Fairness in Housing Recovery Act of 2009

Fairness in Housing Recovery Act of 2009 - Shields a servicer from liability for entering into a loan modification or loss mitigation plan for certain mortgages pursuant to guidelines issued by the Secretary of the Treasury under the Emergency Economic Stabilization Act of 2008 (EESA), if such servicer acts consistent with the fiduciary duty of servicers of pooled residential mortgages required by the Truth in Lending Act.

Amends the National Housing Act to replace the Hope for Homeowners Program with a program for insurance of home ownership retention mortgages.

Amends the Department of Housing and Urban Development Act to establish the Office of Housing Counseling

Requires the Secretary of Housing and Urban Development (HUD) to provide financial assistance to governmental entities and nonprofit organizations providing home ownership or rental counseling.

Requires the Secretary to study and report to Congress on the root causes of default and foreclosure of home loans.

Amends the Real Estate Settlement Procedures Act of 1974 to direct the Secretary periodically to prepare a consumer education booklet on real estate settlement practices for federally related mortgage loan applicants.

Amends the National Housing Act to prescribe limitations upon participation in origination and mortgagee approval.

Establishes Commission on the Foreclosure and Mortgage Lending Crisis to study and report to Congress on the current legal and regulatory framework governing the housing mortgage lending markets and how it contributed to the increased foreclosure rate.

Authorizes appropriations to the Attorney General to combat mortgage fraud.

Amends the Federal Deposit Insurance Act (FDIA) and the Federal Credit Union Act (FCUA) to increase the maximum deposit insurance and borrowing authorities of the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA).

Amends the FDIA with respect to systemic risk special assessments.

Amends the FCUA to direct the NCUA Board to establish a National Credit Union Share Insurance Fund restoration plan in specified circumstances.

Amends the EESA to prohibit the Secretary of the Treasury from making any purchase for which the Secretary receives control-diluting stock.

Declares that for a taxpayer who holds an interest in a subsidized residence: (1) the exclusion of gain from sale of principal residence under the Internal Revenue Code shall not apply to any gain from the sale or exchange of such interest, and (2) a specified rate of tax on specified gain shall be twice the rate which would otherwise apply.

Amends the Internal Revenue Code to allow a refundable general home buyer credit for residences purchased during 2009 or 2010.

Prescribes general conditions for mortgage relief.

Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov