[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 190 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 190

 To require the filing of certain information regarding a residential 
      mortgage in any proceeding for foreclosure of the mortgage.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2013

  Ms. Kaptur 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 2013''.

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 all other 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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