1.Short title; table of
contents
(a)This Act may be cited
as Helping Families Save Their Homes
Act of 2009
.
(b)The table of
contents of this Act is the following:
Sec. 1. Short title; table of contents.
Title I—Prevention of Mortgage Foreclosures
Subtitle A—Modification of Residential Mortgages
Sec. 100. Definition.
Sec. 101. Eligibility for relief.
Sec. 102. Prohibiting claims arising from violations of the
Truth in Lending Act.
Sec. 103. Authority to modify certain mortgages.
Sec. 104. Combating excessive fees.
Sec. 105. Confirmation of plan.
Sec. 106. Discharge.
Sec. 107. Standing trustee fees.
Sec. 108. Effective date; application of
amendments.
Sec. 109. GAO study.
Sec. 110. Report to Congress.
Subtitle B—Related Mortgage Modification
Provisions
Sec. 121. Adjustments as a result of modification in bankruptcy
of housing loans guaranteed by the Department of Veterans Affairs.
Sec. 122. Payment of FHA mortgage insurance
benefits.
Sec. 123. Adjustments as result of modification of rural single
family housing loans in bankruptcy.
Sec. 124. Unenforceability of certain provision as being
contrary to public policy.
Sec. 125. Mortgage modification data collecting and
reporting.
Title II—Foreclosure Mitigation and Credit
Availability
Sec. 201. Servicer safe harbor for mortgage loan
modifications.
Sec. 202. Changes to HOPE for Homeowners Program.
Sec. 203. Requirements for FHA-approved mortgagees.
Sec. 204. Enhancement of liquidity and stability of insured
depository institutions to ensure availability of credit and reduction of
foreclosures.
Sec. 205. Application of GSE conforming loan limit to mortgages
assisted with TARP funds.
Sec. 206. Mortgages on certain homes on leased
land.
Sec. 207. Sense of Congress regarding mortgage revenue bond
purchases.
Title III—Mortgage Fraud
Sec. 301. Short title.
Sec. 302. Nationwide Mortgage Fraud Task Force.
Title IV—Foreclosure moratorium provisions
Sec. 401. Sense of the Congress on foreclosures.
<enum>I</enum><header>Prevention of
Mortgage Foreclosures</header>
<subtitle id="HCB68C0A3470B4903964C6C9BC3E1B72E"><enum>A</enum><header>Modification of
Residential Mortgages</header>
<section id="HAFDF6733C3E94EBAAA34D8F2BB621C0C"><enum>100.</enum><header>Definition</header><text display-inline="no-display-inline">Section 101 of title 11, United States Code,
is amended by inserting after paragraph (43) the following (and make such
technical and conforming changes as may be appropriate):</text>
<quoted-block display-inline="no-display-inline" id="H614059CA9CB64AF280FAF1F0EDD78631" style="traditional">
<paragraph id="HB5EFDA00487D4F36A99F7B700323E18A"><enum>(43A)</enum><text display-inline="yes-display-inline">The term <quote>qualified loan
modification</quote> means a loan modification agreement made in accordance
with the guidelines of the Obama Administration’s Homeowner Affordability and
Stability Plan as implemented March 4, 2009, that—</text>
<subparagraph id="H64BFC96704114C1CA284002FD8B0AA4F"><enum>(A)</enum><text>reduces the
debtor’s payment (including principal and interest, and payments for real
estate taxes, hazard insurance, mortgage insurance premium, homeowners'
association dues, ground rent, and special assessments) on a loan secured by a
senior security interest in the principal residence of the debtor, to a
percentage of the debtor’s income in accordance with such guidelines, without
any period of negative amortization or under which the aggregate amount of the
regular periodic payments would not fully amortize the outstanding principal
amount of such loan;</text>
</subparagraph><subparagraph id="H644F268E26E741259D532A659C94E34C"><enum>(B)</enum><text>requires no fees
or charges to be paid by the debtor in order to obtain such modification;
and</text>
</subparagraph><subparagraph id="H3A765B16B4FD47FF9709A3000410B125"><enum>(C)</enum><text>permits the debtor
to continue to make payments under the modification agreement notwithstanding
the filing of a case under this title, as if such case had not been
filed.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HE9A813B0BDF84ECBB33459010010ECEF"><enum>101.</enum><header>Eligibility for
relief</header><text display-inline="no-display-inline">Section 109 of title
11, United States Code, is amended—</text>
<paragraph id="H18FAC8CC3ECE43F6A18B837847EAB3F8"><enum>(1)</enum><text>by adding at the
end of subsection (e) the following:</text>
<quoted-block display-inline="yes-display-inline" id="H8D777FFCD40947A7972DB8A3A1CCE79E" style="OLC">
<text>For
purposes of this subsection, the computation of debts shall not include the
secured or unsecured portions of—</text><paragraph id="HBF70B646D3DA44ACAEB213B83F685ADB"><enum>(1)</enum><text display-inline="yes-display-inline">debts secured by the debtor’s principal
residence if the value of such residence as of the date of the order for relief
under chapter 13 is less than the applicable maximum amount of noncontingent,
liquidated, secured debts specified in this subsection; or</text>
</paragraph><paragraph id="H7A31BCA16269490D91FD03B3C08DC5B1"><enum>(2)</enum><text display-inline="yes-display-inline">debts secured or formerly secured by what
was the debtor’s principal residence that was sold in foreclosure or that the
debtor surrendered to the creditor if the value of such real property as of the
date of the order for relief under chapter 13 was less than the applicable
maximum amount of noncontingent, liquidated, secured debts specified in this
subsection.</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H721C1A8ABD724CEFB70FAA7BC6B21FE5"><enum>(2)</enum><text>by adding at the
end of subsection (h) the following:</text>
<quoted-block display-inline="no-display-inline" id="HC32CA1BCF5784D81837249E8874F4DA4" style="traditional">
<subparagraph id="HAEC8A89CC0244CF88D567B8B7EC14D9F" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">Notwithstanding the 180-day period
specified in paragraph (1), with respect to a debtor in a case under chapter 13
who submits to the court a certification that the debtor has received notice
that the holder of a claim secured by the debtor's principal residence may
commence a foreclosure on the debtor's principal residence, the requirements of
paragraph (1) shall be considered to be satisfied if the debtor satisfies such
requirements not later than the expiration of the 30-day period beginning on
the date of the filing of the
petition.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H570306B35C89482588D603C99E81CDD5"><enum>102.</enum><header>Prohibiting
claims arising from violations of the Truth in Lending Act</header><text display-inline="no-display-inline">Section 502(b) of title 11, United States
Code, is amended—</text>
<paragraph id="H710BCA5F4124428185B8B74715CD449A"><enum>(1)</enum><text>in paragraph (8)
by striking <quote>or</quote> at the end,</text>
</paragraph><paragraph id="H225FA2166D2B4C1CBCE5F29E1F239A4E"><enum>(2)</enum><text>in paragraph (9)
by striking the period at the end and inserting <quote>; or</quote>, and</text>
</paragraph><paragraph id="HB4AC72C65C184A738B2E456A9C6206D7"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H4CEF1843C6A045B19B3BC51A9562A33D" style="OLC">
<paragraph id="H3DB8BAFB6663418B9517531FC6AC6D3C"><enum>(10)</enum><text display-inline="yes-display-inline">the claim for a loan secured by a security
interest in the debtor’s principal residence is subject to a remedy for
rescission under the Truth in Lending Act notwithstanding the prior entry of a
foreclosure judgment, except that nothing in this paragraph shall be construed
to modify, impair, or supersede any other right of the
debtor.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H9F38B9E2C11642778FB70C5C39FE293F" section-type="subsequent-section"><enum>103.</enum><header>Authority to modify
certain mortgages</header><text display-inline="no-display-inline">Section 1322
of title 11, United States Code, is amended—</text>
<paragraph id="H304621F35AFA4941B5D7AE68034E9D8C"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="H496145CCF26A48908010F61D54E203F1"><enum>(A)</enum><text>by redesignating
paragraph (11) as paragraph (12),</text>
</subparagraph><subparagraph id="H48D5C2D9EB934C2FA628259340837F37"><enum>(B)</enum><text>in paragraph (10)
by striking <quote>and</quote> at the end, and</text>
</subparagraph><subparagraph id="H74746ACD30F14003A6A8EA3743BFFF8C"><enum>(C)</enum><text>by inserting after
paragraph (10) the following:</text>
<quoted-block id="HDF8323517B6D445882ED20274013784D" style="OLC">
<paragraph id="HAAEEABB04CAB4CCEB96C51BAD97EA1E7"><enum>(11)</enum><text display-inline="yes-display-inline">notwithstanding paragraph (2), with respect
to a claim for a loan originated before the effective date of this paragraph
and secured by a security interest in the debtor’s principal residence that is
the subject of a notice that a foreclosure may be commenced with respect to
such loan, modify the rights of the holder of such claim (and the rights of the
holder of any claim secured by a subordinate security interest in such
residence)—</text>
<subparagraph id="H913E925424654309881D46B41E4EE261"><enum>(A)</enum><text display-inline="yes-display-inline">by providing for payment of the amount of
the allowed secured claim as determined under section 506(a)(1);</text>
</subparagraph><subparagraph id="H9D018C8790B642BF86E4A2837D7B6704"><enum>(B)</enum><text display-inline="yes-display-inline">if any applicable rate of interest is
adjustable under the terms of such loan by prohibiting, reducing, or delaying
adjustments to such rate of interest applicable on and after the date of filing
of the plan;</text>
</subparagraph><subparagraph commented="no" id="HB79D0F8D64F74E57978212DB5CAA6D67"><enum>(C)</enum><text>by modifying the
terms and conditions of such loan—</text>
<clause commented="no" id="HAD5A8A4350E1429698BC1A99D25978B2"><enum>(i)</enum><text>to extend the
repayment period for a period that is no longer than the longer of 40 years
(reduced by the period for which such loan has been outstanding) or the
remaining term of such loan, beginning on the date of the order for relief
under this chapter; and</text>
</clause><clause commented="no" id="H4154F529C9014BB195E5A237B14FCD19"><enum>(ii)</enum><text display-inline="yes-display-inline">to provide for the payment of interest
accruing after the date of the order for relief under this chapter at a fixed
annual rate equal to the currently applicable average prime offer rate as of
the date of the order for relief under this chapter, corresponding to the
repayment term determined under the preceding paragraph, as published by the
Federal Financial Institutions Examination Council in its table entitled
<quote>Average Prime Offer Rates—Fixed</quote>, plus a reasonable premium for
risk; and</text>
</clause></subparagraph><subparagraph id="HED477BA8D05342E0982D0C6099A5AED0"><enum>(D)</enum><text>by providing for
payments of such modified loan directly to the holder of the claim or, at the
discretion of the court, through the trustee during the term of the plan;
and</text>
</subparagraph></paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HDD7B293AEB014423957D917494307901"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H3B6CFC2A507A440FBB264894195D3F42" style="traditional">
<subsection id="H028B39E346974B43B31CDF84B23FBAFB"><enum>(g)</enum><text display-inline="yes-display-inline">A claim may be reduced under subsection
(b)(11)(A) only on the condition that if the debtor sells the principal
residence securing such claim, before completing all payments under the plan
(or, if applicable, before receiving a discharge under section 1328(b)) and
receives net proceeds from the sale of such residence, then the debtor agrees
to pay to such holder not later than 15 days after receiving such
proceeds—</text>
<paragraph id="HEB0C3C354C8F4AE19B7B9EC60B6C62EC"><enum>(1)</enum><text display-inline="yes-display-inline">if such residence is sold in the 1st year
occurring after the effective date of the plan, 90 percent of the amount of the
difference between the sales price and the amount of such claim as originally
determined under subsection (b)(11) (plus costs of sale and improvements), but
not to exceed the unpaid amount of the allowed secured claim determined as if
such claim had not been reduced under such subsection;</text>
</paragraph><paragraph id="HBC56F52112DC49DEB239FE5054C39FEA"><enum>(2)</enum><text display-inline="yes-display-inline">if such residence is sold in the 2d year
occurring after the effective date of the plan, 70 percent of the amount of the
difference between the sales price and the amount of such claim as originally
determined under subsection (b)(11) (plus costs of sale and improvements), but
not to exceed the unpaid amount of the allowed secured claim determined as if
such claim had not been reduced under such subsection;</text>
</paragraph><paragraph id="H7AEA73E593D047278FD52B65333B9D34"><enum>(3)</enum><text display-inline="yes-display-inline">if such residence is sold in the 3d year
occurring after the effective date of the plan, 50 percent of the amount of the
difference between the sales price and the amount of such claim as originally
determined under subsection (b)(11) (plus costs of sale and improvements), but
not to exceed the unpaid amount of the allowed secured claim determined as if
such claim had not been reduced under such subsection;</text>
</paragraph><paragraph id="H7A23E555C82D4BB4AB1B9DA6459DFD2C"><enum>(4)</enum><text display-inline="yes-display-inline">if such residence is sold in the 4th year
occurring after the effective date of the plan, 30 percent of the amount of the
difference between the sales price and the amount of such claim as originally
determined under subsection (b)(11) (plus costs of sale and improvements), but
not to exceed the unpaid amount of the allowed secured claim determined as if
such claim had not been reduced under such subsection; and</text>
</paragraph><paragraph id="H8C712012BC9349FE8BF113C4E17FE72D"><enum>(5)</enum><text display-inline="yes-display-inline">if such residence is sold in the 5th year
occurring after the effective date of the plan, 10 percent of the amount of the
difference between the sales price and the amount of such claim as originally
determined under subsection (b)(11) (plus costs of sale and improvements), but
not to exceed the unpaid amount of the allowed secured claim determined as if
such claim had not been reduced under such subsection.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HE22BCB553F7B4B1B9A90ACFEC456943D"><enum>(h)</enum><text>With respect to a
claim of the kind described in subsection (b)(11), the plan may not contain a
modification under the authority of subsection (b)(11)—</text>
<paragraph id="HE9CB23AE145844BCAE4DBDC4151BD240"><enum>(1)</enum><text>in a case
commenced under this chapter after the expiration of the 30-day period
beginning on the effective date of this subsection, unless—</text>
<subparagraph id="HC6ABDFE79C0249F7AAE97F8814956E7A"><enum>(A)</enum><text>the debtor
certifies that the debtor—</text>
<clause id="H369999795B3D40D8BE98A63604656C2C"><enum>(i)</enum><text>not less than 30
days before the commencement of the case, contacted the holder of such claim
(or the entity collecting payments on behalf of such holder) regarding
modification of the loan that is the subject of such claim;</text>
</clause><clause id="HDCE24D86DDB547BCA79CA8F474CDE515"><enum>(ii)</enum><text display-inline="yes-display-inline">provided the holder of the claim (or the
entity collecting payments on behalf of such holder) a written statement of the
debtor’s current income, expenses, and debt substantially conforming with the
schedules required under section 521(a) or such other form as is promulgated by
the Judicial Conference of the United States for such purpose; and</text>
</clause><clause id="H9407801BC135436A96BC294D32C9492E"><enum>(iii)</enum><text display-inline="yes-display-inline">considered any qualified loan modification
offered to the debtor by the holder of the claim (or the entity collecting
payments on behalf of such holder); or</text>
</clause></subparagraph><subparagraph id="H95417E7DDBD643429926152E0C2355E0"><enum>(B)</enum><text>a foreclosure sale
is scheduled to occur on a date in the 30-day period beginning on the date of
case is commenced;</text>
</subparagraph></paragraph><paragraph id="H74D98C52B81846CCAD6A53974FF69013"><enum>(2)</enum><text>in any other case
pending under this chapter, unless the debtor certifies that the debtor
attempted to contact the holder of such claim (or the entity collecting
payments on behalf of such holder) regarding modification of the loan that is
the subject of such claim, before—</text>
<subparagraph id="H1B8A981C96404E24AD97A1AE127C405D"><enum>(A)</enum><text>filing a plan
under section 1321 that contains a modification under the authority of
subsection (b)(11); or</text>
</subparagraph><subparagraph id="H705C673E3ED442EB869420F5995CF3EB"><enum>(B)</enum><text>modifying a plan
under section 1323 or 1329 to contain a modification under the authority of
subsection (b)(11).</text>
</subparagraph></paragraph></subsection><subsection id="H99B3E9CF41D44418BCB1E180F67B54FB"><enum>(i)</enum><text display-inline="yes-display-inline">In determining the holder’s allowed secured
claim under section 506(a)(1) for purposes of subsection (b)(11)(A), the value
of the debtor’s principal residence shall be the fair market value of such
residence on the date such value is determined and, if the issue of value is
contested, the court shall determine such value in accordance with the
appraisal rules used by the Federal Housing
Administration.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section display-inline="no-display-inline" id="H70B4D179EEF54EE2854E10C0729C3846" section-type="subsequent-section"><enum>104.</enum><header>Combating excessive
fees</header><text display-inline="no-display-inline">Section 1322(c) of title
11, United States Code, is amended—</text>
<paragraph id="H5606CDB4614946E18CFE8FE1AFA75841"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1) by striking
<quote>and</quote> at the end,</text>
</paragraph><paragraph id="H04854525FE824ED7844E44B8D5AD0833"><enum>(2)</enum><text>in paragraph (2)
by striking the period at the end and inserting a semicolon, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC63D4843FCD44C3AA55A4BE7C9D504AD"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1CA0924789EC4959B64A6C6F76298654" style="OLC">
<paragraph id="H85C9CED28D6546599C7505EC575DC5E3"><enum>(3)</enum><text display-inline="yes-display-inline">the debtor, the debtor’s property, and
property of the estate are not liable for a fee, cost, or charge that is
incurred while the case is pending and arises from a debt that is secured by
the debtor’s principal residence except to the extent that—</text>
<subparagraph id="H0093C23BA6764A2D8468ED2232625FE3"><enum>(A)</enum><text>the holder of the
claim for such debt files with the court and serves on the trustee, the debtor,
and the debtor’s attorney (annually or, in order to permit filing consistent
with clause (ii), at such more frequent periodicity as the court determines
necessary) notice of such fee, cost, or charge before the earlier of—</text>
<clause id="H49E77197FBA641E9905A235E1025D5F5"><enum>(i)</enum><text>1
year after such fee, cost, or charge is incurred; or</text>
</clause><clause id="HA72ED17F9F1646128F32859DA9BE7CBE"><enum>(ii)</enum><text>60 days before
the closing of the case; and</text>
</clause></subparagraph><subparagraph id="H7D2A2C0F91624D159C31254740FE1B78"><enum>(B)</enum><text>such fee, cost, or
charge—</text>
<clause id="H593C6518C37E4EADB163AB08114ED2F7"><enum>(i)</enum><text>is
lawful under applicable nonbankruptcy law, reasonable, and provided for in the
applicable security agreement; and</text>
</clause><clause id="HFFFA03F9229A4DB6AF180C685E8EB34C"><enum>(ii)</enum><text>is secured by
property the value of which is greater than the amount of such claim, including
such fee, cost, or charge;</text>
</clause></subparagraph></paragraph><paragraph id="H632D536DC8BE488180773777CA54E121"><enum>(4)</enum><text display-inline="yes-display-inline">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) or, if the violation occurs before the date of discharge, of section
362(a); and</text>
</paragraph><paragraph id="HC85032A758EA48AD8D2224AA418EF006"><enum>(5)</enum><text>a plan may provide
for the waiver of any prepayment penalty on a claim secured by the debtor’s
principal
residence.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HBC9662057F8F44EBB2A7C1900EB3D878"><enum>105.</enum><header>Confirmation of
plan</header>
<subsection id="H665AFB15DDC449489929D8CF6BAEF980"><enum>(a)</enum><text display-inline="yes-display-inline">Section 1325(a) of title 11, United States
Code, is amended—</text>
<paragraph id="HDB2E94FEFE484805BCD6D9A78765FA69"><enum>(1)</enum><text>in the matter
preceding paragraph (1) strike <quote>subsection (b)</quote> and insert
<quote>subsections (b) and (d)</quote>.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HD59B90703459423ABC87C47BBD8AF664"><enum>(2)</enum><text>in paragraph
(5)—</text>
<subparagraph id="H990F64583F98407480AADFE93BBFEF12"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>except as otherwise
provided in section 1322(b)(11),</quote> after <quote>(5)</quote>, and</text>
</subparagraph><subparagraph id="H0AF6BEAA04954F3CBECA55D193EFA2A1"><enum>(B)</enum><text>in subparagraph
(B)(iii)(I) by inserting <quote>(including payments of a claim modified under
section 1322(b)(11))</quote> after <quote>payments</quote> the 1st place it
appears,</text>
</subparagraph></paragraph><paragraph id="HDE069A1EBBA745AFA1591FBA0B56DB93"><enum>(3)</enum><text>in paragraph (8)
by striking <quote>and</quote> at the end,</text>
</paragraph><paragraph id="HD4AB55B02F274C62931D92F4D4D854E1"><enum>(4)</enum><text>in paragraph (9)
by striking the period at the end and inserting a semicolon, and</text>
</paragraph><paragraph id="H19A6F8CD336D4619829B68FB77029F32"><enum>(5)</enum><text>by inserting after
paragraph (9) the following:</text>
<quoted-block id="HD4AB8855C0BD438DACBDE4F0934A42E4" style="OLC">
<paragraph id="HF8CA3AD6026A4C2AACF9E4EA7C085194"><enum>(10)</enum><text display-inline="yes-display-inline">notwithstanding subclause (I) of paragraph
(5)(B)(i), whenever the plan modifies a claim in accordance with section
1322(b)(11), the holder of a claim whose rights are modified pursuant to
section 1322(b)(11) shall retain the lien until the later of—</text>
<subparagraph id="H8D4CA644A3DB41B9BCD48FA5FCADB88C"><enum>(A)</enum><text>the payment of
such holder’s allowed secured claim; or</text>
</subparagraph><subparagraph id="H5EECA7095353425B89E9C5A3D3B942CA"><enum>(B)</enum><text>completion of all
payments under the plan (or, if applicable, receipt of a discharge under
section 1328(b)); and</text>
</subparagraph></paragraph><paragraph id="H181EBE6F8D67452D8021A5A863E9D6DE"><enum>(11)</enum><text display-inline="yes-display-inline">whenever the plan modifies a claim in
accordance with section 1322(b)(11), the court finds that such modification is
in good faith (Lack of good faith exists if the debtor has no need for relief
under this paragraph because the debtor can pay all of his or her debts and any
future payment increases on such debts without difficulty for the foreseeable
future, including the positive amortization of mortgage debt. In determining
whether a reduction of the principal amount of the loan resulting from a
modification made under the authority of section 1322(b)(11) is made in good
faith, the court shall consider whether the holder of such claim (or the entity
collecting payments on behalf of such holder) has offered to the debtor a
qualified loan modification that would enable the debtor to pay such debts and
such loan without reducing such principal amount.) and does not find that the
debtor has been convicted of obtaining by actual fraud the extension, renewal,
or refinancing of credit that gives rise to a modified
claim.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HF153CAEF71D44FEE9192ACFF0803C893"><enum>(b)</enum><text>Section 1325 of
title 11, United States Code, is amended by adding at the end the following
(and make such technical and conforming changes as may be appropriate):</text>
<quoted-block display-inline="no-display-inline" id="HE92C14E397C74DB992017EA22D54BDD2" style="traditional">
<subsection id="HC302A61541FD4E59B5FF19F0BF8575D8"><enum>(d)</enum><text display-inline="yes-display-inline">Notwithstanding section 1322(b)(11)(C)(ii),
the court, on request of the debtor or the holder of a claim secured by a
senior security interest in the debtor’s principal residence, may confirm a
plan proposing a reduction in the interest rate on the loan secured by such
security interest and that does not reduce the principal, provided the total
monthly mortgage payment is reduced to a percentage of the debtor's income in
accordance with the guidelines of the Obama Administration’s Homeowner
Affordability and Stability Plan as implemented March 4, 2009, if, taking into
account the debtor's financial situation, after allowance of expenses that
would be permitted for a debtor under this chapter subject to paragraph (3) of
subsection (b), regardless of whether the debtor is otherwise subject to such
paragraph, and taking into account additional debts and fees that are to be
paid in this chapter and thereafter, the debtor would be able to prevent
foreclosure and pay a fully amortizing 30-year loan at such reduced interest
rate without such reduction in
principal.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HEEE2894AB70D4C4488F90E202252564F"><enum>106.</enum><header>Discharge</header><text display-inline="no-display-inline">Section 1328(a) of title 11, United States
Code, is amended—</text>
<paragraph id="H8D6C1EB6F516442B8C37121F60F9BE25"><enum>(1)</enum><text>by inserting
<quote>(other than payments to holders of claims whose rights are modified
under section 1322(b)(11))</quote> after <quote>paid</quote>, and</text>
</paragraph><paragraph id="H71FD12C1639D47AFA8682C2C28475A8D"><enum>(2)</enum><text>in paragraph (1)
by inserting <quote>or, to the extent of the unpaid portion of an allowed
secured claim, provided for in section 1322(b)(11)</quote> after
<quote>1322(b)(5)</quote>.</text>
</paragraph></section><section id="HA66FDBED1A7349ECA837C31972C816C6"><enum>107.</enum><header>Standing
trustee fees</header>
<subsection id="H17DD2C2617544AAD9535B6D1DCD28CAF"><enum>(a)</enum><header>Amendment to
title 28</header><text display-inline="yes-display-inline">Section
586(e)(1)(B)(i) of title 28, United States Code, is amended—</text>
<paragraph id="HA4323B4B377B46C4BED665E722FAFC1A"><enum>(1)</enum><text>by inserting
<quote>(I) except as provided in subparagraph (II)</quote> after
<quote>(i)</quote>,</text>
</paragraph><paragraph id="H28D835E0BE804FB980BBB0A4E1AF232F"><enum>(2)</enum><text>by striking
<quote>or</quote> at the end and inserting <quote>and</quote>, and</text>
</paragraph><paragraph id="HD95CF0138577497FB6477F8402D6D5E5"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB3AD8CA11EB44629A2A17AE5EFDF142C" style="traditional">
<subclause id="H7C27707BEB58432BBAA48A4931D70593" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">4
percent with respect to payments received under section 1322(b)(11) of title 11
by the individual as a result of the operation of section 1322(b)(11)(D) of
title 11, unless the bankruptcy court waives all fees with respect to such
payments based on a determination that such individual has income less than 150
percent of the income official poverty line (as defined by the Office of
Management and Budget, and revised annually in accordance with section 673(2)
of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the
size involved and payment of such fees would render the debtor’s plan
infeasible.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H6745A720037F4A1F961952AAD59562A2"><enum>(b)</enum><header>Conforming
provision</header><text display-inline="yes-display-inline">The amendments made
by this section shall apply to any trustee to whom the provisions of section
302(d)(3) of the Bankruptcy Judges, United States Trustees, and Family Farmer
Bankruptcy Act of 1986 (Public Law 99–554; 100 Stat. 3121) apply.</text>
</subsection></section><section id="H674F32A3A5664D3CA5C38C5535B96FED"><enum>108.</enum><header>Effective date;
application of amendments</header>
<subsection id="H7D144DEAE0EC4A37879B3EB10DCAB55E"><enum>(a)</enum><header>Effective
date</header><text>Except as provided in subsection (b), this subtitle and the
amendments made by this subtitle shall take effect on the date of the enactment
of this Act.</text>
</subsection><subsection id="H62C4135763434AE68750B886223181EF"><enum>(b)</enum><header>Application of
amendments</header>
<paragraph id="H71239CBDCF0E43FA9BBFA3FDDFE42F1F"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this subtitle shall apply with respect to cases commenced under title 11 of
the United States Code before, on, or after the date of the enactment of this
Act.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H972577089CC24E789C5EC3725EDD5192"><enum>(2)</enum><header>Limitation</header><text>Paragraph
(1) shall not apply with respect to cases closed under title 11 of the United
States Code as of the date of the enactment of this Act that are neither
pending on appeal in, nor appealable to, any court of the United States.</text>
</paragraph></subsection></section><section id="H5A7043B3A7CF42CCB3C5AEA3CCFE662B"><enum>109.</enum><header>GAO
study</header><text display-inline="no-display-inline">The Comptroller General
shall carry out a study, and submit to the Committee on the Judiciary of the
House of Representatives and the Committee on the Judiciary of the Senate, not
later than 2 years after the date of the enactment of this Act a report
containing—</text>
<paragraph id="H159E4BB1CDC24353AEB9B87957DD9535"><enum>(1)</enum><text>the results of
such study of—</text>
<subparagraph id="H750076F2A3CF4E878DF630B65D73D142"><enum>(A)</enum><text>the number of
debtors who filed, during the 1-year period beginning on the date of the
enactment of this Act, cases under chapter 13 of title 11 of the United States
Code for the purpose of restructuring their principal residence
mortgages,</text>
</subparagraph><subparagraph id="H2B3FDE9D426142709E63FCBDA29F18B1"><enum>(B)</enum><text>the number of
mortgages restructured under the amendments made by this subtitle that
subsequently resulted in default and foreclosure,</text>
</subparagraph><subparagraph id="H9CF8C9B7BDF0444F946C6558C0741E3D"><enum>(C)</enum><text>a comparison
between the effectiveness of mortgages restructured under programs outside of
bankruptcy, such as Hope Now and Help for Homeowners, and mortgages
restructured under the amendments made by this subtitle,</text>
</subparagraph><subparagraph id="H303FCDB963144903B1A42E69B4F7C66B"><enum>(D)</enum><text>the number of
cases presented to the bankruptcy courts where mortgages were restructured
under the amendments made by this subtitle that were appealed,</text>
</subparagraph><subparagraph id="H11B01631F0FA4D5A843DC897F52AA151"><enum>(E)</enum><text>the number of
cases presented to the bankruptcy courts where mortgages were restructured
under the amendments made by the subtitle that were overturned on appeal,
and</text>
</subparagraph><subparagraph id="H043095767B5A4824BAFE001EB4BE273E"><enum>(F)</enum><text>the number of
bankruptcy judges disciplined as a result of actions taken to restructure
mortgages under the amendments made by this subtitle, and</text>
</subparagraph></paragraph><paragraph id="H560F2C780FC744BFB6974D6812F920B7"><enum>(2)</enum><text>a
recommendation as to whether such amendments should be amended to include a
sunset clause.</text>
</paragraph></section><section id="HD99778D553994B6294A6365D72083669"><enum>110.</enum><header>Report to
Congress</header><text display-inline="no-display-inline">Not later than 18
months after the date of the enactment of this Act, the Comptroller General, in
consultation with the Federal Housing Administration, shall submit to the
Congress, a report containing—</text>
<paragraph id="H2838A3BE74574450B7D75113D63EBAA0"><enum>(1)</enum><text>a
comprehensive review of the effects of the amendments made by this subtitle on
bankruptcy court,</text>
</paragraph><paragraph id="HE7DD92B1BF6049F59D3D9132468E4271"><enum>(2)</enum><text>a
survey of whether the program should limit the types of homeowners eligible for
the program, and</text>
</paragraph><paragraph id="HBDE0CEDC09194784981AC193B3DE67B0"><enum>(3)</enum><text>a
recommendation on whether such amendments should remain in effect.</text>
</paragraph></section></subtitle><subtitle id="HFAF3FC134AF144C38613F6804D342F9A"><enum>B</enum><header>Related Mortgage
Modification Provisions</header>
<section id="HAA738F33AE784C43820EF697118B227E"><enum>121.</enum><header>Adjustments as
a result of modification in bankruptcy of housing loans guaranteed by the
Department of Veterans Affairs</header>
<subsection id="H5C8368AABD9045D1AA512B47477BD5AD"><enum>(a)</enum><header>In
general</header><text>Section 3732 of title 38, United States Code, is
amended—</text>
<paragraph id="H54F1CEFF959E4C22AC9FBE7A9C6F4637"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H669578FB3DA143EB9F68991A7D59C490"><enum>(A)</enum><text>by redesignating
paragraph (2) as subparagraph (A) of paragraph (2), and</text>
</subparagraph></paragraph><paragraph id="H63CE67AAE84845ACB5CF04E467B5FB9A"><enum>(2)</enum><text>by inserting after
subparagraph (A) the following new subparagraph:</text>
<quoted-block id="H0F5E88E48F8D48C09DB6D0C873DB3EA9" style="OLC">
<subparagraph id="H7B49A695978C4C92839CE74B2E503459"><enum>(B)</enum><text>In the event that
a housing loan guaranteed under this chapter is modified under the authority
provided under section 1322(b) of title 11, United States Code, the Secretary
may pay the holder of the obligation the unpaid balance of the obligation due
as of the date of the filing of the petition under title 11, United States
Code, plus accrued interest, but only upon the assignment, transfer, and
delivery to the Secretary (in a form and manner satisfactory to the Secretary)
of all rights, interest, claims, evidence, and records with respect to the
housing
loan.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HD556B7FBB11B43D383557CCD5AB473A0"><enum>(b)</enum><header>Maturity of
housing loans</header><text>Paragraph (1) of section (d) of section 3703 of
title 38, United States Code, is amended by inserting <quote>at the time of
origination</quote> after <quote>loan</quote>.</text>
</subsection><subsection id="H2297612ABBDC48ED9526C75804FC7AA4"><enum>(c)</enum><header>Implementation</header><text>The
Secretary of Veterans Affairs may implement the amendments made by this section
through notice, procedure notice, or administrative notice.</text>
</subsection></section><section display-inline="no-display-inline" id="HE362E1B87AE54622939D0DC59F3305E6" section-type="subsequent-section"><enum>122.</enum><header>Payment of FHA
mortgage insurance benefits</header>
<subsection id="HA8D0EF2581DD4A0A80FF8F3009279CD1"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 204 of the National Housing Act (12 U.S.C. 1710(a)) is amended—</text>
<paragraph display-inline="no-display-inline" id="H35B5F13EEF8646FAA7F772B0071914B8"><enum>(1)</enum><text>in paragraph (1),
by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H6BCABC26ECFE4418985BB59237DE5608" style="OLC">
<subparagraph id="H26E8CDFDD0EE4AD4B2FCE282CCE61D22"><enum>(E)</enum><header>Modification of
mortgage in bankruptcy</header>
<clause id="H7FA326562D884B3D9405A15F61939F0A"><enum>(i)</enum><header>Authority</header><text display-inline="yes-display-inline">If an order is entered under the authority
provided under section 1322(b) of title 11, United States Code, that (a)
determines the amount of an allowed secured claim under a mortgage in
accordance with section 506(a)(1) of title 11, United States Code, and the
amount of such allowed secured claim is less than the amount due under the
mortgage as of the date of the filing of the petition under title 11, United
States Code, or (b) reduces the interest to be paid under a mortgage in
accordance with section 1325 of such title, the Secretary may pay insurance
benefits for the mortgage as follows:</text>
<subclause id="H4973B4A8E9B74D34AD9F13B795993F34"><enum>(I)</enum><header>Full payment and
assignment</header><text display-inline="yes-display-inline">The Secretary may
pay the insurance benefits for the mortgage, but only upon the assignment,
transfer, and delivery to the Secretary of all rights, interest, claims,
evidence, and records with respect to the mortgage specified in clauses (i)
through (iv) of paragraph (1)(A). The insurance benefits shall be paid in the
amount equal to the original principal obligation of the mortgage (with such
additions and deductions as the Secretary determines are appropriate) which was
unpaid upon the date of the filing of by the mortgagor of the petition under
title 11 of the United States Code. Nothing in this Act may be construed to
prevent the Secretary from providing insurance under this title for a mortgage
that has previously been assigned to the Secretary under this subclause. The
decision of whether to utilize the authority under this subclause for payment
and assignment shall be at the election of the mortgagee, subject to such terms
and conditions as the Secretary may establish.</text>
</subclause><subclause id="H1119E819679E433781FBE41EC09D0A7A"><enum>(II)</enum><header>Assignment of
unsecured claim</header><text display-inline="yes-display-inline">The Secretary
may make a partial payment of the insurance benefits for any unsecured claim
under the mortgage, but only upon the assignment to the Secretary of any
unsecured claim of the mortgagee against the mortgagor or others arising out of
such order. Such assignment shall be deemed valid irrespective of whether such
claim has been or will be discharged under title 11 of the United States Code.
The insurance benefits shall be paid in the amount specified in subclause (I)
of this clause, as such amount is reduced by the amount of the allowed secured
claim. Such allowed secured claim shall continue to be insured under section
203.</text>
</subclause><subclause id="HE31639824FF94B74954BF083E94179F3"><enum>(III)</enum><header>Interest
payments</header><text display-inline="yes-display-inline">The Secretary may
make periodic payments, or a one-time payment, of insurance benefits for
interest payments that are reduced pursuant to such order, as determined by the
Secretary, but only upon assignment to the Secretary of all rights and interest
related to such payments.</text>
</subclause></clause><clause id="H5C6A374E56F54D2E8D856399E599871D"><enum>(ii)</enum><header>Delivery of
evidence of entry of order</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this
paragraph, no insurance benefits may be paid pursuant to this subparagraph for
a mortgage before delivery to the Secretary of evidence of the entry of the
order issued pursuant to title 11, United States Code, in a form satisfactory
to the
Secretary.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9DC905EEE5A94F22A2FB0C43CEA8F027"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5), in the matter preceding
subparagraph (A), by inserting after <quote>section 520, and</quote> the
following: <quote>, except as provided in paragraph (1)(E),</quote>; and</text>
</paragraph><paragraph id="HB7F78DEBFC714CAA84F9633B9AF509B7"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HF6586CAA639C4E37A3CD1FD1276B68FC" style="OLC">
<paragraph id="HD938BBFE7FB245598154D2745F4D0A6E"><enum>(10)</enum><header>Loan
modification program</header>
<subparagraph id="H7D810BCF52CF4396856F73D3CAED328D"><enum>(A)</enum><header>Authority</header><text display-inline="yes-display-inline">The Secretary may carry out a program
solely to encourage loan modifications for eligible delinquent mortgages
through the payment of insurance benefits and assignment of the mortgage to the
Secretary and the subsequent modification of the terms of the mortgage
according to a loan modification approved by the mortgagee.</text>
</subparagraph><subparagraph id="H9FB86974E12341A6A91B2347DF81A15E"><enum>(B)</enum><header>Payment of
benefits and assignment</header><text>Under the program under this paragraph,
the Secretary may pay insurance benefits for a mortgage, in the amount
determined in accordance with paragraph (5)(A), without reduction for any
amounts modified, but only upon the assignment, transfer, and delivery to the
Secretary of all rights, interest, claims, evidence, and records with respect
to the mortgage specified in clauses (i) through (iv) of paragraph
(1)(A).</text>
</subparagraph><subparagraph id="H603673F644904F2B85A2558961A9549E"><enum>(C)</enum><header>Disposition</header><text>After
modification of a mortgage pursuant to this paragraph, the Secretary may
provide insurance under this title for the mortgage. The Secretary may
subsequently—</text>
<clause id="HE27A98A1EFA247E98A86CC0FC00BAF55"><enum>(i)</enum><text>re-assign the
mortgage to the mortgagee under terms and conditions as are agreed to by the
mortgagee and the Secretary;</text>
</clause><clause id="H8BE70D4E40EF4669A1BAA09A5AD2A27C"><enum>(ii)</enum><text>act as a
Government National Mortgage Association issuer, or contract with an entity for
such purpose, in order to pool the mortgage into a Government National Mortgage
Association security; or</text>
</clause><clause id="HADA47A7B60A54286B599652560011D2D"><enum>(iii)</enum><text display-inline="yes-display-inline">re-sell the mortgage in accordance with any
program that has been established for purchase by the Federal Government of
mortgages insured under this title, and the Secretary may coordinate standards
for interest rate reductions available for loan modification with interest
rates established for such purchase.</text>
</clause></subparagraph><subparagraph id="HD481EB7A11504F4989B446E74952B5EC"><enum>(D)</enum><header>Loan
servicing</header><text display-inline="yes-display-inline">In carrying out the
program under this section, the Secretary may require the existing servicer of
a mortgage assigned to the Secretary under the program to continue servicing
the mortgage as an agent of the Secretary during the period that the Secretary
acquires and holds the mortgage for the purpose of modifying the terms of the
mortgage. If the mortgage is resold pursuant to subparagraph (C)(iii), the
Secretary may provide for the existing servicer to continue to service the
mortgage or may engage another entity to service the
mortgage.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HD3047E88A51547A6842FE837038DEBEA"><enum>(b)</enum><header>Amendment to
partial claim authority</header><text>Paragraph (1) of section 230(b) of the
National Housing Act (12 U.S.C. 1715u(b)(1)) is amended by striking <quote>12
of the monthly mortgage payments</quote> and inserting <quote>30 percent of the
unpaid principal balance of the mortgage</quote>.</text>
</subsection><subsection id="HEE7757AB5FF5419FAC419327D3A7BCA4"><enum>(c)</enum><header>Implementation</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development may implement the amendments made by this section through notice or
mortgagee letter.</text>
</subsection></section><section id="HA9A13E87B3234F1A9980A2302441466D"><enum>123.</enum><header>Adjustments as
result of modification of rural single family housing loans in
bankruptcy</header>
<subsection id="HDEAF5D9939824BFE8B83DCE4B0D63FF6"><enum>(a)</enum><header>Guaranteed rural
housing loans</header><text display-inline="yes-display-inline">Subsection (h)
of section 502 of the Housing Act of 1949 (42 U.S.C. 1472(h)) is
amended—</text>
<paragraph id="H34524ACD58584A5BACC5E12D492825C0"><enum>(1)</enum><text>in paragraph
(7)—</text>
<subparagraph id="H25FBD42702854F76917FA035A138436A"><enum>(A)</enum><text>in subparagraph
(A), by inserting before the period at the end the following: <quote>, unless
the maturity date of the loan is modified in a bankruptcy proceeding or at the
discretion of the Secretary</quote>; and</text>
</subparagraph><subparagraph id="H81EEBB81626046D3A4CAD12E257819C8"><enum>(B)</enum><text>in subparagraph
(B), by inserting before the semicolon the following: <quote>, unless such rate
is modified in a bankruptcy proceeding</quote>;</text>
</subparagraph></paragraph><paragraph id="HE6A70BF7246A474E8D6A2D2CA166D0F0"><enum>(2)</enum><text>by redesignating
paragraphs (13) and (14) as paragraphs (14) and (15), respectively; and</text>
</paragraph><paragraph id="H1A9AB0B36EB6459ABCA552C768798559"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after paragraph (12) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HA2CCC492CAB3412596FA9D2780D31DBC" style="OLC">
<paragraph id="HAFD248D3B7E9410386CC0043F94F34BE"><enum>(13)</enum><header>Payment of
guarantee</header><text display-inline="yes-display-inline">In addition to all
other authorities to pay a guarantee claim, the Secretary may also pay the
guaranteed portion of any losses incurred by the holder of a note or the
servicer resulting from a modification of a note by a bankruptcy
proceeding.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2EFE170B0CC34E74A574FE165650D1DE"><enum>(b)</enum><header>Insured rural
housing loans</header><text display-inline="yes-display-inline">Subsection (j)
of section 517 of the Housing Act of 1949 (42 U.S.C. 1487(j)) is
amended—</text>
<paragraph id="H081233BAC8BD4BCF9727688A4E66445A"><enum>(1)</enum><text>by redesignating
paragraphs (2) through (7) as paragraphs (3) through (8), respectively;
and</text>
</paragraph><paragraph id="H1934530E584D44C68F58C556C930A5D2"><enum>(2)</enum><text>by inserting after
paragraph (1) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H0F2638F4B5A646D9B030E578A63BA1D9" style="OLC">
<paragraph id="H1D1B8C37CFD441FF9902CD3A947868DE"><enum>(2)</enum><text display-inline="yes-display-inline">to pay for losses incurred by holders or
servicers in the event of a modification pursuant to a bankruptcy
proceeding;</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HB4DCC09A286A4333B2CDD1C8DE1B8228"><enum>(c)</enum><header>Implementation</header><text>The
Secretary of Agriculture may implement the amendments made by this section
through notice, procedure notice, or administrative notice.</text>
</subsection></section><section id="H26AF71F4889B4582A1F52A33D70C9A3C"><enum>124.</enum><header>Unenforceability
of certain provision as being contrary to public policy</header><text display-inline="no-display-inline">No provision in any investment contract
between a servicer and a securitization vehicle or investor in effect as of the
date of enactment of this Act that requires excess bankruptcy losses that
exceed a certain dollar amount on residential mortgages to be borne by classes
of certificates on a pro rata basis that refers to types of bankruptcy losses
that could not have been incurred under the law in effect at the time such
contract was entered into shall be enforceable, as such provision shall be
contrary to public policy. Notwithstanding this section, such reference to
types of bankruptcy losses that could have been incurred under the law in
effect at the time such contract was entered into shall be enforceable.</text>
</section><section id="HBDCCF6D1FED04BFB8BB432F185D54964"><enum>125.</enum><header>Mortgage
modification data collecting and reporting</header>
<subsection id="H844EF88B068147A3BE28C7EA3ABEF08C"><enum>(a)</enum><header>Reporting
requirements</header><text>Not later than 120 days after the date of the
enactment of this Act, and quarterly thereafter, the Comptroller of the
Currency, in coordination with the Director of the Office of Thrift
Supervision, shall submit a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate, the Committee on Financial Services of the House
of Representatives, and the Joint Economic Committee on the volume of mortgage
modifications reported to the Office of the Comptroller of the Currency and the
Office of Thrift Supervision, under the mortgage metrics program of each such
Office, during the previous quarter, including the following:</text>
<paragraph id="HE8215C1030D144FD88E89EE081A2A118"><enum>(1)</enum><text>A
copy of the data collection instrument currently used by the Office of the
Comptroller of the Currency and the Office of Thrift Supervision to collect
data on loan modifications.</text>
</paragraph><paragraph id="HC94B5A99C1CC47C0B3200D15B1F448FF"><enum>(2)</enum><text>The total number
of mortgage modifications resulting in each of the following:</text>
<subparagraph id="H2D06D27941FC451C8DA2FEDF84E9AA6B"><enum>(A)</enum><text>Additions of
delinquent payments and fees to loan balances.</text>
</subparagraph><subparagraph id="H33826C6562C8443AB0852A5456327A8B"><enum>(B)</enum><text>Interest rate
reductions and freezes.</text>
</subparagraph><subparagraph id="H3D33E56705AA4028AB06B5821FD86E8D"><enum>(C)</enum><text>Term
extensions.</text>
</subparagraph><subparagraph id="H487B8C43691B4A40A3B9D02E322D8D7C"><enum>(D)</enum><text>Reductions of
principal.</text>
</subparagraph><subparagraph id="HA465D9A2869A46BAA1A8F0BCD47FF7E7"><enum>(E)</enum><text>Deferrals of
principal.</text>
</subparagraph><subparagraph id="H5089A243480A4067A9EB1892B6E72254"><enum>(F)</enum><text>Combinations of
modifications described in subparagraph (A), (B), (C), (D), or (E).</text>
</subparagraph></paragraph><paragraph id="H885CA2C72DE34A62942C3DFA8E324EE8"><enum>(3)</enum><text>The total number
of mortgage modifications in which the total monthly principal and interest
payment resulted in the following:</text>
<subparagraph id="H466B8FE49F874804A5FB97AADA567444"><enum>(A)</enum><text>An
increase.</text>
</subparagraph><subparagraph id="H67AA18B65BAB491E80578135ABB7ABBD"><enum>(B)</enum><text>Remained the
same.</text>
</subparagraph><subparagraph id="H31CAB256F5B749EFBCFD5A5C7C2F183B"><enum>(C)</enum><text>Decreased less
than 10 percent.</text>
</subparagraph><subparagraph id="H8DECA4ED5C764027BCDCD50961D26097"><enum>(D)</enum><text>Decreased between
10 percent and 20 percent.</text>
</subparagraph><subparagraph id="H3A2C6F5766384773AF872B21F82B3EBF"><enum>(E)</enum><text>Decreased 20
percent or more.</text>
</subparagraph></paragraph><paragraph id="H1473D7BA2E3349108C86636765559143"><enum>(4)</enum><text>The total number
of loans that have been modified and then entered into default, where the loan
modification resulted in—</text>
<subparagraph id="H4671E1B839E14AE3AEE104ECEE22A036"><enum>(A)</enum><text>higher monthly
payments by the homeowner;</text>
</subparagraph><subparagraph id="H6559DE7D4D9A4464A4870D64E873C1FF"><enum>(B)</enum><text>equivalent monthly
payments by the homeowner;</text>
</subparagraph><subparagraph id="H5AC7AB42124E4FD58356C5B62DBF052D"><enum>(C)</enum><text>lower monthly
payments by the homeowner of up to 10 percent;</text>
</subparagraph><subparagraph id="H33F77ADF3CCC424186AFA3190DA17E97"><enum>(D)</enum><text>lower monthly
payments by the homeowner of between 10 percent to 20 percent; or</text>
</subparagraph><subparagraph id="HD6B2530184184C909CAB5ED2385763CA"><enum>(E)</enum><text>lower monthly
payments by the homeowner of more than 20 percent.</text>
</subparagraph></paragraph></subsection><subsection id="HC3FCA880E86A400996D01F247D8AAF7C"><enum>(b)</enum><header>Data
collection</header>
<paragraph id="H2771A49369F3445B945BF5C6C3E97279"><enum>(1)</enum><header>Required</header>
<subparagraph id="H4500BD0F19BB41A286A0269DB963B993"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 60
days after the date of the enactment of this Act, the Comptroller of the
Currency and the Director of the Office of Thrift Supervision, shall issue
mortgage modification data collection and reporting requirements to
institutions covered under the reporting requirement of the mortgage metrics
program of the Comptroller or the Director.</text>
</subparagraph><subparagraph id="HA3B855A4CA314F17AC0C8B18783EFEA3"><enum>(B)</enum><header>Inclusiveness of
collections</header><text>The requirements under subparagraph (A) shall provide
for the collection of all mortgage modification data needed by the Comptroller
of the Currency and the Director of the Office of Thrift Supervision to fulfill
the reporting requirements under subsection (a).</text>
</subparagraph></paragraph><paragraph id="HBBBEFB9F1B4941A3A9F92EC22B5BBAC4"><enum>(2)</enum><header>Report</header><text>The
Comptroller of the Currency shall report all requirements established under
paragraph (1) to each committee receiving the report required under subsection
(a).</text>
</paragraph></subsection></section></subtitle><enum>II</enum><header>Foreclosure
Mitigation and Credit Availability</header>
<section commented="no" display-inline="no-display-inline" id="H44644E6022DD47BEB265861A18922026" section-type="subsequent-section"><enum>201.</enum><header>Servicer safe harbor
for mortgage loan modifications</header>
<subsection commented="no" id="H18FD839D30E14EEAB0C1D772834F490C"><enum>(a)</enum><header>Safe
Harbor</header>
<paragraph commented="no" id="HA3DFDD5084CA471B87F2CDDBF813B566"><enum>(1)</enum><header>Loan
modifications and workout plans</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
and notwithstanding any investment contract between a servicer and a
securitization vehicle or investor, a servicer that acts consistent with the
duty set forth in section 129A(a) of Truth in Lending Act (15 U.S.C. 1639a)
shall not be liable for entering into a loan modification, workout, or other
loss mitigation plan, including, but not limited to, disposition, including any
modification or refinancing undertaken pursuant to standard loan modification,
sale, or disposition guidelines issued by the Secretary of the Treasury or his
designee under the Emergency Economic Stabilization Act of 2008, with respect
to any such mortgage that meets all of the criteria set forth in paragraph
(2)(B) to—</text>
<subparagraph commented="no" id="HD20EB7AB55554A0E97A6CA3E7A307206"><enum>(A)</enum><text>any person, based
on that person’s ownership of a residential mortgage loan or any interest in a
pool of residential mortgage loans or in securities that distribute payments
out of the principal, interest and other payments in loans on the pool;</text>
</subparagraph><subparagraph commented="no" id="H8455B05660EF438288098C0F5A295B9D"><enum>(B)</enum><text>any person who is
obligated pursuant to a derivatives instrument to make payments determined in
reference to any loan or any interest referred to in subparagraph (A);
or</text>
</subparagraph><subparagraph commented="no" id="H896908962A374613AD0935B46186846D"><enum>(C)</enum><text>any person that
insures any loan or any interest referred to in subparagraph (A) under any law
or regulation of the United States or any law or regulation of any State or
political subdivision of any State.</text>
</subparagraph></paragraph><paragraph commented="no" id="H48F8CC2C9A6941C685641944BA8FEFE7"><enum>(2)</enum><header>Ability to
modify mortgages</header>
<subparagraph commented="no" id="H33C558ABEA0942E3B8334730154E28AD"><enum>(A)</enum><header>Ability</header><text>Notwithstanding
any other provision of law, and notwithstanding any investment contract between
a servicer and a securitization vehicle or investor, a servicer—</text>
<clause commented="no" id="H4AC0BB0DAF504DAAAA2551427DE9E4E9"><enum>(i)</enum><text>shall not be
limited in the ability to modify mortgages, the number of mortgages that can be
modified, the frequency of loan modifications, or the range of permissible
modifications; and</text>
</clause><clause commented="no" id="HCC4B2D0D790F4211BE0448483F5627EE"><enum>(ii)</enum><text>shall not be
obligated to repurchase loans from or otherwise make payments to the
securitization vehicle on account of a modification, workout, or other loss
mitigation plan for a residential mortgage or a class of residential mortgages
that constitute a part or all of the mortgages in the securitization
vehicle,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">if any mortgage so modified meets
all of the criteria set forth in subparagraph (B).</continuation-text></subparagraph><subparagraph commented="no" id="H6AC361F19814434CAC703AFB5FB1F135"><enum>(B)</enum><header>Criteria</header><text>The
criteria under this subparagraph with respect to a mortgage are as
follows:</text>
<clause commented="no" id="HB3E72D8E3ED54A16BD29B0DED86BEF03"><enum>(i)</enum><text>Default on the
payment of such mortgage has occurred or is reasonably foreseeable.</text>
</clause><clause commented="no" id="H594D285D10CC4315AE39671AFE290863"><enum>(ii)</enum><text>The property
securing such mortgage is occupied by the mortgagor of such mortgage.</text>
</clause><clause commented="no" id="H3AD1F7BB1ED5450CBDA09D47939A7DB8"><enum>(iii)</enum><text>The servicer
reasonably and in good faith believes that the anticipated recovery on the
principal outstanding obligation of the mortgage under the particular
modification or workout plan or other loss mitigation action will exceed, on a
net present value basis, the anticipated recovery on the principal outstanding
obligation of the mortgage to be realized through foreclosure.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H39A93DAF35124ED8A7E1A51EA8A5CF83"><enum>(3)</enum><header>Applicability</header><text>This
subsection shall apply only with respect to modifications, workouts, and other
loss mitigation plans initiated before January 1, 2012.</text>
</paragraph></subsection><subsection commented="no" id="HA1AA5CF1CB1B41348C22B893EA2A1414"><enum>(b)</enum><header>Reporting</header><text>Each
servicer that engages in loan modifications or workout plans subject to the
safe harbor in subsection (a) shall report to the Secretary on a regular basis
regarding the extent, scope and results of the servicer’s modification
activities. The Secretary shall prescribe regulations specifying the form,
content, and timing of such reports.</text>
</subsection><subsection commented="no" id="H26BDDAC63C354781AA438C3682B83C2C"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph id="H9DC4C8E30C9247CD8BC13EFC8E338F08"><enum>(1)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of the Treasury.</text>
</paragraph><paragraph id="H69B5B3B4EF8549A982247D02E9748F9C"><enum>(2)</enum><header>Securitization
vehicle</header><text display-inline="yes-display-inline">The term
<quote>securitization vehicle</quote> means a trust, corporation, partnership,
limited liability entity, special purpose entity, or other structure
that—</text>
<subparagraph commented="no" id="H3387DD88812D419B8A1149D91AE4A747"><enum>(A)</enum><text>is the issuer, or
is created by the issuer, of mortgage pass-through certificates, participation
certificates, mortgage-backed securities, or other similar securities backed by
a pool of assets that includes residential mortgage loans; and</text>
</subparagraph><subparagraph commented="no" id="H58C6B42D638242EEB379492683A5CF05"><enum>(B)</enum><text>holds such
mortgages.</text>
</subparagraph></paragraph></subsection></section><section id="H3C11C7F773414560922CA244C0D5D4DD" section-type="subsequent-section"><enum>202.</enum><header>Changes to HOPE for
Homeowners Program</header>
<subsection id="H1331840D61B542CFAA722EA2B6078108"><enum>(a)</enum><header>Program
changes</header><text display-inline="yes-display-inline">Section 257 of the
National Housing Act (12 U.S.C. 1715z–23) is amended—</text>
<paragraph id="HD347835467A342078FA3B644841DDB4B"><enum>(1)</enum><text>in subsection
(c)—</text>
<subparagraph id="HA1B304C56F404AAAA69E69ED211196EA"><enum>(A)</enum><text>in the heading for
paragraph (1), by striking <quote><header-in-text level="paragraph" style="OLC">the board</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">secretary</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H23E49C5E007046348D82E8C884850CF6"><enum>(B)</enum><text>in paragraph (1),
by striking <quote>Board</quote> inserting <quote>Secretary, after consultation
with the Board,</quote>; and</text>
</subparagraph><subparagraph id="HC26F043DBCAB4A299B63E2C4A04EF65C"><enum>(C)</enum><text>by adding after
paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="H556336F5D987434698DB4D3285569EDE" style="OLC">
<paragraph id="H33248891C8D543FDB70A68539D6266A2"><enum>(3)</enum><header>Duties of
board</header><text display-inline="yes-display-inline">The Board shall advise
the Secretary regarding the establishment and implementation of the HOPE for
Homeowners
Program.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H0CC5B74C113E47A4AA56C6CCAD18AC2C"><enum>(2)</enum><text>by striking
<quote>Board</quote> each place such term appears in subsections (e), (h)(1),
(h)(3), (j), (l), (n), (s)(3), and (v) and inserting
<quote>Secretary</quote>;</text>
</paragraph><paragraph id="HB861F560588044C9AB4BC9EB2AD77A99"><enum>(3)</enum><text>in subsection
(e)—</text>
<subparagraph display-inline="no-display-inline" id="HA8A93E806C6C46BFB8CC55F03A20DEEB"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H84EE2AF2622F4A6D9C2BC96C988FAE1E" style="OLC">
<paragraph id="H394E606859E84320B6CDDEF261BC76CC"><enum>(1)</enum><header>Borrower
certification</header>
<subparagraph id="H9CA98323C3D64E17A937A5D7D2F3FA49"><enum>(A)</enum><header>No intentional
default or false information</header><text display-inline="yes-display-inline">The mortgagor shall provide a certification
to the Secretary that the mortgagor has not intentionally defaulted on the
existing mortgage or mortgages and has not knowingly, or willfully and with
actual knowledge, furnished material information known to be false for the
purpose of obtaining the eligible mortgage to be insured and has not been
convicted under Federal or State law for fraud during the 10-year period ending
upon the insurance of the mortgage under this section.</text>
</subparagraph><subparagraph id="H298221B77A6846ACB7DAEA778C4208B3"><enum>(B)</enum><header>Liability for
repayment</header><text>The mortgagor shall agree in writing that the mortgagor
shall be liable to repay to the Secretary any direct financial benefit achieved
from the reduction of indebtedness on the existing mortgage or mortgages on the
residence refinanced under this section derived from misrepresentations made by
the mortgagor in the certifications and documentation required under this
paragraph, subject to the discretion of the
Secretary.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HF78BFB98C9794323BBFB24E9D502300D"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (4)(A), by striking <quote>;
subject to standards established by the Board under subparagraph
(B),</quote>;</text>
</subparagraph><subparagraph id="HFA28883ECDF1495F82FA7778B84D87EB"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (7), by striking <quote>and
provided that</quote> and all that follows through <quote>new second
lien</quote> and inserting <quote>and except that the Secretary may, under such
terms and conditions as the Secretary may establish, permit the establishment
of a second lien on a property under an eligible mortgage to be insured, for
the purpose of facilitating payment of closing or refinancing costs by a State
or locality using funds provided under the HOME Investment Partnerships program
under title II of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12721 et seq.) or the community development block grants program under
title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et
seq.) or by a State or local housing finance agency</quote>;</text>
</subparagraph><subparagraph id="H64ADC7DA2F6C4118B0792CC15172C088"><enum>(D)</enum><text>in paragraph
(9)—</text>
<clause id="HF3B42FF76C494183954FBAE483D98854"><enum>(i)</enum><text>by
striking <quote>by procuring (A) an income tax return transcript of the income
tax return of the mortgagor, or (B)</quote> and inserting <quote>in accordance
with procedures and standards that the Secretary shall establish, which may
include requiring the mortgagee to procure</quote>; and</text>
</clause><clause id="H7C4B4A6787D14FB3925F01674B9EEF26"><enum>(ii)</enum><text>by
striking <quote>and by any other method, in accordance with procedures and
standards that the Board shall establish</quote>;</text>
</clause></subparagraph><subparagraph id="HD19F9053A5724153848C2A586C50C04D"><enum>(E)</enum><text>by striking
subparagraph (10);</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H6D83E8C544424FA698DF95DF803DB140"><enum>(F)</enum><text>in paragraph (11),
by inserting before the period at the end the following: <quote>, except that
the Secretary may provide exceptions to such latter requirement (relating to
present ownership interest) for any mortgagor who has inherited a property or
for any mortgagor who has relocated to a new jurisdiction, and is in the
process of trying to sell such property or has been unable to sell such
property due to adverse market conditions</quote>;</text>
</subparagraph><subparagraph id="HAB0F0EAD803242CE81BE6BD131641848"><enum>(G)</enum><text>by redesignating
paragraph (11) as paragraph (10); and</text>
</subparagraph><subparagraph id="H21DEA013C9F34531B19301F4A82F08AC"><enum>(H)</enum><text display-inline="yes-display-inline">by adding at the end:</text>
<quoted-block display-inline="no-display-inline" id="HC7B80635529D4F73BFDC3F9C224D411C" style="OLC">
<paragraph id="H2EF9852A9CE6469FBF8BC9AB2E6B97D4"><enum>(11)</enum><header>Ban on
millionaires</header><text display-inline="yes-display-inline">The mortgagor
shall not have a net worth, as of the date the mortgagor first applies for a
mortgage to be insured under the Program under this section, that exceeds
$1,000,000.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="HD7E8B0FEF0AB4E8683EDF66548CD1336"><enum>(4)</enum><text>in subsection
(h)(2)—</text>
<subparagraph commented="no" id="H0A509B49DD334E53A6D9B9CB2184BF7F"><enum>(A)</enum><text>by striking
<quote>The Board shall prohibit the Secretary from paying</quote> and inserting
<quote>The Secretary shall not pay</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HBCEED24F56F1491788C61FD474320B2A"><enum>(B)</enum><text>by inserting after
the period at the end the following: <quote>In implementing this provision with
respect to a failure by a mortgagor to make a first payment, the Secretary
shall establish policies and timing of endorsements as consistent as is
possible with endorsement policies established with respect to mortgages
insured under section 203(b)</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="H9AD67CDB69404E96AA5D53334AA15D0C"><enum>(5)</enum><text>in subsection
(i)—</text>
<subparagraph id="HABF4F548D04043AC88C915E767BE7780"><enum>(A)</enum><text>by inserting
<quote>, after weighing maximization of participation with consideration of
collection of premiums,</quote> after <quote>Secretary shall</quote>;</text>
</subparagraph><subparagraph id="HD6B179A26BD94DBE8B490E77481029A0"><enum>(B)</enum><text>in paragraph (1),
by striking <quote>equal to 3 percent</quote> and inserting <quote>not more
than 2 percent</quote>; and</text>
</subparagraph><subparagraph id="HD7B05635D900403AAD5D163FEE1EF30A"><enum>(C)</enum><text>in paragraph (2),
by striking <quote>equal to 1.5 percent</quote> and inserting <quote>not more
than 1 percent</quote>;</text>
</subparagraph></paragraph><paragraph id="H1CEE0D458C8B491BAAF8543F19915683"><enum>(6)</enum><text>in subsection
(k)—</text>
<subparagraph id="HEF0CC7C4988B4A7196B7FF6E33137BB3"><enum>(A)</enum><text>by striking the
subsection heading and inserting <quote><header-in-text level="subsection" style="OLC">Exit Fee</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H02228D09F4DC447FB55885B69053A2AA"><enum>(B)</enum><text>in paragraph (1),
in the matter preceding subparagraph (A), by striking <quote>such sale or
refinancing</quote> and inserting <quote>the mortgage being insured under this
section</quote>; and</text>
</subparagraph><subparagraph id="H7DA1CDEB91704E18847B80114C6F8A79"><enum>(C)</enum><text>in paragraph (2),
by striking <quote>and the mortgagor</quote> and all that follows through the
end and inserting <quote>may, upon any sale or disposition of the property to
which the mortgage relates, be entitled to up to 50 percent of appreciation, up
to the appraised value of the home at the time when the mortgage being
refinanced under this section was originally made. The Secretary may share any
amounts received under this paragraph with the holder of the eligible mortgage
refinanced under this section.</quote>;</text>
</subparagraph></paragraph><paragraph id="H59D46AC795D24CA8A81AB4DDE2108158"><enum>(7)</enum><text>in the heading for
subsection (n), by striking <quote><header-in-text level="subsection" style="OLC">the Board</header-in-text></quote> and inserting
<quote><header-in-text level="subsection" style="OLC">secretary</header-in-text></quote>;</text>
</paragraph><paragraph id="HDC490193717643D9A54C85101A344166"><enum>(8)</enum><text>in subsection (p),
by striking <quote>Under the direction of the Board, the</quote> and inserting
<quote>The</quote>;</text>
</paragraph><paragraph id="H747591419C92418FA02E47EE94EE1EF4"><enum>(9)</enum><text>in subsection
(s)—</text>
<subparagraph id="H99375D1A781F423593418937BDA419CE"><enum>(A)</enum><text>in the first
sentence of paragraph (2), by striking <quote>Board of Directors of</quote> and
inserting <quote>Advisory Board for</quote>; and</text>
</subparagraph><subparagraph id="HD9CBE3F0E2CF47169ABC06E3E617289C"><enum>(B)</enum><text>in paragraph
(3)(A)(ii), by striking <quote>subsection (e)(1)(B) and such other</quote> and
inserting <quote>such</quote>;</text>
</subparagraph></paragraph><paragraph id="HEBBD0E47F8EB4C9799E78D650B7BEB12"><enum>(10)</enum><text>in subsection
(v), by inserting after the period at the end the following: <quote>The
Secretary shall conform documents, forms, and procedures for mortgages insured
under this section to those in place for mortgages insured under section 203(b)
to the maximum extent possible consistent with the requirements of this
section.</quote>; and</text>
</paragraph><paragraph id="HAA4F952A1B37485E839B5EAACA719A1A"><enum>(11)</enum><text>by adding at the
end the following new subsections:</text>
<quoted-block id="HCC951B01C06A43EEA3032DB717F65A7F" style="OLC">
<subsection id="HF07037ED400E46698962FCD9D5DDED7C"><enum>(x)</enum><header>Payment to
existing loan servicer</header><text>The Secretary may establish a payment to
the servicer of the existing senior mortgage for every loan insured under the
HOPE for Homeowners Program in an amount, for each such loan, that does not
exceed $1,000.</text>
</subsection><subsection id="H38541ADFF6B34868B0A6C5D2C418524B"><enum>(y)</enum><header>Auctions</header><text>The
Secretary, with the concurrence of the Board, shall, if feasible, establish a
structure and organize procedures for an auction to refinance eligible
mortgages on a wholesale or bulk
basis.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H463B898059624725AF3E4080C1414B63"><enum>(b)</enum><header>Reducing TARP
funds To offset costs of program changes</header><text>Paragraph (3) of section
115(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225) is
amended by inserting <quote>, as such amount is reduced by
$2,316,000,000,</quote> after <quote>$700,000,000,000</quote>.</text>
</subsection></section><section id="H4A426D1EE0C842C09FEAD47AF0A3541D"><enum>203.</enum><header>Requirements
for FHA-approved mortgagees</header>
<subsection id="HDFC7A62B56714FEC843F97661F32686D"><enum>(a)</enum><header>Mortgagee review
board</header><text display-inline="yes-display-inline">Paragraph (2) of
section 202(c) of the National Housing Act (12 U.S.C. 1708(c)) is
amended—</text>
<paragraph id="HE70AB2416FE341FF88E603CA6A3F277B"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (E), by inserting
<quote>and</quote> after the semicolon;</text>
</paragraph><paragraph id="HCC64B45CBB154A1F82699E016A61CF4A"><enum>(2)</enum><text>in subparagraph
(F), by striking <quote>; and</quote> and inserting a period; and</text>
</paragraph><paragraph id="HDF7868F20030484EABBCA611DC31F425"><enum>(3)</enum><text>by striking
subparagraph (G).</text>
</paragraph></subsection><subsection id="H6B8775AEA0F04A90B243B52811B76D21"><enum>(b)</enum><header>Limitations on
participation and mortgagee approval and use of name</header><text display-inline="yes-display-inline">Section 202 of the National Housing Act (12
U.S.C. 1708) is amended—</text>
<paragraph id="HB538F870ADE14803A630F07466194741"><enum>(1)</enum><text>by redesignating
subsections (d), (e), and (f) as subsections (e), (f), and (g),
respectively;</text>
</paragraph><paragraph id="H4692E99F075C4D1BB6F6EEADF45458AB"><enum>(2)</enum><text>by inserting after
subsection (c) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HF8A7FD2832D643F89C153E66389267D8" style="OLC">
<subsection id="H818C8EBE6B5A42FC99EA70CF172AA5DC"><enum>(d)</enum><header>Limitations on
participation in origination and mortgagee approval</header>
<paragraph id="H77BAB5CA015D46D9990475E295516E26"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Any person or entity that is not approved
by the Secretary to serve as a mortgagee, as such term is defined in subsection
(c)(7), shall not participate in the origination of an FHA-insured loan except
as authorized by the Secretary.</text>
</paragraph><paragraph id="H78CE3F280BD049959719F1DDCD4C345A"><enum>(2)</enum><header>Eligibility for
approval</header><text display-inline="yes-display-inline">In order to be
eligible for approval by the Secretary, an applicant mortgagee shall not be,
and shall not have any officer, partner, director, principal, manager,
supervisor, loan processor, loan underwriter, or loan originator of the
applicant mortgagee who is—</text>
<subparagraph id="H4B49991613D548F49677B35F51AABB93"><enum>(A)</enum><text>currently
suspended, debarred, under a limited denial of participation (LDP), or
otherwise restricted under part 24 or 25 of title 24 of the Code of Federal
Regulations, or any successor regulations to such parts, or under similar
provisions of any other Federal agency;</text>
</subparagraph><subparagraph id="H2C300F1427ED4D7CA84703C5433E81D0"><enum>(B)</enum><text>under indictment
for, or has been convicted of, an offense that reflects adversely upon the
applicant’s integrity, competence or fitness to meet the responsibilities of an
approved mortgagee;</text>
</subparagraph><subparagraph id="HDC41D708AE48476195085D8511DCCAE4"><enum>(C)</enum><text>subject to
unresolved findings contained in a Department of Housing and Urban Development
or other governmental audit, investigation, or review;</text>
</subparagraph><subparagraph id="H043822B2C8BD4864B1121B4C5BBC8005"><enum>(D)</enum><text>engaged in
business practices that do not conform to generally accepted practices of
prudent mortgagees or that demonstrate irresponsibility;</text>
</subparagraph><subparagraph id="HDB35E4935B87495E9EFC8335EA29E23B"><enum>(E)</enum><text>convicted of, or
who has pled guilty or nolo contendre to, a felony related to participation in
the real estate or mortgage loan industry—</text>
<clause id="HED2C83A1FC6445009F2AE5CF45B5CC50"><enum>(i)</enum><text>during the 7-year
period preceding the date of the application for licensing and registration;
or</text>
</clause><clause id="H87C0F03D7A7B45C3A43CB2CA301EC862"><enum>(ii)</enum><text>at any time
preceding such date of application, if such felony involved an act of fraud,
dishonesty, or a breach of trust, or money laundering;</text>
</clause></subparagraph><subparagraph id="H73D808A3CB9C482EA48B1B65810B21DC"><enum>(F)</enum><text>in violation of
provisions of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et
seq.) or any applicable provision of State law; or</text>
</subparagraph><subparagraph id="H9E83F44D26AD42AFA68DEEBF1EAFCF23"><enum>(G)</enum><text>in violation of
any other requirement as established by the Secretary.</text>
</subparagraph></paragraph><paragraph id="H4F4BB3C116BB49DEB529D2531D0EDC75"><enum>(3)</enum><header>Rulemaking and
implementation</header><text>The Secretary shall conduct a rulemaking to carry
out this subsection. The Secretary shall implement this subsection not later
than the expiration of the 60-day period beginning upon the date of the
enactment of this subsection by notice, mortgagee letter, or interim final
regulations, which shall take effect upon
issuance.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5947398FC28C4552908C63DE337B8122"><enum>(3)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H40E8001048EA4844B373505FA9E934CE" style="OLC">
<subsection id="HA3D6C4835022459A914DC54CC56F2F64"><enum>(h)</enum><header>Use of
name</header><text display-inline="yes-display-inline">The Secretary shall, by
regulation, require each mortgagee approved by the Secretary for participation
in the FHA mortgage insurance programs of the Secretary—</text>
<paragraph id="HAFBFC04390B745F7BA578C7BDCE8E377"><enum>(1)</enum><text>to use the
business name of the mortgagee that is registered with the Secretary in
connection with such approval in all advertisements and promotional materials,
as such terms are defined by the Secretary, relating to the business of such
mortgagee in such mortgage insurance programs; and</text>
</paragraph><paragraph id="H95D1EABEA1AB442BA771C1CB12D68CC2"><enum>(2)</enum><text>to maintain copies
of all such advertisements and promotional materials, in such form and for such
period as the Secretary
requires.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H3AA13BB684AB4FF589FE825237E254F6"><enum>(c)</enum><header>Change of
status</header><text>The National Housing Act is amended by striking section
532 (12 U.S.C. 1735f–10) and inserting the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HD79A0F121C374163BF80848C344790D4" style="OLC">
<section id="HFBE2E9EE20FF4DB18062F95028085A1C"><enum>532.</enum><header>Change of
mortgagee status</header>
<subsection id="H3E62C3B138734F4ABBF949B9463CAFD4"><enum>(a)</enum><header>Notification</header><text display-inline="yes-display-inline">Upon the occurrence of any action described
in subsection (b), an approved mortgagee shall immediately submit to the
Secretary, in writing, notification of such occurrence.</text>
</subsection><subsection id="H180469F45A7A4F91837F955F069485E4"><enum>(b)</enum><header>Actions</header><text display-inline="yes-display-inline">The actions described in this subsection
are as follows:</text>
<paragraph id="HB687DA3F2A5E4E628F67C0B64B3EA5B9"><enum>(1)</enum><text>The debarment,
suspension of a Limited Denial of Participation (LDP), or application of other
sanctions, fines, or penalties applied to the mortgagee or to any officer,
partner, director, principal, manager, supervisor, loan processor, loan
underwriter, or loan originator of the mortgagee pursuant to applicable
provisions of State or Federal law.</text>
</paragraph><paragraph id="HC9A57EC760704EA69FDF52216003DC87"><enum>(2)</enum><text>The revocation of
a State-issued mortgage loan originator license issued pursuant to the S.A.F.E.
Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any other similar
declaration of ineligibility pursuant to State
law.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1B95B07A75934BCBBDE557EB4976FE2C"><enum>(d)</enum><header>Civil money
penalties</header><text display-inline="yes-display-inline">Section 536 of the
National Housing Act (12 U.S.C. 1735f–14) is amended—</text>
<paragraph id="H59400D6BA67A4FA9B5D767D74C0A54EB"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="H69DA5C23988D4FF2BDF05CAE397E5E46"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="HDDC6D90DE7C44534ABC668AF41CBEE5D"><enum>(i)</enum><text>in
the matter preceding subparagraph (A), by inserting <quote>or any of its
owners, officers, or directors</quote> after <quote>mortgagee or
lender</quote>;</text>
</clause><clause id="H12A9DE33A9B644B59BB24B507116CAEA"><enum>(ii)</enum><text>in
subparagraph (H), by striking <quote>title I</quote> and all that follows
through <quote>Act of 1989)</quote> and inserting “title I or II”; and</text>
</clause><clause id="HE0A83963695D4ED38CF0E7D5B6267080"><enum>(iii)</enum><text>by
inserting after subparagraph (J) the following:</text>
<quoted-block display-inline="no-display-inline" id="H2E6D52ED03C2416C8E1CFBBAFB74347F" style="OLC">
<subparagraph id="HAC6F1E7FF55F4D688BCB67CA99475798"><enum>(K)</enum><text display-inline="yes-display-inline">Violation of section 202(d) of this Act (12
U.S.C. 1708(d)).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H345E1A53D82E46909138587993212E8C"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<clause id="HA9D4A5F4AFE144B99A0F6E6393C260F7"><enum>(i)</enum><text>in
subparagraph (B), by striking <quote>or</quote> at the end;</text>
</clause><clause id="H3D59FA0F8C43445EB0423974D696C19E"><enum>(ii)</enum><text>in
subparagraph (C), by striking the period at the end and inserting <quote>;
or</quote>; and</text>
</clause><clause id="HD0AC91DF5137482DA8D29493559BB993"><enum>(iii)</enum><text>by
adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HB6D908BB5F5F48F1B368B526B287D20F" style="OLC">
<subparagraph id="HE78D8901BCD742849667EF5426441B46"><enum>(D)</enum><text display-inline="yes-display-inline">causing or participating in any of the
violations set forth in paragraph (1) of this
subsection.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="HA425501EA8754E698F2C4CC91B8B67E0"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (g), by striking <quote>The
term</quote> and all that follows through the end of the sentence and inserting
<quote>For purposes of this section, a person acts knowingly when a person has
actual knowledge of acts or should have known of the acts.</quote>.</text>
</paragraph></subsection><subsection id="HAE5D948B8DBF4A4B911D762FF9FAD690"><enum>(e)</enum><header>Expanded review
of FHA mortgagee applicants and newly approved mortgagees</header><text>Not
later than the expiration of the 3-month period beginning upon the date of the
enactment of this Act, the Secretary of Housing and Urban Development
shall—</text>
<paragraph id="H981465CE44DD45908E760D1C0273F71F"><enum>(1)</enum><text>expand the
existing process for reviewing new applicants for approval for participation in
the mortgage insurance programs of the Secretary for mortgages on 1- to
4-family residences for the purpose of identifying applicants who represent a
high risk to the Mutual Mortgage Insurance Fund; and</text>
</paragraph><paragraph id="H31FB975566BF4DB4A9F655BED8E1592C"><enum>(2)</enum><text display-inline="yes-display-inline">implement procedures that, for mortgagees
approved during the 12-month period ending upon such date of enactment—</text>
<subparagraph id="H707D80509D0B4EF594E116BAEFC53392"><enum>(A)</enum><text>expand the number
of mortgages originated by such mortgagees that are reviewed for compliance
with applicable laws, regulations, and policies; and</text>
</subparagraph><subparagraph id="H3253C260046D4987879F7F319E9F11AB"><enum>(B)</enum><text>include a process
for random reviews of such mortgagees and a process for reviews that is based
on volume of mortgages originated by such mortgagees.</text>
</subparagraph></paragraph></subsection></section><section id="HFDF87129B3134F11A9C3FDD32389A783"><enum>204.</enum><header>Enhancement of
liquidity and stability of insured depository institutions to ensure
availability of credit and reduction of foreclosures</header>
<subsection id="H57CE733F33B04FBA86709C456671342F"><enum>(a)</enum><header>Permanent
increase in deposit insurance</header>
<paragraph id="HC882C106303B4218AF0A65A66CB9D601"><enum>(1)</enum><header>Amendments to
Federal Deposit Insurance Act</header><text>Effective upon the date of the
enactment of this Act, section 11(a) of the Federal Deposit Insurance Act (12
U.S.C. 1821(a)) is amended—</text>
<subparagraph id="HDC1ECE35F7FB40B7B266F353A7B09D54"><enum>(A)</enum><text>in paragraph
(1)(E), by striking <quote>$100,000</quote> and inserting
<quote>$250,000</quote>;</text>
</subparagraph><subparagraph id="H39B4BAEF511948E78D0C53B485ED8366"><enum>(B)</enum><text>in paragraph
(1)(F)(i), by striking <quote>2010</quote> and inserting
<quote>2015</quote>;</text>
</subparagraph><subparagraph id="H19261FC0EBA2447685173D29CC2572DD"><enum>(C)</enum><text>in subclause (I)
of paragraph (1)(F)(i), by striking <quote>$100,000</quote> and inserting
<quote>$250,000</quote>;</text>
</subparagraph><subparagraph id="H6E9F9CE1469C437FA501228CD6C3260A"><enum>(D)</enum><text>in subclause (II)
of paragraph (1)(F)(i), by striking <quote>the calendar year preceding the date
this subparagraph takes effect under the Federal Deposit Insurance Reform Act
of 2005</quote> and inserting <quote>calendar year 2008</quote>; and</text>
</subparagraph><subparagraph id="H689FC2BDE0DE44CF9717BFC22B8AF674"><enum>(E)</enum><text>in paragraph
(3)(A), by striking <quote>, except that $250,000 shall be substituted for
$100,000 wherever such term appears in such paragraph</quote>.</text>
</subparagraph></paragraph><paragraph id="HF514C3CE0B0C4DE580233BCE1D51C016"><enum>(2)</enum><header>Amendment to
Federal Credit Union Act</header><text>Section 207(k) of the Federal Credit
Union Act (12 U.S.C. 1787(k)) is amended—</text>
<subparagraph id="H719BF09FF47E4920B108DD02F298D5DA"><enum>(A)</enum><text>in paragraph
(3)—</text>
<clause id="H27283595BFA840CF8731F63C93CF29EA"><enum>(i)</enum><text>by
striking the opening quotation mark before <quote>$250,000</quote>;</text>
</clause><clause id="H0762E176F0B148C58325C1BBD58808BB"><enum>(ii)</enum><text>by
striking <quote>, except that $250,000 shall be substituted for $100,000
wherever such term appears in such section</quote>; and</text>
</clause><clause id="HB7C00DB56036428DAAE7414E7D5942A7"><enum>(iii)</enum><text>by
striking the closing quotation mark after the closing parenthesis; and</text>
</clause></subparagraph><subparagraph id="HE6D3E492D1454ACD9BFD92AE62420389"><enum>(B)</enum><text>in paragraph (5),
by striking <quote>$100,000</quote> and inserting
<quote>$250,000</quote>.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H9CCCF52EC4A949068FF12EF865EEB742"><enum>(3)</enum><header>Repeal of EESA
provision</header><text>Section 136 of the Emergency Economic Stabilization Act
(12 U.S.C. 5241) is hereby repealed.</text>
</paragraph></subsection><subsection commented="no" id="H2A9FA9DD9B834608B97B012A1199ED83"><enum>(b)</enum><header>Extension of
restoration plan period</header><text>Section 7(b)(3)(E)(ii) of the Federal
Deposit Insurance Act (12 U.S.C. 1817(b)(3)(E)(ii)) is amended by striking
<quote>5-year period</quote> and inserting <quote>8-year period</quote>.</text>
</subsection><subsection commented="no" id="H656DA071C868435ABF66C3C7F69DCC1D"><enum>(c)</enum><header>FDIC and NCUA
borrowing authority</header>
<paragraph id="H19E08F8B64E94921B4A5B254F29F1AE5"><enum>(1)</enum><header>FDIC</header><text display-inline="yes-display-inline">Section 14(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1824(a)) is amended by striking
<quote>$30,000,000,000</quote> and inserting
<quote>$100,000,000,000</quote>.</text>
</paragraph><paragraph id="HCD55537A4159470AAA4A3044946287B9"><enum>(2)</enum><header>NCUA</header><text display-inline="yes-display-inline">Section 203(d)(1) of the Federal Credit
Union Act (12 U.S.C. 1783(d)(1)) is amended by striking
<quote>$100,000,000</quote> and inserting <quote>$6,000,000,000</quote>.</text>
</paragraph></subsection><subsection commented="no" id="HF765CC28CEFA43DF88909B3F45B15189"><enum>(d)</enum><header>Expanding
systemic risk special assessments</header><text>Section 13(c)(4)(G)(ii) of the
Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF84382961C5845328684BC7B25C3231E" style="OLC">
<clause commented="no" id="HF701575FDDF2497290B90423BBE5A711"><enum>(ii)</enum><header>Repayment of
loss</header>
<subclause commented="no" id="H2EA0F6548CE243C49AC1CEA90E34125A"><enum>(I)</enum><header>In
general</header><text display-inline="yes-display-inline">The Corporation shall
recover the loss to the Deposit Insurance Fund arising from any action taken or
assistance provided with respect to an insured depository institution under
clause (i) from 1 or more special assessments on insured depository
institutions, depository institution holding companies (with the concurrence of
the Secretary of the Treasury with respect to holding companies), or both, as
the Corporation determines to be appropriate.</text>
</subclause><subclause commented="no" id="HE001FEE0A64B4AF291A05403ED33B652"><enum>(II)</enum><header>Treatment of
depository institution holding companies</header><text>For purposes of this
clause, sections 7(c)(2) and 18(h) shall apply to depository institution
holding companies as if they were insured depository institutions.</text>
</subclause><subclause commented="no" id="HE8A9C55105AA4AA4B0D08267CA69917E"><enum>(III)</enum><header>Regulations</header><text>The
Corporation shall prescribe such regulations as it deems necessary to implement
this clause. In prescribing such regulations, defining terms, and setting the
appropriate assessment rate or rates, the Corporation shall establish rates
sufficient to cover the losses incurred as a result of the actions of the
Corporation under clause (i) and shall consider: the types of entities that
benefit from any action taken or assistance provided under this subparagraph;
economic conditions, the effects on the industry, and such other factors as the
Corporation deems appropriate and relevant to the action taken or the
assistance provided. Any funds so collected that exceed actual losses shall be
placed in the Deposit Insurance
Fund.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H787B958718B54006A2F52A58458782C2"><enum>(e)</enum><header>Establishment of
a national credit union share insurance fund restoration plan
period</header><text>Section 202(c)(2) of the Federal Credit Union Act (12
U.S.C. 1782(c)(2)) is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H43951867142D4CA991B4ED9FD45CBC00" style="OLC">
<subparagraph id="HA9F56DF1C917419A94D16C5A547874B7"><enum>(D)</enum><header>Fund restoration
plans</header>
<clause id="H76CA2878CA6B40E0B1D7206CD6EE0D74"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Whenever—</text>
<subclause id="H4CF9329B5D79431BAA443100364A98DD"><enum>(I)</enum><text display-inline="yes-display-inline">the Board projects that the equity ratio of
the Fund will, within 6 months of such determination, fall below the minimum
amount specified in subparagraph (C) for the designated equity ratio; or</text>
</subclause><subclause id="H11A02E943C7C460498DF66622088734F"><enum>(II)</enum><text display-inline="yes-display-inline">the equity ratio of the Fund actually falls
below the minimum amount specified in subparagraph (C) for the equity ratio
without any determination under sub-clause (I) having been made,</text>
</subclause><continuation-text continuation-text-level="clause">the Board
shall establish and implement a Share Insurance Fund restoration plan within 90
days that meets the requirements of clause (ii) and such other conditions as
the Board determines to be appropriate.</continuation-text></clause><clause id="HA03F82D232A8437593DD661932CAE80E"><enum>(ii)</enum><header>Requirements of
restoration plan</header><text display-inline="yes-display-inline">A Share
Insurance Fund restoration plan meets the requirements of this clause if the
plan provides that the equity ratio of the Fund will meet or exceed the minimum
amount specified in subparagraph (C) for the designated equity ratio before the
end of the 5-year period beginning upon the implementation of the plan (or such
longer period as the Board may determine to be necessary due to extraordinary
circumstances).</text>
</clause><clause id="HEE025EDCE8D848CFB14CB2F45EA64B27"><enum>(iii)</enum><header>Transparency</header><text display-inline="yes-display-inline">Not more than 30 days after the Board
establishes and implements a restoration plan under clause (i), the Board shall
publish in the Federal Register a detailed analysis of the factors considered
and the basis for the actions taken with regard to the
plan.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HBEBAC0BB01704FC8B10655475CCAED2A"><enum>205.</enum><header>Application of
GSE conforming loan limit to mortgages assisted with TARP funds</header><text display-inline="no-display-inline">In making any assistance available to
prevent and mitigate foreclosures on residential properties, including any
assistance for mortgage modifications, using any amounts made available to the
Secretary of the Treasury under title I of the Emergency Economic Stabilization
Act of 2008, the Secretary shall provide that the limitation on the maximum
original principal obligation of a mortgage that may be modified, refinanced,
made, guaranteed, insured, or otherwise assisted, using such amounts shall not
be less than the dollar amount limitation on the maximum original principal
obligation of a mortgage that may be purchased by the Federal Home Loan
Mortgage Corporation that is in effect, at the time that the mortgage is
modified, refinanced, made, guaranteed, insured, or otherwise assisted using
such amounts, for the area in which the property involved in the transaction is
located.</text>
</section><section id="HFA716105562A4358AFB2845B45A2D2D1"><enum>206.</enum><header>Mortgages on
certain homes on leased land</header><text display-inline="no-display-inline">Section 255(b)(4) of the National Housing
Act (12 U.S.C. 1715z–20(b)(4)) is amended by striking subparagraph (B) and
inserting:</text>
<quoted-block id="H8861ED346FC242F1AA78B960F49783D3" style="OLC">
<subparagraph id="HBCFB15F2A3F944618BBAE7D7A2727CDD"><enum>(B)</enum><text>under a lease that
has a term that ends no earlier than the minimum number of years, as specified
by the Secretary, beyond the actuarial life expectancy of the mortgagor or
comortgagor, whichever is the later
date.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H0966AFA2F64549A2A5C24F6B763A772A"><enum>207.</enum><header>Sense of
Congress regarding mortgage revenue bond purchases</header><text display-inline="no-display-inline">It
is the sense of the Congress that the Secretary of the Treasury should use
amounts made available in this Act to purchase mortgage revenue bonds for
single-family housing issued through State housing finance agencies and through
units of local government and agencies thereof.</text>
</section><enum>III</enum><header>Mortgage
Fraud</header>
<section id="H2DEB6E8B8CDF465DAC0992C5CB215547" section-type="subsequent-section"><enum>301.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Nationwide Mortgage Fraud Task
Force Act of 2009</short-title></quote>.</text>
</section><section id="H6B14BEEA125346A982C161F8083829B3"><enum>302.</enum><header>Nationwide
Mortgage Fraud Task Force</header>
<subsection id="H9F0701FF5B1F43A5BC0774CA9867F8A4"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established in the Department of
Justice the Nationwide Mortgage Fraud Task Force (hereinafter referred to in
this section as the <quote>Task Force</quote>) to address mortgage fraud in the
United States.</text>
</subsection><subsection id="H93B287A20854400F94050315AC864D05"><enum>(b)</enum><header>Support</header><text>The
Attorney General shall provide the Task Force with the appropriate staff,
administrative support, and other resources necessary to carry out the duties
of the Task Force.</text>
</subsection><subsection id="HE11387299D1D4E0B94C7EDBB8BB89C2D"><enum>(c)</enum><header>Executive
Director</header><text display-inline="yes-display-inline">The Attorney General
shall appoint one staff member provided to the Task Force to be the Executive
Director of the Task Force and such Executive Director shall ensure that the
duties of the Task Force are carried out.</text>
</subsection><subsection id="H16419B6D5D2F458D947A9F83C63B3FBE"><enum>(d)</enum><header>Branches</header><text>The
Task Force shall establish, oversee, and direct branches in each of the 10
States determined by the Attorney General to have the highest concentration of
mortgage fraud.</text>
</subsection><subsection id="HB15CFC9993A249699B63675314B8302F"><enum>(e)</enum><header>Mandatory
functions</header><text>The Task Force, including the branches of the Task
Force established under subsection (d), shall—</text>
<paragraph id="H0060FAF61D3A4427BA94749A7DDAB079"><enum>(1)</enum><text>establish
coordinating entities, and solicit the voluntary participation of Federal,
State, and local law enforcement and prosecutorial agencies in such entities,
to organize initiatives to address mortgage fraud, including initiatives to
enforce State mortgage fraud laws and other related Federal and State
laws;</text>
</paragraph><paragraph id="H903B649E6C324A8CA20EC276C331AB2E"><enum>(2)</enum><text display-inline="yes-display-inline">provide training to Federal, State, and
local law enforcement and prosecutorial agencies with respect to mortgage
fraud, including related Federal and State laws;</text>
</paragraph><paragraph id="H3BCD1A755087469DBE4C9B899FEAC1D3"><enum>(3)</enum><text display-inline="yes-display-inline">collect and disseminate data with respect
to mortgage fraud, including Federal, State, and local data relating to
mortgage fraud investigations and prosecutions; and</text>
</paragraph><paragraph id="HC32919CA03D442FE88102F905BA7E41E"><enum>(4)</enum><text display-inline="yes-display-inline">perform other functions determined by the
Attorney General to enhance the detection of, prevention of, and response to
mortgage fraud in the United States.</text>
</paragraph></subsection><subsection id="HD4E67126ADD34A57A5B6F6E5987552D8"><enum>(f)</enum><header>Optional
functions</header><text display-inline="yes-display-inline">The Task Force,
including the branches of the Task Force established under subsection (d),
may—</text>
<paragraph id="H58639993D91D4F6BAD169B2E3F8FA565"><enum>(1)</enum><text display-inline="yes-display-inline">initiate and coordinate Federal mortgage
fraud investigations and, through the coordinating entities established under
subsection (e), State and local mortgage fraud investigations;</text>
</paragraph><paragraph id="HE7CA03B1F9E942D18918E56C04854B03"><enum>(2)</enum><text>establish a
toll-free hotline for—</text>
<subparagraph id="HB421AEF521BE45D4801E72073AB9E2EA"><enum>(A)</enum><text>reporting mortgage
fraud;</text>
</subparagraph><subparagraph id="HF7C5D0A36F6F4FD9B3D64D7E8F7BD102"><enum>(B)</enum><text>providing the
public with access to information and resources with respect to mortgage fraud;
and</text>
</subparagraph><subparagraph id="H95C23E0C2BBA433DB7C61E3E1524E77A"><enum>(C)</enum><text display-inline="yes-display-inline">directing reports of mortgage fraud to the
appropriate Federal, State, and local law enforcement and prosecutorial agency,
including to the appropriate branch of the Task Force established under
subsection (d);</text>
</subparagraph></paragraph><paragraph id="HE6B08F4E7D5443D68AE3ECC0C3B7AFC2"><enum>(3)</enum><text display-inline="yes-display-inline">create a database with respect to
suspensions and revocations of mortgage industry licenses and certifications to
facilitate the sharing of such information by States;</text>
</paragraph><paragraph id="H1763D78A066A41BABDB885B23CF6CA17"><enum>(4)</enum><text display-inline="yes-display-inline">make recommendations with respect to the
need for and resources available to provide the equipment and training
necessary for the Task Force to combat mortgage fraud; and</text>
</paragraph><paragraph id="H444432ED09A74BE4AD78865DC33F2199"><enum>(5)</enum><text>propose
legislation to Federal, State, and local legislative bodies with respect to the
elimination and prevention of mortgage fraud, including measures to address
mortgage loan procedures and property appraiser practices that provide
opportunities for mortgage fraud.</text>
</paragraph></subsection><subsection id="H1F5EA642CA1C4BD5B150CF96138EBA57"><enum>(g)</enum><header>Definition</header><text display-inline="yes-display-inline">In this section, the term <term>mortgage
fraud</term> means a material misstatement, misrepresentation, or omission
relating to the property or potential mortgage relied on by an underwriter or
lender to fund, purchase, or insure a loan.</text>
</subsection></section><enum>IV</enum><header>Foreclosure
moratorium provisions</header>
<section id="HCB14C13290EC441D9AEA3F36E879DB6C"><enum>401.</enum><header>Sense of the
Congress on foreclosures</header>
<subsection id="H40744CFF8A2E485FA21F03015F1D4F3F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">It is the sense of
the Congress that mortgage holders, institutions, and mortgage servicers should
not initiate a foreclosure proceeding or a foreclosure sale on any homeowner
until the foreclosure mitigation provisions, like the Hope for Homeowners
program, as required under title II, and the President’s “Homeowner
Affordability and Stability Plan” have been implemented and determined to be
operational by the Secretary of Housing and Urban Development and the Secretary
of the Treasury.</text>
</subsection><subsection id="HC7DF9235E6FE4C20B37819289588F534"><enum>(b)</enum><header>Scope of
moratorium</header><text>The foreclosure moratorium referred to in subsection
(a) should apply only for first mortgages secured by the owner’s principal
dwelling.</text>
</subsection><subsection display-inline="no-display-inline" id="HF9E8F01EC059475097B805788406E6F2"><enum>(c)</enum><header>FHA-regulated
loan modification agreements</header><text display-inline="yes-display-inline">If a mortgage holder, institution, or
mortgage servicer to which subsection (a) applies reaches a loan modification
agreement with a homeowner under the auspices of the Federal Housing
Administration before any plan referred to in such subsection takes effect,
subsection (a) shall cease to apply to such institution as of the effective
date of the loan modification agreement.</text>
</subsection><subsection display-inline="no-display-inline" id="H77FCC9083D604F57B359007DD430E21F"><enum>(d)</enum><header>Duty of consumer
to maintain property</header><text display-inline="yes-display-inline">Any
homeowner for whose benefit any foreclosure proceeding or sale is barred under
subsection (a) from being instituted, continued , or consummated with respect
to any homeowner mortgage should not, with respect to any property securing
such mortgage, destroy, damage, or impair such property, allow the property to
deteriorate, or commit waste on the property.</text>
</subsection><subsection id="HAA406D43EFAD4769872086ED283D8E72"><enum>(e)</enum><header>Duty of consumer
to respond to reasonable inquiries</header><text display-inline="yes-display-inline">Any homeowner for whose benefit any
foreclosure proceeding or sale is barred under subsection (a) from being
instituted, continued, or consummated with respect to any homeowner mortgage
should respond to reasonable inquiries from a creditor or servicer during the
period during which such foreclosure proceeding or sale is barred.</text>
</subsection></section>
Passed the House of
Representatives March 5, 2009.
Lorraine C. Miller,
Clerk