(a) In General- The Secretary of the Treasury (in this title referred to as the `Secretary') shall establish and implement, within 60 days of the date of the enactment of the TARP Reform and Accountability Act of 2009, a program to stimulate demand for home purchases and reduce unsold inventories of residential properties, by providing mechanisms to ensure the availability of affordable, below-market interest rates on mortgages made for the purchase, by qualified home buyers, of 1- to 4-family residential properties.

(b) Implementation- The Secretary shall execute the program under this section using the authority to purchase obligations and other securities issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal Home Loan Banks made available by the Housing and Economic Recovery Act of 2008 and such other authority as the Secretary may have (other than that provided by title I of the Emergency Economic Stabilization Act of 2008) to make affordable, below-market interest rates available directly through portfolio lenders.

(c) Availability of Affordable Loans Under HOPE for Homeowners Program- The Secretary, in consultation with the Secretary of Housing and Urban Development, shall ensure that the affordable, below-market interest rates made available through the program under this section are made available in connection with mortgages made for refinancing eligible mortgages, as such term is defined in section 257 of the National Housing Act (12 U.S.C. 1715z-23), to be insured under the HOPE for Homeowners Program under such section.

(d) Targeting for Housing Disaster Areas-

(1) IN GENERAL- In carrying out the program under this section, the Secretary shall take into consideration impact of activities under the program on housing disaster areas.

(2) REPORT- Not later than 60 days after the Secretary first has authority to purchase troubled assets pursuant to section 115(a)(3) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)(3)), the Secretary shall--

(A) evaluate the impact of existing Federal foreclosure prevention activities on housing disaster areas;

(B) make a determination of whether the foreclosure rates and anticipated default rates in such areas have been adequately reduced; and

(C) submit a report to the Congress that describes the impact of such activities and the determination of the Secretary under subparagraph (B).

(3) ALTERNATIVE PROPOSALS- If the Secretary determines that the foreclosure rates and anticipated default rates in housing disaster areas have not been adequately reduced, the Secretary shall--

(A) consider carrying out alternative proposals, including a proposal under which the Federal Government makes available affordable mortgages, including refinancings, through subsidized financing or mortgage purchases; and

(B) establish and carry out alternative programs as the Secretary considers necessary to ensure that foreclosure prevention efforts are most effective in the areas of greatest need, including housing disaster areas.

(4) HOUSING DISASTER AREAS- For purposes of this section, the term `housing disaster area' means a geographic area having both--

(A) a high foreclosure rate during the 12 months preceding the date of the enactment of this Act, as measured by percentages of homes in or having gone through foreclosure during such period and compared to other areas; and

(B) a substantial decline in home prices during the 12 months preceding the date of the enactment of this Act, as measured by the Office of Federal Housing Enterprise and Oversight and compared to other areas.