SA 4409. Mrs. McCASKILL submitted an amendment intended to be proposed by her to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and
energy conservation; which was ordered to lie on the table; as follows:

At the end of the bill, insert the following:
TITLE VIII--REVERSE MORTGAGE PROTECTION PROCEEDS ACT


SEC. 801. SHORT TITLE.
This title may be cited as the ``Reverse Mortgage Proceeds Protection Act''.
SEC. 802. PROHIBITION ON REQUIRED PURCHASE OF AN ANNUITY.
Section 255 of the National Housing Act of 1937 (12 U.S.C. 1715z-20) is amended--
(1) by amending subsection (d)(1) to read as follows:
``(1) have been originated by a mortgagee approved by the Secretary;'';
(2) by amending subsection (d)(2)(B) to read as follows:
``(B) has received adequate counseling, as provided in subsection (f), by an independent third party that is not, either directly or indirectly, associated with or compensated by a party involved in-
``(i) originating or servicing the mortgage;
``(ii) funding the loan underlying the mortgage; or
``(iii) the sale of annuities, investments, long-term care insurance, or any other type of financial or insurance product;'';
(3) in subsection (f)--
(A) by striking ``(f) Information Services for Mortgagors.--'' and inserting ``(f) Counseling Services and Information for Mortgagors.--''; and
(B) by amending the matter preceding paragraph (1) to read as follows: ``The Secretary shall provide or cause to be provided adequate counseling for the mortgagor, as described in subsection (d)(2)(B). Such counseling shall be provided by counselors that meet qualification standards and follow uniform counseling protocols. The qualification standards and counseling protocols shall be established by the Secretary within 12 months of the date of enactment of the Reverse Mortgage Proceeds Protection
Act. The protocols shall require a qualified counselor to discuss with each mortgagor information which shall include--''
(4) striking subsection (l);
(5) redesignating subsection (m) as subsection (l);
(6) amending subsection (l), as so redesignated, to read as follows:
``(l) Funding for Counseling.--The Secretary shall use a portion of the mortgage insurance premiums collected under the program under this section to adequately fund the counseling and disclosure activities required under subsection (f), including counseling for those homeowners who elect not to take out a home equity conversion mortgage.''; and
(7) adding at the end the following:
``(m) Requirements on Mortgage Originators.--
``(1) IN GENERAL.--The mortgagee and any other party that participates in the origination of a mortgage to be insured under this section shall--
``(A) not participate in, be associated with, or employ any party that participates in or is associated with any other financial or insurance activity; or
``(B) demonstrate to the Secretary that the mortgagee or other party maintains, or will maintain, firewalls and other safeguards designed to ensure that--
``(i) individuals participating in the origination of the mortgage shall have no involvement with, or incentive to provide the mortgagor with, any other financial or insurance product; and
``(ii) the mortgagor shall not be required, directly or indirectly, as a condition of obtaining a mortgage under this section, to purchase any other financial or insurance product.
``(2) APPROVAL OF OTHER PARTIES.--All parties that participate in the origination of a mortgage to be insured under this section shall be approved by the Secretary.
``(n) Prohibition Against Requirements to Purchase Additional Products.--The mortgagee or any other party shall not be required by the mortgagor or any other party to purchase an insurance, annuity, or other additional product as a requirement or condition of eligibility for a mortgage authorized under subsection (c).
``(o) Regulations to Protect Elderly Homeowners.--Not later than 12 months after the date of enactment of the Reverse Mortgage Proceeds Protection Act, the Secretary shall, in consultation with other relevant Federal departments and agencies, promulgate regulations to help protect elderly homeowners from the marketing of financial and insurance products not in the interest of such homeowners, including the marketing or sale of an annuity or investment associated with obtaining, or as
a condition of obtaining, any home equity conversion mortgage.
``(p) Study to Determine Consumer Protections and Underwriting Standards.--The Secretary shall conduct a study to examine and determine appropriate consumer protections and underwriting standards to ensure that the purchase of products referred to in subsection (n) is appropriate for the consumer. In conducting such study, the Secretary shall consult with consumer advocates (including recognized experts in consumer protection), industry representatives, representatives of counseling
organizations, and other interested parties.''.


(As printed in the Congressional Record for the Senate on Apr 3, 2008.)