H.R. 5940 (112th): Preserving American Homeownership Act of 2012

Jun 08, 2012 (112th Congress, 2011–2013)
Died (Referred to Committee)
Gary Peters
Representative for Michigan's 9th congressional district
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Last Updated
Jun 08, 2012
11 pages
Related Bills
H.R. 1754 (113th) was a re-introduction of this bill in a later Congress.

Referred to Committee
Last Action: Apr 25, 2013

S. 2093 (Related)
Preserving American Homeownership Act of 2012

Referred to Committee
Last Action: Feb 09, 2012


This bill was introduced on June 8, 2012, in a previous session of Congress, but was not enacted.

Introduced Jun 08, 2012
Referred to Committee Jun 08, 2012
Full Title

To establish pilot programs to encourage the use of shared appreciation mortgage modifications, and for other purposes.


No summaries available.

2 cosponsors (1D, 1R) (show)

House Financial Services

Capital Markets and Government Sponsored Enterprises

Housing and Insurance

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Primary Source

THOMAS.gov (The Library of Congress)

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H.R. stands for House of Representatives bill.

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GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

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.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.

No summary available.

House Democratic Caucus Summary

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