title examination 
                          costs;
                              (iv) attorneys' fees associated with 
                          closing the transaction, other than attorneys' 
                          fees associated with disputes arising out of 
                          the transaction or otherwise ancillary to 
                          closing the transaction;
                              (v) document preparation costs, if 
                          completed by a third party not controlled by 
                          the lender;
                              (vi) transfer stamps, recording fees, 
                          courier fees, wire transfer fees, and 
                          reconveyance fees; and
                              (vii) test and certification fees; and
                      (C) does not include any costs charged to the 
                  borrower by the lender, including--
                              (i) lender application fees; and
                              (ii) lender origination fees.
target: Rebuilding Equity Act of 2013 - Directs the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (government sponsored enterprises or GSEs) to each establish a voluntary program for eligible borrowers under which the GSE shall pay $1,000 toward the closing costs associated with applying for and receiving the refinancing when the borrower agrees to refinance into a fully amoritizing loan with a term not longer than 20 years. Prohibits the amount of the closing costs that each GSE pays under the program during the 12 months following enactment of this Act from varying based on the term of the mortgage that the borrower agrees to refinance into.  Requires the Director of the Federal Housing Finance Agency, for each of the next two 12-month periods, to: (1) adjust the amount of the portion of the closing costs that each GSE will pay in accordance with specified requirements. Makes eligible for the program borrowers: (1) who qualify for the Home Affordable Refinance Program carried out by the GSEs, (2) whose subject property has a loan-to-value ratio of at least 105%, and (3) who refinances from a loan with an original 30-year term to a loan with a term of 20 years or less.
feat_title: Rebuilding Equity Act of 2013