1.This Act may be cited as
the Homeowner Assistance and Taxpayer
Protection Act
.
<enum>I</enum><header>Assisting
homeowners</header>
<section id="idA4413CB918B64AA9BD394E48B9FD6880"><enum>101.</enum><header>Restructuring
loans owned by the government</header>
<subsection id="IDc02924ee2234430596f799afd3bccb12"><enum>(a)</enum><header>Mortgages
acquired by the Secretary</header><text>Section 109(a) of the Emergency
Economic Stabilization Act of 2008 (division A of Public Law 110–343) is
amended by striking <quote>encourage</quote> and inserting
<quote>require</quote>.</text>
</subsection><subsection id="ID094640236c0848cab85fecd7e6a74a0e"><enum>(b)</enum><header>Mortgages held
by Federal property managers</header><text>Section 110(b)(1) of the Emergency
Economic Stabilization Act of 2008 (division A of Public Law 110–343) is
amended by striking <quote>encourage</quote> and inserting
<quote>require</quote>.</text>
</subsection><subsection id="ID51a344767f054e76a2b2628b10bec1a6"><enum>(c)</enum><header>Obligations
secured by mortgages held by Federal property managers</header><text>Section
110(c)(1) of the Emergency Economic Stabilization Act of 2008 (division A of
Public Law 110–343) is amended by striking <quote>encourage</quote> and
inserting <quote>require</quote>.</text>
</subsection></section><section id="ID1774f408f9b34623b0fcd3ff7c98c8c0"><enum>102.</enum><header>Requiring
lenders to participate in hope for homeowners program when homeowners elect to
participate</header><text display-inline="no-display-inline">Section 257(b)(1)
of the National Housing Act (12 U.S.C. 1715z–23(b)(1)) is amended by striking
<quote>and existing loan holders</quote> and inserting <quote>, but required on
the part of existing loan holders when homeowners apply,</quote>.</text>
</section><section id="ID0815cce6d43d44d19d6404670c548851"><enum>103.</enum><header>Helping
families save their homes in bankruptcy</header>
<subsection id="IDc9b4234cf4ac48fd9816b559adaceabd"><enum>(a)</enum><header>Special rules
for modification of loans secured by residences</header>
<paragraph id="ID18241cc5145c4bfab9e9c4d3253fa3ec"><enum>(1)</enum><header>In
general</header><text>Section 1322(b) of title 11, United States Code, is
amended—</text>
<subparagraph id="IDc18527f7f4d5442f89637063c50a752a"><enum>(A)</enum><text>in paragraph
(10), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="ID51960b4a1dbf4a188d51ec330b0d6b5b"><enum>(B)</enum><text>by redesignating
paragraph (11) as paragraph (12); and</text>
</subparagraph><subparagraph id="ID84c18359c9ee436daa0c502954da44b6"><enum>(C)</enum><text>by inserting
after paragraph (10) the following:</text>
<quoted-block display-inline="no-display-inline" id="idA78CE08AA50849269BBAF0C2DAC469B3" style="OLC">
<paragraph id="IDef558fb94aa74627b044a784f1cbb47c"><enum>(11)</enum><text>notwithstanding
paragraph (2) and otherwise applicable nonbankruptcy law—</text>
<subparagraph id="ID70c53dc213e4474eae7cd25222d1e7b9"><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="ID8f5ba42fb8ba42fdae567538e8ea5dc9"><enum>(B)</enum><text>provide for
payment of such claim—</text>
<clause id="IDfe95dd2f82d84b8687e55ab9cd522ec9"><enum>(i)</enum><text>in an amount
equal to the amount of the allowed secured claim;</text>
</clause><clause id="ID0526dd5c5298439dac43d66d4d28f052"><enum>(ii)</enum><text>for a period
that is not longer than 40 years; and</text>
</clause><clause id="ID686d43be4e7249609f78cd2f94feabe8"><enum>(iii)</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>
</subparagraph></paragraph><paragraph id="ID5dda648bbbfe406594bb9ee88de6ea4e"><enum>(2)</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>
</paragraph></subsection><subsection id="ID0fca181ae8804d56a96b607f7334f307"><enum>(b)</enum><header>Waiver of
counseling requirement when homes are in foreclosure</header><text>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="idFC9D140778C847BA84BC249D39C7084F" style="OLC">
<paragraph id="ID67e514504f344f03a5cef79bb7382a6b"><enum>(5)</enum><text>The requirements
of 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>
</subsection><subsection id="IDdc743f8dd4e14b87a913b37545295c01"><enum>(c)</enum><header>Combating
excessive fees</header><text>Section 1322(c) of title 11, the United States
Code, is amended—</text>
<paragraph id="IDbe12c91971c343f5b9c1460abbb941a5"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="ID1f7af3058780459db55035787f1c5101"><enum>(2)</enum><text>in paragraph (2),
by striking the period at the end and inserting a semicolon; and</text>
</paragraph><paragraph id="ID8ba6491130e44faea0e6899ebbdc9f28"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id23CBD271D0454E8AAAF1C7755AE314D1" style="OLC">
<paragraph id="IDf2aed77c87534391bacb923df1e8a56a"><enum>(3)</enum><text>the plan need not
provide for the payment of, and the debtor, the debtor's property, and property
of the estate shall not be liable for, any fee, cost, or charge,
notwithstanding section 506(b), that arises in connection with a claim secured
by the debtor's principal residence if the event that gives rise to such fee,
cost, or charge occurs while the case is pending but before the discharge
order, except to the extent that—</text>
<subparagraph id="ID7debd0e99425433a8c6a0dd03117da55"><enum>(A)</enum><text>notice of such
fees, costs, or charges is filed with the court, and served on the debtor and
the trustee, before the expiration of the earlier of—</text>
<clause id="ID8dee46c7fcb04640a185cfd9eb793f15"><enum>(i)</enum><text>1
year after the event that gives rise to such fee, cost, or charge occurs;
or</text>
</clause><clause id="ID8d5dbcc9e51a4e9cb948dc4807e3caa8"><enum>(ii)</enum><text>60 days before
the closing of the case; and</text>
</clause></subparagraph><subparagraph id="ID50e5003b263140edae9088a1753ee83d"><enum>(B)</enum><text>such fees, costs,
or charges are lawful, reasonable, and provided for in the agreement under
which such claim or security interest arose;</text>
</subparagraph></paragraph><paragraph id="ID2b5a3151e0ef4444aab8cb04bd01c601"><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="ID382550fc54e1430fb96c5365b9527d1a"><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></subsection><subsection id="ID6effee49ef834d59920a9abff30a802f"><enum>(d)</enum><header>Prohibiting
claims arising from violations of consumer protection
laws</header><text>Section 502(b) of title 11, United States Code, is
amended—</text>
<paragraph id="idB3B0CF5E043B420A80AE76135589F2D1"><enum>(1)</enum><text>in paragraph (8),
by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="id71820A07D1804B54AE2A53E9F1078228"><enum>(2)</enum><text>in paragraph (9),
by striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="idB0D6259BDCFD42729A0B7DD8FBCF47B7"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id0A272C496E66457E8A6ABD28D608F235" style="OLC">
<paragraph id="idD8E4CFF6B1264982837AE484A6896294"><enum>(10)</enum><text>such claim
includes a request for damages or rescission based on a failure to comply with
the Truth in Lending Act (15 U.S.C. 1601 et seq.), or any other provision of
applicable State or Federal consumer protection law in force when the failure
to comply occurred, notwithstanding a prior entry of a foreclosure
judgment.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id7CE70A56E961485089B1633BDE4B9994"><enum>(e)</enum><header>Application of
amendments</header><text>The amendments made to title 11, United States Code,
by this section shall apply with respect to cases commenced under that title 11
on or after the date of enactment of this Act, or pending on the date of
enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Protecting
taxpayers</header>
<section id="id9F645F040E21426C9E23F111B42CD594"><enum>201.</enum><header>Barring
dividend increases</header><text display-inline="no-display-inline">Section
113(d) of the Emergency Economic Stabilization Act of 2008 (division A of
Public Law 110–343) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF5D9F95B75EF466391B4C05214C6EE00" style="OLC">
<paragraph id="IDfab2b768cd5c4c028207ef54c0049ae9"><enum>(4)</enum><header>Dividends</header><text>If
the Secretary purchases troubled assets under the authority of this Act, the
financial institutions from which such assets are purchased may not pay
dividends in a cumulative amount that is higher in the current or a future
fiscal year than the cumulative dividends paid in the fiscal year immediately
preceding the sale of the troubled assets until such time as the troubled
assets are no longer owned by the
Secretary.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDfc675d79e13d4930a5ec22115b815f4c"><enum>202.</enum><header>Reducing
dividends to pay for excessive executive compensation</header><text display-inline="no-display-inline">Section 111(b)(2) of the Emergency Economic
Stabilization Act of 2008 (Public Law 110–343) is amended—</text>
<paragraph id="id9911F19FB98C434AA843D28E03631C4E"><enum>(1)</enum><text>in subparagraph
(B), by striking “and” at the end;</text>
</paragraph><paragraph id="idFDB2C196302548BF965D3E8BA128E9E1"><enum>(2)</enum><text>in subparagraph
(C), by striking the period at the end and inserting “; and”; and</text>
</paragraph><paragraph id="idB9521AE046A347898BB5FD71C3E17768"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id20AFA161B504474DB6577BEC363B9952" style="OLC">
<subparagraph id="ID36deab502c7f4594b8523b5b4c25a9c8"><enum>(D)</enum><text>a reduction in
dividends paid by the institution in its next fiscal year equal to the
executive compensation paid to senior executive officers in excess of $500,000
per officer in the current fiscal
year.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section>