I 111th CONGRESS 1st Session H. R. 3195 IN THE HOUSE OF REPRESENTATIVES July 14, 2009 Mr. Turner (for himself and Mr. Miller of North Carolina) introduced the following bill; which was referred to the Committee on Financial Services A BILL To create a National Home Mortgage and Loan Performance Registry to maintain an inventory of the supply and performance of home mortgage loans in the United States to show market trends and dynamics in the mortgage lending industry and provide detailed information on national mortgage foreclosure rates.

1.

Short title

This Act may be cited as the National Home Mortgage and Loan Performance Registry Act of 2009.

2.

Findings and purposes

(a)

Findings

The Congress finds that— (1)there is no standardized, centralized data readily available and reliable for government use that details national mortgage foreclosure rates for single-family housing, multifamily housing, and small farms, or mortgage default statistics; (2)currently there is no public database that is easily accessible to determine mortgage lending and foreclosure trends; (3)the Home Mortgage Disclosure Act of 1975 could be used as a means of collecting data at loan origination and using such information throughout the life of the loan; and (4)the current mortgage crisis demonstrates the need to establish a centralized system to collect and disclose such information. (b)

Purpose

The purpose of this Act is to establish a National Home Mortgage and Loan Performance Registry— (1)to provide the public with timely mortgage performance information that can be used by the Departments of the Treasury and Housing and Urban Development, and other agencies of the Federal Government to monitor trends in the mortgage market, identify emerging problems, make decisions about necessary interventions, conduct research, and effectively evaluate the housing market in the United States and Federal housing programs; and (2)that meets the reporting needs and requirements of the Federal Housing Finance Agency to provide timely mortgage performance information.

3.

Additional information reported by lender at loan origination

Section 304(b) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended— (1)in paragraph (3), by striking and at the end; (2)in paragraph (4), by striking the period at the end and inserting ; and; and (3)by adding at the end the following: (5)a unique identification number for each mortgage loan, which shall be a part of the permanent record for such loan that is transmitted to any subsequent servicers of the loan; (6)for each mortgage loan, the appraised value of the residence for which the loan was made as of the time of the origination of the loan; (7)for each mortgage loan, a classification of the structure of the loan, by loan terms, including interest rate and repayment terms, such as 30-year fixed, balloon payment, 5-year adjustable rate, and such other categories as the Board may establish; and (8)for each mortgage loan, the lowest interest rate for which the borrower qualified without payment of discount points (commonly referred to as the par rate) to permit identification of mortgagors eligible for prime loans who were provided subprime loans. .

4.

Reporting of information by servicers

Section 304 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803) is amended by adding at the end the following new subsection: (n)

Loan servicer information

(1)

In general

The Board shall, in conjunction with the Secretary of Housing and Urban Development, require other lending institutions, including servicers of mortgage loans, to submit to the appropriate agency, as identified under subsection (h), the information required under paragraph (2) if any of the events referred to in paragraph (3) occurs during the term of the loan. (2)

Required information

The information required under this paragraph with respect to a mortgage loan is— (A)the year that the loan was originated; (B)the unique identifier number established for the loan (pursuant to subsection (b)(5)); (C)the type of event referred to in paragraph (3) that occurred with respect to the loan; and (D)in the case of any loan for which an event referred to in paragraph (3)(D) occurs— (i)whether such event resulted in a new disclosure under subsections (a) and (b) for a new loan; (ii)a description of the loan modifications made, including any extension of amortization period, whether permanent or temporary, change in interest rate, write-down or recapitalization of any one or more of fees, delinquent interest, or principal obligation. (3)

Loan events

The events referred to in this paragraph are the following events: (A)The borrower under the loan becomes 90 days or more delinquent in payments due under the loan. (B)Foreclosure (including any judicial or nonjudicial foreclosure) is commenced with respect to the loan. (C)In the case of any loan that was in default or in foreclosure, the borrower under the loan becomes current with respect to obligations under the loan. (D)Any modification is made with respect to the terms of the loan. (E)Foreclosure is completed with respect to the loan. (4)

Data collected by private sector

The Board, in conjunction with the Secretary of Housing and Urban Development, shall collect any other information regarding mortgage loans, including information collected or held by servicers of mortgage loans, that the Board considers necessary to accomplish the purposes of this Act and the National Home Mortgage and Loan Performance Registry Act of 2009 and to provide a more comprehensive public home mortgage information system. (5)

Definition

For purposes of this paragraph, the term servicer means, with respect to a mortgage loan, the person responsible for receiving scheduled periodic payments by the borrower under the loan, including any payments for insurance, taxes, and any other amounts escrowed under the loan, and making payments of principal and interest and such other payments with respect to such amounts received from the borrower as may be required under the terms of the loan. .

5.

National Home Mortgage and Loan Performance Registry

The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) is amended by adding at the end the following new section:

312.

National Home Mortgage and Loan Performance Registry

(a)

Establishment

The Board shall establish a National Home Mortgage and Loan Performance Registry (in this section referred to as the Registry) to compile and make available information collected under this Act regarding the making of mortgage loans and the performance of such loans, including information regarding default and foreclosure occurrences and rates, for mortgage loans for single-family housing, multifamily housing, and small farms. (b)

Quarterly reports

(1)

In general

Using information collected in the Registry, the Board shall submit a report for each calendar quarter as promptly as possible after the conclusion of such quarter to the Congress, the Secretary of the Treasury, and the Secretary of Housing and Urban Development regarding the performance of mortgage loans outstanding during such quarter in the United States. (2)

Information

Each report under this subsection for a calendar quarter shall provide aggregate data regarding mortgage loans originated during the quarter, mortgage loan defaults and default rates during the quarter, and mortgage loan foreclosures and foreclosure rates during the quarter and such other data as the Board considers appropriate to assist the housing industry, the Federal Government, and State and local governments to make effective decisions regarding the provision of housing and Federal housing assistance. Such data shall be provided for mortgage loans for each census tract, zip code, county, metropolitan area, and State, based on the location of the property securing the loan. (3)

Review and certification

The Board shall review and certify the accuracy of the data included in each quarterly report under this subsection before submitting such report in accordance with paragraph (1). (4)

Public availability

The Board shall make each report under this subsection publicly available upon submission in accordance with paragraph (1).

.

6.

Report to Congress on improving Registry

Not later than the expiration of the 18-month period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System, the Secretary of the Treasury, and Secretary of Housing and Urban Development shall jointly submit a report to the Congress setting forth any additional actions or authority necessary to provide for the National Home Mortgage and Loan Performance Registry (as established under the amendment made by section 5 of this Act) to— (1)more accurately determine and report foreclosure rates for residential mortgages, including mortgage statistics, for single-family and multifamily housing and small farms in the United States; and (2)obtain information sufficient to allow— (A)more effective use of the Registry to evaluate existing Federal housing programs; and (B)more effective use of the Registry to evaluate mortgage lending practices; and (3)to improve the function and purpose of the Registry.

7.

Regulations

Not later than the expiration of the 18-month period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System shall commence a rulemaking proceeding to issue any regulations necessary to amend, modify, and update the regulations of the Board regarding home mortgage disclosure (12 C.F.R. part 203; known as regulation C) in accordance with this Act and the amendments made by this Act.