[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1123 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1123
To require the filing of certain information regarding a residential
mortgage in any proceeding for foreclosure of the mortgage.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 23, 2009
Ms. Kaptur (for herself and Mr. Conyers) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require the filing of certain information regarding a residential
mortgage in any proceeding for foreclosure of the mortgage.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Produce the Note Act of 2009''.
SEC. 2. REQUIRED INFORMATION AND NOTICE.
Notwithstanding any other provision of State or Federal law, no
foreclosure, whether judicial or nonjudicial, may be commenced with
respect to a covered residential mortgage unless the person commencing
the foreclosure complies with all of the following requirements:
(1) Submission of information.--The person commencing the
foreclosure shall submit to the court, in the case of a
judicial foreclosure, or to the office of the State or other
subdivision of the State to which notice of default,
foreclosure, or sale of the foreclosed property is required
under State law to be submitted, in the case of a nonjudicial
foreclosure, a report prepared by an independent party that
includes the following information:
(A) A statement of findings as to whether the
covered residential mortgage was made and serviced in
compliance with the terms of, and regulations under,
the following laws:
(i) The Truth in Lending Act (15 U.S.C.
1601) and Regulation Z of the Board of
Governors of the Federal Reserve System under
such Act.
(ii) The Equal Credit Opportunity Act (15
U.S.C. 1691 et seq.) and Regulation B of the
Board of Governors of the Federal Reserve
System under such Act.
(iii) The Fair Debt Collection Practices
Act (15 U.S.C. 1692 et seq.).
(iv) The Federal Fair Credit Reporting Act
(15 U.S.C. 1681 et seq.).
(v) The Real Estate Settlement Procedures
Act of 1974 (12 U.S.C. 2601 et seq.) and
Regulation X of the Secretary of Housing and
Urban Development under such Act.
(vi) The Flood Disaster Protection Act of
1973 (42 U.S.C. 2002 et seq.).
(vii) The Fair Housing Act (42 U.S.C. 3601
et seq.).
(viii) The Home Mortgage Disclosure Act of
1975 (12 U.S.C. 2801 et seq.).
(ix) The Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (Public
Law 101-73).
(x) Any applicable provisions of State and
local law relating to real estate lending or
consumer protection.
(B) Certification of any mortgage modification
efforts that were employed and any offers made to the
mortgagor by the person commencing the foreclosure.
(C) If any noncompliance is found pursuant to
subparagraph (A), a statement as to whether the
violations are such that the mortgagor should be
afforded an extended right, beyond the period permitted
under State law--
(i) to rescind the mortgage in defense of
the foreclosure; or
(ii) to redeem the mortgage.
(D) Identification of--
(i) the actual holder of the mortgage note,
the originating lender for the mortgage and all
subsequent assignees, and other all parties who
have an interest in the real estate that is
subject to the mortgage or in the mortgage or
the proceeds of the mortgage; and
(ii) any parties identified pursuant to
clause (i) that received any assistance
pursuant to title I of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5211 et
seq.) and the amount of any such assistance
received.
(E) A statement of whether a bona fide default on
the covered mortgage has occurred.
(F) A description of any hardship circumstances
regarding the economic circumstances of the mortgagor
that would be relevant to a determination by the
mortgagee of whether to modify the mortgage.
(G) A statement of whether the mortgage is insured
under title II of the National Housing Act (12 U.S.C.
1707 et seq.).
(H) A statement of whether the mortgage is, or any
terms of the mortgage are, unfair or constitute an
unfair or deceptive act or practice violating the
Federal Trade Commission Act (15 U.S.C. 41 et seq.),
and if so, a description of the unfairness or the
unfair or deceptive act or practice.
(I) A statement of whether any material
misrepresentations were made that fraudulently induced
the mortgagor to enter into the transaction to his or
her detriment, and if so, a description of such
misrepresentation.
(J) Identification of any offsets to the creditor
claim on the mortgage.
(K) A statement of the racial characteristics,
gender, census tract, and income level of the
mortgagor, as such terms are used for purposes of
compliance with the Home Mortgage Disclosure Act of
1975 (12 U.S.C. 2801 et seq.).
(2) Required notification.--The person commencing the
foreclosure shall provide notice to the mortgagor, in writing,
not less than 5 days before any action is taken to commence the
proceeding or action for foreclosure, and shall certify to the
court, in the case of a judicial foreclosure, or to the office
of the State or other subdivision of the State to which notice
of default, foreclosure, or sale of the foreclosed property is
required under State law to be submitted in the case of a
nonjudicial foreclosure, that such notice has been provided,
that includes the following information:
(A) A statement of any rights of the mortgagor
under the applicable laws governing the foreclosure and
consumer rights.
(B) A statement of any deadlines for filing
answers, defenses, or objections to the foreclosure,
including those rights of the mortgagor under the Real
Estate Settlement Procedures Act of 1974 and any
applicable State laws.
(C) A statement of any penalties and other
consequences for the mortgagor if the mortgagor does
not respond or file answers to the foreclosure.
(D) A statement of the amounts claimed to be in
arrears under the mortgage and needed to reinstate the
account and all associated costs and fees, set forth in
itemized and distinct categories, and current and
correct contact information, including telephone
numbers, electronic mail addresses, and postal
addresses, at which the mortgagor can obtain further
information regarding the mortgage account.
(E) A description of any additional options, such
as mortgage workout, modification, mitigation, and
redemption, that might be available to the mortgagor to
prevent the foreclosure from proceeding and a
description of how the mortgagor can obtain additional
information regarding such options.
(F) A statement of the correct names, telephone
numbers, electronic mail addresses, postal addresses,
and any State licensing numbers of the mortgage holder,
the mortgage servicer, and the person or persons
authorized to take the actions described pursuant to
subparagraph (E).
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Independent party.--The term ``independent party''
means, with respect to foreclosure on a covered residential
mortgage, an individual who has no interest in, or affiliation
with, any party involved in such foreclosure or with the
covered residential mortgage involved in such foreclosure,
including any party that owns, manages, controls, or directs
such an involved party, any party that is owned, managed,
controlled, or directed by such an involved party, or any party
that is under common ownership, management, control, or
direction with such an involved party.
(2) Covered residential mortgage.--The term ``covered
residential mortgage'' means a mortgage that meets the
following requirements:
(A) The property securing the obligation under the
mortgage shall be a one- to four-family dwelling,
including a condominium or a share in a cooperative
ownership housing association.
(B) The mortgagor under the mortgage shall occupy
the property securing the obligation under the mortgage
as his or her principal residence.
(3) Mortgage.--
(A) In general.--The term ``mortgage'' means a deed
of trust, mortgage, deed to secure debt, security
agreement, or any other form of instrument under which
any property (real, personal, or mixed), or any
interest in property (including leaseholds, life
estates, reversionary interests, and any other estates
under applicable State law), is conveyed in trust,
mortgaged, encumbered, pledged, or otherwise rendered
subject to a lien for the purpose of securing the
payment of money or the performance of an obligation.
(B) Condominiums and cooperatives.--Such term
includes a first mortgage given to secure--
(i) the unpaid purchase price of a fee
interest in, or a long-term leasehold interest
in, a one-family unit in a multifamily project,
including a project in which the dwelling units
are attached or are manufactured housing units,
semi-detached, or detached, and an undivided
interest in the common areas and facilities
that serve the project; or
(ii) repayment of a loan made to finance
the purchase of stock or membership in a
cooperative housing corporation the permanent
occupancy of dwelling units of which is
restricted to members of such corporation,
where the purchase of such stock or membership
entitles the purchaser to the permanent
occupancy of one of such units.
SEC. 4. RELATION TO STATE LAW.
This Act does not annul, alter, or affect, or exempt any person
subject to the provisions of this Act from complying with, the laws of
any State or subdivision thereof with respect to foreclosure on a
residential mortgage, except to the extent that those laws are
inconsistent with any provision of this Act, and then only to the
extent of the inconsistency. No provision of the laws of any State or
subdivision thereof may be determined to be inconsistent with any
provision of this Act if such law is determined to require greater
disclosure or notice than is required under this Act or to provide
greater protection to the mortgagee than is required under this Act.
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