Duty to engage in loss mitigation

(a)

Duty

The Real Estate Settlement Procedures Act of 1974 is amended by inserting after section 6 (12 U.S.C. 2605) the following new section:

6A.

Duty to engage in loss mitigation

(a)

Duty for covered federally related mortgage loans

Upon default of any federally related mortgage loan that is secured by a lien on the principal residence of the borrower or mortgagor, the mortgagee shall engage in reasonable loss mitigation activities that provide for— (1)the long-term affordability of the loan; and (2)the maximum retention of home equity. (b)

No foreclosure without loss mitigation

No foreclosure of any covered federally related mortgage loan shall be initiated if the mortgagee or servicer has at any time failed to comply with the requirements of this section with respect to such loan. (c)

Loss mitigation activities

(1)

In general

For purposes of this section, loss mitigation activities shall include— (A)priority loss mitigation activities under paragraph (6); (B)secondary loss mitigation activities under paragraph (7); (C)last-resort loss mitigation activities under paragraph (8); and (D)any loss mitigation activities consistent with the Making Home Affordable program of the Secretary of the Treasury, as announced on March 4, 2009, including any subsequent updates. (2)

Exceptions for servicers participating in the Making Home Affordable program

Any mortgagee or servicer that meets its obligation under this Act through subparagraph (D) of paragraph (1) shall not be subject to the requirements of paragraphs (3), (4), (6), and (7). (3)

Order of pursuit

In complying with subsection (a), the mortgagee or servicer shall pursue loss mitigation activities in the following order: first priority loss mitigation activities, then secondary loss mitigation activities, and then last-resort loss mitigation activities. If any loss mitigation activity is taken, the mortgagee or servicer shall provide written notice of such activity to the borrower or mortgagor by mail not later than 7 business days after such action is taken. (4)

Consideration of circumstances in provision of loss mitigation activities

In determining the type of loss mitigation activity to provide with respect to a covered federally related mortgage loan, the mortgagee or servicer may consider the financial and personal circumstances of the borrower or mortgagor. The mortgagee or servicer may provide— (A)priority loss mitigation activities with respect to borrowers or mortgagors who have experienced a permanent or long-term change in their financial condition that prevents them from making payments due under the loan, including illness, injury, death of a wage earner, interest rate reset, or significant decline in the value of the property that is subject to the lien securing the loan; (B)secondary loss mitigation activities with respect to borrowers or mortgagors who have experienced a short-term change in their financial condition having a duration of less than 3 months that prevents them from making payments due under the loan; and (C)last resort loss mitigation activities with respect to borrowers or mortgagors who, notwithstanding priority or secondary loss mitigation activities taken with respect to the mortgage, will be unable to make payments due under the loan. (5)

Prohibitions

A mortgagee or servicer with respect to a covered federally related mortgage loan— (A)may not limit the number of loss mitigation activities provided with respect to a borrower or mortgagor; (B)shall comply with the requirements of under this section with respect to the loan without regard to whether there has been a previous default under the loan; and (C)may not require a minimum loan-to-value ratio for the provision of any loss mitigation activity or use such a ratio to determine the type of loss mitigation activity provided with respect to a borrower or mortgagor. (6)

Priority loss mitigation activities

For purposes of this section, the term priority loss mitigation activities includes, with respect to a covered federally related mortgage loan, activities that preserve the borrower’s or mortgagor’s ownership interest in the property that is subject to the lien securing the loan by modifying the contractual terms of the loan. Priority loss mitigation activities include modification of the loan terms that provide for the following: (A)

Alteration of terms

Reduction of the interest rate of the loan, forgiveness of loan principal or interest, conversion from an adjustable rate mortgage to a fixed rate mortgage, and reamortization of the loan in connection with an extension of the final maturity date of the loan. (B)

Short refinancing

Short refinancing of the loan consisting of acceptance of payment from or on behalf of the borrower or mortgagor of an amount that is less than the full amount alleged to be due and owing under the loan, including principal, interest, and fees, in full satisfaction of the obligation under the loan and as part of a refinance transaction under which the property that is subject to the lien securing the loan is intended to remain the principal residence of the borrower or mortgagor. (7)

Secondary loss mitigation activities

For purposes of this section, the term secondary loss mitigation activities includes, with respect to a covered federally related mortgage loan, other activities that avoid foreclosure and preserve the borrower’s or mortgagor’s ownership interest in the property that is subject to the lien securing the loan, but do not change the contractual terms of the loan. Secondary loss mitigation activities include the following activities: (A)Waiver of any late payment charge, penalty interest, or any other fees or charges, including legal fees, or any combination thereof. (B)Establishment of a repayment plan under which the borrower or mortgagor resumes regularly scheduled payments and pays additional amounts at scheduled intervals to cure the delinquency. (C)Forbearance under the loan that provides for a temporary reduction in, or cessation of, monthly payments followed by a reamortization of the amounts due under the loan, including arrearage, and a new schedule of repayment amounts. (8)

Last-resort loss mitigation activities

For purposes of this section, the term last resort loss mitigation activities includes, with respect to a covered federally related mortgage loan, activities that avoid foreclosure but do not preserve the borrower’s or mortgagor’s ownership interest in the property that is subject to the lien securing the loan. Last-resort loss mitigation activities include the following activities: (A)Short sale of the principal residence that is subject to the lien securing the loan, consisting of acceptance of payment from or on behalf of the borrower or mortgagor of an amount less than the amount alleged to be due and owing under the loan, including principal, interest, and fees, in full satisfaction of the obligation under such loan and as part of a sale transaction in which the property is not intended to remain the principal residence of the borrower or mortgagor. (B)Assumption of the borrower’s obligations under the loan by a third party. (C)Cancellation or postponement of a foreclosure sale to allow the borrower or mortgagor additional time to sell the property. (D)Acquisition of the property by the mortgagee or servicer by deed in lieu of foreclosure. (9)

Protection of contract rights

Notwithstanding subsections (a) and (b), nothing in this section shall require a servicer for a covered federally related mortgage loan to breach a contract with the mortgagee (or its predecessors in interest, successors, or assigns) entered into before the enactment of the Foreclosure Prevention and Sound Mortgage Servicing Act of 2009. (d)

Affordable payments

(1)

In general

The affordability of any scheduled payments due from the borrower or mortgagor pursuant to loss mitigation activities and whether the activities are in the best financial interests of the borrower or mortgagor shall be taken into consideration in determining whether a mortgagee has engaged, for purposes of subsection (a)(1), in reasonable loss mitigation activities that provide for long-term affordability of the loan. Payments under a loan shall be considered to be affordable for a borrower or mortgagor for purposes of this subsection if such payments result in a debt-to-income ratio or residual income of the borrower or mortgagor in an amount less than or equal to 31 percent of the monthly gross income of the borrower or mortgagor or such other lower percentage as a mortgagee or servicer may determine. Payments under a loan shall not be considered to be affordable for a borrower or mortgagor for purposes of this subsection unless such the amount of such payments is 10 percent less than the amount of payments due under the loan before loss mitigation activities with respect to the loan. (2)

Income used in determining affordability

(A)

Documentation

A mortgagee or servicer may request documentation of the income of a borrower or mortgagor before commencing loss mitigation activities. (B)

Verification

The mortgagor’s or borrower’s income shall be verified by— (i)requiring the mortgagor or borrower to provide a signed form for the request for a transcript of the mortgagor’s or borrower’s Federal tax return (Form 4506–T of the Internal Revenue Service); (ii)obtaining the most recent Federal tax return on file for each borrower who signed the note for the covered federally related mortgage loan; (iii)by requiring the mortgagor or borrower to provide the two most recent payroll receipts for each wage earner who signed such note; and (iv)in the case of mortgagors or borrowers who are self-employed or who have non-wage income, by obtaining other third-party documents that provide reasonably reliable evidence of income. (C)

Absence of sufficient liquid assets

Loss mitigation activities with respect to a covered federally related mortgage loan shall not be provided unless the mortgagor or borrower has represented and warranted that the mortgagor or borrower does not have sufficient liquid assets to make the monthly payments due under the loan. (3)

Debt-to-income ratio

In determining the debt-to-income ratio or residual income of a mortgagor or borrower under a covered federally related mortgage loan for purposes of this subsection, the amount of monthly payment under the loan shall include principal, interest, taxes, insurance, flood insurance, any homeowner’s association and condominium fees, and any second or subordinate liens. (4)

Monthly income

In determining monthly income of a mortgagor or borrower for purposes of this subsection, all wages, salary, overtime, fees, commissions, tips, Social Security benefits, pensions, and all other income shall be considered. (5)

Written notification of affordability calculation

The mortgagee or servicer shall notify the borrower or mortgagor in writing of the results of the determination of affordability under this subsection and the income on which the determination was based. Such written notice shall be provided by mail not later than 7 business days after such action is taken or as part of the written notice required under subsection (c)(3), whichever is earlier. (e)

Notification of interest rate increase

In the case of any covered federally related mortgage loan that is an adjustable rate mortgage, not less than 60 days before any increase in the periodic payment due for principal or interest or in the interest rate charged under the loan, but not more than 120 days before such increase, the mortgagee or servicer shall, in addition to any notices required by the contract and other law, inform the borrower in writing by mail and by telephone of the date that such payment or interest rate increase will occur and of the amount of the projected monthly payment under the loan after such increase, based on the prevailing interest rate of the index used for such increase with the 30-day period ending upon such notice. The written notice shall provide the information required under this subsection in a clear and conspicuous format. (f)

Subordinate liens

Each mortgagee with respect to a subordinate lien shall provide to mortgagees having senior liens information needed by such senior mortgagees to engage in reasonable loss mitigation as required by this section. Any modification of the loan undertaken as part of loss mitigation activity shall not impair the priority status of liens under the modified loan, to the extent that there are no additional funds advanced to the borrower in connection with such modification. (g)

Direct access to authorized loss mitigation personnel

(1)

Provision of contact information

The mortgagee or servicer of a covered federally related mortgage loan shall provide, on each regular account statement for the loan, a toll-free or collect-call telephone number that provides the borrower with direct access to a person with the information and authority to answer questions and fully resolve issues related to loss mitigation activities for the loan. (2)

Prohibition on outsourcing

In carrying out subsection (a) with respect to a covered federally related mortgage loan, any contact by or on behalf of a mortgagee or servicer with the homeowner and any processing of any loss mitigation activities shall be conducted only by agents of the mortgagee or servicer who are physically located in the United States. (h)

Third-Party loan modifications

The servicer or mortgagee of a covered federally related mortgage loan shall not accept or provide loss mitigation activities with respect to such loan at the request of any entity or individual that is not party to the loan unless— (1)the entity or individual is authorized by the borrower or mortgagee to act on behalf of the borrower or mortgagor; and (2)(A)is a representative of a housing counseling agency approved by the Secretary of Housing and Urban Development; or (B)provides documentation to the servicer or mortgagee that the entity or individual— (i)has not charged any fee to the borrower or mortgagor for such request; or (ii)(I)has charged a nominal fee for such request; (II)has entered into a written contract, in plain English or the primary language of the borrower or mortgagor, with the borrower or mortgagor, that includes provisions for cancellation without penalty; and (III)will refund any such fees to the borrower or mortgagor in the event the request for loss mitigation is denied. (i)

Duty To refer to HUD-Certified housing counseling agency

(1)

Referral by servicer or mortgagee

In the case of any payment due under a covered federally related mortgage loan that is more than 60 days late, the servicer or mortgagee shall forward to a housing counseling agency approved by the Secretary the contact information of the borrower. (2)

Expression of borrower preference

The borrower may communicate to the servicer or mortgagee a preference for a particular housing counseling agency approved by the Secretary— (A)in writing at the time of closing on the loan; or (B)in writing at any time during the term of the loan, including by conveyance of signed authorization form from the approved housing counseling agency of the borrower’s choice, which shall be transmitted by such agency to the mortgagee or servicer. (3)

Referral relationship

A mortgagee or servicer may establish a referral relationship with a housing counseling agency approved by the Secretary, but such relationship may not be exclusive and the mortgagee or servicer may not refuse to respond to qualified written requests and other communications from another housing counseling agency approved by the Secretary or any other agent that is authorized by the borrower. (j)

Prohibition on waiver of rights

A mortgagee for a covered federally related mortgage loan may not— (1)when engaging in loss mitigation activities pursuant to subsection (a), require a borrower to limit or waive the rights of such borrower to bring any claims, defenses, demands, proceedings, actions, or causes of action against the mortgagee or servicer as a condition of accepting an offer of any loss mitigation activities, including any activities under subsection (c); or (2)require the borrower to agree to arbitration as a condition of receiving loan modification activities.

Any waiver or arbitration provision in a written agreement prohibited under this subsection shall be void and unenforceable.

(k)

Reporting on loss mitigation activities

(1)

In general

Each mortgagee or servicer of a covered federally related mortgage loan shall report monthly and comprehensively to the Comptroller of the Currency and to the Director of the Office of Thrift Supervision on the extent and scope of the loss mitigation activities of the mortgagee. Each such report shall include data on loss mitigation activities disaggregated according to the categories specified in each of the subparagraphs of paragraphs (6), (7), and (8) of subsection (c), any loss mitigation activities not covered by such categories, the number of loans receiving loss mitigation that have become performing loans, the number of loans receiving loss mitigation that have proceeded to foreclosure, the total number of foreclosures initiated during the reporting period, and such other information as the Comptroller or Director determines to be relevant. (2)

Compilation of aggregate data

(A)

Commencement

Beginning with data for calendar year 2009, the Comptroller of the Currency and the Director of the Office of Thrift Supervision shall, in consultation, with the Chairman of the Federal Reserve compile for each year, for each primary metropolitan statistical area, metropolitan statistical area, and consolidated metropolitan statistical area that is not comprised of designated primary metropolitan statistical areas, aggregate data by census tract for each mortgagee or servicer that is required to disclose data under this subsection. (B)

Scope

Each such report shall include loan-level disclosures of outstanding loans with information related to— (i)the location of the security property; (ii)the loan amount; (iii)the value of such security property; (iv)the age of borrower or mortgagee; (v)the date on which such loan was originated; (vi)the type of entity owning such loan; (vii)the performance status of such loan; (viii)the monetary losses incurred by the investor in such loan in connection with the termination of such loan; (ix)the loss mitigation activities provided in reference to such loan according to the categories specified in each of the subparagraphs of paragraphs (6), (7), and (8) of subsection (c); (x)the loss mitigation activities provided in reference to such loan that are not covered by such categories; (xi)the magnitude of such modification or loss mitigation activities; (xii)the dates of consideration, approval, or rejection of such loss mitigation activities; (xiii)the reasons for such rejection; and (xiv)any other relevant information.

Such reports shall also include information identical to that required upon loan origination by the Home Mortgage Disclosure Act of 1975.

(C)

Data tables

The Comptroller and the Director shall also produce tables indicating for each primary metropolitan statistical area, metropolitan statistical area, and consolidated metropolitan statistical area that is not comprised of designated primary metropolitan statistical areas, aggregate loss mitigation patterns for various categories of census tracts grouped according to location, age of housing stock, income level, and racial and ethnic characteristics. (D)

Availability to public

The data and tables required pursuant to this paragraph shall be made available to the public not later than 6 months after such data is reported pursuant to subparagraph (A). (l)

Definitions

For purposes of this section, the following definitions shall apply: (1)

Adjustable rate mortgage

The term adjustable rate mortgage means, with respect to a federally related mortgage loan, that the loan terms provide for the rate of interest charged under the loan to reset or adjust at least once during the term of the loan. (2)

Covered federally related mortgage loan

The term covered federally related mortgage loan means a federally related mortgage loan described in subsection (a). (3)

Mortgagee

The term mortgagee means, with respect to a federally related mortgage loan, the original lender under the loan and any affiliates, agents, subsidiaries, successors, or assignees of such lender, and any subsequent purchaser, trustee, or transferee of the loan or credit instrument issued by such lender. (4)

Servicer

The term servicer has the meaning given such term in section 6(i). (m)

Report to Congress

Not later than the expiration of the 12-month period beginning upon the date of the enactment of the Foreclosure Prevention and Sound Mortgage Servicing Act of 2009, and of each consecutive 12-month period thereafter, the Comptroller of the Currency and the Director of the Office of Thrift Supervision shall provide a report to the Congress on the extent of compliance by mortgagees and servicers with the requirements of this section and paragraphs (4) through (7) of section 6(e).

(b)

Duty of Loan servicer To respond to borrower inquiries

Section 6(e)(1)A) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(e)(1)(A)) is amended by striking borrower) and inserting (borrower, including a housing counseling agency approved by the Secretary). (c)

Comprehensive disclosure and fair processing of qualified written requests

Section 6(e) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(e)) is amended by adding at the end the following new paragraphs:

(4)

Provision of information regarding mortgage

The servicer of a covered federally related mortgage loan (as such term is defined in section 6A(l)) shall have available at all times the following information, which shall be provided to the borrower or borrower’s agent in response to a qualified written request by the borrower submitted in accordance with the deadlines set forth in paragraph (1)(A): (A)Whether the account relating to such loan is current, or if not, the date the account went into default. (B)The current balance due on the loan, including the amount of principal due, an itemization of all fees due, an explanation of the escrow balance, and whether there are any escrow deficiencies or shortages. (C)A full payment history that shows, in a clear and easily understandable manner, all of the activity on the loan since the origination of the loan, including the escrow account, and the application of payments made under the loan. (D)The initial terms of the loan. (E)A copy of the original note and security instrument. (F)Identification of the owner of the mortgage note and any investors in the note. (G)Any documents that limit, explain, or modify the loss mitigation activities offered by the servicer. (H)Any other information requested by the borrower that is reasonably related to loss mitigation activities. (5)

Prohibition of wrong door actions for qualified written requests

All written communications from the mortgagee or servicer of a federally related mortgage loan to the borrower shall include the address for receipt and handling of qualified written requests. Any qualified written request received by the mortgagee or servicer shall be valid notwithstanding receipt at any address other than that designated by the mortgagee or servicer for receipt and handling of such requests. (6)

Prohibition of fee for response to qualified written requests

A mortgagee or servicer for a federally related mortgage loan may not impose any fee for, or on account of, the preparation and submission by such mortgagee or servicer of any response or statement required by this subsection. (7)

Prohibition of foreclosure pending disclosure

In the case of a covered federally related mortgage loan (as such term is defined in section 6A(l)), no foreclosure proceeding may be initiated or continued against the borrower or the principal residence of the borrower during any period in which a qualified written request under this subsection is pending and the mortgagee or servicer has not complied with the requirements of this subsection regarding the request.

(d)

Damages and costs

Section 6(f) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(f)) is amended— (1)in the matter preceding paragraph (1), by inserting or of section 6A after this section; (2)in paragraphs (1)(B) and (2)(B)— (A)by striking a pattern or practice each place such term appears; and (B)by striking $1,000 each place such term appears and inserting $2,000 for each violation; and (3)in paragraph (2)(B)(i), by striking $500,000 and inserting $1,000,000. (e)

Conforming amendment

Section 17 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2615) is amended by striking Nothing and inserting Except as provided in sections 6(e)(7) and 6A, nothing.

Duties of lenders and loan servicers

The Truth in Lending Act is amended by inserting after section 129A (15 U.S.C. 1639a) the following new section:

129B.

Duties of lenders and loan servicers

(a)

Standard of care

(1)

Agency relationship

In the case of any home loan serviced by a loan servicer on behalf of a lender, the loan servicer shall be deemed an agent of that lender, and shall be subject to all requirements of agents otherwise applicable under Federal or State law. (2)

Fair dealing

Each lender and loan servicer shall, in addition to the duties imposed by otherwise applicable provisions of Federal or State law, with respect to each home mortgage loan, including any home mortgage loan in default or in which the homeowner has filed for bankruptcy— (A)act with reasonable skill, care, diligence, and in accordance with the highest standards; and (B)act in good faith and with fair dealing in any transaction, practice, or course of business associated with the home mortgage loan. (3)

Training and competency

Each lender and loan servicer shall institute training, procedures, and standards to ensure that borrowers are treated fairly and competently. (b)

Rules for assessment of fee

(1)

In general

No home mortgage loan contract may require, nor may any lender or loan servicer assess or receive, any fees or charges other than interest, late fees as specifically authorized in this section, or fees assessed for nonsufficient funds, and charges allowed pursuant to subsection (h)(1)(B), until the home mortgage loan is the subject of a foreclosure proceeding and the debt on such loan has been accelerated. (2)

Fee limitations

Any permissible fee or charge described under paragraph (1) shall be— (A)reasonable; (B)for services actually rendered; and (C)specifically authorized by the terms of the home mortgage loan contract and State law. (3)

Assessment and disclosure

(A)

In general

Any permissible fee or charge described under paragraph (1) shall be— (i)assessed not later than 30 days after the date on which the fee was accrued; and (ii)explained clearly and conspicuously in the next monthly accounting statement provided to the borrower designated in the home mortgage loan contract. (B)

Failure to comply

Failure by a lender or loan servicer to comply with the requirements set forth under subparagraph (A) shall result in the waiver of the fee. (4)

Required statements

Each month a lender or loan servicer shall provide to each borrower designated in a home mortgage loan contract entered into by such lender or loan servicer a periodic statement that clearly and in plain English explains— (A)the application of the prior month’s payment by the borrower, including the allocation of the payment to interest, principal, escrow, and fees; (B)the status of the escrow account held on behalf of the borrower, including the payments into and from the escrow account; and (C)the assessment of fees accruing in the previous month, including the reason that such fee accrued and the date such fee accrued. (c)

Maximum allowable late fees charged after loan closing

(1)

In general

No lender or loan servicer may impose a charge or fee for late payment of any amount due on a home mortgage loan— (A)unless the home mortgage loan contract specifically authorizes the charge or fee; (B)in an amount in excess of 5 percent of the amount of the payment past due; (C)before the end of the 15-day period after the date the payment is due, or in the case of a home mortgage loan on which interest on each installment is paid in advance, before the end of the 30-day period after the date the payment is due; or (D)more than once with respect to a single late payment. (2)

Rule of construction

For purposes of this subsection, payments on any amount due on a home mortgage loan shall be applied first to current installments, then to delinquent payments, and then to delinquency charges. (3)

Coordination with subsequent late fees

If a home loan mortgage payment is otherwise a full payment for the applicable period and is paid on its due date or within an applicable grace period, and the only delinquency or insufficiency of payment is attributable to a late fee or delinquency charge assessed on an earlier payment, no late fee or delinquency charge may be imposed on such payment. (d)

Payoff statements

(1)

Prohibition on fees

(A)

In general

No lender or loan servicer (or any third party acting on behalf of such lender or loan servicer) may charge a fee for transmitting to any borrower the amount due to pay off the outstanding balance on the home mortgage loan of such borrower. (B)

Exception

After a lender or loan servicer (or any third party acting on behalf of such lender or loan servicer) has provided the information described in subparagraph (A) without charge on 4 occasions during a calendar year, the lender or loan servicer (or any third party acting on behalf of such lender or loan servicer) may thereafter charge a reasonable fee for providing such information during the remainder of the calendar year. (2)

Timing

The information described in subparagraph (A) shall be provided to the borrower within a reasonable period of time but in any event not more than 5 business days after the receipt of the request by the lender or loan servicer. (e)

Civil Liability

(1)

In general

Any lender or loan servicer who fails to comply with any requirement of this section with respect to a borrower designated in a home mortgage loan contract, is liable to such borrower in an amount equal to the sum of— (A)any actual damages sustained by such borrower as a result of the failure; (B)an amount not less than $5,000; or (C)in the case of any successful action to enforce the foregoing liability the costs of the action, together with a reasonable attorney’s fee as determined by the court. (2)

Jurisdiction

Any action by a borrower for a failure to comply with the requirements of this section may be brought in any United States district court, or in any other court of competent jurisdiction, not later than 3 years from the date of the occurrence of such violation. This subsection does not bar a person from asserting a violation of this section in an action by a lender or loan servicer to collect the debt owed on a home mortgage loan, or foreclose upon the home securing a home mortgage loan, or to stop a foreclosure upon that home, which was brought more than 3 years after the date of the occurrence of the violation as a matter of defense by recoupment or set-off in such action. An action under this section does not create an independent basis for removal of an action to a United States district court. (3)

State Attorney General enforcement

An action to enforce a violation of this section may also be brought by the appropriate State attorney general in any appropriate United States district court, or any other court of competent jurisdiction, not later than 3 years after the date on which the violation occurs. An action under this section does not create an independent basis for removal of an action to a United States district court. (f)

Definitions

In this section, the following definitions shall apply: (1)

Lender

The term lender has the same meaning as in section 3500.2 of title 24, Code of Federal Regulations, as in effect on the date of enactment of this section. (2)

Loan servicer

The term loan servicer has the same meaning as the term servicer in section 6(i)(2) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(i)(2)).