US Congress House Bill 5940 (Prior Session Legislation)

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Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: Introduced on June 8 2012 - 25% progression, died in committee
Action: 2012-07-11 - Referred to the Subcommittee on Insurance, Housing and Community Opportunity.
Pending: House Subcommittee on Insurance, Housing and Community Opportunity Committee
Text: Latest bill text (Introduced) [PDF]

Preserving American Homeownership Act of 2012 - Requires the Director of the Federal Housing Finance Agency and the Federal Housing Commissioner each to establish a pilot program to encourage, through assistance provided under the Home Affordable Modification Program (HAMP) under the Secretary of the Treasury's Making Home Affordable initiative, the use of shared appreciation mortgage modifications that: (1) are designed to return greater cash flow to investors than other loss-mitigation activities, including foreclosure; and (2) result in positive net present value for the investor. Requires a shared appreciation mortgage modification to: (1) reduce by specified action the loan-to-value ratio of a covered mortgage to 115% immediately upon modification and to 95% within 3 years; (2) reduce the interest rate if such a principal reduction would not result in an affordable reduced monthly payment; (3) reduce to a specified amount any periodic payment the homeowner is required to make; (4) require the homeowner to pay the investor, after refinancing or selling the real property securing a covered mortgage, up to 50% of the amount of any increase in the value of the real property during a specified period; and (5) result in a positive net present value for the investor after taking into account the principal reduction and, if necessary, any interest rate reduction. Requires the Director to: (1) provide that an enterprise may negotiate regarding a shared appreciation mortgage modification of a covered mortgage with any mortgage insurance provider for a mortgage on the subject property, and (2) allow advanced claim agreements with respect to such mortgage insurance policies.

Preserving American Homeownership Act of 2012

Sen. Gary Peters [D-MI]

Rep. John Campbell [R-CA]

Rep. Keith Ellison [D-MN]

Date	Chamber	Action
2012-07-11	House	Referred to the Subcommittee on Insurance, Housing and Community Opportunity.
2012-07-11	House	Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.
2012-06-08	House	Referred to the House Committee on Financial Services.

SB2093 (Related) 2012-02-09 - Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
HB14 (Related) 2012-03-21 - Referred to House Foreign Affairs

Type	Source
Summary	https://www.congress.gov/bill/112th-congress/house-bill/5940/all-info
Text	https://www.congress.gov/112/bills/hr5940/BILLS-112hr5940ih.pdf