Reform of section 106 of the Housing and Urban Development Act of 1968

Section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x) is amended— (1)in subsection (c)— (A)in paragraph (3)— (i)in subparagraph (A)(ii), by striking ; and and inserting ; or; and (ii)in subparagraph (A)(iii), by striking involving principal and all that follows through the appraised and inserting in which a homeowner has total equity equal to less than 3 percent of the appraised; (B)in paragraph (4)— (i)in subparagraph (C)— (I)in clause (i), by striking ; or and inserting a semicolon; (II)in clause (ii), by striking the period at the end and inserting a semicolon; (III)by adding at the end the following:

(iii)a significant reduction in the income of the household due to divorce or death; or (iv)a significant increase in basic expenses of the homeowner or an immediate family member of the homeowner (including the spouse, child, or parent for whom the homeowner provides substantial care or financial assistance) due to— (I)an unexpected or significant increase in medical expenses; (II)a divorce; (III)unexpected and significant damage to the property, the repair of which will not be covered by private or public insurance; (IV)a large property-tax increase; or (V)a large increase in condominium or cooperative fees, dues, or assessments; or

; and

(ii)by adding at the end the following:

(D)the Secretary of Housing and Urban Development determines that the annual income of the homeowner is no greater than the annual income established by the Secretary as being of low- or moderate-income.

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(C)in paragraph (5)— (i)by striking subparagraph (A) and inserting a new subparagraph (A) as follows:

(A)

Notification of availability of pre-purchase homeownership counseling, homeownership counseling, and Homeownership Protection Center services

(i)

Notification to mortgage applicants at time of mortgage application

(I)

In general

A proposed mortgagee shall provide notice to any applicant for a mortgage described in paragraph (4). (II)

Content of notice

The notice required under subclause (I) shall— (aa)if provided to an eligible mortgage applicant, state that completion of a counseling program is required for insurance pursuant to section 203 of the National Housing Act (12 U.S.C.1709); (bb)notify the mortgage applicant of the availability of homeownership counseling provided by non-profit organizations approved by the Secretary and experienced in the provision of pre-purchase homeownership counseling, or provide the toll-free telephone number established by the Secretary under subparagraph (D)(i); and (cc)notify the mortgage applicant or homeowner by a statement or notice, written in plain English by the Secretary of Housing and Urban Development, in consultation with the Secretary of Defense and the Secretary of the Treasury, explaining the mortgage and foreclosure rights of servicemembers, and the dependents of such servicemembers, under the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.), including the toll-free military one source number to call if servicemembers, or the dependents of such servicemembers, require further assistance. (ii)

Notification at time of closing of availability of counseling upon delinquency and services of State Homeownership Protection Centers

(I)

In general

At the time of closing, and together with the final signed loan documents, a mortgagee shall provide to the homeowner a plain language statement in conspicuous 16-point type or larger which shall include the following: (aa)

Counseling statement

A counseling statement that reads as follows:

‘If you are more than 30 days late on your mortgage payments, your lender or loan servicer is required by law to notify you of agencies approved by the United States Department of Housing and Urban Development (HUD) that may be able to assist you, including the contact information for your State Homeownership Protection Center if there is one operating in your State. Before you miss another mortgage payment, you are strongly encouraged to contact your lender or loan servicer or one of the agencies on the approved list for assistance. If you are more than 60 days late on your mortgage payments, your lender or loan servicer is required by law to send you a second notification containing this information. In addition, if you are more than 60 days late on your mortgage payment and you are registered with a State Homeownership Protection Center, your lender or loan servicer also will be required to notify the Center, so that the Center can contact you regarding any assistance it may be able to provide.

(bb)

Counseling agency listing

A listing of at least 5 housing counseling agencies approved by the Department of Housing and Urban Development, at least 1 of which is located in the State in which the property to be mortgaged is located. (cc)

Toll-free number

The listing of the toll-free telephone number established by the Secretary under subparagraph (D)(i). (dd)

Contact information for State Homeownership Protection Center

The contact information, including telephone number, email address, and physical address of the State Homeownership Protection Center, if such a Center is operating in the State in which the property to be mortgaged is located. (ee)

Notice to servicemembers or dependents of servicemembers

A statement, written in plain English, drafted by the Secretary of Housing and Urban Development, in consultation with the Secretary of Defense and the Secretary of the Treasury, explaining the mortgage and foreclosure rights of servicemembers, and the dependents of such servicemembers, under the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.), including the toll-free military one source number to call if servicemembers, or the dependents of such servicemembers, require further assistance. (ff)

Summary of duty to engage in loss mitigation

A brief summary of the obligation of the mortgagee to engage in reasonable loss mitigation activities for the purpose of providing an alternative to foreclosure, including language informing the homeowner that the mortgagee’s failure to comply with such loss mitigation requirements constitutes a defense to the foreclosure. (II)

Manner of disclosure

(aa)

1 document

At the discretion of the mortgagee, the mortgagee may provide all the information required under clause (I) in one single document. (bb)

Required description of document at closing

A mortgagee shall briefly describe the document in item (aa) to the homeowner during closing. (III)

Other requirements at time of closing for mortgagees operating in a State where a State Homeownership Protection Center is located

(aa)

Registration with State Homeownership Protection Centers

In addition to the required documents described in subclauses (I) and (II), at the time of closing the mortgagee shall explain in writing and verbally that the homeowner's name and contact information will be registered with a State Homeownership Protection Center so that the Center can attempt to reach the homeowner if the homeowner is 60 days or more late in making any mortgage payment. (bb)

Brochures

The mortgagee shall distribute to a homeowner any brochure, pamphlet, or other brief document prepared by the State Homeownership Protection Center that describes the services provided by the Center. (cc)

Duty of mortgagee to forward information

The mortgagee shall forward to the State Homeownership Protection Center the contact information of the mortgage applicant and shall agree to notify the Center if the mortgage payment of the homeowner is or becomes more than 60 days late so that the Center can attempt to reach the homeowner. (dd)

Required disclosures to the homeowner

Each homeowner shall be informed that being registered with a State Homeownership Protection Center under this subclause may provide easier access to assistance in case of financial difficulty and that no information that would make it possible to identify the homeowner will be given to any other entity for any reason without the prior approval of the homeowner. (ee)

Additional responsibilities of mortgagees

The mortgagee shall note registration with the State Homeownership Protection Center with the loan information of the homeowner, however such information is stored, and shall ensure that any entity which purchases the loan of the homeowner is aware of where they are registered and the requirement that the State Homeownership Protection Center be notified if the homeowner is or becomes more than 60 days late on any mortgage payment. (iii)

Notice upon delinquency of homeowner

(I)

In general

Except as provided in subparagraph (C)— (aa)if a homeowner becomes 30 or more days late on any mortgage payment, the mortgagee shall provide notice in the manner described in clause (iv) to any eligible homeowner who fails to pay any amount within 30 days of the date the amount is due under a home loan; (bb)if a homeowner becomes 60 or more days late on any mortgage payment, the mortgagee shall provide notice to the homeowner a second time in the manner described in clause (iv) to any eligible homeowner who fails to pay any amount within 60 days of the date the amount is due under a home loan; and (cc)if a homeowner becomes 60 or more days late on any mortgage payment, and such homeowner is registered with a State Homeownership Protection Center, the mortgagee shall provide notice to that State Homeownership Protection Center. (II)

Failure to provide notice

Failure to provide notice to a homeowner or to a State Homeownership Protection Center required under this subsection constitutes a defense to foreclosure. (iv)

Content of notice upon delinquency of homeowner

(I)

Registered homeowners

The notice required under clause (iii) for a homeowner registered with a State Homeownership Protection Center shall— (aa)notify the homeowner of the availability of any homeownership counseling provided by the mortgagee; (bb)provide the homeowner a current copy of the statement described in clause (ii)(I) provided to the homeowner at closing; and (cc)when the homeowner becomes 60 or more days late on any mortgage payment— (AA)notify the State Homeownership Protection Center with whom the homeowner is registered; and (BB)provide the Center with the contact information of the homeowner. (II)

Non-registered homeowners

The notice required under clause (iii) for a homeowner not registered with a State Homeownership Protection Center shall— (aa)notify the homeowner of the availability of any homeownership counseling provided by the mortgagee; and (bb)provide the homeowner a current copy of the statement described in clause (ii)(I) provided to the homeowner at closing. (III)

Mailings

When the notice required under clause (iii) is sent, the outside of the mailing envelope shall state that such mailing contains federally required information on Federal Government-approved financial counseling agencies.

;

(ii)by striking subparagraph (B) and inserting a new subparagraph (B) as follows:

(B)

Deadline for notification

The notification required in subparagraph (A) shall be made in a manner approved by the Secretary.

;

(iii)in subparagraph (D)(i)(I), by inserting post-purchase before homeownership counseling; and (iv)by adding at the end the following:

(F)

Nationwide availability

The Secretary shall ensure that each State is served by at least one local, regional, or national agency with an office in the State that provides the services described in this paragraph.

;

(D)in paragraph (6)(D), by inserting for a primary residence before the period; (2)by striking subsection (d) and inserting the following:

(d)

Grants to States for State Homeownership Protection Centers

(1)

In general

The Secretary shall award grants, on a competitive basis, to State housing finance agencies or any other designated State agency, to enable such agencies to establish and operate State Homeownership Protection Centers. (2)

Notification of funding availability

The Secretary shall release a Notification of Funding Availability for grants awarded under this subsection for a fiscal year not later than 3 months after the date of enactment of the appropriate Act making appropriations for the Department of Housing and Urban Development for the fiscal year. (3)

Application

(A)

Submission to the Secretary

To be eligible to receive a grant under this subsection, a State housing finance agency or any other designated State agency shall submit an application to the Secretary, at such time and in such manner as the Secretary may require, and containing such information as the Secretary determines necessary— (i)to determine the ability of such agency to operate a Center; and (ii)to establish priorities for funding based on need. (B)

Announcement of awards

The Secretary shall announce, within 4 months after the last date for the submission of applications described in subparagraph (A) for a fiscal year, the grants conditionally awarded under this subsection for that fiscal year. (4)

Purpose

The purpose of any State Homeownership Protection Center established under paragraph (1) shall be— (A)to provide a centralized location for information on, and referral to, public services available to assist a homeowner who is in default on their home loan; (B)to provide a homeowner with referrals to counseling agencies approved by the Department of Housing and Urban Development that may be able to assist that homeowner, if that homeowner is in default on their home loan; and (C)to attempt to contact each homeowner who is registered with the Center who is more than 60 days late on any mortgage payment with the goal of— (i)determining— (I)if such homeowner needs assistance in avoiding foreclosure on their home; and (II)what kind of assistance is needed by such homeowner to avoid foreclosure on their home; and (ii)providing referrals to any appropriate programs or entities that may be able to provide any such assistance. (5)

Homeownership protection centers

(A)

Use of funds

Each State housing finance agency or any other designated State agency, who is a recipient of a grant under paragraph (1) may only use such grant amounts to establish and operate State Homeownership Protection Centers in that State. (B)

Required activities

Each State Homeownership Protection Center established under this section shall, at a minimum— (i)provide a toll-free number through which any homeowner in financial distress can receive— (I)information on— (aa)the Center and its services; and (bb)public programs that provide assistance to homeowners; and (II)a listing of counseling agencies approved by the Department of Housing and Urban Development; (ii)provide information to homeowners on available community resources relating to homeownership, including— (I)public assistance or benefits programs; (II)mortgage assistance programs; (III)home repair assistance programs; (IV)legal assistance programs; (V)utility assistance programs; (VI)food assistance programs; and (VII)other Federal, State, or local government funded social service; (iii)provide staff who— (I)are able to conduct a brief assessment of the situation of a homeowner; and (II)based on such assessment can— (aa)make appropriate referrals to, and provide application information regarding, programs that can provide assistance to such homeowner; and (bb)provide a listing of counseling agencies approved by the Department of Housing and Urban Development; and (iv)provide to any homeowner in financial distress access to applications for public assistance or benefits program which may be of assistance to such homeowner. (C)

Additional activities

In addition to the services required under subparagraph (B), each State Homeownership Protection Center shall— (i)be technologically capable of— (I)accepting and recording in a secure database the contact information of any homeowner forwarded to the Center by a mortgagee pursuant to subsection (c)(5)(A)(ii)(III); and (II)accessing the contact information described in subclause (I), if the Center is notified by a mortgagee pursuant to subsection (c)(5)(A)(ii)(III) that the homeowner is 60 or more days late in paying any amount due under the home loan of such homeowner; (ii)if notified by a mortgagee pursuant to subsection (c)(5)(A)(ii)(III) that a homeowner who is registered with the Center is 60 or more days late in paying any amount due under the home loan of such homeowner, attempt to contact such homeowner to provide assistance or suggest public programs or counseling agencies that may provide assistance to the homeowner; and (iii)not release to the public or to any third party the name of any homeowner who is registered with the Center, or of any person who visits the Center for assistance, or any other information that would make it possible to identify such a person, without the prior written consent of such homeowner or person. (6)

Grants to States with Homeownership Protection Centers to assist homeowners in default

(A)

Grant authority

The Secretary shall award competitive grants to State housing finance agencies, or to any other designated State agency, located in a State with a State Homeownership Protection Center established under paragraph (1), to enable such agencies in partnership with State Homeownership Protection Centers to provide 1-time emergency grants or subsidized loans to eligible homeowners to assist such homeowners in satisfying any amounts past due on their home loans. (B)

Notification of funding availability

The Secretary shall release a Notification of Funding Availability for grants awarded under this paragraph for a fiscal year not later than 3 months after the date of enactment of the appropriate Act making appropriations for the Department of Housing and Urban Development for the fiscal year. (C)

Application

(i)

Submission to the Secretary

To be eligible to receive a grant under this paragraph a State housing finance agency or any other designated State agency located in a State where a State Homeownership Protection Center is located, shall submit an application to the Secretary at such time and in such manner as the Secretary may require, and containing such information as the Secretary determines necessary— (I)to determine compliance with the requirements and criteria under this paragraph; and (II)to establish priorities for funding based on need. (ii)

Announcement of awards

The Secretary shall announce, within 4 months after the last date for the submission of applications described in this paragraph for a fiscal year, the grants conditionally awarded under this paragraph for that fiscal year. (D)

Other requirements

(i)

Separate accounts

To be eligible to receive any amounts awarded under this paragraph and prior to providing any emergency grants or subsidized loans, a State housing finance agency or any other designated State agency shall establish a separate account in which such amounts are to be held. (ii)

Limited use

Any amounts made available for purposes of this paragraph in any appropriations Act shall be used only to provide 1-time emergency grants or subsidized loans to eligible homeowners to assist such homeowners in satisfying any amounts past due on their home loan as authorized under subparagraph (A). (iii)

Repayment of loans

Any amounts repaid on a subsidized loan made under this paragraph shall be deposited back into the separate account established under clause (i) from which the loan funds originated. (iv)

Other funding

Amounts donated or otherwise directed to be used for purposes of this paragraph may be deposited in any separate account established under clause (i) to help capitalize such account. (E)

Program Requirements

(i)

In general

Each State housing finance agency or any other designated State agency that is a recipient of a grant to assist homeowners in default under this paragraph, in cooperation with the State Homeownership Protection Centers in such State, shall develop program requirements for eligible homeowners seeking a 1-time emergency grant or subsidized loan under this paragraph. (ii)

Required content

The program requirements developed under clause (i) shall, at a minimum, include the following: (I)That any loan or grant under this paragraph may be provided for up to a four-family owner-occupied residence, including one-family units in a condominium project or a membership interest and occupancy agreement in a cooperative housing project, that is used as the principal residence of the applicant seeking such grant or loan. (II)That each applicant for a loan or grant shall be a permanent resident of the State in which the principal residence of such applicant is located. (III)That each applicant— (aa)provide documentation that such applicant either— (AA)is suffering from financial hardship which is unexpected or due to circumstances beyond the control of the applicant; or (BB)is eligible for homeownership counseling under subsection (c)(4); and (bb)offer proof that such applicant is unable, without financial assistance— (AA)to correct any delinquency on any amounts past due on the home loan of such applicant within a reasonable time; and (BB)to make full payment on any home loan payment due within the next 30 days. (IV)That a State Homeownership Protection Center, State housing finance agency, or any other designated State agency, or its designee, has determined, in its discretion, that there is a reasonable prospect that any applicant for a grant or loan under this paragraph will be able to resume full payments on the home loan of such applicant not later than 12 months after the date on which such applicant will first receive any grant or loan amounts under this paragraph. (V)That the applicant has not, at any point prior, and with respect to the same real property, previously received a grant or loan under this paragraph. (F)

Loan requirements

(i)

Rate of interest

Any loan under this section shall carry a simple annual percentage rate of interest which shall not exceed the prime rate of interest, as such prime rate is determined from time to time by at least 75 percent of the 30 largest depository institutions in the Nation. (ii)

No compounding

Interest on the outstanding principal balance of any loan under this section shall not compound. (iii)

Balance due

(I)

In general

The principal of any loan made under this paragraph, including any interest accrued on such principal, shall not be due and payable unless— (aa)the real property securing such loan is sold or transferred; or (bb)the last surviving homeowner of such real property dies. (II)

Deposit of balance due

If either event described in subclause (I) occurs, the principal of any loan made under this paragraph, including any interest accrued on such principal, shall immediately become due and payable to the State entity from which the loan originated. (iv)

No penalty for prepayment

Any homeowner who receives a loan under this paragraph may repay the loan in full, without penalty, by lump sum or by installment payments, at any time prior to the loan becoming due and payable. (v)

Cap on loan amount

The amount of any loan to any 1 homeowner under this section shall not exceed 20 percent of the original mortgage amount borrowed by the homeowner. (vi)

Subordination permitted

Any loan made under this paragraph will be subordinated to any refinancing of the first mortgage, any preexisting subordinate financing, any purchase money mortgage, or subordinated for any other reason, as determined by the State. (G)

Existing loan funds

Any State or State housing finance agency with a previously existing fund established to make loans to assist homeowners in satisfying any amounts past due on their home loan may use funds appropriated for purposes of this section for that existing loan fund, even if the eligibility, application, program, or use requirements for that loan program differ from the eligibility, application, program, and use requirements of this paragraph, unless such use is expressly determined by the Secretary to be inappropriate.

;

(3)in subsection (f)(2)(A), by striking and rental counselors. and inserting counselors in both pre-purchase and post-purchase counseling and in training rental counselors.; and (4)by adding at the end the following:

(g)

Duty To engage in loss mitigation

(1)

In general

Upon default of any federally related mortgage, as defined in section 3(1)(B) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2202(1)(B)), a mortgagee shall engage in reasonable loss mitigation activities for the purpose of providing an alternative to foreclosure. (2)

Defense to foreclosure

A mortgagee’s failure to comply with the requirements of paragraph (1) constitutes a defense to the foreclosure. (3)

No foreclosure if notice of application for home preservation loan

A mortgagee shall not initiate or continue a foreclosure— (A)upon receipt of a written confirmation that the homeowner has applied for a home preservation loan under subsection (d)(6); and (B)for the period of 1 month after receipt of such written confirmation or until the mortgagee is informed, in writing, that the homeowner is not eligible for a home preservation loan, whichever occurs first. (4)

Definition of loss mitigation activities

(A)

In general

As used in this subsection, the term loss mitigation activities means activities that minimize the potential losses to a homeowner or investor that may result from— (i)a homeowner’s inability to pay the mortgage payments due on a home loan; and (ii)any subsequent foreclosure action. (B)

Alternative to foreclosure

Loss mitigation activities provide alternatives to foreclosure whenever possible and reasonably ensure the long-term affordability of any mortgage retained pursuant to such activities. (C)

Process of mitigation

(i)

In general

Loss mitigation activities involve reasonably analyzing the borrower’s financial situation, evaluating the property value of the property to be mortgaged, and assessing the feasibility of measures including— (I)waiver of any late payment charge or, if applicable, penalty interest; (II)forbearance pursuant to a written agreement between the borrower and the servicer providing for a temporary reduction in monthly payments followed by a reamortization and new repayment schedule including the arrearage; (III)waiver, modification, or variation of any term of a mortgage, including modifications that change the mortgage rate, forgive the payment of principal or interest, extend the final maturity date of such mortgage, or begin to include an escrow for taxes and insurance; (IV)acceptance of payment from the homeowner of an amount less than the stated principal balance in final satisfaction of such mortgage; (V)assumption; (VI)pre-foreclosure sale; and (VII)deed in lieu of foreclosure. (ii)

Priority

Activities described in subclauses (V), (VI), and (VII) shall only be pursued after a reasonable evaluation of the feasibility of activities described in subclause (I), (II), (III), and (IV), based upon the homeowner's circumstances. (h)

Oversight of public and private efforts To reduce mortgage defaults and foreclosures

(1)

Monitoring of home loans

The Secretary, in consultation with the Department of Housing and Urban Development, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of Thrift Supervision, shall develop and implement a plan to monitor— (A)conditions and trends in the mortgage industry in order to predict, as best as possible, likely future trends in foreclosures; and (B)the effectiveness of public efforts to reduce mortgage defaults and foreclosures. (2)

Annual report to Congress on monitoring of home loans

Not later than 1 year after the development of the plan under paragraph (1), and every year thereafter, the Secretary shall submit a report to Congress that— (A)summarizes and describes the findings of the monitoring required under that subparagraph; and (B)includes recommendations or proposals for legislative or administrative action— (i)to increase the authority of the Secretary to levy penalties against any mortgagee, or other person or entity, who fails to comply with the requirements described in this section; and (ii)to improve coordination between various public and private initiatives to reduce the overall rate of mortgage defaults and foreclosures. (3)

Compliance plan and report

The Secretary, in consultation with the Department of Housing and Urban Development, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of Thrift Supervision, shall— (A)develop a plan to monitor the compliance with the requirements established in this section by mortgagees and other persons or entities; and (B)report such plan to Congress. (4)

Development of a national database on defaults and foreclosures

(A)

In general

Goals of national database

In developing the recommendations under subparagraph (A), the Secretary shall consider the goals of such a national database, which are as follows: (i)To provide Federal regulatory agencies with information on— (I)mortgagees that generate home loans which go into default or foreclosure at a rate significantly higher than the national average for such mortgagees; and (II)the various factors associated with those higher rates. (ii)To provide information to the Federal Government on loans, defaults, foreclosures, and sheriff sales— (I)which is not otherwise readily available; (II)which would allow for a better understanding of local, regional, and national trends in delinquencies, defaults, and foreclosures; and (III)so that public policies to reduce defaults and foreclosures may be improved. (C)

Report on outcomes of home loans

(i)

In general

In order to satisfy the requirement set forth in this paragraph and paragraph (1), the Secretary shall promulgate rules within 18 months of the date of enactment of the Homeownership Protection and Enhancement Act of 2007 requiring each lender who has originated 100 or more loans in the previous calendar year on behalf of itself or another person or entity, or each person or entity that has serviced 100 or more loans in the previous calendar year on behalf of itself or another entity, to report to the Secretary, on an annual basis, whatever data the Secretary, in consultation with the Department of Housing and Urban Development, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of Thrift Supervision, deems sufficient to meet the requirements set forth in subparagraph (B). (ii)

Content of report

At a minimum, each report required under clause (i) shall include data— (I)using the same identification requirements for each loan for which information is submitted as are established under the Home Mortgage Disclosure Act (12 U.S.C. 2801 et seq.) for data reporting, namely— (aa)year of origination; (bb)agency code of originator; (cc)respondent identification number of originator; and (dd)the identifying number for the loan; (II)regarding the characteristics of each home loan originated in the preceding 12 months by the lender, person, or entity, including— (aa)loan-to-value ratio at the time of origination for each mortgage on the property; (bb)whether or not there is an escrow account for taxes and insurance; (cc)the type of mortgage, such as a fixed-rate or adjustable-rate mortgage; and (dd)any other loan or loan underwriting characteristics determined by the Secretary, and the regulators with whom the Secretary consults under the terms of subparagraph (C)(i), to be necessary in order to meet the requirements of subparagraph (B) and that are not already available to the Secretary through a national mortgage database; (III)regarding the performance outcomes of each home loan originated in the preceding 12 months by the lender, person, or entity, including— (aa)if such home loan was in delinquency at any point in such 12-month period; and (bb)if any foreclosure proceeding was initiated on such home loan during such 12-month period; (IV)sufficient to establish for each home loan that at any point during the preceding 12 months had become 60 or more days delinquent with respect to a payment on any amount due under the home loan, or for which a foreclosure proceeding was initiated, the interest rate on such home loan at the time of such delinquency or foreclosure; (V)regarding foreclosures, including— (aa)the date of all foreclosures initiated by the lender, person, or entity; and (bb)the combined loan-to-value ratio of all mortgages on a home at the time foreclosure proceedings were initiated; and (VI)indicating each home loan for which a foreclosure proceeding was completed in the preceding 12 months, including— (aa)foreclosure proceedings initiated in such 12-month period; and (bb)the date of the foreclosure completion. (D)

Requirement of Federal Financial Institutions Examination Council to create a consolidated database

The Federal Financial Institutions Examination Council shall create a consolidated database that establishes a connection between the data provided under the Home Mortgage Disclosure Act (12 U.S.C. 2801 et seq.) and the data provided under this subsection. (E)

Report to Congress on national database

Not later than 12 months after the date of enactment of the Homeownership Protection and Enhancement Act of 2007, the Secretary shall report to Congress the recommendations required under subparagraph (A). (i)

Rule of construction regarding mortgagees

As used in this section— (1)the term mortgagee— (A)means the original lender under a mortgage; and (B)includes— (i)any servicers, affiliates, agents, subsidiaries, successors, or assignees of such lender; and (ii)any subsequent purchaser, trustee, or transferee of any mortgage or credit instrument issued by such lender; and (2)the term servicer means any person who collects on a home loan, whether they are the owner, the holder, the assignee, the nominee for the loan, or the beneficiary of a trust, or any person acting on behalf of such person. (j)

Authorization of appropriations

There are authorized to be appropriated to carry out this section— (1)$615,000,000 for fiscal year 2008, of which— (A)$300,000,000 shall be for grants to counseling organizations under subsection (c); (B)$260,000,000 shall be for competitive grants to States to establish revolving loan funds under subsection (d)(6); (C)$50,000,000 shall be for grants to establish and operate State Homeownership Protection Centers under subsection (d)(1); and (D)$5,000,000 shall be to create the Federal database under subsection (h)(4); (2)$635,000,000 for fiscal year 2009; and (3)such sums as necessary for each of fiscal years 2010 through 2012.