1.Short
title; table of contents
(a)This Act may be cited
as the Foreclosure Prevention Act of
2008
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
TITLE I—Modifications on use of qualified mortgage
bonds
Sec. 101. Modifications on use of qualified mortgage bonds;
temporary increased volume cap for certain housing bonds.
TITLE II—Emergency assistance for the redevelopment of abandoned
and foreclosed homes
Sec. 201. Emergency assistance for the redevelopment of
abandoned and foreclosed homes.
TITLE III—Housing counseling resources
Sec. 301. Housing counseling resources.
TITLE IV—Helping families save their home in bankruptcy
act
Sec. 401. Short title.
Subtitle A—Minimizing foreclosures
Sec. 411. Special rules for modification of loans secured by
residences.
Sec. 412. Waiver of counseling requirement when homes are in
foreclosure.
Subtitle B—Providing other debtor protections
Sec. 421. Combating excessive fees.
Sec. 422. Maintaining debtors’ legal claims.
Sec. 423. Resolving disputes.
Sec. 424. Enacting a homestead floor for debtors over 55 years
of age.
Sec. 425. Disallowing claims from violations of consumer
protection laws.
TITLE V—Mortgage Disclosure Improvement Act
Sec. 501. Short title.
Sec. 502. Enhanced mortgage loan disclosures.
TITLE VI—Incentives for business
Sec. 601. Carryback of certain net operating losses allowed for
5 years; temporary suspension of 90 percent AMT limit.
<enum>I</enum><header>Modifications on
use of qualified mortgage bonds</header>
<section id="id6919674C34D8494184C06F3EB1C18858" section-type="subsequent-section"><enum>101.</enum><header>Modifications on use
of qualified mortgage bonds; temporary increased volume cap for certain housing
bonds</header>
<subsection id="id9DCAEA0C64274ABABB9A35419E49D28C"><enum>(a)</enum><header>Use of
qualified mortgage bonds proceeds for subprime refinancing loans</header><text display-inline="yes-display-inline">Section 143(k) of the Internal Revenue Code
of 1986 (relating to other definitions and special rules) is amended by adding
at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idECF94803A5F14D62A39D429BBDC8D9CC" style="OLC">
<paragraph id="id1913F985333F432E949416F4EDDBB7E0"><enum>(12)</enum><header>Special rules
for subprime refinancings</header>
<subparagraph id="id5F378138CDDF4AAF89E815413222A045"><enum>(A)</enum><header>In
general</header><text>Notwithstanding the requirements of subsection (i)(1),
the proceeds of a qualified mortgage issue may be used to refinance a mortgage
on a residence which was originally financed by the mortgagor through a
qualified subprime loan.</text>
</subparagraph><subparagraph id="id6D82AE51B9E446A8815C36358D5D8F00"><enum>(B)</enum><header>Special
rules</header><text>In applying this paragraph to any case in which the
proceeds of a qualified mortgage issue are used for any refinancing described
in subparagraph (A)—</text>
<clause id="id6490531D025046A2A76038F9C45F8456"><enum>(i)</enum><text>subsection
(a)(2)(D)(i) shall be applied by substituting <quote>12-month period</quote>
for <quote>42-month period</quote> each place it appears,</text>
</clause><clause id="id289CBD2DAA774224A81C7672BD40255A"><enum>(ii)</enum><text>subsection (d)
(relating to 3-year requirement) shall not apply, and</text>
</clause><clause id="idE1E732D521BD4C5A8E712E07382CE0FC"><enum>(iii)</enum><text>subsection (e)
(relating to purchase price requirement) shall be applied by using the market
value of the residence at the time of refinancing in lieu of the acquisition
cost.</text>
</clause></subparagraph><subparagraph id="id9E021F916D454AE9BA489D6CF85C2120"><enum>(C)</enum><header>Qualified
subprime loan</header><text>The term <term>qualified subprime loan</term> means
an adjustable rate single-family residential mortgage loan originated after
December 31, 2001, and before January 1, 2008, that the bond issuer determines
would be reasonably likely to cause financial hardship to the borrower if not
refinanced.</text>
</subparagraph><subparagraph id="id295F4A048FEF47A18041382261252C7B"><enum>(D)</enum><header>Termination</header><text>This
paragraph shall not apply to any bonds issued after December 31,
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id0D356DCE6C0948E3BB51B1529F5F7CBE"><enum>(b)</enum><header>Increased
volume cap for certain bonds</header>
<paragraph id="idCF4F5C3B69994E58BD84C45DA0A0D238"><enum>(1)</enum><header>In
general</header><text>Subsection (d) of section 146 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id802436E9BC334C54B3F802064056717D" style="OLC">
<paragraph id="idCDE9FFB5D4BF4031A5E46B57F7F5BA2B"><enum>(5)</enum><header>Increase and
set aside for housing bonds for 2008</header>
<subparagraph id="id0D10F34994CF4E6F8781790AD8E9EB65"><enum>(A)</enum><header>Increase for
2008</header><text>In the case of calendar year 2008, the State ceiling for
each State shall be increased by an amount equal to $10,000,000,000 multiplied
by a fraction—</text>
<clause id="id6F2BE63CF27B47B28244BAA1407F8CF6"><enum>(i)</enum><text>the numerator of
which is the population of such State (as reported in the most recent decennial
census), and</text>
</clause><clause id="idDD3D2DF4D54540FD8E2500A86AE3F9CF"><enum>(ii)</enum><text>the denominator
of which is the total population of all States (as reported in the most recent
decennial census).</text>
</clause></subparagraph><subparagraph id="id710A90860E834ED6806C31155F3888F1"><enum>(B)</enum><header>Set
aside</header>
<clause id="id298E444B04644638BDA8CB3584323638"><enum>(i)</enum><header>In
general</header><text>Any amount of the State ceiling for any State which is
attributable to an increase under this paragraph shall be allocated solely for
one or more qualified purposes.</text>
</clause><clause id="id164CD251F81E4F4E88ABD764A8C5DF5E"><enum>(ii)</enum><header>Qualified
purpose</header><text>For purposes of this paragraph, the term <term>qualified
purpose</term> means—</text>
<subclause id="idD3A28462C51F46F2859DBE3ED8347F6F"><enum>(I)</enum><text>the issuance of
exempt facility bonds used solely to provide qualified residential rental
projects, or</text>
</subclause><subclause id="idCDE499234F734723A4446F8BF2E33D9D"><enum>(II)</enum><text>a qualified
mortgage issue (determined by substituting <quote>12-month period</quote> for
<quote>42-month period</quote> each place it appears in section
143(a)(2)(D)(i)).</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id69226697AA724A3D9241005B2BB6C8CF"><enum>(2)</enum><header>Carryforward of
unused limitations</header><text>Subsection (f) of section 146 of such Code is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id62374B2A41D34EE980C3EEC8EDD96D1D" style="OLC">
<paragraph id="id2C17366E95644FCEA1D7FA2D56D4E4D1"><enum>(6)</enum><header>Special rules
for increased volume cap under subsection
<enum-in-header>(d)(5)</enum-in-header></header>
<subparagraph id="id3A674BA6F0364016BE5F1786AE28BF3E"><enum>(A)</enum><header>In
general</header><text>No amount which is attributable to the increase under
subsection (d)(5) may be used—</text>
<clause id="id39B8350AE8BB472BA6968B2EE8ADC0A4"><enum>(i)</enum><text>for a
carryforward purpose other than a qualified purpose (as defined in subsection
(d)(5)), and</text>
</clause><clause id="idD99E6F82F9BD46D4848BEB9B7492F56A"><enum>(ii)</enum><text>to issue any
bond after calendar year 2010.</text>
</clause></subparagraph><subparagraph id="IDc003800ca97e46119d2291a9b14bad8a"><enum>(B)</enum><header>Ordering
rules</header><text>For purposes of subparagraph (A), any carryforward of an
issuing authority’s volume cap for calendar year 2008 shall be treated as
attributable to such increase to the extent of such
increase.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id3A91155A1CF04B138168FE2B1A57B4F7"><enum>(c)</enum><header>Alternative
minimum tax</header>
<paragraph id="idB749F05D31A64B399DDFE0318B69480D"><enum>(1)</enum><header>In
general</header><text>Clause (ii) of section 57(a)(5)(C) of the Internal
Revenue Code of 1986 is amended by striking <quote>shall not include</quote>
and all that follows and inserting</text>
<quoted-block display-inline="yes-display-inline" id="idFEBCE16BE3B9412688F8772A4A13CDDA" style="OLC">
<text>shall not
include—</text><subclause id="idE5F6B18D66524A7FB810590B9BBF6EDD"><enum>(I)</enum><text>any qualified
501(c)(3) bond (as defined in section 145), or</text>
</subclause><subclause id="idD32C5F296F904AD7BFE3D09B7BDF200B"><enum>(II)</enum><text>any qualified
mortgage bond (as defined in section 143(a)) or qualified veterans' mortgage
bond (as defined in section 143(b)) issued after the date of the enactment of
this subclause and before January 1,
2011.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idE6D8AD8FF89E4CE2A81828DEB0351FD4"><enum>(2)</enum><header>Conforming
amendment</header><text>The heading for section 57(a)(5)(C)(ii) is amended by
striking <quote><header-in-text level="clause" style="OLC">qualified
<enum-in-header>501(c)(3)</enum-in-header> bonds</header-in-text></quote> and
inserting <quote><header-in-text level="clause" style="OLC">certain
bonds</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC6584C2CA1D84AB28A26C72DF8A5735B"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this title.</text>
</subsection></section><enum>II</enum><header>Emergency
assistance for the redevelopment of abandoned and foreclosed homes</header>
<section id="id1BF2CDC2278C476AB0F378405DDAA82E"><enum>201.</enum><header>Emergency
assistance for the redevelopment of abandoned and foreclosed homes</header>
<subsection id="id7970CE4F32474BCE97B0B9249B000762"><enum>(a)</enum><header>Direct
appropriations</header><text display-inline="yes-display-inline">There shall be
appropriated out of any money in the Treasury not otherwise appropriated for
the fiscal year 2008, $4,000,000,000, to remain available until expended, for
assistance to States and units of general local government (as such terms are
defined in section 102 of the Housing and Community Development Act of 1974 (42
U.S.C. 5302)) for the redevelopment of abandoned and foreclosed homes.</text>
</subsection><subsection id="idFE0A30C209E14DCBA9DC1BCAFFEEE4CF"><enum>(b)</enum><header>Allocation of
appropriated amounts</header>
<paragraph id="id5D7B9858832F40F69EEE73886A33AD7D"><enum>(1)</enum><header>In
general</header><text>The amounts appropriated or otherwise made available to
States and units of general local government under this section shall be
allocated based on a funding formula established by the Secretary of Housing
and Urban Development.</text>
</paragraph><paragraph id="id1861143134264142ABF0276572A9879E"><enum>(2)</enum><header>Formula to be
devised swiftly</header><text>The funding formula required under paragraph (1)
shall be established not later than 60 days after the date of enactment of this
title.</text>
</paragraph><paragraph id="idFFE42F956E8A463B82B090CD5E68D0FE"><enum>(3)</enum><header>Criteria</header><text>The
funding formula required under paragraph (1) shall ensure that any amounts
appropriated or otherwise made available under this section are allocated to
States and units of general local government with the greatest need, as such
need is determined in the discretion of the Secretary based on the following
factors:</text>
<subparagraph id="ID36a48aa127c7490b9e3dd40ce281002f"><enum>(A)</enum><text>The number and
percentage of home foreclosures in each State or unit of general local
government.</text>
</subparagraph><subparagraph id="ID88183d2dc42a4e31b8f9f32fb9d4c013"><enum>(B)</enum><text>The number and
percentage of homes financed by a subprime mortgage related loan in each State
or unit of general local government.</text>
</subparagraph><subparagraph id="IDea079c7aee314ad4bf7d40884093e64f"><enum>(C)</enum><text>The number and
percentage of homes in default or delinquency in each State or unit of general
local government.</text>
</subparagraph></paragraph><paragraph id="id960DC51EE5684BE5884BB87A2AF724BD"><enum>(4)</enum><header>Distribution</header><text>Amounts
appropriated or otherwise made available to States and units of general local
government under this section shall be distributed according to the funding
formula required under paragraph (1) not later than 30 days after the
establishment of such formula.</text>
</paragraph></subsection><subsection id="id0F9798921E9E45DA9EE444EB2258FE03"><enum>(c)</enum><header>Use of
funds</header>
<paragraph id="idB6820AAED53A452788863C596F240435"><enum>(1)</enum><header>In
general</header><text>Any State or unit of general local government that
receives amounts pursuant to this section shall, not later than 18 months after
the receipt of such amounts, use such amounts to redevelop abandoned and
foreclosed homes.</text>
</paragraph><paragraph id="id74ABCB3E8E8C4F4682922E7E463162FF"><enum>(2)</enum><header>Priority</header><text>Any
State or unit of general local government that receives amounts pursuant to
this section shall in distributing such amounts give priority emphasis and
consideration to those metropolitan areas, metropolitan cities, urban areas,
rural areas, low- and moderate-income areas, and other areas with the greatest
need, including those—</text>
<subparagraph id="id3A1E69F4C61040EE972CD9B06E2DF1E1"><enum>(A)</enum><text>with the greatest
percentage of home foreclosures;</text>
</subparagraph><subparagraph id="idAB1AA9AFD5A14DF486ACA766BCA2F137"><enum>(B)</enum><text>with the highest
percentage of homes financed by a subprime mortgage related loan; or</text>
</subparagraph><subparagraph id="id21290CD6E3D749618279D3C4D380B99D"><enum>(C)</enum><text>identified by the
State or unit of general local government as likely to face a significant rise
in the rate of home foreclosures.</text>
</subparagraph></paragraph><paragraph id="idEF42AD5A158444D7BD16F2E88325E578"><enum>(3)</enum><header>Eligible
uses</header>
<subparagraph id="idE45C6B32923A4AAC89FA90105869A18E"><enum>(A)</enum><header>In
general</header><text>Amounts made available under this section may be used
to—</text>
<clause id="IDdac190c7a62543389286399993ecaf19"><enum>(i)</enum><text>make grants,
loans, and other financing mechanisms to community development financial
institutions (as such term is defined under section 103(5) of the Community
Development Banking and Financial Institutions Act of 1994 (12 U.S.C.
4702(5))), national intermediaries, and nonprofit housing or community
development organizations and others to purchase and rehabilitate homes that
have been abandoned or foreclosed upon, in order to sell, rent, or redevelop
such homes;</text>
</clause><clause id="idA50B32BA955444DC908EDA347D5BBCE2"><enum>(ii)</enum><text>establish
financing mechanisms for redevelopment of foreclosed upon homes, including such
mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for
low- and moderate-income homebuyers;</text>
</clause><clause id="idD41329A46F2B40B28B589CC79FECD286"><enum>(iii)</enum><text>purchase and
rehabilitate homes that have been abandoned or foreclosed upon, in order to
sell, rent, or redevelop such homes;</text>
</clause><clause id="id4926A42D9876415C99F569FC1BD9693B"><enum>(iv)</enum><text>establish land
banks for homes that have been foreclosed upon; and</text>
</clause><clause id="id2E2CE201A491496C86E1E862C965437B"><enum>(v)</enum><text>demolish blighted
structures.</text>
</clause></subparagraph><subparagraph id="id4CA7ECAD2D684EF58291BD8D21C92245"><enum>(B)</enum><header>Limitation</header><text>Any
funds used under this section for the purchase of an abandoned or foreclosed
upon home shall be at a cost equal to or less than the appraised value of the
home based on the most up-to-date appraisal, as such appraisal is defined by
the Secretary.</text>
</subparagraph></paragraph></subsection><subsection id="id9406AA840F5346778C80ECADAE087E92"><enum>(d)</enum><header>Rule of
construction</header><text>Amounts appropriated or otherwise made available to
States and units of general local government under this section shall be
treated as though such funds were community development block grant funds under
title I of the Housing and Community Development Act of 1974.</text>
</subsection><subsection id="idAB630201DA0C4B73AED62E2D9B9D4409"><enum>(e)</enum><header>Waiver
authority</header>
<paragraph id="id748C5EC78A4E4C09882D7E4C18B30CA3"><enum>(1)</enum><header>In
general</header><text>In administering any amounts appropriated or otherwise
made available under this section, the Secretary of Housing and Urban
Development may waive, or specify alternative requirements for, any provision
of any statute or regulation that the Secretary administers in connection with
the obligation by the Secretary or the use by the recipient of such funds
(except for requirements related to fair housing, nondiscrimination, labor
standards, and the environment), in order to expedite or facilitate the use of
such funds.</text>
</paragraph><paragraph id="id6D39CF993E3A41F496490B338EC7249D"><enum>(2)</enum><header>Low and
moderate income requirement</header><text>Notwithstanding the authority of the
Secretary under paragraph (1), all of the funds appropriated or otherwise made
available under this section shall be used with respect to persons whose income
does not exceed 120 percent of area median income.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0F0CC1723E324462A20592713A73FA20"><enum>(f)</enum><header>Emergency
designation</header><text>The amounts appropriated under this title are
designated as an emergency requirement and necessary to meet emergency needs
pursuant to section 204 of S. Con. Res. 21 (110th Congress), the concurrent
resolution on the budget for fiscal year 2008.</text>
</subsection></section><enum>III</enum><header>Housing
counseling resources</header>
<section id="idA2C1A499935944E69801ED5EC7300196"><enum>301.</enum><header>Housing
counseling resources</header><text display-inline="no-display-inline">There
shall be appropriated out of any money in the Treasury not otherwise
appropriated, for an additional amount for the <quote>Neighborhood Reinvestment
Corporation—Payment to the Neighborhood Reinvestment Corporation</quote>
$200,000,000,000, to remain available until September 30, 2008, for foreclosure
mitigation activities under the terms and conditions contained in the second
paragraph under the heading <quote>Neighborhood Reinvestment
Corporation—Payment to the Neighborhood Reinvestment Corporation</quote> of
Public Law 110–161.</text>
</section><enum>IV</enum><header>Helping families
save their home in bankruptcy act</header>
<section id="idF3DE00ED19A7486C8CA274AC77A5B3DA"><enum>401.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Helping Families Save Their Homes in Bankruptcy Act of
2008</quote>.</text>
</section><subtitle id="H9B1216BBFA264236BB21D44E3FAE97CA"><enum>A</enum><header>Minimizing
foreclosures</header>
<section id="H64C719108DCB4B2396FDC1EEDB942A6"><enum>411.</enum><header>Special rules
for modification of loans secured by residences</header>
<subsection id="H78D7A5579DA141598B53983D2FAC6E62"><enum>(a)</enum><header>In
general</header><text>Section 1322(b) of title 11, United States Code, is
amended—</text>
<paragraph id="H7B9550A6CD644945B17F1792B46560D6"><enum>(1)</enum><text>in paragraph (10),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H3699A6D495FD4CF7AED7305B041DB083"><enum>(2)</enum><text>by redesignating
paragraph (11) as paragraph (12); and</text>
</paragraph><paragraph id="HF5EE6A8FCE144930B1C392757C97AB5C"><enum>(3)</enum><text>by inserting after
paragraph (10) the following:</text>
<quoted-block display-inline="no-display-inline" id="H4168BD75ABA647D3B4B2B6FCC14C434D" style="OLC">
<paragraph id="H4480705045B646708787933BB15ED55C"><enum>(11)</enum><text>notwithstanding
paragraph (2) and otherwise applicable nonbankruptcy law—</text>
<subparagraph id="H61D24481B9DB4961B208A2CEE13300A3"><enum>(A)</enum><text>modify an allowed
secured claim secured by the debtor’s principal residence, as described in
subparagraph (B), if, after deduction from the debtor’s current monthly income
of the expenses permitted for debtors described in section 1325(b)(3) of this
title (other than amounts contractually due to creditors holding such allowed
secured claims and additional payments necessary to maintain possession of that
residence), the debtor has insufficient remaining income to retain possession
of the residence by curing a default and maintaining payments while the case is
pending, as provided under paragraph (5); and</text>
</subparagraph><subparagraph id="H32595197D1764393ADDE058FE200C3B7"><enum>(B)</enum><text>provide for
payment of such claim—</text>
<clause id="H2DA1B44670DE4175B573906B621FC9D"><enum>(i)</enum><text display-inline="yes-display-inline">for a period not to exceed 30 years
(reduced by the period for which the loan has been outstanding) from the date
of the order for relief under this chapter; and</text>
</clause><clause id="HD80D7C52C3E94C36BCAFC515E14215F8"><enum>(ii)</enum><text>at a rate of
interest accruing after such date calculated at a fixed annual percentage rate,
in an amount equal to the most recently published annual yield on conventional
mortgages published by the Board of Governors of the Federal Reserve System, as
of the applicable time set forth in the rules of the Board, plus a reasonable
premium for risk;
and</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H65094A4AC1584248BF2BE41C621B63CA"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 1325(a)(5) of title 11, United States Code, is
amended by inserting before <quote>with respect</quote> the following:
<quote>except as otherwise provided in section 1322(b)(11) of this
title,</quote>.</text>
</subsection></section><section id="HA7DCB668292D4E7BB5B9D7BD79CCA224"><enum>412.</enum><header>Waiver of
counseling requirement when homes are in foreclosure</header><text display-inline="no-display-inline">Section 109(h) of title 11, United States
Code, is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7343F9051A3347BB91F5EC7EE5E3A2D6" style="OLC">
<paragraph id="H6FA1CABD6E5642F799AA93914C038F3F" indent="up1"><enum>(5)</enum><text>Paragraph (1) shall not apply with
respect to a debtor who files with the court a certification that a foreclosure
sale of the debtor’s principal residence has been
scheduled.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="H689EBE311DCF4408A159DAD54135C00"><enum>B</enum><header>Providing other
debtor protections</header>
<section id="HA2DDCF83C90D4AB993A181DF233BEB01"><enum>421.</enum><header>Combating
excessive fees</header><text display-inline="no-display-inline">Section 1322(c)
of title 11, the United States Code, is amended—</text>
<paragraph id="HBE54278182384E31B50018F43CB35719"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph id="H6D391344B5A24B97BBA03213B857DE9F"><enum>(2)</enum><text>in paragraph (2),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4133E379291D42A19455EB20F7B971D9"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H61643E77F13E402E90A28D7F72D3A367" style="OLC">
<paragraph id="HD9374CB5AFDF46F8BC73061E7172038B"><enum>(3)</enum><text>to the extent that
an allowed secured claim is secured by the debtor’s principal residence, the
value of which is greater than the amount of such claim, fees, costs, or
charges arising during the pendency of the case may be added to secured debt
provided for by the plan only if—</text>
<subparagraph id="HDAE6FC43101B4CABAFEDD6B5735CB83"><enum>(A)</enum><text>notice of such
fees, costs or charges is filed with the court before the expiration of the
earlier of—</text>
<clause id="H5472A1528EDC4322ADD7DFC1833090A8"><enum>(i)</enum><text>1
year after the time at which they are incurred; or</text>
</clause><clause id="H8062193FDC7A4AF6BC180020A7F289DC"><enum>(ii)</enum><text>60 days before
the conclusion of the case; and</text>
</clause></subparagraph><subparagraph id="HE6970A877D9D415FB2CF972FDC814CA1"><enum>(B)</enum><text>such fees, costs,
or charges are lawful, reasonable, and provided for in the underlying
contract;</text>
</subparagraph></paragraph><paragraph id="H0C19875E07114BDFBCA2CB23A94CEDE8"><enum>(4)</enum><text>the failure of a
party to give notice described in paragraph (3) shall be deemed a waiver of any
claim for fees, costs, or charges described in paragraph (3) for all purposes,
and any attempt to collect such fees, costs, or charges shall constitute a
violation of section 524(a)(2) of this title or, if the violation occurs before
the date of discharge, of section 362(a) of this title; and</text>
</paragraph><paragraph id="H40B8ECCCB3BE4DAB984167D9545504A5"><enum>(5)</enum><text>a plan may provide
for the waiver of any prepayment penalty on a claim secured by the principal
residence of the
debtor.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H34EA53779A1B4DA9B897A2D53DE2192"><enum>422.</enum><header>Maintaining
debtors’ legal claims</header><text display-inline="no-display-inline">Section
554(e) of title 11, United States Code, is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H488668E1EFBF4A93AA26BC8DDE51B00" style="OLC">
<subsection id="HDC2852010B764376B2462E5415A777EE"><enum>(e)</enum><text>In any action in
State or Federal court with respect to a claim or defense asserted by an
individual debtor in such action that was not scheduled under section 521(a)(1)
of this title, the trustee shall be allowed a reasonable time to request
joinder or substitution as the real party in interest. If the trustee does not
request joinder or substitution in such action, the debtor may proceed as the
real party in interest, and no such action shall be dismissed on the ground
that it is not prosecuted in the name of the real party in interest or on the
ground that the debtor’s claims were not properly scheduled in a case under
this
title.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H6218AAD2BB554E9481E204503FF6547B"><enum>423.</enum><header>Resolving
disputes</header><text display-inline="no-display-inline">Section 1334 of title
28, United States Code, is amended by adding at the end the following:
<quote>Notwithstanding any agreement for arbitration that is subject to chapter
1 of title 9, in any core proceeding under section 157(b) of this title
involving an individual debtor whose debts are primarily consumer debts, the
court may hear and determine the proceeding, and enter appropriate orders and
judgments, in lieu of referral to arbitration.</quote>.</text>
</section><section id="H55C698DEB695488100C917938E850283"><enum>424.</enum><header>Enacting a
homestead floor for debtors over 55 years of age</header>
<subsection id="HE23029639E624D1180B847BB63440361"><enum>(a)</enum><header>In
general</header><text>Section 522(b)(3) of title 11, United States Code, is
amended—</text>
<paragraph id="HC70E0FB6309848D48D8FB5A87254B7AA"><enum>(1)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HB3BBE7FCEA6A43C895ABCB4BEF5C56DB"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking the period
at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="H359B32A973814D83992680617E78D727"><enum>(3)</enum><text>by adding at the
end and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H17F7189F919B4B118D00F04FF8D4D6DE" style="OLC">
<subparagraph id="H1BC76AE73A9D445296B637582953A0C4" indent="up1"><enum>(D)</enum><text>if the debtor, as of the date of the
filing of the petition, is 55 years old or older, the debtor's aggregate
interest, not to exceed $75,000 in value, in real property or personal property
that the debtor or a dependent of the debtor uses as a principal residence, or
in a cooperative that owns property that the debtor or a dependent of the
debtor uses as a principal
residence.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF2C70CEDBC6B4D748F825DE2C8DBB6FB"><enum>(b)</enum><header>Exemption
authority</header><text>Section 522(d)(1) of title 11, United States Code, is
amended by inserting <quote>or, if the debtor is 55 years of age or older,
$75,000 in value,</quote> before <quote>in real property</quote>.</text>
</subsection></section><section id="H139B03BB31394017BFD7D8D832C0CDD"><enum>425.</enum><header>Disallowing
claims from violations of consumer protection laws</header><text display-inline="no-display-inline">Section
502(b) of title 11, United States Code, is amended—</text>
<paragraph id="H8FB2DB275071488298DA8701AF9417CA"><enum>(1)</enum><text>in paragraph (8),
by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="H171B55911AE54A7B9C4D6FA4C6FE4400"><enum>(2)</enum><text>in paragraph (9),
by striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="H56EECC94B14442D2A6EC27952811D1BD"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H3DA38837198B4F1A8E9E091958E06DB4" style="OLC">
<paragraph commented="no" id="H25BB2BAD99F84FFB9DFC30BA7D9000E1"><enum>(10)</enum><text>the claim is
subject to any remedy for damages or rescission due to failure to comply with
any applicable requirement under the Truth in Lending Act (15 U.S.C. 1601 et
seq.), or any other provision of applicable State or Federal consumer
protection law that was in force when the noncompliance took place,
notwithstanding the prior entry of a foreclosure
judgment.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><enum>V</enum><header>Mortgage
Disclosure Improvement Act</header>
<section id="id222382E416594CA4B7DFB79C9A187EF2"><enum>501.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Mortgage Disclosure Improvement Act of 2008</quote>.</text>
</section><section id="id47FC0B93508541ECB73727D540030C44" section-type="subsequent-section"><enum>502.</enum><header>Enhanced mortgage
loan disclosures</header>
<subsection id="idCDDA27A2649644CB8219E4CA86F85FCA"><enum>(a)</enum><header>Truth in
Lending Act Disclosures</header><text display-inline="yes-display-inline">Section 128(b)(2) of the Truth in Lending
Act (15 U.S.C. 1638(b)(2)) is amended—</text>
<paragraph id="id36C00E797B9C421F91FA87E036BCA44A"><enum>(1)</enum><text>by inserting
<quote>(A)</quote> before <quote>In the</quote>;</text>
</paragraph><paragraph id="idE32AA88A3C3C49F3A71BFC718A58F286"><enum>(2)</enum><text>by striking
<quote>a residential mortgage transaction, as defined in section 103(w)</quote>
and inserting <quote>any extension of credit that is secured by the dwelling of
a consumer</quote>;</text>
</paragraph><paragraph id="idA1C3C2C349FA4978956E3A09EBE93F84"><enum>(3)</enum><text>by striking
<quote>shall be made in accordance</quote> and all that follows through
<quote>extended, or</quote>; and</text>
</paragraph><paragraph id="id5F82D93136BB4740869DDE97A3ED6F02"><enum>(4)</enum><text>by striking
<quote>If the</quote> and all that follows through the end of the paragraph and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idCE86B761573043CCAD25458FDA78693A" style="OLC">
<subparagraph id="id8090EF7EFAB24FEE80EC7074D81DC34D" indent="up1"><enum>(B)</enum><text>In the case of an extension of credit
that is secured by the dwelling of a consumer, in addition to the other
disclosures required by subsection (a), the disclosures provided under this
paragraph shall—</text>
<clause id="id2EC4258953B04B53BF182097AABD2D57"><enum>(i)</enum><text>state in conspicuous type size and
format, the following: <quote>You are not required to complete this agreement
merely because you have received these disclosures or signed a loan
application.</quote>; and</text>
</clause><clause id="id2E465ADBF91D4E6393B48FEAF642E537"><enum>(ii)</enum><text>be furnished to the borrower not
later than 7 business days before the date of consummation of the transaction,
and at the time of consummation of the transaction, subject to subparagraph
(D).</text>
</clause></subparagraph><subparagraph id="id09793614384E4AB49D67C09BE34A8FDD" indent="up1"><enum>(C)</enum><text>In the case of an extension of credit
that is secured by the dwelling of a consumer, under which the annual rate of
interest is variable, or with respect to which the regular payments may
otherwise be variable, in addition to the other disclosures required by
subsection (a), the disclosures provided under this paragraph shall—</text>
<clause id="idE655DA826C8843318EB1FEAB1326392C"><enum>(i)</enum><text>label the payment schedule as
follows: <quote>Payment Schedule: Payments Will Vary Based on Interest Rate
Changes</quote>; and</text>
</clause><clause id="idF7834EE1579146238A4B4DB747369B90"><enum>(ii)</enum><text>state the maximum amount of the
regular required payments on the loan, based on the maximum interest rate
allowed, introduced with the following language in conspicuous type size and
format: <quote>Your payment can go as high as ___</quote>, the blank to be
filled in with the maximum possible payment amount.</text>
</clause></subparagraph><subparagraph id="id42E79034623A4551B01D7D4D53DD4400" indent="up1"><enum>(D)</enum><text>In any case in which the disclosure
statement provided 7 business days before the date of consummation of the
transaction contains an annual percentage rate of interest that is no longer
accurate, as determined under section 107(c), the creditor shall furnish an
additional, corrected statement to the borrower, not later than 3 business days
before the date of consummation of the
transaction.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id14198DE887754DECBCC64BF111758742"><enum>(b)</enum><header>Civil
liability</header><text display-inline="yes-display-inline">Section 130(a) of
the Truth in Lending Act (15 U.S.C. 1640(a)) is amended—</text>
<paragraph id="id63F62B48366741F38FDDC54597BFA851"><enum>(1)</enum><text>in paragraph
(2)(A)(iii), by striking <quote>not less than $200 or greater than
$2,000</quote> and inserting <quote>$5,000, such amount to be adjusted annually
based on the consumer price index, to maintain current value</quote>;
and</text>
</paragraph><paragraph id="id823A9E69D8114A179282B67FAF541BE5"><enum>(2)</enum><text display-inline="yes-display-inline">in the penultimate sentence of the
undesignated matter following paragraph (4)—</text>
<subparagraph id="idAB3D2D8879C445E88FC2779D847F61FE"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>only for</quote> and
inserting <quote>for</quote>;</text>
</subparagraph><subparagraph id="id6265E53DAF214927BFD476D23AC3F9B5"><enum>(B)</enum><text>by striking
<quote>section 125 or</quote> and inserting <quote>section 122, section
125,</quote>;</text>
</subparagraph><subparagraph id="id6D6512FE8AFE4C768F0036799D1B280C"><enum>(C)</enum><text>by inserting
<quote>or section 128(b), </quote>after <quote>128(a),</quote>; and</text>
</subparagraph><subparagraph id="id3B7FFC29A2D347AEBD891F64BDB29E01"><enum>(D)</enum><text>by inserting
<quote>or section 128(b)</quote> before the period.</text>
</subparagraph></paragraph></subsection></section><enum>VI</enum><header>Incentives for
business</header>
<section id="IDF2B306F1EC2946B2A9FADC6CD59E0064"><enum>601.</enum><header>Carryback of
certain net operating losses allowed for 5 years; temporary suspension of 90
percent AMT limit</header>
<subsection id="IDD943244B9DEB4EE9985280327EEDEA04"><enum>(a)</enum><header>In
general</header><text>Subparagraph (H) of section 172(b)(1) of the Internal
Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idA72692128AA14D7793AAC4908BAEA451" style="OLC">
<subparagraph id="idC598B916365045FCBA79AA54E5298A60"><enum>(H)</enum><header>5-year
carryback of certain losses</header>
<clause id="id07DDAB8475FD4DAC8D0C4577DF2777F6"><enum>(i)</enum><header>Taxable years
ending during 2001 and 2002</header><text>In the case of a net operating loss
for any taxable year ending during 2001 or 2002, subparagraph (A)(i) shall be
applied by substituting <quote>5</quote> for <quote>2</quote> and subparagraph
(F) shall not apply.</text>
</clause><clause id="id489C33104EC946CEB63C04DDAD137BA5"><enum>(ii)</enum><header>Taxable years
beginning or ending during 2006, 2007, and 2008</header><text>In the case of a
net operating loss with respect to any eligible taxpayer (within the meaning of
section 168(k)(1)(B)) for any taxable year beginning or ending during 2006,
2007, or 2008—</text>
<subclause id="idC8362D5196424425B44AF9DEA92DCC6B"><enum>(I)</enum><text>subparagraph
(A)(i) shall be applied by substituting <quote>5</quote> for
<quote>2</quote>,</text>
</subclause><subclause id="id79EF2CBB8EF44E6AB9223320FBEDD6B2"><enum>(II)</enum><text>subparagraph
(E)(ii) shall be applied by substituting <quote>4</quote> for <quote>2</quote>,
and</text>
</subclause><subclause id="id1420B883D27E4091B4D54969FC72BA6A"><enum>(III)</enum><text>subparagraph
(F) shall not
apply.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID70E44446FEB74F1B81A8C39E6047CEF1"><enum>(b)</enum><header>Temporary
suspension of 90 percent limit on certain NOL carrybacks and
carryovers</header>
<paragraph id="id1A45B12EA2E74ECD8F7406CD3455F064"><enum>(1)</enum><header>In
general</header><text>Section 56(d) of the of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id2AAB59D8EF994C9FAD4C2E0B0FC2880E" style="OLC">
<paragraph id="idF092949B7FD64A1683A2F728245E8B29"><enum>(3)</enum><header>Additional
adjustments</header><text>For purposes of paragraph (1)(A), in the case of an
eligible taxpayer (within the meaning of section 168(k)(1)(B)), the amount
described in clause (I) of paragraph (1)(A)(ii) shall be increased by the
amount of the net operating loss deduction allowable for the taxable year under
section 172 attributable to the sum of—</text>
<subparagraph id="idC114BC22B3C7447F8EBF80D6E846446F"><enum>(A)</enum><text>carrybacks of net
operating losses from taxable years beginning or ending during 2006, 2007, and
2008, and</text>
</subparagraph><subparagraph id="idE061D523FC534D6E9F11F8BBEED98A96"><enum>(B)</enum><text>carryovers of net
operating losses to taxable years beginning or ending during 2006, 2007, or
2008.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id1616A021C57C4E688548621183A01B25"><enum>(2)</enum><header>Conforming
amendment</header><text>Subclause (I) of section 56(d)(1)(A)(i) of such Code is
amended by inserting <quote>amount of such</quote> before <quote>deduction
described in clause (ii)(I)</quote>.</text>
</paragraph></subsection><subsection id="id43F87EDF37EA4DA78C56593B3AF3B88F"><enum>(c)</enum><header>Anti-abuse
rules</header><text>The Secretary of Treasury or the Secretary's designee shall
prescribes such rules as are necessary to prevent the abuse of the purposes of
the amendments made by this section, including anti-stuffing rules,
anti-churning rules (including rules relating to sale-leasebacks), and rules
similar to the rules under section 1091 of the Internal Revenue Code of 1986
relating to losses from wash sales.</text>
</subsection><subsection id="ID307DEB8A7A7B464084744F79833C2D7E"><enum>(d)</enum><header>Effective
dates</header>
<paragraph id="IDA1EBF98DB0C748709A9EBF12D6289B19"><enum>(1)</enum><header>Subsection
<enum-in-header>(a)</enum-in-header></header>
<subparagraph id="id82CBA5AA7375447ABF191BE2C81717CD"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the amendments
made by subsection (a) shall apply to net operating losses arising in taxable
years beginning or ending in 2006, 2007, or 2008.</text>
</subparagraph><subparagraph id="ID44FA5E4C7A834A6FA35C8E255FB483C7"><enum>(B)</enum><header>Election</header><text>In
the case of an eligible taxpayer (within the meaning of section 168(k)(1)(B) of
the Internal Revenue Code of 1986) with a net operating loss for a taxable year
beginning or ending during 2006 or 2007—</text>
<clause id="IDF006C55BB7F34FD69CD41D7FA073E603"><enum>(i)</enum><text>any
election made under section 172(b)(3) of the Internal Revenue Code of 1986 may
(notwithstanding such section) be revoked before November 1, 2008, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID51BB518D54FF477BA2D662BA715DC014"><enum>(ii)</enum><text>any election
made under section 172(j) of such Code shall (notwithstanding such section) be
treated as timely made if made before November 1, 2008.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD875F678C2274583993756996B965364"><enum>(2)</enum><header>Subsection
<enum-in-header>(b)</enum-in-header></header><text>The amendments made by
subsection (b) shall apply to taxable years ending after December 31,
1995.</text>
</paragraph></subsection></section>
February 14, 2008
Read the second time and placed on the
calendar