Tax Exempt Mortgage Revenue Bond Act of 1980

Tax Exempt Mortgage Revenue Bond Act of 1980 - Amends the Internal Revenue Code to deny a tax exclusion for interest earned on State- or locally- issued mortgage revenue bonds, except such bonds as meet specified requirements.

Requires mortgage revenue bonds qualified for such interest exclusion: (1) to finance owner-occupied residences exclusively; (2) to advance such financing only to individuals whose maximum annual income does not exceed 120 percent of the median family income for the statistical area where the residence is located; (3) to have as a limit to the aggregate amount of such bonds, when added to the aggregate amount of qualified mortgage bonds issued by the State and its political subdivisions during the same calendar year, not more than ten percent of the average annual sum of the amounts of all first mortgage loans made on owner-occupied residential real property located within such State during the preceding three calendar years; and (4) to provide for review by the responsible State agency of any issue made by a political subdivision, or by its housing financing agency, in order to determine the financial soundness of such issue.

Provides transitional rules for obligations issued before January 1, 1982.

Entitles any State housing agency to issue 50 percent of such mortgage revenue bonds, with the other 50 percent to be distributed among the local subdivisions as determined by the State legislature.