<enum>I</enum><header>Amendments to Title 11 of the United States Code</header> <section display-inline="no-display-inline" id="H6EEEB0521B2F4980AF75891B78FB13C8"><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="H064F56089442467C9806CB3355C0D517"><enum>(1)</enum><text>by adding at the end of subsection (e) the following:</text> <quoted-block display-inline="yes-display-inline" id="HA117DCBDD65345B4B7C397FF7197071F" style="OLC"> <text>For purposes of this subsection, the computation of debts shall not include the secured or unsecured portions of—</text><paragraph id="H7BFA32C3742F46E98FF1F2443DA47BD1"><enum>(1)</enum><text>debts secured by the debtor’s principal residence if the current value of that residence is less than the secured debt limit; or</text> </paragraph><paragraph id="HB3DDA254B71D4415BCB1107AB0071935"><enum>(2)</enum><text>debts secured or formerly secured by real property that was the debtor’s principal residence that was sold in foreclosure or that the debtor surrendered to the creditor if the current value of such real property is less than the secured debt limit.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HE5091364C5B44EDFB7BC9D74DB48C5AE"><enum>(2)</enum><text>by adding at the end of subsection (h) the following:</text> <quoted-block display-inline="no-display-inline" id="H8FC1DF5917534B6A8ADF1D7905B4A75A" style="traditional"> <paragraph id="HA51889718C144D2AB7403E08655A14EE" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">The requirements of paragraph (1) shall not apply in a case under chapter 13 with respect to a debtor 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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="H96ABA18F68C44B2FBC80A4819B77DED8" section-type="subsequent-section"><enum>102.</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="HC99B8D343477445187C142EEBA514E9E"><enum>(1)</enum><text>in subsection (b)—</text> <subparagraph id="H59C930ECFBD64F4B918CC9CF847CB128"><enum>(A)</enum><text>by redesignating paragraph (11) as paragraph (12),</text> </subparagraph><subparagraph id="HBA3AA63C366A4E2092CE07CFF15BBB36"><enum>(B)</enum><text>in paragraph (10) by striking <quote>and</quote> at the end, and</text> </subparagraph><subparagraph id="HA469895F04F44B088FF013C80EDE2B16"><enum>(C)</enum><text>by inserting after paragraph (10) the following:</text> <quoted-block id="H0F25FBBFDBA84C15A8721121C687A5E6" style="OLC"> <paragraph id="HAA742222A97042F9A03E17844E87E64B"><enum>(11)</enum><text display-inline="yes-display-inline">notwithstanding paragraph (2) and otherwise applicable nonbankruptcy law, 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="H4F6A266D82E2435AB77CCF359D5D2244"><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="H5EC5C5E9BD1241229613FC9DD43B120E"><enum>(B)</enum><text display-inline="yes-display-inline">if any applicable rate of interest is adjustable under the terms of such security interest 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="HF1F4E680C8D149D7AF1E142F8E1D5E6D"><enum>(C)</enum><text>by modifying the terms and conditions of such loan—</text> <clause commented="no" id="H48F3116E7C114B4EBCC871ABC54958A8"><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="HF75CABD7042A4893B7FB848427D0ABB6"><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="HC4547177B72741D69B1DFA9E4E0A01E4"><enum>(D)</enum><text>by providing for payments of such modified loan directly to the holder of the claim; and</text> </subparagraph></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H3696794F95D04CE78B290778A50AE643"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H7B13F050C65F4DEE859481DE47F6F9C2" style="traditional"> <subsection id="HC63EAC9B19EC47DFA1785C1EAC9F5F0B"><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 receiving a discharge under this chapter and receives net proceeds from the sale of such residence, then the debtor agrees to pay to such holder—</text> <paragraph id="H0AECE310CFAF4028A46F5D2B4C7BAA33"><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, 80 percent of the amount of the difference between the sales price and the amount of such claim (plus costs of sale and improvements), but not to exceed the amount of the allowed secured claim determined as if such claim had not been reduced under such subsection;</text> </paragraph><paragraph id="HB71D5D8080C243F0824839DD538D1220"><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, 60 percent of the amount of the difference between the sales price and the amount of such claim (plus costs of sale and improvements), but not to exceed the amount of the allowed secured claim determined as if such claim had not been reduced under such subsection;</text> </paragraph><paragraph id="HDA2C4A48AC3D4996A6F4D4719DFFB6BC"><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, 40 percent of the amount of the difference between the sales price and the amount of such claim (plus costs of sale and improvements), but not to exceed the amount of the allowed secured claim determined as if such claim had not been reduced under such subsection; and</text> </paragraph><paragraph id="H0D56E58D324D41D49744E0CB0FD08E4E"><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, 20 percent of the amount of the difference between the sales price and the amount of such claim (plus costs of sale and improvements), but not to exceed the amount of the allowed secured claim determined as if such claim had not been reduced under such subsection.</text> </paragraph></subsection><subsection id="HBF616049B9AF4F8E966101BF7C8F6F97"><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="H3E767EBF29AE460396B8A6E504E78B5E"><enum>(1)</enum><text>in a case commenced under this chapter after the expiration of the 15-day period beginning on the effective date of this subsection, unless—</text> <subparagraph id="H60F1203479124F3FA996F474E2E3D8C4"><enum>(A)</enum><text>the debtor certifies that the debtor attempted, not less than 15 days before the commencement of the case, 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; or</text> </subparagraph><subparagraph id="H6ACAF8DBBE98483BA2446C4EDB3EF817"><enum>(B)</enum><text>a foreclosure sale is scheduled to occur on a date in the 30-day period beginning on the date the case is commenced; and</text> </subparagraph></paragraph><paragraph id="H52F84A537FCF4A9FA96B67EFF76A52F5"><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="H3C018FF9790E411680C7E6338B7C88F7"><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="H7D393F0BB1FF49C0B76470B99AFA7651"><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><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="H3076D9BD2E1D480E946558046582D815" section-type="subsequent-section"><enum>103.</enum><header>Combating excessive fees</header><text display-inline="no-display-inline">Section 1322(c) of title 11, the United States Code, is amended—</text> <paragraph id="HD56DBF867BD646DAA249ED0DEC2D9B78"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1) by striking <quote>and</quote> at the end,</text> </paragraph><paragraph id="HEAD3D61CE01F44F3B58E126A447830B8"><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="HCC200B65476844EEAD5868A27E29102B"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HE5DF16578B2949EA816BC4B1C3BF16BF" style="OLC"> <paragraph id="HAE84F1AC7E14470BB56FD14B0B96DCD4"><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="H353E31A2A81849DAA681FB1265F3F148"><enum>(A)</enum><text>the holder of the claim for such debt files with the court (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="HC5E8F748F5C742899CB571A5557380BA"><enum>(i)</enum><text>1 year after such fee, cost, or charge is incurred; or</text> </clause><clause id="H6F755E29D5234DA08C1ACAC122AE1392"><enum>(ii)</enum><text>60 days before the closing of the case; and</text> </clause></subparagraph><subparagraph id="HBD323B779B9949B8B91E31943FD10858"><enum>(B)</enum><text>such fee, cost, or charge—</text> <clause id="HDC9811F5EB5244CAB66B9AAE776AA807"><enum>(i)</enum><text>is lawful under applicable nonbankruptcy law, reasonable, and provided for in the applicable security agreement; and</text> </clause><clause id="HB8C665BE310E4FEBAFD2B47A0F57710C"><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="HCF400B1FE1664EB2BE4027834E8B7210"><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="HC43405453087470C9B9D8C0E95A79108"><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="H80A7882E7D8049909B1F98D4574945B6"><enum>104.</enum><header>Confirmation of plan</header><text display-inline="no-display-inline">Section 1325(a) of title 11, the United States Code, is amended—</text> <paragraph id="H62071A2E573E4059954781E77D362FE1"><enum>(1)</enum><text>in paragraph (8) by striking <quote>and</quote> at the end,</text> </paragraph><paragraph id="HB00394A4DAD04340B55947CF8CC3EC74"><enum>(2)</enum><text>in paragraph (9) by striking the period at the end and inserting a semicolon, and</text> </paragraph><paragraph id="H95490B9B90054CA7B927044143BD5C2F"><enum>(3)</enum><text>by inserting after paragraph (9) the following:</text> <quoted-block id="HA46555DC2E724D4C8A96C2A047BC372A" style="OLC"> <paragraph id="H129DCC9ADF504C9C9A2E988B335CC0BC"><enum>(10)</enum><text>notwithstanding subclause (I) of paragraph (5)(B)(i), the plan provides that the holder of a claim whose rights are modified pursuant to section 1322(b)(11) retain the lien until the later of—</text> <subparagraph id="HD53612372F3043E0BF50C3E5690F124B"><enum>(A)</enum><text>the payment of such holder’s allowed secured claim; or</text> </subparagraph><subparagraph id="H21156D8B18F44BB49723EE52814BEF5D"><enum>(B)</enum><text>discharge under section 1328; and</text> </subparagraph></paragraph><paragraph id="HF1E0EE4C15A546EEBBB9F4AA740B3A8C"><enum>(11)</enum><text display-inline="yes-display-inline">the plan modifies a claim in accordance with section 1322(b)(11), and the court finds that such modification is in good faith.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H81E7F69E9C9F4517BD374F90B4DD9EA2"><enum>105.</enum><header>Discharge</header><text display-inline="no-display-inline">Section 1328 of title 11, the United States Code, is amended—</text> <paragraph id="H80E55D7924ED4A76B49843692FEE5B85"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HC859D35E86C14211A97C5AB438A6702A"><enum>(A)</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> the 1st place it appears, and</text> </subparagraph><subparagraph id="H37AFCF869EC24006A27C2005E197F82B"><enum>(B)</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>, and</text> </subparagraph></paragraph><paragraph id="H66F2B6E51D964ED180A88B038B06104A"><enum>(2)</enum><text>in subsection (c)(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="H3EBB487167DB45E2853BAF76AFDD7201"><enum>106.</enum><header>Effective date; application of amendments</header> <subsection id="HFE16CD14CC624AE1B6B0A7F439A42E74"><enum>(a)</enum><header>Effective date</header><text>Except as provided in subsection (b), this title and the amendments made by this title shall take effect on the date of the enactment of this Act.</text> </subsection><subsection id="H995D9F540DFE4D1281FA62DA950ECBE3"><enum>(b)</enum><header>Application of amendments</header> <paragraph id="H99B3DDDD858A4ED2A4EBD900161468D8"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this title 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="HEDC0178FE8AC4BDE9922C74BEE2FC0F6"><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>

Short title

This Act may be cited as the

Bankruptcy Equity Act of 2012

<enum>I</enum><header>Amendments to Title 11 of the United States Code</header> <section display-inline="no-display-inline" id="H6EEEB0521B2F4980AF75891B78FB13C8"><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="H064F56089442467C9806CB3355C0D517"><enum>(1)</enum><text>by adding at the end of subsection (e) the following:</text> <quoted-block display-inline="yes-display-inline" id="HA117DCBDD65345B4B7C397FF7197071F" style="OLC"> <text>For purposes of this subsection, the computation of debts shall not include the secured or unsecured portions of—</text><paragraph id="H7BFA32C3742F46E98FF1F2443DA47BD1"><enum>(1)</enum><text>debts secured by the debtor’s principal residence if the current value of that residence is less than the secured debt limit; or</text> </paragraph><paragraph id="HB3DDA254B71D4415BCB1107AB0071935"><enum>(2)</enum><text>debts secured or formerly secured by real property that was the debtor’s principal residence that was sold in foreclosure or that the debtor surrendered to the creditor if the current value of such real property is less than the secured debt limit.</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HE5091364C5B44EDFB7BC9D74DB48C5AE"><enum>(2)</enum><text>by adding at the end of subsection (h) the following:</text> <quoted-block display-inline="no-display-inline" id="H8FC1DF5917534B6A8ADF1D7905B4A75A" style="traditional"> <paragraph id="HA51889718C144D2AB7403E08655A14EE" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">The requirements of paragraph (1) shall not apply in a case under chapter 13 with respect to a debtor 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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="H96ABA18F68C44B2FBC80A4819B77DED8" section-type="subsequent-section"><enum>102.</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="HC99B8D343477445187C142EEBA514E9E"><enum>(1)</enum><text>in subsection (b)—</text> <subparagraph id="H59C930ECFBD64F4B918CC9CF847CB128"><enum>(A)</enum><text>by redesignating paragraph (11) as paragraph (12),</text> </subparagraph><subparagraph id="HBA3AA63C366A4E2092CE07CFF15BBB36"><enum>(B)</enum><text>in paragraph (10) by striking <quote>and</quote> at the end, and</text> </subparagraph><subparagraph id="HA469895F04F44B088FF013C80EDE2B16"><enum>(C)</enum><text>by inserting after paragraph (10) the following:</text> <quoted-block id="H0F25FBBFDBA84C15A8721121C687A5E6" style="OLC"> <paragraph id="HAA742222A97042F9A03E17844E87E64B"><enum>(11)</enum><text display-inline="yes-display-inline">notwithstanding paragraph (2) and otherwise applicable nonbankruptcy law, 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="H4F6A266D82E2435AB77CCF359D5D2244"><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="H5EC5C5E9BD1241229613FC9DD43B120E"><enum>(B)</enum><text display-inline="yes-display-inline">if any applicable rate of interest is adjustable under the terms of such security interest 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="HF1F4E680C8D149D7AF1E142F8E1D5E6D"><enum>(C)</enum><text>by modifying the terms and conditions of such loan—</text> <clause commented="no" id="H48F3116E7C114B4EBCC871ABC54958A8"><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="HF75CABD7042A4893B7FB848427D0ABB6"><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="HC4547177B72741D69B1DFA9E4E0A01E4"><enum>(D)</enum><text>by providing for payments of such modified loan directly to the holder of the claim; and</text> </subparagraph></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H3696794F95D04CE78B290778A50AE643"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H7B13F050C65F4DEE859481DE47F6F9C2" style="traditional"> <subsection id="HC63EAC9B19EC47DFA1785C1EAC9F5F0B"><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 receiving a discharge under this chapter and receives net proceeds from the sale of such residence, then the debtor agrees to pay to such holder—</text> <paragraph id="H0AECE310CFAF4028A46F5D2B4C7BAA33"><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, 80 percent of the amount of the difference between the sales price and the amount of such claim (plus costs of sale and improvements), but not to exceed the amount of the allowed secured claim determined as if such claim had not been reduced under such subsection;</text> </paragraph><paragraph id="HB71D5D8080C243F0824839DD538D1220"><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, 60 percent of the amount of the difference between the sales price and the amount of such claim (plus costs of sale and improvements), but not to exceed the amount of the allowed secured claim determined as if such claim had not been reduced under such subsection;</text> </paragraph><paragraph id="HDA2C4A48AC3D4996A6F4D4719DFFB6BC"><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, 40 percent of the amount of the difference between the sales price and the amount of such claim (plus costs of sale and improvements), but not to exceed the amount of the allowed secured claim determined as if such claim had not been reduced under such subsection; and</text> </paragraph><paragraph id="H0D56E58D324D41D49744E0CB0FD08E4E"><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, 20 percent of the amount of the difference between the sales price and the amount of such claim (plus costs of sale and improvements), but not to exceed the amount of the allowed secured claim determined as if such claim had not been reduced under such subsection.</text> </paragraph></subsection><subsection id="HBF616049B9AF4F8E966101BF7C8F6F97"><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="H3E767EBF29AE460396B8A6E504E78B5E"><enum>(1)</enum><text>in a case commenced under this chapter after the expiration of the 15-day period beginning on the effective date of this subsection, unless—</text> <subparagraph id="H60F1203479124F3FA996F474E2E3D8C4"><enum>(A)</enum><text>the debtor certifies that the debtor attempted, not less than 15 days before the commencement of the case, 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; or</text> </subparagraph><subparagraph id="H6ACAF8DBBE98483BA2446C4EDB3EF817"><enum>(B)</enum><text>a foreclosure sale is scheduled to occur on a date in the 30-day period beginning on the date the case is commenced; and</text> </subparagraph></paragraph><paragraph id="H52F84A537FCF4A9FA96B67EFF76A52F5"><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="H3C018FF9790E411680C7E6338B7C88F7"><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="H7D393F0BB1FF49C0B76470B99AFA7651"><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><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="H3076D9BD2E1D480E946558046582D815" section-type="subsequent-section"><enum>103.</enum><header>Combating excessive fees</header><text display-inline="no-display-inline">Section 1322(c) of title 11, the United States Code, is amended—</text> <paragraph id="HD56DBF867BD646DAA249ED0DEC2D9B78"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1) by striking <quote>and</quote> at the end,</text> </paragraph><paragraph id="HEAD3D61CE01F44F3B58E126A447830B8"><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="HCC200B65476844EEAD5868A27E29102B"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HE5DF16578B2949EA816BC4B1C3BF16BF" style="OLC"> <paragraph id="HAE84F1AC7E14470BB56FD14B0B96DCD4"><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="H353E31A2A81849DAA681FB1265F3F148"><enum>(A)</enum><text>the holder of the claim for such debt files with the court (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="HC5E8F748F5C742899CB571A5557380BA"><enum>(i)</enum><text>1 year after such fee, cost, or charge is incurred; or</text> </clause><clause id="H6F755E29D5234DA08C1ACAC122AE1392"><enum>(ii)</enum><text>60 days before the closing of the case; and</text> </clause></subparagraph><subparagraph id="HBD323B779B9949B8B91E31943FD10858"><enum>(B)</enum><text>such fee, cost, or charge—</text> <clause id="HDC9811F5EB5244CAB66B9AAE776AA807"><enum>(i)</enum><text>is lawful under applicable nonbankruptcy law, reasonable, and provided for in the applicable security agreement; and</text> </clause><clause id="HB8C665BE310E4FEBAFD2B47A0F57710C"><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="HCF400B1FE1664EB2BE4027834E8B7210"><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="HC43405453087470C9B9D8C0E95A79108"><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="H80A7882E7D8049909B1F98D4574945B6"><enum>104.</enum><header>Confirmation of plan</header><text display-inline="no-display-inline">Section 1325(a) of title 11, the United States Code, is amended—</text> <paragraph id="H62071A2E573E4059954781E77D362FE1"><enum>(1)</enum><text>in paragraph (8) by striking <quote>and</quote> at the end,</text> </paragraph><paragraph id="HB00394A4DAD04340B55947CF8CC3EC74"><enum>(2)</enum><text>in paragraph (9) by striking the period at the end and inserting a semicolon, and</text> </paragraph><paragraph id="H95490B9B90054CA7B927044143BD5C2F"><enum>(3)</enum><text>by inserting after paragraph (9) the following:</text> <quoted-block id="HA46555DC2E724D4C8A96C2A047BC372A" style="OLC"> <paragraph id="H129DCC9ADF504C9C9A2E988B335CC0BC"><enum>(10)</enum><text>notwithstanding subclause (I) of paragraph (5)(B)(i), the plan provides that the holder of a claim whose rights are modified pursuant to section 1322(b)(11) retain the lien until the later of—</text> <subparagraph id="HD53612372F3043E0BF50C3E5690F124B"><enum>(A)</enum><text>the payment of such holder’s allowed secured claim; or</text> </subparagraph><subparagraph id="H21156D8B18F44BB49723EE52814BEF5D"><enum>(B)</enum><text>discharge under section 1328; and</text> </subparagraph></paragraph><paragraph id="HF1E0EE4C15A546EEBBB9F4AA740B3A8C"><enum>(11)</enum><text display-inline="yes-display-inline">the plan modifies a claim in accordance with section 1322(b)(11), and the court finds that such modification is in good faith.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H81E7F69E9C9F4517BD374F90B4DD9EA2"><enum>105.</enum><header>Discharge</header><text display-inline="no-display-inline">Section 1328 of title 11, the United States Code, is amended—</text> <paragraph id="H80E55D7924ED4A76B49843692FEE5B85"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HC859D35E86C14211A97C5AB438A6702A"><enum>(A)</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> the 1st place it appears, and</text> </subparagraph><subparagraph id="H37AFCF869EC24006A27C2005E197F82B"><enum>(B)</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>, and</text> </subparagraph></paragraph><paragraph id="H66F2B6E51D964ED180A88B038B06104A"><enum>(2)</enum><text>in subsection (c)(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="H3EBB487167DB45E2853BAF76AFDD7201"><enum>106.</enum><header>Effective date; application of amendments</header> <subsection id="HFE16CD14CC624AE1B6B0A7F439A42E74"><enum>(a)</enum><header>Effective date</header><text>Except as provided in subsection (b), this title and the amendments made by this title shall take effect on the date of the enactment of this Act.</text> </subsection><subsection id="H995D9F540DFE4D1281FA62DA950ECBE3"><enum>(b)</enum><header>Application of amendments</header> <paragraph id="H99B3DDDD858A4ED2A4EBD900161468D8"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this title 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="HEDC0178FE8AC4BDE9922C74BEE2FC0F6"><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><enum>II</enum><header>Related Mortgage Modification Provisions</header> <section id="H246BFC4E946048719F2BFBBF9EAC9F34"><enum>201.</enum><header>Adjustments as a result of modification in bankruptcy of housing loans guaranteed by the Department of Veterans Affairs</header> <subsection id="H8E8CE115DE0B4DE389FD62AAC6499A56"><enum>(a)</enum><header>In general</header><text>Section 3732 of title 38, United States Code, is amended—</text> <paragraph id="H93386FD3C84244928FC920AA2C0E39B7"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H8610D321293F4B7D9D7FD025D6E1EE8D"><enum>(A)</enum><text>by redesignating paragraph (2) as subparagraph (A) of paragraph (2), and</text> </subparagraph></paragraph><paragraph id="H66F8F6260D2A43CEAB0488BF961052E0"><enum>(2)</enum><text>by inserting after subparagraph (A) the following new subparagraph:</text> <quoted-block id="HB7B1731E943F4CFBAB335136AAC4B9AD" style="OLC"> <subparagraph id="HF72319BAB88B4E138DA554FCC4B91F64"><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="H85FB77CF87934398A0EBB1276362D4FB"><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="H96FF8948B11B4448925F8DE312190EC3"><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="HF103E0A3FC094A9E922DE20F61052D71" section-type="subsequent-section"><enum>202.</enum><header>Payment of FHA mortgage insurance benefits</header> <subsection id="H734E809AB7BF40B492792DA861E254E8"><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="H2F8FB0494D4B4DF69CAD410328E492CB"><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="HA974509773D845B6AE2B85616E64E411" style="OLC"> <subparagraph id="H4722674BCA8544458BA8F64AFD3DD899"><enum>(E)</enum><header>Modification of mortgage in bankruptcy</header> <clause id="HE86362E0F6E94429A3BFD6C880540472"><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="H60E25CD2AFF243AD9C942D4E87592627"><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="H1CFB84027EEA4BFFB5D05A07298E332E"><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="HAC306B590B114ADB82A776330275BD4E"><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="H7AE7197A20B3453591A051534425137F"><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="HF0555457BAAC4D3C96AC719604A00F30"><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="HF8A1FB79C9E54CD89C47AB9A241FC983"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H4E48F1B116D940C2891105BF43DBD137" style="OLC"> <paragraph id="H106B646A6B5747E8B77033E3C19534F6"><enum>(10)</enum><header>Loan modification program</header> <subparagraph id="H1E4A4365F12D488F9FD4C3760D27F8D6"><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="H5C1BF86DB3214144995A37B21B93E7E8"><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="H0A336DAD26044A3785E25677EE9CBC74"><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="H981A13C0671C46D5850942755C1B442E"><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="H9A9DA3CF66AD42C1BE9CA31CBD1D37BC"><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="HB8289C2A26E8408E988F34C41B9B2232"><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="HA818446E63F840D79B98FA2DF6456F9C"><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="HD7EEB1522B0E44009408ABBB6DE0C5F7"><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="HC07B087D3CA849BCB96B294E088EA8A8"><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="H027A8F39C89743A7AF9406D34A67AB2C"><enum>203.</enum><header>Adjustments as result of modification of rural single family housing loans in bankruptcy</header> <subsection id="H0D28E3FBE2044E5D802655E9ABD47F07"><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="H8A69BE69D748448FA6CB7543A5969491"><enum>(1)</enum><text>in paragraph (7)—</text> <subparagraph id="H760CED97888A469089231963B70C8F86"><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="HACB4663C59C04F099C33D600C1B8E1BD"><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="H5DDE6403FAF243B99E26B70D03BA225E"><enum>(2)</enum><text>by redesignating paragraphs (13) and (14) as paragraphs (14) and (15), respectively; and</text> </paragraph><paragraph id="H52368145B9DC477AB5B4F180500E4B7A"><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="HC9732598FC7847B680192359DE8333C2" style="OLC"> <paragraph id="HF4D0DAA5C5E247C58E49DE96C963DAAC"><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="H63F39E310B9D49749C648B3DAD7E0991"><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="H91106F14A0C346DE8DECA8282B5D52AA"><enum>(1)</enum><text>by redesignating paragraphs (2) through (7) as paragraphs (3) through (8), respectively; and</text> </paragraph><paragraph id="H08667DC4C9844503ACA660F51685FDE8"><enum>(2)</enum><text>by inserting after paragraph (1) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HD3437549FFBC4D4FBF8014AA2B4C22E9" style="OLC"> <paragraph id="H48DFC468040D4065A1DC76FF987090B0"><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="HC2898BE878FA4D2FBB29173521E8A468"><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>